Boeing is bleeding cash, yet offered a reasonable deal including a commitment to build the next plane in Seattle. The union walked out.
Boeing Workers Go on Strike
The Wall Street Journal reports Boeing Union Goes on Strike, Halting 737 Production
Boeing’s (BA) biggest labor union went on strike, halting production of its bestselling jets and dealing the latest blow to the struggling aerospace giant.
Thousands of machinists who build Boeing’s 737, 777 and 767 jets walked off the job shortly after midnight Pacific time Friday, after rejecting a labor deal struck between the union’s leaders and Boeing’s executives. The contract offered 25% wage increases over four years.
Union leaders of the 33,000-member International Association of Machinists and Aerospace Workers chapter said about 94% of their members voted to reject the contract and 96% voted to go on strike.
The strike will deal a financial blow when Boeing is bleeding cash and piling up debt following January’s Alaska Airlines accident in which a door plug blew off a 737 MAX jetliner in midair. A prolonged stoppage threatens to further strain the industry’s supply chain and exacerbate jet shortages for airlines.
The deal fell short of what the union had said was a hard line, including a 40% pay increase over four years.
“While there were many important things that were in this offer, it did not bridge the gap for 16 years and going through two extensions, the threats of job loss, stagnant wages, the cost shift on healthcare and many other issues,” Jon Holden, president of the IAM chapter, said after announcing the vote tally.
Under the rejected deal, workers’ base pay rate would have increased 11% this year, bringing the minimum hourly rate for workers to between $20 to $37 based on their position. It called for raises of 4% next year, 4% in 2026 and 6% in 2027. Boeing said average wages would increase 33% over four years because of seniority increases.
Along with the pay increases, the contract would bolster retirement benefits, lower healthcare costs and commit Boeing to building its next plane in the unionized Pacific Northwest, a crucial union demand.
Framing the Discussion
It’s easy to frame this discussion however one wants. For example, one worker complained …
The proposed starting wage under the new contract—$21 an hour—was similar to the starting wages at a local burger chain, Dick’s Drive-In, which offers free employee health insurance and 401(k) matching. “You can make more money flipping burgers,” he said.
Well, if you can make more money flipping burgers, then it would seem the smart thing to do might be to flip burgers.
In other words, the comment is a nice sound bite, but it’s a lie.
What Should Boeing Do?
My suggestion would be to get the hell out of Seattle and move the whole operation to a non-union, right-to-work state.
Of course, Biden would howl, and the National Labor Relations Board would block the move.
Blocking corporate moves is something that desperately needs a Supreme Court decision. It’s ridiculous that companies cannot move wherever they want for whatever reason they want.
Consumers Take the Hit
As a result of enormous UAW wins, prices of autos have nowhere to go but up.
In the case of Boeing, airline tickets will increase. Someone will pay for 33 percent wage increased on manufactured planes, and that someone is you.
Whether you think a 33 percent wage increase over four years is warranted, the contract settlement is guaranteed to add to inflation pressures.
If the wage increase was based on improved productivity, cost pressures would be minimum. But where’s the improved productivity when the contract will aim to minimize layoffs and reduce automation?
Big Business vs Small Business
Boeing is big business. Most of the job gains over the past year are from big business.
But small businesses are the actual lifeblood of the economy.
On September 5, I noted Small Businesses Reducing Workers for the Last Four Months
ADP data shows small businesses with 1-49 workers have been reducing workers for four months. Those with 20-49 workers have shed workers for 7 straight months.
And on September 10, I commented NFIB “Mood on Main Street Darkens” Small Business Optimism Dips
How long can big businesses keep the economy humming?
Who could have possibly seen this coming…
Boeing Freezes Hiring, Warns of Possible Layoffs Amid Machinist Strike.
The strike involves about 33,000 members of the International Association of Machinists and Aerospace Workers in Washington state.
The worker comment is valid in that the Boeing job should require a more skilled worker than a burger flipper.
As to Boeing’s cash crunch – cry me a river. $43B spent between 2013-19 on stock buybacks. Bet that they wish they had that coin now or had invested it within the business!
Congress needs to repeal the repeal of regulations on stock buybacks. They are destroying American businesses and are a large contributor to the surge in disparity between average workers and upper mgt.
Mish is full of shit. The agreement to build the next jet is Seattle is a lie. Boeing has stated that any new program launch would occur AFTER 2030, yet the offer would expire and that provision be extinguish in 2028.
Next, Wages have not kept up with inflation and employees are losing ground to higher medical costs. The wages offered do not even balance inflation, nor the takeaways of the 2014 contract.
Locked into a TEN YEAR contract and having lost their pension plan in 2014, the retirement plan is somehow supposed to be enhanced by SECOND union run 401L with token contributions.
There are a lot more falsehoods about this contract, bust let’s take uo Mish’s ultimatum to mover Being altogether. After hoodwinking i the workres and the politicians who gave Boeing hefty incentive for the 767 program, it was ALL mover to South Carolina. That program has MUTIPLE issues with quality and Safety, and on top of that, while turning cash floe positive a few years ago, has not yet been a profitable program.
Sure Mish, Fire all 32,000 and move right? See you in fifteen to twenty years as that’s how long it would be to reach the target production rates of today. They might have the buildings with no tooling inside or employees, Just in time for the workers to strike in 2028 with a horrible vengeance.
Boeing has a history of bad faith bargaining in the past, and did so again this time.
Yet you have the balls to complain about higher prices like these workers are somehow responsible for inflation. that’s a goddamn freakish lie and what’s worse is YOU KNOW IT.
https://youtu.be/F94jGTWNWsA?si=17swY8vApZ0Mem4q
Organized labor says that management always seeks and has the power to drive wages below “a fair wage”. They say that labor organizes, unionizes, strikes etc. to obtain a fair wage.
Objective economists note that management doesn’t have that much power, and that unions typically obtain an “above the free-market in value” wage. As was remarked during the Great Depression, that’s a good job, if you can get one.
Per progressive thinking of a century or more ago, organized labor should seize the company, fire the greedy executives, deny the shareholders any recompense for their shares, and run the company to benefit themselves and the community. Expect higher prices and air travel becoming a luxury good with fewer airplanes and routes, suitable for a Green New Deal.
Returning from fantasy, look to see the higher labor costs passed on in the prices of the airplanes. To be seen whether government offers any help in exchange for increased control over the company. Meanwhile, unionized Airbus, with lower costs and a better reputation takes increased market share, and other airplane makers, such as Embraer and one or more Chinese makers, see a chance to enter the market and also take share from Boeing. Boeing risks becoming a shadow of its once-self, with pieces sold or spun off a la GE.
“Per progressive thinking of a century or more ago, organized labor should seize the company, fire the greedy executives, deny the shareholders any recompense for their shares, and run the company to benefit themselves and the community.”
During the actual Progressive era of the early 1900s, Nebraska outlawed privately owned utilities and the people took them over. To this day, every utility in Nebraska is basically communist. The workers are paid well and the utilities are well regarded with some of the lowest utility rates in the country.
I don’t fly and typically buy 10 year old vehicles I drive for another 10 years
of course I use the 1 payment plan when buying
Meanwhile social security recipients are looking at 2.5% (10% over 4 yrs?).
What kind of raises has SS given the last 6 years compared to what the Boeing workers got? How about getting the workers’ side of the story?
“John Olson said his pay had increased just 2% during his six years at Boeing”
“The last contract we negotiated was 16 years ago, and the company is basing the wage increases off of wages from 16 years ago,” the 45-year-old toolmaker said. “They don’t even keep up with the cost of inflation.”
Inflation cycle has moved to the labor phase. Nurses negotiated for higher wages earlier this year. Projected increase in healthcare costs of 7 percent will show up in October when 2025 premiums are announced. East coast port unions negotiations begin. Amazon delivery workers get wage increase because they threatened to unionize. Airline industry workers announce strike for benefits. The Fed has a small window to lower rates before inflation rises.
Aerospace is essential to national security, but Boeing isn’t. The nation needs a healthy aerospace ecosystem including multiple passenger aircraft companies. Like Standard Oil, AT&T or PanAm all of which were also national essentials, Boeing needs to be thoughtfully broken up to enable healthy competition to resume.
The whole cult of “Too Big to Fail” (a genuine misinformation meme) needs to be broken up too.
Add: Both national security and passenger safety would be enhanced by the resulting competition too.
Too big to fail, will soon be replaced by “To big to save”. Also remember that the government must borrow cash to pay a larger and larger part of Social Security each month. They must borrow 100% of every additional dollar of any cost of living increase. Boing is the only canary left in the mine, if it drops, we all will soon follow.
Yet another example of what happens when the Republicans, Democrats, Federal Reserve, lobbyists, etc. conduct interest rate suppression, which, contrary to their false doctrine, actually does not help employment in the long run, and keep adding more debt that will also have to be paid for by the the kids of today and tomorrow who we don’t ask, “Hey, can we burden your future with major issues we are ignoring?” The American people should quit voting for them if we don’t think frequent strikes and future catastrophe risk are a good thing.
Why should the union have to wait 4 years for the 25%. They need to wages now to consume the US out of its stagnant economy.
Mishtalk needs a “Laugh Button” in addition to the up and down votes! 🙂
If the economy is so close to being in a recession, then many union workers are going to wish they accepted the offer. Once air travel drops, plane orders will fall, people in manufacturing will be let go.
What you say is true, but only if you think long-term. Union leaders are like polititions. They only get elected if they make big shorterm gains. To hell with the future.
So, let me get this straight, the union officers want the workers to surrender to this pablum wage increase offer after settling for 12 years of contract extensions overseen by the IAM bureaucracy. Young workers, some making less than $20 an hour, are unable to pay skyrocketing rents, particularly in Seattle, one of the most expensive metropolitan areas in which to live in the country.
Unionized workers in 2014 also lost thanks to the IAM leadership new members from receiving a pension. The workers want this divide and conquer strategy ended. Boeing and the IAM also are seeking elimination the annual AMPP (Aerospace Machinists Performance Program) bonus, which would result in a de facto 16 percent pay cut over the life of the contract.
96% of the rank and file voted to strike.
Instead of questioning worker solidarity perhaps Boeing’s stock buybacks should also be on the table.
https://lesleopold.substack.com/p/did-stock-buybacks-knock-the-bolts
“Boeing is a world leader in stock buybacks. Between 1998 and 2018, the plane manufacturer also manufactured a whopping $61.0 billion in stock buybacks, amounting to 81.8 percent of its profits. Add in dividends and Boeing’s shareholders received 121 percent of its profits. (Data compiled by William Lazonick and The Academic-Industry Research Network, from Boeing 10-K SEC filings.)”
For crying out loud, talk about destroying a once-great company pre-merger to funnel obscene amounts of money to the owners at the expense to the workers and general safety of everyone (aviation, and now space).
The corporate irresponsibility around the Boeing 737 Max should put every executive in jail.
…and we’re angry about the workers about a couple bucks?!?
I’m with Mish generally about unions, but Boeing is a really, really bad example.
Why isn’t anyone talking about the potential profits here? More on that later….
But I predict Boeing will cave for one reason: Demographics. Has anyone seen the striking workers on TV? They all look like they are in their late 50s…wouldn’t surprise me to see Boeing top heavy older workers and they’re all going to retire in a few years.
The more workers that retires the more problems Boeing will have will doors falling off planes and other engineering snafus. It won’t just be Boeing, it’s going to be everything….
As for the profits, well that’s an easy one, things will get ugly, demand will build, airlines will get desperate and bid up whatever can be had then the profits roll in. I’m thinking 2027 LEAP calls but gotta wait for the right moment. The money train isn’t yet at the station but pulling in soon. ….$….$
“…The proposed starting wage under the new contract—$21 an hour—was similar to the starting wages at a local burger chain, Dick’s Drive-In, which offers free employee health insurance and 401(k) matching. “You can make more money flipping burgers,” he said….”
The worker that said this is either dumb, disingenuous, or a bit of both.
What is the advancement potential at these restaurants compared to Boeing? I’m relatively confident that it’s better at Boeing.
Which looks better on a resume, Dick’s Drive-In or Boeing? Again Boeing wins.
Most people would kill for a 25% raise, and these knuckleheads turned it down. Fools…
Boing
96% of Boeing workers voted against the contract. That tells me all I need to know.
The UPS workers overwhelmingly ratified a contract that didn’t even keep up with inflation since 2018 and they are falling behind inflation yet again.
UPS workers COLA for 2024 was ZERO. UPS raise for 2024 was a flat 75 cents an hour.
Dang, I sure wish I could get a 25% wage increase. Over the last decade I’ve seen about 5%. Getting killed by inflation.
– Boeing is bleeding cash, yet offered a reasonable deal including a commitment to build the next plane in Seattle. The union walked out.
> Boeing was foolish to offer such, and should thank there lucky stars, that the Union was so stupid, as to also say “No” to the deal of the decade for them, but they won’t know that until a year or two from now at the earliest, but boy was that just silly stupid!!!
– The Wall Street Journal reports Boeing Union Goes on Strike, Halting 737 ProductionBoeing’s (BA) biggest labor union went on strike, halting production of its bestselling jets and dealing the latest blow to the struggling aerospace giant.
> These Union heads are total idiots imo! Seriously, they will cripple the Company Financially, that is supposed to Pay Them More. Dumber than dumb!!
– Union leaders of the 33,000-member International Association of Machinists and Aerospace Workers chapter said about 94% of their members voted to reject the contract and 96% voted to go on strike.
> The moment they ended their own Union imo. They will not recoup from this, and never will the Union Leaders be trusted again. They will have to be removed. If they stay together, with new leadership, and Cuts In Pay, they may make it…
What Should Boeing Do?
– My suggestion would be to get the hell out of Seattle and move the whole operation to a non-union, right-to-work state.
> Let it be written, let it be done!
– Consumers Take the Hit
> Not This Time
lol, reasonable deal? The Boeing execs should be in jail just for the 737Max, let alone the other shortcuts they made to pad the pockets of executives and owners. The same issues why they have people stuck in orbit (primarily shortcuts in supply chain and intentionally overlooking quality)
They were once a great company pre-merger – not anymore simply due to obscene greed.
Um… last I checked, the Unions “Voted” for All of this!!!
I know if I had a sweet 25% increase in Pay, with a sweet Health Plan, (with Dental & Vision?), and nothing else changed, I would Jump On It!!!
Boeing offered to build the next plane in Seattle AFTER the contract expires so not part of the this bargaining agreement.It is therefore not legally enforceable.
As far as trusting the IMA leadership, the bureaucracy has not represented the rank and file for at least twelve years due to accepting a two tier wage and retirement systems, mandatory overtime and pablum wage increases.
The rank and file have had enough. They voted to strike against Boeing and force the IAM negotiators to return to the bargaining table. In short, 96% of the backbone of the union said NO.
When 96% of any group agrees, this should speak volumes that this bargaining agreement was DOA.
– The rank and file have had enough.
> Then They Should all be absolutely OK with whatever happens from here on in. If ALL 96% Lose there very, very nice high paying Jobs, and ALL 96% lose there very, very nice Benefits, then ALL 96% can then go explain to there Families why they have to move, sell a car, cut back on 96% of there expenses because they are now broke, and can’t find a Job in the recession we are in.
Nice Job, or should I say, nice way to lose your Nice Job and Nice benefits! Go on Strike during one of the Worst Economic Times of our lifetimes, for more pay, when the company just explained they need cutbacks due to sales down, and things looking pretty grim.
What part of “Give To Me” don’t you understand? You don’t typically get raises and bonuses during bad times. You don’t typically ask for things, when you should be giving back things. Taking away money from the company for more pay for workers, hurts the company tremendously during tough times, and will cause workers to lose jobs. It’s generally the largest expense for a company.
I always used to ask for more food as a kid, when we were broke. My Parents would tell me a few things, and I have never forgot them, and maybe these union workers need a lesson in how to behave accordingly… JS
1. Never look a gift horse in the mouth. 2. Never ask for more than you deserve, 3. During good times look for more, during bad times look to give back.
A “Common Sense” approach to Life!!!
When 96% of any group agrees, then ALL 96% better “KEEP QUIET” when the hammer comes down hard, due to NO Choice given to the Company by The Unions. Good Luck finding comparable work at anywhere near the pay & benefits…
Boeing is going nowhere as a company. Its existence is guaranteed due to its aerospace business by the government.
If push came to shove Uncle Sam will takeover by debtor-in-possession or other measures due to national security concerns so your Chicken Little that the sky is falling fails to pass one of the reasons governments are formed since recorded history began.
Workers at Boeing have been shafted by management via stock buybacks and dividend payouts, lack of investment in the company itself, criminal and civil law violations, prosecutions and lawsuits.
Boeing in short is/was operating as organized criminal organization that has sucked the lifeblood out of a once great company that was once the envy of the world.
To assert that workers now need to suck it up after years of management criminal conduct while bleeding the company dry solely due to management’s malfeasance, greed and contempt for its workers falls on deaf ears.
The union strike will slow down production of : F-15, Apache helicopters, anti missile missiles, ballistic missiles and small missiles that can be carried in the small belly of F-35 which can hit 4 dots from a few hundred miles away. The Biden/Kamala administration might force them back to work. 737 MAX bs.
There’s a good chance that will happen if it’s a national security issue.
So Then do they Force them to take the Vax?
Just curious…
In totalitarian terror states, anything which risks cutting favored lobbyists out even the tiniest share of funds stolen from those less connected, can arbitrarily be deemed, found, held, decided, felt and judged to be a “national security issue.” Just as ditto “for the children.”
What if they didn’t, and won’t take the Vax? Do they get an exception, just because?
Mish: Boeing did move production to a right to work state, South Carolina. That move coincided with the quality control problems Boeing has become infamous for. Building large jet aircraft is not an easy endeavor, and there is a lot of institutional knowledge in the Puget Sound Region that does not exist anyplace else. I hope the strike does not cause Boeing to reconsider its commitment to the Pacific Northwest.
The story of everything in The west since 1971, has been specifically to flush all institutional knowledge built up over the prior century or more down the toilet. In order to instead hand all ownership, wealth and resource control to complete and utter rank idiots in “finance.” Virtually all of whom aren’t even literate. And absolutely all of whom could not even feed themselves, was it not for The Fed robbing possessors of that institutional knowledge barren, in order to hand the illiterate 155th-raters the unearned loot.
The laborers forgetting to put in the plugs on the air frame do not matter, that could be done in Mexico for all it matters. Mechanical Engineers can sit anywhere, they aren’t unionized either.
Has everyone had enough of “The Revenge of the Money Lenders” yet? Credit guarantees inflation folks. I suggest a national usury limit of 6% for the money lenders in every case. (Credit cards will be no more.) The shock will be savage and most uncomfortable, but the end result will be quite good in all regards. Regardless, we are in for an eventual collapse. Choose your doom.
Price controls – a usury limit – is a very bad idea.
Actually, easy credit facilitates price control to the upside.
Considered on its own, a “good” idea. But when government gives us 9% inflation then all other lending dries up. – But that we should know is the intended purpose. When government spends so much that it causes so much inflation, then we must know and bow to necessity of giving all our money to government to fund what they are spending on. (/savage_sarcasm)
Yes, the government has definitely fueled inflation. Sadly, the latest proposals from the presidential candidates projects no end to that.
Instead of ever more illiterate escapades into weird sh%t, just End.The.Fed. Dollar at 1/20oz. ALL problems of excessive credit WILL disappear. Just.Like.That. All without a single downside whatsoever. At least not for anyone not specifically trying to get famous promoting one silly brand of harebrained weird sh%t or another.
Just Gold. The Founders got it right. By definition, by deduction, and even by empirical experience, for anyone not so myopic as to not be able to see past a millennia or more worth of data.
There is no “other” way. You get rid of monetary inflation, by using a monetary unit whose supply CAN NOT be inflated. Duh!
Too funny! The guys who can’t ensure that doors stay on their planes, airplane engines don’t fail and couldn’t make the Starliner spaceship fit for purpose think they deserve a raise! [LOL]
“YOU CAN’T BE SERIOUS?, to quote John McEnroe.
25% wage increase! Yikes! But then the cost of living in Seattle is through the roof due to Fed policy.
Loving the rally in gold!
Since I live in Washington state I’ll vouch for the cost of living, especially with housing on the West side. Gov. Inslee also got his carbon tax and it’s jacked up the cost of everything.
Icing on the looney cake is he is thoroughly on the EV bandwagon and also wants to rip out four hydroelectric dams.
But the salmon don’t like the dams!
Boeing stock is so beaten down they should offer all employees and unions more equity. Equity and stock is the way to a better future. Paying employees per hour uses them for less than they are worth and makes them more resentful of corporations.
How do you know what someone is worth?
Just ask them…😁
Why the gosh darn heck can’t we bring manufacturing back to the United States?
Labor cartels are too expensive and low productivity. Democrats are trying to shut down right to work states.
This right here, the average Americans are horribly unhealthy, are very poor quality work and lack efficiency… from first hand experience until cell phones are ban in the work place good luck, the youth don’t know how to think without their phone. I had guys walk out when I told them there was a no phone policy where I was in charge…. The main difference between the last depression and the one coming up is no one has any moral values, society is gonna rip itself apart.
We can. By replacing human workers with robots.
Let’s work on the sex robots first.
Besides the labor laws there is also the EPA which did much good when it started out, but now is trying to justify its budget by grabbing of everything.
President Reagan – is that you…?
This is excellent news for the election. Over 30,000 people not working and collecting benefits. The money they get from the union is a pittance of pay. This will hurt the economy. The million dollar question is will Harris support the union.
Also, what’s going to happen when the dock workers strike before the election and you have hundreds of ships out at sea again.
Of course Harris will support the strike. She will support the labor cartel, blame Boeing management, and then try to get Boeing to capitulate. She may even promise a federal bailout for the labor cartel.
Joe and Barrack gave billions in taxpayer dollars to unions. We can bridge this gap by extorting the taxpayers (directly or indirectly) again and funneling taxpayer money to our union supporters. It’s a win-win … unless you’re the taxpayer.
Clearly, Harris should fold-up her table and exit the race now! [lol]
Your anti-worker bias shows up all the time, get the facts straight: Boeing offered a 25% raise over 4 years, at the same time they withdrew a bonus system that averaged 3.7% per year. That makes the 4-year raise effectively half of the 25%. In the past 8 years IAM workers at Boeing saw 4 one percent raises, and increase in healthcare insurance costs and rising deductibles. A COLA helped ease the pressure but it’s based on stats from the BLS, and you better than anyone knows how distorted to the low-side those stats are. In terms of real wages, workers fell behind by about 15%. Boeing had to raise it’s entry-level wages just to attract workers just to interview. This offer does begin to address that, but another miss on your part is the real cost-of-living in the Puget Sound area, especially RENTS!!, which makes $20/hour seem amazing, but it anyone in this area can tell you it won’t take you to the end of the month. Your take is right in line with the thinking of Mr. Potter. We’re not your slaves, and we’re tired of paying from the incompetence AND CRIMINAL BEHAVIOR of Boeing management. Those days are done.
Take a breath … you know before its over Biden or Harris will do what Obama and Biden have done … extort the taxpayer and pay off the union for their campaign support. Union spends millions and then they get billions. It’s a win-win for everybody but the taxpayer
Boeing management only has marginal control of manufacturing quality. I have a suspicion that labor cartel sabotage or work showdowns have role in the Boeing’s manufacturing problems.
The Seattle area is expensive for housing and other items. Democrat policies are increasing the cost of living although the area is a victim of its own success with job creation and a nice area. Most people in Seattle have the same difficulty with the cost of living in Seattle.
Your last statement is ridiculous. Management has made some errors for sure. Part of Boeing’s problems involve its relationship with SW Airlines. SW put lots of pressure on Boeing for the 737 MAX. I am not blaming SW, just indicating forces driving Boeing’s decisions.
The labor cartel is part of Boeing. If Boeing does not succeed, employment and compensation declines. Airbus is trying to put Boeing out of business. The Chinese are trying to put Boeing out of business. The union should not strike with Boeing in a very precarious situation. The labor cartel would be wise to keep negotiating and become a profit sharing partner for more money. Of course, I know that the labor cartel does not want to accept risk in exchange for higher future compensation.
Management is responsible for QA. The union has no say about quality. Management owns this.
Clarification:
The “Union” has a mandate to protect “wages and working conditions”.
Additionally, and very importantly, Management has the right to “mis-manage”!!!!
But consider…
There are 30,000+ members in this union. They’re not all mopping floors in the cafeteria!
Many are Engineers and highly skilled craftsmen, some directly responsible for quality assurance!!!
Those highly skilled union members dropped the ball! They are complicit in causing planes to nosedive into the earth, doors to blow off…and by association, landing gear to take out an SUV in the parking lot.
The audacity to demand substantial wage and pension increases in light of the recent serious mistakes befuddles me.
I don’t know about you, but as a Craftsman, I’d be looking at my shoes…wanting to contribute (at a team building exercise perhaps) “How can I help make Boeing be the company that my grandfather invested in, the company that “rightfully” owned the sky!”
As you most likely know FDR passed the National Labor Relations Act. I’m grateful for it…but with it comes an obligation to step up…to be productive.
Yeah, as Craftsmen we get inundated with new Management, new Project Managers, new DEI. Professionalism requires we take a breath, teach, and do the right thing.
Utter poppycock. Working conditions DO NOT involve QA. Workers can contribute suggestions to improve QA but it is up to management to accept, reject, postpone, worker SUGGESTIONS. Just ask the murdered QA manager that was set to be disposed before being murdered. Snark intended.
More poppycock. “Management has the right to mismanage”. No, there is no right for management to lead a company into the dock, cause passenger deaths through negligence, violate DOJ plea agreements, misappropriate funds by misleading investors, etc. In a well run organization management is held accountable. Engineers are not management. Highly skilled craftsman are not management. Did non exempt personnel authorize pulling scrap parts returned to production? To date 4 whistleblowers have said no.
https://www.cnn.com/2024/07/03/business/former-boeing-inspector-scrap-parts-assembly-lines/index.html
Workers did step up to inform management. They were rewarded with resignation, NDAs, termination, and ostracism.
The good employees whether management or union have quit, been terminated or keep their head down.
Boeing’s culture is toxic. Management creates the culture.
“Boeing management only has marginal control of manufacturing quality.”
May want to look into the history of the merger between Boeing and McDonnell Douglas. This disaster is 100% management and ownership.
So don’t work there.
Employees know that a 33% wage increase over four years won’t touch the hyper inflation they have experienced. Government inflation reports are lies.
Unfortunately, Boeing has lots of competition with Airbus and China. Boeing has a precarious financial position. The strike may cause loss of jobs and future decline of compensation.
If it’s the same pay as flipping burgers, we then know why Boeing is making defective dangerous air/spacecraft. Lives are unlikely to be lost when a burger is overcooked.
Boeing management does not control the labor cartel. The labor cartel has a detailed contract with control of labor procedures. In addition, the labor cartel has a Democrat administration to pressure Boeing.
No, but they might be if the burger or especially the chicken is under cooked…
I agree and disagree with you Mike.
I feel the IAM leadership is also part of the problem.
You nailed it, productivity.
There’s NO STRUCTURE to weed out the riff raff. The union fights to keep the lasers and in the end everyone loses.
The union and company need to restructure the pay like the SPEEA has. Each year you get reviewed and receive salary adjustments accordingly.
I worked in both of 28 years at Boeing. The floor machinist get treated literally like dogs, literally. Once you goto SPEEA, it’s a nught and day world.
Does 33000 IAM members deserve a 40% raise, hell no. But is there say 30% who do, hell yes, but how do you get it targeted to them?
Dog chasing his tail on this one.
I don’t know how this will end, the social media has machinist all excited about bringing down ‘corporate greed’, yeah good luck with that.
Let’s see how anxious they are 30 days in.
Thanks!
Did you mean “unions fights to keep the losers” not “lasers”?
“Lasers.” I was thinking of a new word: lazers. The lazy. 🔦✝️
I hope it’s lasers…….lasers on planes would be awesome. 🤣 🤣 🤣
I prefer sharks with laser beams attached 🙂
What ‘drives’ the US in a global economy is not big or small companies, but companies that export goods and services. Boeing is a major exporter, and is a major contributor to wealth, as derived from other countries. The truly important ‘export’ companies are those that innovate to stay ahead in global competition. They may be small startups, like the three guys who met at Dennys in 1993–now Nvidia.
Compared to the three guys who mow your lawn once a week–well, there’s no comparison. If the lawn-mowing company dies, another pops up to replace it.
Large businesses don’t just happen.
They come from small businesses.
Tesla, Nvdia, Facebook, Microsoft, and Google were all once small businesses. The progression from small to large is mostly a US thing.
What has the EU done for decades?
Schumpeter Creative Destruction