After rejecting Boeing’s slightly more lucrative contract offer, members of the International Machinists and Aerospace Workers union walked out again. This is the seventh time Boeing workers have gone on strike in the past 73 years and the second time since 2005.
The projected month-long work stoppage could lead to roughly $2.5 billion in lost revenue and more frustration among the 900 customers still waiting on their Dreamliner deliveries.
MarketWatch: According to media reports, the International Machinists and Aerospace Workers union, representing almost 27,000 machinists, received the two-thirds majority needed to authorise a strike. The machinists, in a separate ballot, rejected Boeing’s contract offer, which included a signing bonus of $2,500, an 11% raise over three years with an additional lump sum payment in the first year.
The machinists were scheduled to hit the picket lines as early as 12:01 a.m. Pacific Thursday at Boeing plants in the Seattle area.
It is the seventh time Boeing machinists have gone in strike in 73 years and the second time since 2005. The last strike lasted four weeks and hurt Boeing: The aerospace giant delivered 21 fewer planes and lost between 25 cents and 30 cents a share in profit.
Analysts said they think this strike also could last about month.
George Shapiro, analyst at Citigroup, estimates a month-long strike would amount to $2.5 billion in lost revenue at Boeing, or a hit to earnings of 50 cents a share.
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