Home · Business · Sep 20 archive
Boeing Engineers May Strike, Freezing 777X Certification
Developing
In Short: Despite Boeing's improved offer, Ortberg acknowledged that it may not provide sufficient leverage with the engineers. The company's ongoing safety and certification troubles have been a major focus this year, and a strike would exacerbate these issues.
Boeing's 17,000 engineers and technical staff, represented by the Society of Professional Engineering Employees in Aerospace (SPEEA), are working under contracts set to expire on October 6, 2026. Chief Executive Kelly Ortberg warned that a strike would freeze the 777X certification program until the engineers return, with broader impacts on production.
The SPEEA group rejected Boeing's initial offer in August, authorizing a strike by a vote of about 88%. Boeing responded with an improved proposal on September 11, 2026, which includes a 10% general wage increase. A ratification vote is expected in the coming weeks.
The 777X is Boeing's most critical unsold aircraft, years late and billions over budget. Its certification is the final hurdle before delivery, and a strike would significantly delay this process.
Ortberg emphasized the importance of avoiding a strike, noting that Boeing has already faced significant financial strain from previous labor disputes. Two years ago, a seven-week strike by about 33,000 machinists halted production of the 737, 767, and 777, costing Boeing approximately $24 billion.
Boeing's efforts to finalize the 777X certification program are crucial for the company's financial health and reputation. A prolonged strike could further delay the aircraft's delivery and impact Boeing's ability to meet its commitments to customers.
What this adds
The extent of the financial impact of a potential strike on Boeing's balance sheet remains uncertain.
What's still developing
- I have spent more of this year talking about Boeing’s safety and certification troubles than ever before.
- The 777X is the perhaps the most important airplane Boeing is not yet delivering (though they continue to sell and build them for an eventual delivery date.) It is years late (working on the better part of a decade), billions over budget, and the last gate before delivery has been its elusive certification.
- Unfortunately for Ortberg, this doesn’t give him leverage with the engineers (though it may give him more fuel with investors.) Boeing has improved its offer, and he is publicly making a strike his top thing to avoid.
- Two years ago, about 33,000 machinists walked out for about seven weeks, halting 737, (then) 767, and 777 production and forcing Boeing into a cash raise of about $24B to steady the balance sheet, as the 2024 machinists’ strike dragged into the fall.
Sources
- Live and Let's Flylink