Boeing Delays 737 MAX Production Amid Pay Disputes

Boeing faces fresh turbulence over production and pay. Sources say it’s struggling to ramp up output of its best-selling 737 MAX jets.

The model has been under fierce scrutiny ever since a midair blowout on one of the types earlier this year. It faces additional safety and regulatory checks as a result.

Now the sources say Boeing has pushed back a key production milestone by six months. Output of the planes may not hit a 42-per month target until March next year, instead of September this year.

When asked about the report, a Boeing spokesman referred back to comments in July, when the firm said it would make adjustments to production as needed. But two of the sources said the changes to its internal targets were making it hard for suppliers to make plans.

Meanwhile, a pay deal for some 32,000 Boeing workers hangs in the balance. Union members are due to vote on the package, which includes 25% wage increases.

However, one union official said many workers were angry the deal didn’t include bigger pay hikes and better pensions. He said many wanted to hold out for a 40% wage jump.

If union members now vote down the deal, Boeing could see a crippling strike added to its list of challenges. Boeing has agreed a 25% pay hike for some 32,000 workers to avoid a potentially crippling strike. The aerospace giant said it had reached a tentative agreement with unions.

If approved, analysts say the deal would be a big win for new chief executive Kelly Ortberg.

He took over last month with a mission to turn around quality at the firm, which has been battered by a series of crises.

The company’s first full labor deal in 16 years also includes better retirement benefits, and more say for unions in safety and quality control.

Boeing is wrestling with such issues after the midair blowout on one of its 737 MAX jets in January.