Boeing has under increased scrutiny following a serious incident on an Alaska Airlines flight last month, capping off a difficult five years for the aircraft manufacturer in the aftermath of two devastating tragedies.
Boeing has under increased scrutiny following a serious incident on an Alaska Airlines flight last month, capping off a difficult five years for the aircraft manufacturer in the aftermath of two devastating tragedies. However, Boeing might face yet another challenge as its largest union, the International Association of Machinists and Aerospace Workers, prepares for contract negotiations.
When discussions begin in March, union officials want to seek a 40% rise and are prepared to go on strike if necessary, according to Bloomberg. (Negotiations were scheduled to resume this month, but were postponed at Boeing management’s request due to current business concerns.) They also plan to advocate for improved health insurance and pension benefits, as well as “more flexibility around overtime,” according to Bloomberg.
This approach is influenced in part by the agreement that union leaders were obliged to sign in 2014, which froze pensions and limited overall pay hikes to 4% over ten years. Boeing used its 777X plane program to coerce the union to accept such requirements, including threats to move manufacturing jobs.
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However, union officials say they are encouraged by the large increase in strikes last year and the advances they saw workers achieve across industries, from Hollywood to the car industry. The discussions also occur at a particularly sensitive time for Boeing, giving employees extra clout. Boeing is already dealing with manufacturing delays and costs related with the current mishap, which experts estimate might reach $1 billion, not to mention additional supervision from regulators and politicians. The present union contract is slated to expire in September, and a strike could halt production in Washington State and Oregon, derailing the 737 program just as Boeing is striving to recoup from losses.
According to analysts, the union’s demands reflect the reality that Boeing’s quality control difficulties may be traced back to labor-related concerns such as frequent turnover. “People don’t get stupider,” Cliff Collier, an experienced aerospace production expert, told Bloomberg. “People get overworked, people get pushed to do things they probably shouldn’t do.”