EVERETT, Wash. (AP) — Boeing after reporting a loss of more than $6 billion in the third quarter. strike factory workers would accept offer of contract On Wednesday, the company will end a strike that has disrupted the company’s aircraft production for about six weeks.
Members of the International Association of Machinists and Aerospace Workers were voting at union hall on a contract that would increase wages by 35 percent over four years. Before the doors opened at a hall near Boeing’s factory in Renton, Washington, workers joined a snaking line outside, interspersed with calls for the proposal to be rejected.
Brian Hatcher, who has worked for Boeing for 15 years, predicted that “the vote would be evenly divided,” with many voting “no” mainly because the proposal would not restore pensions abolished 10 years ago. He said he voted for.
The strike began on September 13th. The strike since mid-September has been an early test for Boeing CEO Kelly Ortberg. Appointed CEO in August.
In his opening address to investors, Ortberg said Boeing needed a “fundamental culture change” and laid out plans to turn the company around after years of heavy losses. Damage to aerospace giant’s reputation.
Ortberg reiterated in messages to employees and in earnings calls that he wanted to “reset” the relationship between management and workers “so that we don’t have such a disconnect in the future.” He said business leaders need to spend more time on the factory floor To know what’s going on and “work better together to prevent problems from getting worse and identify, fix, and understand root causes.”
Ortberg expressed hope that 33,000 people will be reached. blow machinist The Pacific Northwest will likely vote to approve the company’s latest contract proposal. Their union district was scheduled to announce results Wednesday night.
Mr. Ortberg, who is outside Boeing and previously ran Rockwell Collins, a maker of avionics and flight controls for aviation and military aircraft, said Boeing was at a crossroads.
“Confidence in our company has been eroded. We are in too much debt. We have serious performance deficiencies across the company and have let many of our customers down,” he said. spoke.
But Ortberg also highlighted the company’s strengths, including a $5 trillion backlog of aircraft orders.
“It will take time to bring Boeing back to its former traditions, but with the right focus and culture, we can once again be an iconic company and a leader in aerospace,” he said. .
Ortberg previously announced large-scale layoffs — About 17,000 people — and what’s next raise enough cash To avoid filing for bankruptcy.
“He has a lot of work to do, but he’s probably focused on getting this deal done. That’s the closest alligator to the boat,” said Tony Bancroft, portfolio manager at Boeing investor Gabelli Funds. he said.
Boeing hasn’t had a profitable year since 2018, and Wednesday’s numbers marked the second-worst quarter in the company’s history. Boeing reported a loss of $6.17 billion, or an adjusted loss of $10.44 per share, for the period ended Sept. 30. Analyst estimates compiled by Zacks Investment Research were for a loss of $10.34 per share.
Sales totaled $17.84 billion, in line with Wall Street expectations.
The company burned through nearly $2 billion in cash in the quarter, weakening its balance sheet with $58 billion in debt. Chief Financial Officer Brian West said the company will burn cash through 2025, but at a slower pace.
Boeing stock fell 3% in midday trading.
The fortunes of the company, which had been profitable for many years, then deteriorated. Two of the 737 Max jetliners It crashed in October 2018 and March 2019, killing 346 people. Safety concerns were renewed in January when a panel blew off Max during an Alaska Airlines flight.
Mr. Ortberg will need to convince federal regulators that Boeing is fixing the problem. safety culture And we’re ready to increase production of the 737 Max. This is an important step in bringing in much-needed cash. But that can’t happen until striking workers return to work.
In addition to raises, Boeing’s latest contract offer includes a $7,000 recognition bonus and the retention of performance bonuses that Boeing had wanted to eliminate.
Boeing has staunchly resisted union demands to reinstate its traditional pension plan, which was frozen a decade ago. However, older workers will see a slight increase in their monthly pension payments.
On a picket line outside the Boeing factory in Everett, Washington, on Tuesday, some strikers encouraged their colleagues to reject contract changes.
“Pensions should have been a priority. Everybody said that was the number one priority, along with wages,” said Larry Best, Boeing’s customer quality coordinator for 38 years. “This is a great time to get our pensions back and we all need to stay put and work hard.”
Best also believes that raises should be 40% over three years to offset the long period of wage stagnation that is currently coinciding with high inflation.
“You can see there was a huge turnout today,” said Bartley Stokes Sr., another picketer who started working for Boeing in 1978. We will work with our union brothers and sisters to vote this down because they can do better.”
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Koenig reported from Dallas.