Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Support MFO
Donate through PayPal
Boeing Starliner to return to Earth, empty. News link.
Boeing Co. faces growing backlash from rank-and-file workers to a tentative agreement - including a 25% pay raise it struck with its largest labor union during a marathon weekend bargaining session … Jon Holden, president of IAM District 751, said he understood the angry response from members still seething over a 2014 deal that hiked health care costs and stripped away pensions. He defended the sprawling agreement unveiled Sunday as the best his team could obtain … "We got as much as we could in collective bargaining, short of a strike,"
Added - The possibility of a strike remains if rank & file vote down the proposed contract. Been there. Done that.
Based on the following reporting, it appears a Boeing strike is imminent.
"After an overwhelmingly negative reaction to a deal struck by Boeing and Machinists union leaders, union leader Jon Holden said Monday he expects rank-and-file members will reject the contract and strike late this week."
"A strike would effectively shut down Boeing’s jet plants in the Puget Sound region and the parts plant in Portland, as well as stopping work on airplanes being reworked or stored at Moses Lake."
What a fall from grace. In 2018 my wife and I took the elaborate tour of the Boeing factory in Everton WA. The company was then considered a jewel of American knowhow and technology. The tour guide even whooped up the stock price as evidence of the company’s greatness. I wonder what the narrative sounds like these days.
There's some background missing on that- "a 2014 deal that hiked health care costs and stripped away pensions". Evidently the labor relationship has been deteriorating for a long time. Also, that seemingly really big 25% increase is spread over four years.
IIRC, the UAW membership had hoped to recoup give-backs in previous contracts when the latest contract was negotiated. Apparently the union had to deal with disgruntled members, particularly the older ones, in selling the agreement.
Union Prez has huevos. Good for him. "Recommended" the deal to Union members, but "it's up to THEM to vote to approve." I think he already knows the outcome. Can you say "Airbus," boys and girls? I just KNEW you could.
Comments
From Bloomberg tonight:
Boeing Co. faces growing backlash from rank-and-file workers to a tentative agreement - including a 25% pay raise it struck with its largest labor union during a marathon weekend bargaining session … Jon Holden, president of IAM District 751, said he understood the angry response from members still seething over a 2014 deal that hiked health care costs and stripped away pensions. He defended the sprawling agreement unveiled Sunday as the best his team could obtain … "We got as much as we could in collective bargaining, short of a strike,"
Added - The possibility of a strike remains if rank & file vote down the proposed contract. Been there. Done that.
"After an overwhelmingly negative reaction to a deal struck by Boeing and Machinists union leaders, union leader Jon Holden said Monday he expects rank-and-file members will reject the contract
and strike late this week."
"A strike would effectively shut down Boeing’s jet plants in the Puget Sound region
and the parts plant in Portland, as well as stopping work on airplanes being reworked
or stored at Moses Lake."
"With Boeing’s credit rating now just one rung above junk bond status, a lengthy strike
that hits cash flow and increases debt could have a dramatic effect on its financial standing."
https://www.seattletimes.com/business/boeing-machinists-union-chief-expects-members-will-reject-deal-strike/
Notes: 1) can't use browser's private mode; 2) article may be paywalled
Whew! For a second I thought they were describing some of the product line.