On Friday October 11th, Boeing announced that they would be cutting 17,000 jobs; around 10% of their workforce. This has been the effect of a long-drawn strike in their factories, along with their increasing losses due to an alarmingly large number of controversies and accidents related to their aircrafts.
The Strike
Since September 13th, around 33,000 machinist workers have been on strike, demanding a 40% pay raise. They also demanded reinstatement of a defined-benefit pension– something that had ended in 2014. So far, neither side has agreed to settle or work towards a compromise. This huge deficit of workers has led to a reported loss of $1.3 billion last quarter.
Controversies
While the strike is the main factor for Boeing’s loss of profits, Boeing has also seen its fair share of economic troubles through other controversies. In just the first week of 2024 (January 5th), Boeing’s 737 MAX 9 passenger jet had lost its rear door plug. The Alaskan Airlines flight was cut short to a total of 20 minutes of flight time. While no one sustained serious injuries, it raised the question of the reliability of Boeing aircrafts and thus, an audit by the FAA (Federal Aviation Administration) was ordered.
The FAA stated that Boeing aircrafts were suitable to be flown, though production of their Max line should be halted until the FAA were satisfied with Boeing’s quality. However, after a six-week audit, the FAA concluded that they had “found multiple instances where the companies allegedly failed to comply with manufacturing quality control requirements.”
Further controversies continue with Boeing hiding key information during a lawsuit. Then, a Boeig whistleblower, John Barnett, was found dead on March 8th, with the official cause of death being a self-inflicted gunshot.
Then, in June; another Boeing MAX line jet operated by Southwest Airlines “dropped at a maximum descent rate of about 4,400 feet a minute” during bad weather. Another incident in early October occurred when another Boeing jet operated by RyanAir caught fire during taxi to takeoff, which prompted the evacuation of 184 passengers and crew.
Boeing’s Image
At this point, Boeing’s loss of money was inevitable. The public image of Boeing was a quintessential “evil corporation”. They had ignored crucial safety details in their jets, potentially risking the lives of hundreds of people. Then, they continued to project this image by being unrelenting towards the strikers, refusing to raise their salaries.
With all this in mind, Boeing will continue to lose money, as Airlines would avoid purchasing aircrafts that have proven, on multiple occasions, that they do not meet safety standards. Moreover, consumers would become less likely to purchase tickets for a jet that has faced so many controversies and accidents in the past. This will mean that Boeing continues to be unable to pay their workers a satisfactory wage, and will not be able to sustain through the multiple lawsuits that have been threatened by their victims.
Written by Vi Lam Dinh
