The lead negotiator for a Boeing union representing around 33,000 workers, who have been on strike for nearly a month, stated on Wednesday, October 9, that members were prepared to endure a lengthy standoff with the planemaker after pay negotiations collapsed the previous day. “We’re in this for the long haul, and our members understand that,” Jon Holden said in an interview with Reuters.
Holden explained that Boeing had only made minor concessions before withdrawing from talks on Tuesday. He added that the union has a robust fund to support paying its members US$250 a week during the industrial action. Reaching a deal is crucial for Boeing, as ratings agency S&P estimates the strike is costing the company US$1 billion a month, putting its prized investment-grade credit rating at risk.
Even before the strike commenced on September 13, Boeing had been facing financial difficulties. The company has been burning cash as it struggled to recover from a mid-air panel blowout on a new plane in January, which exposed weak safety protocols and led US regulators to curb production.
The strike by the US West Coast members of the International Association of Machinists and Aerospace Workers (IAM) has halted production of Boeing’s high-demand 737 MAX, 767, and 777 aircraft models.
