The hits keep on coming for Boeing, with the company’s latest problem a likely strike of 32,000 of its union workers.
Boeing has been negotiating with the International Association of Machinists, representing 32,000 of the company’s workers, but the negotiations have not been going well. In particular, the union is trying to recoup some of the concessions it made in two previous deals since its last strike in 2008. Those concession included increased healthcare costs and lost pension plans, according to CNN, concessions the union felt it had to make to preserve thousands of jobs.
Now, the IAM says any deal with Boeing must roll back some of those concessions, or else the union’s members will strike.
“We’re far apart is on all the main issues — wages, health care, retirement, time off,” Jon Holden, IAM District 751 President, told CNN. “We continue to work through that, but it’s been a tough slog to get through.”
For its part, Boeing said it believes a deal will be reached.
“We continue to bargain in good faith as we focus on the topics that are important to our employees and their families,” Boeing said in a statement. “We’re confident we can reach a deal that balances the needs of our employees and the business realities we face as a company.”
With the current contract set to expire on September 12, at 11:59 pm PT, the troubled aerospace company is quickly running out of time to reach a deal its workers can live with.
CNN pointed out the challenges Boeing faces delivering new airplanes, with production slowed until Boeing can address regulatory concerns about the plethora of issues its planes have experienced, including pieces falling off mid-flight.
Holden put the blame squarely on the company’s leadership, both for the state of the negotiations, as well as the company’s fate in general.
“They haven’t said they can’t afford our proposals,” Holden said. “They are reasonable. We’re in a tough position because of decisions they made to keep increasing the dividend and share repurchases, cutting R&D. They’ve been paralyzed to launch a new airplane. It’s because of those decisions and the crashes that we’re in this position.
“The board certainly deserves to be criticized,” he added. “We don’t want to run the company. But we want to make sure our voices are being heard about the decisions being made. We love the Boeing Company. It’s the people on the board who don’t. They sacrificed its integrity.”
If Boeing cannot reach an agreement with the IAM, which represents more than 20% of its workforce, Boeing’s problems may quickly spiral out of control.