Dec. 21, 2019, © Leeham News: The International Association of Machinists District 751, the touch-labor union at Boeing’s Seattle-area plants, launched a campaign for a strike fund this week.
The current labor contract expires in September 2024, five years from now.
Nevertheless, the union announced its campaign on its Facebook page and a micro-website here.
The union urges members to contribute $50 per paycheck to raise $6,000 by 2024.
In bitter votes, the union gave health care and pension fund concessions to Boeing and a long-term contract, to 2024, in exchange for locating final assembly of the 737 MAX and 777X at the Renton and Everett (WA) plants.
The concessions were part of the wars between the IAM 751 and then-CEO Jim McNerney.
Boeing located line two of the 787 final assembly in Charleston (SC) in 2009, after contentious negotiations. Boeing said the union failed to offer acceptable givebacks. The union said Boeing refused to consider the offer it made.
Even before the current MAX crisis, expectations were that Boeing would seek more givebacks and another long-term contract in exchange for locating the FAL for the New Midmarket Airplane in the Seattle area.
The MAX crisis throws future product strategy into doubt. Boeing already announced losses and costs of the crisis of nearly $10bn. More charges are expected to be announced during the Jan. 29 earnings call for the full year of 2019. Some believe the costs and charges could double by the time the MAX is recertified and returned to service.
Saturday morning ramble from me:
To save a few dollars, management have caused a complete disaster for Boeing. They shouldn’t be rewarded. In fact, previous chair like McNerney should have their salary “clawed back” or their stock options cancelled (not that its going to happen). Maybe moving forward, the spineless BOD should have something like these kinds of provisions put in (as long as they are legal).
Regardless, while I’m not really pro-union at all, I think management will have to “give in” with this situation – and deservedly so. “Saving a few bucks” this time around will not help Boeing. IMHO the experienced and knowledgeable Boeing workers in the Seattle area are really the ones who will be able to get Boeing back on its feet.
Scott, January 1, 2024 is in 4 years + 11 days
@Jbeeko: Contract is amendable in Sept 2024. Less than 5 years, but it’s the IAM’s rounding.
If this falls out in the 20 billion range, they could have launched two whole new programs for that amount.
Clearly Boeing is vastly superior to Airbus in the lets make a loss category.
One very small piece of crappy design logic (MCAS 1.0) and the house come tumbling down. Amazing.
You know there is more to it than just MCAS. The decision to replace the 737 should have been made 15 years ago. Boeing would have a new aircraft by now. No MCAS needed.
The A320neo was launched On 1 December 2010 (but there had been serious pre selling from Feb 2010 everyone knew about), the B737 MAX August 30, 2011. On July 20, 2011, American Airlines announced an order for 460 narrowbody jets including 130 A320ceos and 130 A320neos, and intended to order 100 re-engined 737s with CFM LEAPs, pending Boeing confirmation which was effectively the MAX launch (without Board approval)
I would assume an all new B737 replacement would need to have been launched 2008/2009 to match Airbus’s upgraded A320neo though a launch in early 2011 would have worked as well as I think Boeing customers would have waited and even ordered more. By the time the MAX was launched instead of an all new aircraft the decision had become a reactive one of a marketing guy, McNerney, reacting to AA’s perceived need rather than an engineer with a feel for the problems grandfathering of certification would bring and being in a proactive position to offer AA an NSA with a cockpit similar to the B777/B787 series. Prior to 2011 Boeing was somewhat preoccupied with getting the B787 out as it was somewhat late.
Boeing was very vocal about the A320 neo ‘potential’ re enginning issues, hindsight of the discussions shows they were a form of trolling by Boeing as Airbus had few issues. The biggest mystery is why they were so so far out as for the fuel rfficdncy benefits of a new engine, estimating those at well below 5%, when they were more like 15%. Surely their development people had better info from Leap about it’s capabilities, they wouldn’t even be bothering with an all new engine that only delivers under 5% gain.
In 2024 the competition is going to be quite different. A220 may be in a position to ramp up in volume and A220-500 may exist. The COMAC C919 and Sukhoi/Irkut MC21 will be in production. Both the Russian and Chinese plane may have PD14 engines independent from western suppliers. The A320XLR will be in production and its optimised flap technology may have transferred to standard A321 and even A320 to give a short field performance and another slight MTOW. The A350 may be available in thinner side walls able to handle a 10 across 3/4/3 aisle with 17 inch seats. COMAC may be offering the C929 for sale. The B777-9 will exist and maybe the B777-8.
The Boeing NSA and NMA may exist as programs 3 years from first delivery but probably not both. There may be massive global carbon taxes or banks may rescuer us by selling us the carbon credits they own from the money the reserve banks printed for them. We are seeing a shift of Global Manufacturing shifting to Asia. from Europe and USA Cars, cell phones, airliners, clothing, footwear, automation. The shift of manufacturing and industrial prowess will continue to shift. The civilizational decline of western nations will continue under the malaise of the incumbent left and right.
I can’t see that these unions will have much bargaining power at all.
I’m guessing that $6k would facilitate a 1-month strike, which may seem a walk in the park for BA after the MAX troubles.
Read Jacobin777 above. Boeing let the “GE way” define an aerospace company. And how is GE doing now??? Very foolish. Of course this is somewhat hindsight, but who would recommend that Boeing redesign the software and NOT include or alert the pilot??? Even without hindsight this is a disaster waiting to happen. All BOD and CEO’s should have to view the movies, SULLY and the History channel’s (I think) 747 development documentary from an engineering viewpoint before being hired. And retroactively if they have not already seen them.
well Mully has been fired- replaced by Calhoun another GE-Finance bean counter type and former intern of Jack welch managemet methods.
The GE-MDC virus- plague is thriving- golden parachutes for all in Chicago paneled offices.
Engineers, mechanics, pilots,passengers- not so much.
“”Of course this is somewhat hindsight, but who would recommend that Boeing redesign the software and NOT include or alert the pilot??? Even without hindsight this is a disaster waiting to happen.””
Documentation made public at the House hearing on October 30, 2019, “established that Boeing was also already well aware, before the Lion Air accident, that if a pilot did not react to unintended MCAS activation within 10 seconds, the result could be catastrophic.”