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HomeUncategorizedBoeing Is In NEW Trouble: This Time, It’s Unions

Boeing Is In NEW Trouble: This Time, It’s Unions

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Boeing is adding a whole new problem to its repertoire, breaking away from the drama of planes that fall apart mid-flight and embracing a new battle with striking workers.

At a glance:

  • Boeing filed an unfair labor practice charge against the union representing 33,000 striking workers on the U.S. West Coast.
  • Boeing accuses the union of failing to negotiate in good faith and misrepresenting the company’s latest pay offer.
  • The strike has halted production of key Boeing models, including the 737 MAX, and financial pressures are mounting on both sides.

Boeing escalated its dispute with the International Association of Machinists and Aerospace Workers (IAM) by filing an unfair labor practice charge with the National Labor Relations Board (NLRB). The aerospace giant claims the union has been acting in bad faith during negotiations, misrepresenting its offers to workers, and bringing negotiators without the authority to finalize a deal.

The strike, which has entered its fifth week, involves about 33,000 union members and has halted production of Boeing’s key aircraft models, including the 737 MAX. Boeing’s frustration with the union has grown, particularly after the company withdrew its latest pay offer following two days of talks with federal mediators. Boeing’s proposal included a 30% wage increase over four years, which the union refused to present to its members, claiming it was inadequate. The union has instead pushed for a 40% wage hike and the reinstatement of a defined-benefit pension plan that was eliminated in 2014.

The union previously filed its own unfair labor practice charges against Boeing last month, but no resolution has been announced. The financial impact of the strike on Boeing has been significant, with the company placing thousands of white-collar employees on furloughs and halting parts orders for all models except the 787.

U.S. Transportation Secretary Pete Buttigieg expressed the need for a resolution, emphasizing that both workers’ rights and the company’s success are compatible and that a fair deal is achievable. Meanwhile, 30 House Democrats have urged both Boeing and the union to negotiate in good faith and reach a timely agreement to end the strike. As both sides remain entrenched, Boeing faces mounting financial pressures, including the risk of losing its investment-grade credit rating.

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