IAM Ratifies Boeing Deal Ending Strike

IAM Votes To End Strike By 74%

SPEEA Talks Continue

The IAM union voted on the contract tabled by Boeing with a 74% margin in favour of accepting the deal and resuming work, ending the two-month old industrial dispute.

“Our Union has delivered what few Americans have - economic certainty and quality benefits for the next four years. Each of you stood up and did your part to win this battle,” said District 751 President Tom Wroblewski.

“This contract gives the workers at Boeing an opportunity to share in the extraordinary success this Company has achieved over the past several years,” said Aerospace Coordinator Mark Blondin.

Boeing Commercial Airplanes President and CEO Scott Carson was equally upbeat and seemingly relieved that this major episode had now been resolved, albeit much later than anyone would have imagined.

Image courtesy of Boeing

“The new contract addresses the union’s job security issues while enabling Boeing to retain the flexibility needed to run the business. It rewards employees for their contribution to our success with industry-leading pay and benefits and allows us to remain competitive.

Our company and its people have always faced tough issues head-on. While the strike has been difficult for everyone, our challenge now is to restart our production and regain our momentum,” he said.

Some production staff are possibly returning to work as soon as November 2nd, others on November 3rd, 2008.

Getting back to pre-strike output levels is likely to take several weeks, and will be hampered by the annual festive season where production winds down. Also, the ongoing contract talks with SPEEA will prove critical to reinstating production.

One major analyst has already sounded out a warning shot to the unions at Boeing.

“After [this contract], they’d better save for the future,” said Richard Aboulafia.

“These are the last jobs of their kind. Good salary, good pension and good benefits and no university degree required.”

Only time will tell what, where and how Boeing manages its next new airplane programme- for now, recovery of the 7-series production remains critical - customers have waited patiently for their airplanes, delivering as many of these as possible will be the near-term focus for all involved.

(Prior articles on the Boeing/IAM/SPEEA strike/discussions can be found by clicking these links here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here and here.)

20 comments November 2nd, 2008