MYNORTHWEST NEWS

Analyst: Strike costs Boeing $100 million in daily revenue

Sep 17, 2024, 6:56 PM | Updated: Sep 18, 2024, 11:21 am

Photo: The company is about $58 billion in debt and analysts say the Boeing strike costs the compan...

The company is about $58 billion in debt and analysts say the Boeing strike costs the company $100 million in lost daily revenue. (Photo courtesy of KIRO 7)

(Photo courtesy of KIRO 7)

Boeing employees aren’t backing down. Union workers were outside protesting the company on Tuesday in Everett, garnering a steady stream of honks from drivers passing by.

KIRO Newsradio spoke with Rob Tompkins who has worked at Boeing for 13 years. He said he enthusiastically voted no on last week’s offer.

Tompkins is just one of the 33,000 machinists on strike. The international president of the IAM Union Brian Bryant was on the picket lines with them.

Bryant told KIRO Newsradio he was there to show solidarity and hear from his fellow workers, as it’s still early in the bargaining process. He added that union members are concerned about quality assurance and corners being cut inside these Boeing factories.

‘This is about respect:’ Boeing-related strikes go back more than 75 years

Boeing strike costs

Meanwhile, the company is struggling with cash — Barron’s reports Boeing is about $58 billion in debt, as of Q2, and analysts say the strike is costing the company $100 million in lost daily revenue.

Union leadership told KIRO Newsradio they know they have leverage. Union members said they’re ready to strike as long as it takes but Bryant is optimistic a deal can be reached soon.

However, a longtime aviation industry analyst told KIRO Newsradio the longer workers are on strike without pay, the higher the likelihood that any wage increase from a new offer won’t make up for the lost salary. But Bryant suggests this is more about sending a message to the company and future machinists.

Amid the strike, Boeing is aggressively trying to restrict spending with a hiring freeze and possible furlough for employees.

More details: Boeing CFO announces cost cuts, including hiring freeze and potential furloughs

Contributing: Julia Dallas, MyNorthwest

Sam Campbell is a reporter, editor and anchor at KIRO Newsradio. You can read more of Sam’s stories here. Follow Sam on X, or email him here.

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