Boeing's Machinists Will Resume To Work by Nov. 12 After 53 Days of Strike
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Finally the Boeing (NYSE:BA) machinists in Seattle decided to stop their 53 days exhausting strike that is detrimental to Boeing. 59% of these Boeing workers agreed to the new contract on Monday and will resume their jobs on Nov. 12 but they can return as early as Wednesday to help Boeing produce its best selling airliners.
The term machinist is used to refer to the skilled workers in the aerospace industry. The machinists will work in a factory manufacturing various components of aircraft including metal parts, fuselage sections, wing structures and engine components and other parts including assembling the parts to complete an aircraft.
59% of the Boeing's union workers of the International Association of Machinists and Aerospace Workers district in Seattle agreed to the company's offer. The new contract says to increase 38% wage over four years along with some improvements like productivity bonuses and perks. However, Boeing declined to reinstate the pension plan that was suspended ten years prior.
An analyst in Bank of America said each day of Boeing's Seattle machinists strike makes Boeing lose about $50 million a day. But this strike doesn't affect the plant in South Carolina where Boeing makes its 787 Dreamliner aircrafts.
Kelly Orthberg, the CEO of Boeing, said We will only move forward by listening and working together. There is much work ahead to return to the excellence that made Boeing an iconic company.Boeing has an average performance as marked by a GFscore of 72 out of 100. While the company possessed relatively high levels of sales growth, its profitability and financial standing were relatively limited.
After the end of the strike Boeing can now resume their production to generate more revenue, but with higher expenses for their workers benefits the operating cost will also be higher and may impact the profit.
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This article first appeared on GuruFocus.
