Boeing and the machinist's union came to mutually agreeable
terms and ended the strike that began on September 13. Members
agreed to a 38% wage increase over four years, a $12,000 signing
bonus, a commitment by Boeing to build its next aircraft in
Seattle, and other concessions.
Supplier-employee impacts
A WSJ article reports that November was the
tipping point for Boeing suppliers to begin layoffs after more than
six weeks of stop-ship orders from Boeing. Let's hope this
analysis is right; otherwise, restarting and ramping up production
of the B737MAX is going to be exceptionally challenging.
Riveron's ADAS team spoke to some suppliers during the
strike, and the suppliers were already laying off employees to
preserve liquidity and prepare for a long strike. Suppliers'
ability to get those employees back could be difficult, which will
impair production at Boeing and with other vendors.
