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Three governors urge end to Boeing strike as suppliers suffer
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Three governors urge end to Boeing strike as suppliers suffer
Nov 3, 2024 2:28 PM

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Boeing ( BA ) extends pause to accepting most components for 737,

767,

777 programs

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Governors warn extended Boeing ( BA ) strike could force more

suppliers

to cut jobs

By David Shepardson

Oct 29 (Reuters) - The Republican governors of Utah,

Missouri and Montana on Tuesday urged Boeing ( BA ) and the

union representing 33,000 striking machinists to end a nearly

seven-week-old strike citing the impact to their states and the

planemaker's suppliers.

"The strike has far-reaching implications in our states,"

wrote Governors Spencer Cox, Mike Parson and Greg Gianforte to

Boeing ( BA ) and the International Association of Machinists and

Aerospace Workers (IAM).

"Boeing ( BA ) has stopped buying from most suppliers, most of whom

are now making the very difficult decision to furlough or lay

off their own employees," they said.

Boeing ( BA ) and IAM declined to comment on the letter.

Separately, Ihssane Mounir, senior vice president of global

supply chain for Boeing's ( BA ) commercial airplanes unit, told

hundreds of suppliers in an email on Tuesday seen by Reuters

that the planemaker will need to continue a pause on shipping

components for the 737, 767 and 777 programs.

"We understand this may drive you to take additional and

difficult actions for your production schedules as well as for

your teams," Mounir wrote.

He added: "Our team will be in touch soon and we remain

dedicated to continuing to work with you - part by part - to

maintain as much stability in our shared production system as we

can."

Last week's vote by 64% of Boeing's ( BA ) West Coast factory

workers against the company's latest contract offer, further

idling assembly for nearly all of the planemaker's commercial

jets, has created a fresh test for suppliers.

No new talks have been scheduled since the rejection.

Boeing's ( BA ) vast global network of suppliers that produce parts

from sprawling modern factories or tiny garage workshops, was

already stressed by the company's quality-and-safety crisis,

which began in January after a mid-air panel blow-out on a new

Alaska Airlines 737 MAX 9.

Boeing ( BA ) announced earlier this month plans to cut 17,000 jobs

globally - or 10% of its workforce - a one-year delay to a key

new jet and other cuts. On Tuesday, the company said it had

raised at least $21 billion in new capital.

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