IAM Boeing Strike Enters Its Second Month As SPEEA Contract Talks Near
October 6th, 2008
As the strike by the IAM union at Boeing enters its second month, talks with the second largest union, the SPEEA are due to commence in just over three weeks time.
During the thus far month long Boeing/IAM stand-off, no talks between the two parties have taken place. Across various reputable media sources, and from even within the rank and file of the IAM union itself, there have been a few calls for mediators to step in and help bridge the gap between the two.
“I’ve taken on a second job while on strike - its a decent wage, but far lower than what I earned with the [Boeing] company,” said one 777 worker.
All images courtesy of Boeing
“The IAM money pot won’t last forever and I’m getting anxious about how to fund my kids college fees and my mortgage - the strike pay is a temporary reprieve and I think federal intervention must be pursued because in all honesty, I want to go back to work now and earn my salary.”
In releasing its third quarter deliveries , the strike thus far has meant that the slump in customer handovers is no major surprise. Even assuming the strike ends tomorrow, the striking workers can take up to two weeks to resume their jobs and a further week (if not more) to stabilise and restart production across the 7-series lines.
“Clearly it is a great regret that this strike has already gone on for so long and it seems to me that the workforce now out on strike should begin to think of the longer term and realise that it is only by staying competitive that their jobs can be sustained,” says BGC Partners Senior Strategist Howard Wheeldon.
The SPEEA union is poised to start its contract talks on October 28, and as noted by Wheeldon, the notion that the employees risk their own future by engaging in industrial action is one that is starting to gather pace amongst some analysts.
“In short and almost five weeks since this strike began it is increasingly right to suggest that unless the Boeing workforce start to envisage the serious risks ahead, there could be carnage,” states Wheeldon.
Speaking exclusively to FleetBuzz Editorial.com, the SPEEA’s Executive Director and chief negotiator, Ray Goforth sounded out a warning about the implications of Boeing’s second largest union also perhaps taking strike action.
“A strike is a powerful tool that harms the employer, the employees and causes collateral damage to the community. It should never be used lightly,“ he said.
The SPEEA contract expires December 1st, 2008, leaving both sides with a shrinking window to thrash out a new labour deal in the hope of averting a second strike for Boeing.
Now, more than ever, talks are needed to bring the IAM stoppage to a halt.
Its not a question of how far Boeing will go to pull out all the stops to bring the matter to a close, but rather a willingness on all sides to see that strikes seldom bring either unity or benefit for either sides cause.
Wheeldon paints a bleak picture if the current impasse continues:
“By looking at the current order backlog and the increased profitability that Boeing has achieved in recent years as a means to make unreasonable demands, the Boeing workforce risks killing the goose that has laid seemingly golden eggs.“
(Prior articles on the Boeing/IAM strike can be found by clicking these links here, here, here, here, here, here, here, here and here. )
Sphere: Related ContentEntry Filed under: Boeing
21 Comments Add your own
1. Graphite Epoxy | October 6th, 2008 at 12:23 pm
Something smells here fleetbuzz.
A quick comparison of the Major institutional holders of both Boeing stock as well as stock in BDG partners reveals 3 of each company’s top ten institutional sharholders in common, as well as 2 of each firms top ten mutual fund investors, more if you account for dissimilar funds under the same management.
Nevertheless, any invesment house, bank, or brokerage that cares to comment on this strike carries no weight with me anymore. They are all out there, ruining lives and ruining the economy.
They can all go pound sand.
Wheeldon’s use of words like ” carnage” reveal that he has motives. His assertion that Boeing is somehow a golden goose ripe for slaughter is foolish.
I’m staying out on strike with my union until Boeing decides it wants to talk.
Boeing has only to agree that it needs to move in the IAM’s direction (obvious since we are on strike) and agree that ALL concerns of the IAM be adressed at the bargaining table.
There is no prerequisite for agreement. But there will also be no control of the agenda by the company.
That’s all. Agree to that and talks are on within hours IMO.
The presumption of unreasonableness on the IAM’s part is silly. It’s the company’s move and they know it. We aren’t returning for the last offer. And we arent’t returning to only discuss the few issues Boeing wants to limit negotiations to.
2. Ken | October 6th, 2008 at 1:10 pm
I’m a shareholder of Boeing and have been for a long time, I’ve seen the company and my shares succeed and falter at various times, but the fact remains that the management of Boeing must retain the right to run the company in the best manner it sees fit.
Its responsibilities are to make sure the company makes a profit, operates in a legal manner, and honors those commitments made to purchasers of its products.
Boeing must compete in a world market, boundaries are now just line drawn on a map. the company has customers everywhere on the globe, agreements are made with countries to produce various components within those countries and to share some of the production.
Bombardier does it, Airbus does it, and a host of other companies do it.
Just because an aviation manufacturer is not in the home country does not mean they cannot be part of the manufacturing process, suppliers of various components to aircraft have always been spread around the world, and always will be, it’s part of being in the world economy.
Workers will always want to protect their jobs and try to ensure they stay in their communities, and rightfully so. But to do that they must compete with workers around the world who can do the job just as well, and are just as hungry as they are.
Airbus is now producing airframes in China, their unions were furious that jobs were going to a foreign country.
A lesson here, Airbus is building aircraft in China, not pieces, aircraft!
Do we really want to go down that road at Boeing?
I don’t think so.
The company has and will always outsource some components, it has to, it can’t compete otherwise.
I don’t like outsourcing any better than the next guy. but I sure like making money, and if that’s what we have to do, then do it. Just make it hard for management to do it, by being better than the competitors, and we can.
3. DonS | October 6th, 2008 at 3:48 pm
Hmmmm- Just who or what is BCG partners ? I looked it up on Google “BGC Partners, Inc. (NASDAQ: BGCP) is one of the world�s leading inter-dealer brokers, providing integrated voice and electronic services to wholesale market participants across the globe. We are active in the global fixed income, rates, foreign exchange, equity derivatives, credit derivatives, futures and structured product markets, offering a full range of brokerage services including price discovery, trade execution, straight through processing and clearing, settlement and access to electronic trading services from eSpeed.”
+++
I suggest that Mr Weldon should stick to his occupation of providing brokerage services - do his homework about Boeing Mis management starting with the boeing Board of Directionless and their ties to Fannie Mae. And the interesting ties between Goldman sachs and Mr liddy , etc
His mantra re blame it on the ( implied financially challenged ) workers, yada yada only shows the effectiveness of the Boeing PR flaks.
Obama has James Johnson and Franklin Raines, while McCain has Ken Duberstein. Kenneth sat on the Fannie Mae board from 1998-2007.
He helped McCain with his 2000 Presidential run and then headed George W.’s transition team to the White House.
While on the Fannie Board, Ken’s firm got over $1.8 million for keeping the regulatory wolves away from the door.
++++
Mr Duberstein has been on the Boeing Board since 1997 , the lead director since 2005 according to the 2006 annual report.
But wait - there is more
Look who just got hired into AIG !!
.I.G.�s chief executive, Edward M. Liddy
From the Boeing site
Edward M. Liddy
Director Since 2007
Former Chairman of The Allstate Corporation. Mr. Liddy served as Chairman of the Board of The Allstate Corporation from January 1999 to April 2008. He served as chief executive officer of Allstate from January 1999 to December 2006, president from January 1995 to May 2005, and chief operating officer from August 1994 to January 1999. Mr. Liddy will become a partner in the private equity investment firm of Clayton, Dubilier & Rice, Inc. Mr. Liddy is on the boards of the following public companies in addition to The Boeing Company and Allstate: 3M Company and The Goldman Sachs Group Inc. He also is chairman emeritus of Northwestern Memorial Hospital and serves on the boards of Northwestern University and the Museum of Science and Industry. Mr.� Liddy is a member of the Compensation Committee and the Governance, Organization and Nominating Committee.
And still more - a BIG part of AIG is this little leasing organization called ILFC who own/lease a bundle of Boeing and Airbutt Aircraft
4. Bamboo Aircraft | October 6th, 2008 at 5:01 pm
Ken,
Douglas/Boeing already tried building the entire airframe in China years ago. It was called the MD (Mistake Don’t Build it) 95, now dubbed the 717, was built by Boeing in Long Beach CA. Now out of production. The Chinese MD-95 program was a TOTAL FAILURE. Chinese technology is about 20-30 years behind the USA. Our mistake is that we give away important technology when we want a few cheap parts built. We sacrifice short term $ profits and cause technology erosion. Go figure. I’ve seen and worked with China’s junky aircraft parts. The
quality is lousy, the repairability is compromised with all the rework that has to be done to make them acceptable to use, etc. Could you imagine flying in a 737 airframe made of bamboo? You people out there that think China is the way to go for aircraft parts are missing a chunk of your cerebral cortex. Chinese parts are low quality garbage. I am saying that with 20 years of machined aircraft parts experience.
5. Chris Wallace | October 6th, 2008 at 5:26 pm
There must come a point when the strike no longer “benefits” Boeing (by allowing them to itemize and structure the future completion of the travel work for ZA001-ZA004, allowing the stockpiling of delayed parts for existing planes [galleys, lavs, etc.] and [hopefully] preparing parts allocation to allow production increases in the 767 and 747 lines when they come back). At that time, I would expect (hope) that Boeing will come back to the table and work to hammer out a deal.
6. Rod | October 6th, 2008 at 8:20 pm
I want to know just how many of the Big Guys at Boeing with their million dollar salaries would like to work for 30 years, then die, only to find they have no retirement money for their spouse. Or mayb they’d like to work for Boeing 20 years, get laid off a couple times, then come back in as a New Hire? Sad, sad, sad, they better come back with something better than that.
7. Ken | October 6th, 2008 at 8:56 pm
” Bamboo Aircraft”
I agree with you about the history of MD, but that was long ago, Airbus has gone into China and spent a lot of money and time training and testing the methods and skill levels, they apparently are convinced they are capable. However I don’t think that’s a route Boeing should take, but it is a very real possibility, as you well know components for Boeing aircraft are being produced all over the world.
The secret in keeping production at home is cost and quality, Boeing would love to have everything built in North America with a supply source close at hand, the ability to communicate with them without the time differences and the problems with transportation.
But to make that happen requires some tough decisions, convincing Boeing to do it is going to be a tough sell, but it is doable.
There are far to many Industries and jobs moving off shore, and it’s time to make an effort to get them back.
8. mike j | October 6th, 2008 at 9:20 pm
I like comments of #1 #3 #4 and #5 bloggers.
I don’t like #2 blogger, true it looks like us IAM are sort of “in a bind”. but I’m not in fear like he wants me to be, money isn’t everything.
I don’t like BGC Partner Senor Strategist Howard Wheeldon. He is one cause of the economy problem and one reason the whole USA financial markets are in the mess they’re in.
I’m staying out on strike as long as it takes to get Boeing to address even half of the issues WE brought to the table.
Boeing (”Bored of Directionless”, Execs etc) are the bullies of this drama. And we are finding out that they are best-friends with all the other bullies in the financial markets, including Wheeldon. I wonder what else we’ll find out next.
If Boeing’s Bored of Directionless wants to run the company into the ground then let them.
9. My Two Cents | October 6th, 2008 at 9:26 pm
“Its responsibilities are to make sure the company makes a profit, operates in a legal manner, and honors those commitments made to purchasers of its products.” (Ken | October 6th, 2008 at 1:10 pm )
I find the “operates in a legal manner” to be quite amusing. Ken, I am sure you can understand that many of the SPEAA and IAM members also own stock in their company.
As one stockholder to another – I’m sure I don’t have to point out that the illegal infractions perpetrated by the not one, not two, but three of the company’s executive leadership have cost all of us multiple millions of dollars In fines, hundreds of millions of dollars in lost revenue, and billions of dollars in lost contract opportunities.
Our own (Boeing employee) in house council at the time, Doug Bain, was quoted as saying in a 2006 report to the executive committee (and this was before Stonecipher was sacked for spending time in the sack with an employee):
Link:
“The State Department’s view of Boeing is we just don’t get it. There are too many violations, and as a result it’s probably their intention to hammer us on QRS-11.
The numbers at the top [apparently referring to a chart] are the number of formal ethics cases the of Ethics and Business Conduct opened in 2004 and 2005.
What is astounding to me, of course, is that if you look at 2005, 900 of them were found to have substantiation.
So is the problem the rank and file? Or is the problem us?”
On the shareholder side it was bad enough – as an employee I now have the privilege of sitting through ethics classes. They lie, steal, cheat, and sleep around, and I get the classes.
As a shareholder - I find it very difficult to sit back and accept the type of ethics being applied here. As an employee – I find their methods despicable and having the same underhanded, unethical, and short sighted approach they have utilized in their business dealings.
10. DonS | October 6th, 2008 at 10:05 pm
Gosh Two Cents - You seem to think that the Boeing ethics program is a sham ??? - I’m shocked- shocked I tell you ;-PPPPPPPP
Everyone should take a look at the 401K class action just certified against Boeing - take the time to download the details of the court papers
http://www.planadviser.com/compliance/article.php/2933
Although not part of the suit - about 7 years ago, Boeing got caught playing with the float in the 401K plan known as the VIP ( Voluntary investment plan ) I posted some of the results on my site then
UPDATE 25 JAN 02 - BOEING SECURITIES CLASS ACTION SETTLEMENT AND A FEW DETAILS OF INTEREST TO BOEING AND MDC EMPLOYEES IN THE 401K PLANS [ 1997] [H]
UPDATE 27 JAN 02 - BOEING SETTLEMENT IN 2000 FOR USING VIP $ FLOAT [J]
http://home.att.net/~dshuper/welcome.html
http://home.att.net/~dshuper/DOLVIP00.PDF
And then take a look at the wonderful no comments about my statements in my shareholder proposal submittal, wherein I spelled out the lack of ethics and the retaliation for daring to bring up questions
http://tinyurl.com/56rbd3
The reason they made NO mention was due to relatively new enforcement of a SEC rule regarding company claims of ‘ materially false and misleading ‘ or ‘ impugning the name of the company by making false allegations ” - Seems if they make such a claim - they must PROVE the proponent wrong .
And there is still more to come regarding bribes
11. JJ | October 6th, 2008 at 11:00 pm
My stock has dwindled by over 50%. Despite this fact I am 100% behind the strike. It’s BS to say Boeing has to have the right to Manage itself when the company is owned by the workers via stocks. We decide whether or not something should be offload by our quality, not by a magical wand thinking we can make money by letting someone else do it only to have to fix it every time it comes in. Boeing cannot make a plane w/o its workforce and not just “anyone” can come in a do the work. Would you trust your family on a plane build by newbees that don’t know what they’re doing? I’d rather fly Airbus at that point. Guess what, their on strike too for the same reasons. No, Boeing can fix this quite simply but McNerney is one of those boys that got punched in the stomach for doing something wrong and can’t say sorry, so we punch him again, and again………. Must Go.
12. aircraft_painter | October 6th, 2008 at 11:26 pm
Boeing Managment keeps ‘effing up and the hourly workers have to pay for it. Most of the managment down at the Auburn plant is spineless and does a great job of looking the other way. Won’t say a thing to the workers that don’t do a thing, while jumping on the back of the ones who do. No wonder Boeing is trying to outsource more jobs, as they can be done cheaper, and quicker than their own employees.
I cherish the day when the union is broken and Boeing can fire all the dead weight and reward those who actually don’t play the attandance game, family leave game, the L & I game, the race game, and the gender game. Those that work and do their jobs will be rewarded.
13. McNerney's Comments | October 7th, 2008 at 4:54 pm
For over 20 years now we’ve been hearing how Washington State is going to be a “rust belt” for aircraft manufacturing and blah, blah , blah. These comments were made in the late 80’s by Frank Shrontz, then Boeing Co. CEO. Now….enter Mr. Mc Yale/Harvard graduate, superstar wants to compare the auto industry’s meltdown with future
aircraft production. Well, let’s give him a BIG Kaizen burst for his thoughts though! He’s one helluva team player isn’t he?! Sorry, Jim, nice try but there is no comparison. It’s also interesting that the all of the 787 delays had no effect on Boeing’s reputation.
As soon as the IAM strike started to slow things down, according to McNerney, it is giving The Boeing Company a bad reputation. Oh, and watch out for China, they had their first spacewalk, they’re coming right up on our tails! Jim, we’ve already been there done that over 43 years ago! The bottom line is that we need to stop having all these substandard aircraft parts being built by countries with low quality standards. The Boeing Company is famous for outsourcing work, then receiving parts either built wrong, backwards, incomplete, bad quality, etc. Then they use the IAM machinists to clean up the mess and make things correct. The IAM machinists strike is in The Boeing Company’s hands, they can end it anytime. It would be in their best interest to stop stepping over a dollar to pick up a dime.
14. boeing investor | October 7th, 2008 at 5:37 pm
I honestly don’t understand why people are taking potshots at Howard Wheeldon.
What he is stating is blatently obvious - the union/workers strike is risking business for Boeing.
If airlines start canceling orders - just how the hell do these striking idiots think they are going to get their paychecks?
If Boeing isn’t making money, then just watch that jobs axe fall on Everett.
There are plenty of willing labor parties in Asia that would kill for that work, knowledge and expertice.
Its high time the workers stopped loitering about burning oil drums, pull their fingers out of their sphincter and earned a living like everyone else and quit whining.
Remember, there are plenty of other people across the globe who want aerospace work and Boeing has already shown it will give them critical work like wings - stop following the union leaders like lemmings, think for yourselves and your families and get back to work and build those damn fine airplanes.
15. aircraft_painter | October 7th, 2008 at 10:11 pm
boeing investor - spoken like a true boeing shareholder who is living high on the hog while making a lot of $$ off the IAM union members.
WE THE IAM union members are making Boeing the big $$ so why shouldn’t we get a nice share of this pie?
Why should the managers, and the board of directors make truck loads of money while the people who are actually doing the work get just a tiny sliver of that pie?
your comments tell me that you are only effected by this strike by loosing more money that you want to. Obviously you’re not trying to make it on $150.00 a week.
$150.00 a week is probably what you pay your maid to clean your shorts.
16. DonS | October 8th, 2008 at 12:46 am
The point is just not directed to Mr Wheeldon but virtually all the press who swallow the company PR.
Mr McNearneys recent email to all employees seems to be designed to up the rhetoric in the PR wars.
While trying to blame IAM for impacting the reputation of the company - he seems to overlook the little game played on 787 rollout - where virtually EVERY involved employee KNEW it was a hollow shell- and would never fly in 6 months let alone a year.
And what he is NOT saying now is worse !. Consider that many sub conractors/partners are also being impacted- and compared to the real costs of settling - and what happens if they start to go under. BA has NO choice but to buy the company as they did Aleina-Vought (sp? ) - Why? because those smaller companies have control over the engineering- design- and facilities available to produce the 787 parts.
And if their costs go up because of the Bored of Directionless and the mcNearney lack of common sense, guess what happens ? Boeing will lose several times what the real labor costs would be to settle.
Yet people like Wheeldon continue to swallow the Boeing Kool-aid and do not bother to do their own due diligence.
17. Jacobin777 | October 8th, 2008 at 1:43 am
Why is Airbus outsourcing their work (Power 8)?
18. mike j | October 8th, 2008 at 5:14 am
Us IAM do not succum to scare tactics.
Boeing could’ve offered a “same-as-last-time” contract, yet they chose NOT to do so.
Boeing knew from all our surveys six month ahead of time that any take-away would not be accepted, yet they chose to take-away in very plain language, and chose to not address even one issue from those surveys, and then chose to go public with all our offers– to provoke us into total rejection– which means Boeing WANTED a strike, plain and simple!
Boeing Execs seems to have known this banking/credit debacle was on its way just prior to us IAM going on strike. Lead us blindfolded straight into the gas chambers.
Yeah, Boeing got us IAM into a really big bind for sure!
But regarding current financial debacle…
Don’t for one minute blame ANY workers anywhere across the entire USA for even one part of this current finacial mess.
Only the individuals at the TOP TOP TOP created this entire mess. It is interesting that Boeing is up amoung the top top top.
Boeing Execs and Board Members seems to have had a hand in the debacle that is now happening across the US Banking Industry, and likely global repercussions as well. Eventually this might be uncovered.
Will any of us live through it? On strike or not, anywhere in the USA?
I will agree with blogger #12 (aircraft painter) regarding the people who play the attendance games. I wish they were gone too, they sure don’t help our cause. And I hate their ussual poor workmanship, and I hate doing their job when they’re gone all the time.
19. Grace | October 8th, 2008 at 12:45 pm
In worder to talk to IAM Boeing will sweeten their stance in the take away department. Punishment is not a reinforcer. Strikes hurt everyone. You will not get a signing bonus and they need for outide venders to catchup in the bailout department as well. The company when its stock dropped a few months back was a take away yes but more of a warning to all that no one was going to have it as good as they useto. They had an ermine lined, gold lamet invite to what is happening. The new hires have to return in order to get laid off. Those planes will start again at the end of te month.
20. Joe | October 10th, 2008 at 7:24 pm
Reality is that Were only months away from some Big Layoffs… Its Guarenteed, in facts Weeks is A possibility as well.. Unfortunate but true.
If you people haven’t figured it out yet.. As soon as the contract is ironed out- it will only be a short time before they start axing the work force. This economic turndown is Global~!! and is hitting so fast, that it could unfortunatly be something we haven’t encountered in our lifetime. Im not a negitive person just realistic.
21. Joe | October 10th, 2008 at 7:30 pm
This Credit/Banking problem was very well known.. in fact Im only surprised that it held up this long.
Yes I agree that the Company/Boeing upper levels knew very well, what they were leading the IAM Into.
Unfortunatly the IAM Leadership does not understand Economics in the least. They are who they are…
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