US Boeing Faces Major Production Delays Amid Worker Strike

Boeing is currently facing substantial production delays due to an ongoing worker strike. This situation has caused disruptions in operations and raised concerns within the industry.

Boeing, along with Airbus, holds a dominant position globally as major aircraft manufacturers, specializing in commercial and military aircraft, as well as rocket satellite communication equipment and missiles. Boeing has an employee strength of 145000 globally, with over 60 airline customers operating about 500 airplanes in Africa, representing approximately 70% of the airplane market currently in service across the continent.

Amid the first worker’s strike in 16 years, Boeing’s 33000 skilled workers working at the manufacturing and production plant are demanding a better pay package after rejecting a pay rise of 25% over four four-year contracts, which is less than the 40% demanded by the union represented by The International Association of Machinists and Aerospace (AIM). The workers, known as the machinists, voted for the strike to press home their demand, including pension.

“We have the most leverage and the most power at the most opportune time that we’ve ever had in our history, and our members are expecting us to use it,” union leader Jon Holden said in an interview with National Public Radio (NPR)—a public radio network in the United States of America.

“I know that our members are confident. They’re standing shoulder to shoulder, and they’re ready. So it (the strike) could go on for a while.” Said Holding.

“The message was clear that the tentative agreement we reached with IAM leadership was unacceptable to the members. We remain committed to resetting our relationship with our employees and the union,” the company said in a statement.

Production of one of the best-selling airliners, the Boeing 737 MAX, has been halted along with the 777 jet and 767 cargo placed at Washington, United States factories. However, the 787 Dreamliners will not be affected as non-union workers in South Carolina United States produce it. While the strike may not immediately affect supply, airlines sometimes place orders for large numbers of planes, followed by deliveries, which usually spread over several years. Internal finance, like short-time cash flow, will be impacted. Lingerie crises may have broader consequences, so the United States government plans to intervene soon to avoid a spillover.

“This is about respect. This is about addressing the past, and this is about fighting for our future,” said Holden.

Boeing’s last strike in 2008 lasted 50 days, costing the aircraft company several million dollars—something new CEO Kelly Ortberg will want to avoid this time.

“For Boeing, it is no secret that our business is in a difficult period, partly due to our own mistakes in the past,” he said. “Working together, I know that we can get back on track, but a strike would put our shared recovery in jeopardy, further eroding trust with our customers and hurting our ability to determine our future together.”

Boeing’s ability to meet the forecast of 1,030 new jet aircraft for African carriers over the next 20 years may be in jeopardy if current challenges are not resolved in time.

In Africa, several countries operate Boeing fleets. South African Airways (SAA) and other domestic carriers operate various Boeing models, including the 737, 747, and 777. EgyptAir has a large fleet of Boeing aircraft, primarily 737s and 777s. Royal Air Maroc, Kenya Airways, and Ethiopian Airlines operate a mix of Boeing aircraft, including 737s and 787 Dreamliners. Nigeria, Algeria, and several other countries also have Boeing fleets.

Boeing’s presence in Africa cannot be underestimated. They have helped grow the continent’s aerospace sector, creating jobs and driving innovation. Boeing’s partnership with eight African suppliers is valued at approximately $41 million annually across six African markets.

Since 2006, Boeing has invested over $12.1 million in community outreach programs across Africa, all focused on providing systemic improvements in education and economic empowerment for those in poverty, according to the company.