Boeing strike costliest in economic damage so far in 2024

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Third Bridge global head of analysts Peter McNally discusses how the Boeing factory workers strike is impacting business on The Big Money Show.

The ongoing strike by Boeing's union machinists could end this week, but not before racking up more economic damage than any other work stoppage in the U.S. so far this year, according to estimates.

Boeing and the union, the International Association of Machinists and Aerospace Workers Local 751, reached a tentative agreement Saturday. The striking workers will vote Wednesday on whether to take the latest offer, which includes a 35% pay hike over four years, a new incentive plan and a $7,000 ratification bonus.

A logo is seen on the Boeing stand on the opening day of the Farnborough International Airshow 2024, southwest of London, on July 22, 2024. The strike by Boeing's union machinists is already the costliest of 2024 in the U.S, according to a new estima (JUSTIN TALLIS/AFP via Getty Images / Getty Images)

But even if the workers agree to accept the deal – which is not guaranteed – the impact could extend far beyond its current price tag, according to Anderson Economic Group (AEG) principal and CEO Patrick Anderson.

«If they ratify the contract and get back to work by Friday, the IAM strike against Boeing would be the costliest strike yet in the contentious year of 2024,» Anderson said.

BOEING OFFERS HEFTY PAY INCREASES TO REACH TENTATIVE DEAL WITH UNION AMID WEEKSLONG MACHINISTS STRIKE

AEG, which specializes in economic impact estimates, figured the cost of the Boeing strike at $7.6 billion through last Friday, and Anderson said adding another week to that total will push the cost well above $8 billion.

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