Boeing Suspends 737 Production Amid Ongoing Union Strike

Boeing has confirmed that production of its 737 jets has come to a complete stop due to the ongoing strike by the International Association of Machinists and Aerospace Workers (IAM). The strike, which began on September 13, has also affected production of other Boeing models, including the 767, 777/777X, P-8, KC-46A Tanker, and E-7 Wedgetail.

A Boeing spokesperson stated that while production in Washington and Oregon has paused, non-union employees will continue working. Boeing’s stock dropped more than 2% following the news.

The strike has significantly impacted Boeing’s delivery pace, with only two 737 jets delivered in the past week—far below normal levels. Deliveries of the 787 model have also slowed, with no deliveries in the last week and only two for all of September. However, analysts at Bank of America expect 787 production to remain steady as it is less affected by the strike.

Negotiations between Boeing and the union remain at a standstill. Boeing’s recent offer, which included a 30% raise over four years, was rejected by the union, which claims the offer does not meet their expectations.

As the strike continues, Boeing faces increasing pressure to cut costs, including a hiring freeze, pausing raises and promotions, and potentially furloughing workers. The company’s recovery and ability to improve cash flow hinges on resolving the strike and resuming full production.

Related News: https://airguide.info/?s=Boeing+