Week 8: IAM-Boeing strike

October 27:

SPEEA, the engineers union at Boeing, starts its table negotiations tomorrow. Michele Dunlop of The Everett Herald has a good summary of the issues. At the moment, things look rather bleak and a strike by SPEEA is quite possible. SPEEA’s contract expires December 1, but don’t look for a strike until either after the IAM is back to work or after the first of the year in any case. SPEEA’s statement in advance of negotiations is here.

The LA Times has a story of interest here.

October 26:

As the IAM strike against Boeing begins its eighth week, mediated talks continue in Washington (DC) against a media blackout.

Here are the latest developments:

Bloomberg News cites officials at Goodrich, a major supplier to Boeing on the entire product line, predicting that no 787s will be delivered in 2009. Boeing has yet to acknowledge this, nor has Boeing even said the first flight will be delayed until 2009–something every analyst now believes.

Boeing stock reached a low of $41.75 last week; the 52-week low is $39.99.

The IAM strike cost Boeing 35 cents a share in the third quarter financial results, the company’s CFO said in the earnings call last week; that’s $256.49 million. This is $10.3 million a day for the 25 days the IAM was on strike in September, compared to the $100 million to $110 million a day analysts projects and the $75 million to $83 million a day we estimated. Delay deliveries due to supplier issues for galleys, principally on the 777, cost the company 25 cents a share. Third quarter revenue declined $1.224 billion year-over-year (7%), or $48.96 million a day. The cash and securities position declined by $3 billion for the quarter, attributable to strike, research and development and other cash outlays.

Vought, a major 787 supplier (also on the 747, C-17 and certain Airbus programs), said it is 30 days away from closing down the 787 plant at Charleston (SC) as a strike-related impact. On other hand, Triumph Group, another major supplier, had a boffo quarter.

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