Boeing's Labor Pact Requires Union Input To Cut Costs

Jan. 13, 2005
At first blush, the agreement between Seattle-based Boeing Co. and its 44,000 union employees appears to be heavily tilted toward the union. The members of the International Assn. of Machinists and Aerospace Workers get an 11% pay increase over three ...

At first blush, the agreement between Seattle-based Boeing Co. and its 44,000 union employees appears to be heavily tilted toward the union. The members of the International Assn. of Machinists and Aerospace Workers get an 11% pay increase over three years, a 10% signing bonus, and a guarantee that no workers would be laid off due to subcontracting. Boeing also retreated on its attempt to eliminate premium pay for weekend work and to have union members pay for part of their health insurance premiums. However, Boeing still retained the right to shift work to less expensive outside suppliers and the right to lay off workers in the face of weak demand. In essence, the contract simply says that Boeing must work first with its union employees in an effort to lower costs together. And, if that fails, the airplane manufacturer could outsource the work or move it.

Popular Sponsored Recommendations

Gain a competitive edge with real-world lessons on private 5G networks

Nov. 16, 2023
The use of private networks in manufacturing applications is rapidly growing. In this paper, we present valuable insights and lessons learned from the field with the goal of enhancing...

Ecommerce Guide: How to Manage Order Volume Spikes

Oct. 2, 2023
Master the art of delivering a seamless ecommerce shopping experience! Learn how to streamline your operations to successfully manage seasonal sales order spikes.

The Executive Guide to Best Practices for Ecommerce Integration

Oct. 2, 2023
Get ready to elevate your post-checkout experiences and thrive in today's unpredictable market. Learn why integration and automation are crucial to run operations more smoothly...

Smarter Savings for Manufacturers - Guide

Sept. 12, 2023
Enhance your service experiences and boost revenue while reducing costs. Learn how one platform can help your business be more agile and productive in today's market.

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!