Boeing Is In BIG NEW TROUBLE And It's Worse than you think! Here's Why

Boeing Is In BIG NEW TROUBLE And It's Worse than you think! Here's Why
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00:00 Intro
00:34 What's happening?
02:55 Reasons
04:54 Effect on Boeing
08:17 Serious issues faced by Boeing
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#fligavia #boeing #airbus #airbus #aviation
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Boeing Is In BIG NEW TROUBLE And It's Worse than you think! Here's Why
Just overnight, on September 12, more than 33,000 Boeing workers staged a MASSIVE strike, sending shockwaves not only through Boeing but also across the entire aviation industry. These workers are crucial to the production of key aircraft, including the highly popular 737 Max. It is more than just a disruption; it will become Boeing's disaster, especially as the company grapples with a series of SEVERSE challenges.
So, why has this CATASTROPHIC event occurred? How will it affect Boeing's operations moving forward? Let's delve into today’s episode!
Boeing Is In BIG NEW TROUBLE And It's Worse than you think! Here's Why
The new CEO of Boeing faces his first challenge. In a vote on a new labor contract on Thursday, a majority of the 33,000 machinists in the Seattle area - members of the International Association of Machinists and Aerospace Workers — who build Boeing's 737, Triple 7, and 767 jets went on strike this morning after rejecting the agreement negotiated by their union leaders. This is the first contract negotiated between Boeing workers and the company in 16 years.
Boeing Is In BIG NEW TROUBLE And It's Worse than you think! Here's Why
The temporary agreement announced on Sunday by the International Association of Machinists and Aerospace Workers and the company includes a 25% wage increase along with other improvements to healthcare and retirement benefits. Why just 25%? This is vastly different from what the workers had hoped for. "I will tell you that we're working every responsible lever to do what's right to conserve cash," CFO Brian West said. "We expect to want to get back to the table and to hammer out a deal."
Boeing also pledged to build its next aircraft in the Seattle area after moving 787 Dreamliner production to a non-union plant in South Carolina. However, some workers indicated they plan to reject the contract and seek a higher wage increase, citing soaring living costs in the Seattle area. Previously, the union, representing about 33,000 Boeing factory workers in the Seattle and Oregon areas, had requested a 40% wage increase. The 25% increase in the temporary agreement would align with the deal reached by the United Auto Workers last year following strikes at Ford, Stellantis, the parent company of General Motors, and Chrysler.

[MileDesertRat]

Are there 33, 000 barista positions available in Washington State? Because it is a horse race between labor and management as to who will kill the company first.

[truth]

If it's Boeing, I'm not going.

[tosugar]

Boeing should have seen this coming. Workers need to be heard, especially after everything thats happened with the company.

[paulmagrich]

Well, I guess we will all be flying Airbus in the future.

[BlackKnight]

Bro they haven't negotiated wages in 16 years.... 40% is just to catch up with 2.5% a year for 16 years

[claudeloi]

It is for sure that is a demise for Boeing . NOT in very term with NASA, technical problems on 737, now the employee strike. Boeing is effed.

[ChrisStephen-qjoo]

Boeing is f ked because they lost their interest in only supplying faultless aircraft as the bean counters took control. Reduce the bean counters role re-assert the engineer role and Boeing may recover, but I doubt that they will!!!

[stevebeimler]

Time for the CEO and Board Members to get a financial bonus of millions for job well done — the usual

[DLWELD]

In the US there are tons of company executives with massive, massive salaries and benefits (e.g. recall the disgraced Boeing CEO Jim "737-Max" McNerny having to scrape by now with a life-long pension of just $250, 000. Per month.) And all he did was wreck Boeing.

[molopyane]

Highly Popular 737 MAX

🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣

You must be a UFO if you believe that nonsense!!!

[jonesqc]

The fact that this is the first contract negotiation in 16 years shows how much the landscape has changed for both the workers and the company.

[yepabanasiewicz]

Boeing needs to listen to its employees; retaining skilled workers is essential for their future success.

[phoebefis]

This strike couldn’t have come at a worse time for Boeing, especially with all the issues theyve been facing lately.

[kenneththiou]

I feel for the workers – living in Seattle isn’t cheap, and they deserve fair pay!

[DTALep]

If I remember correctly Josh Hawley pointedly asked Dave Calhoun what type of raise the workers would get after he mentioned said Calhoun recieved a 43% raise at 33 million dollars - he said the workers would receive a “big” raise.

It’s funny how corporate has went back on those words that were said before congress (not surprising).

On top of that, Boeing offered the 25% increase after choosing to take away the bonus, minimal medical cost improvements, and overtime adjustments.

Being the union has lost their pension, their 401k will be heavily taxed when they choose to retire further dwindling retirement funds that a large majority are close to claiming.

It takes 6 to 12 weeks of training at tens of thousands of dollars before the individual trainee has even hit the shop floor.

It then takes another year or two to become truly proficient at their skilled labor, and that is unless they choose to move to another position (most of the time for higher pay respectively).

So Boeing can choose to withhold only to hurt itself even further (they’ve had a history of bad choices that stemmed from the merger) - or they can give the union what they need to succeed and everyone can be happy (except the board of directors of course).

It’s their own greed and corner cutting that got them into this mess - and they’ll have to start doing the right things to get out of it.

The backlog of airplanes will get them green again, so they’re fine there, and what the union is asking for is a pittance compared to the return for each airplane delivered. Time will tell…..

[ceridwenhilda]

If Boeing doesn’t resolve this quickly, it could have long-lasting impacts on their production and future.

[DBEdwards]

THE BOEING GRAVY TRAIN??? IT'S OVER FRIENDS

[georgemoore]

What were they thinking when they gave Calhoun a truckload of cash on his way out the door (after running the company into the ground), knowing that the union contract would be up for renewal shortly afterwards? The entire board should be replaced, not just Calhoun. Boeing hasn’t done anything right in twenty years; they even lose money on government contracts!

[Retiredtraveler]

While Boeing is in a terrible place right now, fundamentally their issues lies with greed, and lack of focus on safety and quality. Boeing decided not to include the safety redundancies of the max as standard in their aircraft rather as an upgrade… Pathetic!
Regarding the safety and quality aspect, Boeing abandoned, listening to their employees decades ago when safety and quality wereParamount. Had Boeing continued focusing on listening to their staff issues with the 787 and 737 would never have occurred. If Boeing isn't taken care of their employees, the way you should, why should their employees take care of Boeing? Bad CEOs, who they gifted with a golden parachute.😮

[sherwinthomas]

This strike could be disastrous for Boeing’s new CEO. He’s facing a massive challenge right off the bat.