Aviation manufacturer Boeing is in trouble as Strike action continues. Workers have been out on strike since Friday when they rejected a new pay deal. In a letter to staff,  chief financial officer Brian West warned that layoffs and spending cuts were imminent as the company managed the fallout from the Strike. ‘The Strike jeopardises our recovery in a significant way and we must take necessary actions to preserve cash and safeguard our shared future.’

The strike over pay follows weeks of negotiations. The rejected deal proposed a 25% pay increase over 4 years and improvements to working conditions. Union leaders had advised their members to accept the offer, which Boeing described as ‘historic’. Yet despite this, it was voted down by a significant majority.

West’s letter suggests that a freeze on hiring, reduced spending on suppliers, and a ban on non-essential and first/business class travel by senior executives was also on the table. The company’s fortunes were already down before the strike began, due to concerns over product safety and quality control slowing production. The action affects factories responsible for building 737 Max, 777, and 767 and orders for equipment for those models have been stopped. Boeing employs over 170,000 people mainly in the US. Credit ratings companies have warned that Boeing’s rating was in danger of being downgraded.

(Sources: bbc.co.uk)