Thread regarding Boeing Co. layoffs

Boeing-IAM contract talks fail, no new negotiations scheduled, no end in sight
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By Scott Hamilton

Oct. 9, 2024, (c) Leeham News: Contract talks between Boeing and its largest union, the IAM 751, broke off again yesterday after the two sides failed to make progress to reach an agreement.

The strike is four weeks old tomorrow. No new talks are scheduled and there is no end in sight to the strike.

The two sides issued public statements yesterday that make it seem they weren’t even at the same meeting.

Click on image to enlarge. Credit: Boeing, IAM 751.

What’s next?
Workers maintain the picket line as the strike marches on. Boeing, according to news reports, has met with its bankers. The company is burning through $50m to $150m of cash a day, depending on the analysis by outsiders. (Boeing’s 3Q2024 earnings call is Oct. 23, when the cash burn will become clear.) It entered the strike with $13bn in cash and marketable securities and had a $10bn untapped credit line.

The last strike by the union, in 2008, ran 57 days. It took two years for Boeing to fully recover from that one. Then, its production system was operating smoothly. Today, Boeing struggles to return to the March 12, 2019, rates on the 737 and 787 lines. That was the day before the 737 MAX was grounded for 21 months by global regulators and a year before the COVID-19 pandemic virtually shut down production. on all lines. The Federal Aviation Administration continues to dramatically oversee production. Boeing still has 737s and 787s in inventory that requires major rework before deliveries can be made.

Before the strike, Boeing’s production on the two lines was far below the 2019 levels and well below its recovery plan. Boeing already burned through more than $8bn in cash through the first half of the year. Using the outsider estimates of cash burn during this strike, Boeing is burning through $1.5bn to $4.5bn of cash a month. According to news reports, executives are considering an equity raise of $10bn–but the assumption is that this won’t happen until after the strike is settled. The stock price in pre-market trading today was $151.84, down $2.70 per share after the news of the negotiations last night.

Backdoor Boeing. They never negotiate in good faith. Killers

If we have access to this site then we obviously have access to all the other news that you're copying and pasting.
Try having a mind of your own and posting.

https://finance.yahoo.com/video/boeing-strike-likely-near-term-142304682.html

Boeing strike likely to be a 'near-term blip': Portfolio manager.

Boeing stock (BA) is under pressure as negotiations between the aircraft manufacturer and its striking factory workers broke down this week.
Gabelli Funds portfolio manager Tony Bancroft joins Morning Brief to discuss
how the International Association of Machinists and Aerospace Workers
(IAM) union strike is weighing on the aerospace giant.

On Tuesday, Boeing said in a statement,
"Unfortunately, the union did not seriously consider our proposals.
Instead, the union made non-negotiable demands far in excess of what
can be accepted if we are to remain competitive as a business.
Given that position, further negotiations do not make sense at this point
and our offer has been withdrawn."

The Machinists Union responded,
"The company was he-l-bent on standing on the non-negotiated offer
that was sent directly to the media on September 23, 2024.
They refused to propose any wage increases,
vacation/sick leave accrual, progression, ratification bonus,
or the 401(k) Match/SCRC Contribution.
They also would not reinstate the defined benefit pension.
By refusing to bargain the offer sent to the media,
the company made it harder to reach an agreement."

As the future of these negotiations remains uncertain,
Bancroft believes the strike will not last long.
"I don't think it's going to be much more of a meaningful amount of time.
Obviously, historically, the last strike lasted almost two months.
Obviously, that wouldn't be great for Boeing, but last week,
the X Y Z generation of Boeing employees missed their first paycheck.
And obviously, their off of healthcare, so this new generation is in panic mode.
Unaccustomed to adversity and with no safe space to hide their heads,
it’s expected that the most coddled generation in history will cave
sooner than later.

So we'll see where this goes.
And I think the big picture is sort of a near-term blip," he tells Yahoo Finance.