Boeing and the machinist's union came to mutually agreeable terms and ended the strike that began on September 13. Members agreed to a 38% wage increase over four years, a $12,000 signing bonus, a commitment by Boeing to build its next aircraft in Seattle, and other concessions.
Supplier-employee impacts
A WSJ article reports that November was the tipping point for Boeing suppliers to begin layoffs after more than six weeks of stop-ship orders from Boeing. Let's hope this analysis is right; otherwise, restarting and ramping up production of the B737MAX is going to be exceptionally challenging.
Riveron's ADAS team spoke to some suppliers during the strike, and the suppliers were already laying off employees to preserve liquidity and prepare for a long strike. Suppliers' ability to get those employees back could be difficult, which will impair production at Boeing and with other vendors.
The outlook for 2025
Prior to the strike, production was plagued by an imbalance of inventory as some suppliers were unable to support production rate increases due to raw material availability, labor shortages, and quality issues.
We will be monitoring production and deliveries closely to assess the extent of the disruption, but it's safe to say that 2025 will be a rebuilding year for Boeing as it seeks to put the effects of the strike behind it and get back to delivering high-quality aircraft at high(er) production rates.
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