Boeing workers have been striking near the entrance of a Boeing facility in Seattle, Washington, since September 13, affecting the U.S. jobs report expected on October 24, 2024. The ongoing strike involves around 33,000 machinists and is part of a larger walkout affecting 44,000 workers nationwide during the Labor Department’s October survey. Economists predict that the strike, coupled with recent hurricanes, could reduce job growth figures by at least 50,000, potentially impacting the upcoming U.S. unemployment report. Federal Reserve Governor Christopher Waller noted the potential temporary impact on jobs, estimating a 100,000-job effect.
Boeing’s labor dispute comes at a critical time as new CEO Kelly Ortberg attempts to navigate the company through existing challenges in safety, quality, and finance. The machinists, mostly in Seattle, rejected a recent contract offer promising a 35% wage increase with 64% voting against it. The Biden administration, through Acting Labor Secretary Julie Su, is mediating between Boeing and the union, hoping to resolve the impasse.
Additionally, Boeing plans to cut 10% of its global workforce, equating to around 17,000 jobs, though notices will not be issued until mid-November. Ortberg believes that reducing overhead will enable employees to perform more efficiently. These cuts could further strain the aerospace supply chain, with Boeing’s supplier, Spirit AeroSystems, already placing 700 workers on furlough. The situation could escalate with additional furloughs or layoffs if the strike extends beyond November 25. This industrial situation underscores Boeing’s precarious position amidst labor tensions and a looming global workforce reduction.
Original Story https://www.cnbc.com/2024/10/31/boeing-strike-will-dent-last-jobs-report-before-election.html
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