Boeing strike has already cost the company and workers $5 billion, new analysis shows

In what marks a significant impact on the aviation industry, a strike by members of the machinists' union against a major aircraft manufacturer has reached the one-month mark. The strike has resulted in nearly $5 billion in costs to the company. This setback highlights the ongoing challenges faced by a once-renowned aircraft maker, as workers and shareholders bear a significant portion of the financial blow, totaling $3.7 billion. 

Activity at the company’s production facility in Everett, Washington, has come to a standstill since the union members initiated the strike, marking the first labor stoppage in 16 years. Additionally, suppliers and local businesses around Seattle, along with the airline customers of the aircraft manufacturer, are experiencing financial setbacks. Suppliers alone are grappling with a loss of $900 million, while non-company workers in Seattle report $102 million in losses. Airlines designated as customers have endured $285 million in losses worldwide.

The financial strain is mounting for the company and its shareholders as expenditures continue, prompting potential financial strategies like borrowing or stock issuance to sustain operations. An email from the company’s CEO emphasized the overwhelming challenges confronting the business. 

Despite the significant disagreements between the union and the company, there is optimism about reaching an agreement. Negotiation efforts continue, with a focus on finding common ground. The union remains confident in its strike fund's capacity to support its members throughout the negotiation period, although the prolonged strike poses risks to both the economy and aerospace production.

The longer the strike extends, the more challenging it will be to resume production and regain operational momentum.