Production paralyzed

Offer rejected: Boeing strike continues

(Bild: AFP/AFP )

Boeing's new wage offer has been made - but has been rejected by the US aircraft manufacturer's employees. They are therefore continuing their more than five-week strike. The supplier Spirit AeroSystems is increasingly struggling because of the strike.

In a ballot, 64 percent of union members rejected the company's proposal to increase wages by 35 percent over four years, the International Association of Aircraft Mechanics and Workers (IAMAW) announced on Wednesday. 

40 percent wage increase demanded
"After ten years of sacrifice, we still have ground to make up and we hope to achieve this quickly by resuming negotiations," the union said in a statement. The demand is for a 40 percent wage increase. Since September 13, more than 30,000 workers have been on strike at Boeing plants, bringing production of important aircraft models such as the 737 MAX to a standstill.

The previous offer was rejected by 95 percent of those voting last month and led to the work stoppage.

Financial difficulties at Spirit Aero
Meanwhile, Boeing's most important supplier, Spirit AeroSystems, is experiencing increasing financial difficulties due to the ongoing strike at Boeing. Spirit Aero recorded a net loss of 217 million dollars (201.54 million euros) in the third quarter and had to draw down its entire credit line of 350 million dollars, as the company announced on Wednesday.

The company had not received the expected 425 million dollars in advance payments from Boeing following the Memorandum of Understanding (MoU) in July. The cash reserves have therefore shrunk to just 218 million dollars. Spirit's shares fell by four percent in after-hours trading following the publication of the results. Boeing initially declined to comment when asked.

Spirit puts massive pressure on employees
Spirit blamed the strike by Boeing plant workers for the deterioration in its financial situation. The company announced that it would send 700 employees on compulsory leave for 21 days and warned of possible redundancies should the strike at Boeing continue. Shortly after the announcement, the employees of the US aircraft manufacturer rejected a new wage offer on Wednesday and are thus continuing their strike. An agreement between Boeing and the union is currently not in sight.

Despite the tense situation, Spirit confirmed that the planned takeover by Boeing should be completed by mid-2025. There are "no changes" to the planned takeover and integration of Spirit, said Boeing CEO Kelly Ortberg in a conference call on Wednesday. Boeing had agreed in July to buy back the supplier, which was spun off in 2005, for 4.7 billion dollars (4.37 billion euros) in shares.