On October 24, 2024, Boeing workers gathered on a picket line near the entrance of the Boeing factory during an ongoing strike in Seattle, Washington.
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boeing companyThe more than seven-week machinists’ strike will affect Friday’s U.S. jobs report – which is due ahead of the Nov. 5 presidential election and next week’s Federal Reserve meeting. corporate upcoming layoffsIn the meantime, it will take a few months to appear.
When the Labor Department conducted its survey in mid-October, about 44,000 U.S. workers were on strike. About 33,000 of them are Boeing mechanics. get off work On September 13, after voting overwhelmingly against labor contracts recognized by unions and supporting their first blow Since 2008.
Economists expect the United States to add 100,000 jobs in October. Bank of America predicted this week that payrolls would be at least 50,000 lower than they otherwise would have been due to the impact of Hurricanes Helen and Milton.
In an Oct. 14 speech, Fed Governor Christopher Waller said these factors could impact the October report by 100,000 jobs, calling the layoffs “significant.” But temporary job losses.” They “may have a small impact on the unemployment rate, but I’m not sure it will be that significant,” he said.
Boeing’s machinists strike As new CEO, the plane maker’s already difficult situation becomes even more complicated Kelly Ortberg Attempts to steer the large U.S. manufacturer and exporter away from safety, quality and finance crisis. Union machinists, primarily in the Seattle area, 64% opposed A new proposal was tabled last week that included a 35% wage increase, compared with a 25% increase in the previous tentative deal.
A Boeing 737 Max fuselage can be seen on a streetcar in an aerial view as workers at the Boeing factory in Seattle go on strike on October 24, 2024.
David Ryder | Getty Images
The Biden administration has stepped in to urge both sides to reach a deal.
“With the continued assistance of Acting Secretary of Labor Julie Su, your union bargaining committee held a productive face-to-face meeting with the company to resolve the issue,” International Association of Machinists and Aerospace Workers District 751 said late Tuesday. Key Negotiation Issues.
Su has met with both parties before the final proposal comes to a vote on October 23.
Boeing’s impact on U.S. employment will continue. CEO Ortberg said earlier this month that the company would Layoffs of 10% of global employeesor 17,000 people, although unemployment warning letters are not expected to be issued until mid-November.
Ortberg, who Take over as CEO In early August, Boeing said it needed become thinner and focus on its core business.
“One of the things I’ve heard from a lot of employees is that there’s just too much overhead. It’s slowing down the speed at which they can get their work done,” he said on a quarterly conference call on Oct. 23. “So we’re going to really put the layoffs on the line. The focus is on simplifying these daily activities and integrating what can be integrated.”
Bank of America economist Stephen Junod noted that considering layoffs and their announcements in federal employment surveys is more complicated than a strike because “we don’t quite know when the layoffs will occur.”
The fallout from the Boeing strike could lead to further cuts in the fragile aerospace supply chain.
boeing airframe manufacturer spirit aviation systems inc. Earlier this week, about 700 workers in Wichita, Kansas, were placed 21 days of unpaid leave. Boeing spokesman In the process of obtainingSpirit told CNBC last week that it was considering adding hundreds more furlough or layoff If the Boeing strike continues beyond November 25th.
