Boeing, SPEEA Exchange Differing Views In Contract Talks
November 10th, 2008
As talks between Boeing and SPEEA continue, the divergence both sides have over their respective offer and demands are showing what could emerge to be a deepening rift that could end up with a second strike in as many months for the US aerospace giant.
“The company’s own data shows salaries are behind market,” said SPEEA Executive Director and Chief Spokesperson Ray Goforth. “Boeing cannot hire enough people. That problem would evaporate if they raised salaries to market leading levels.”
Boeing’s VP of Human Resources, Doug Kight acknowledged that “there is much ground to cover” before a formal contract can be offered. It is believed a best and final offer is due to be tabled this week to SPEEA, who will them in turn send out mail ballots to its members to vote on accepting or rejecting the deal.
“Our overall compensation philosophy is to provide salaries that are competitive within the market for employees with the wide range of skills the company needs, thus attracting and retaining talented employees.
Our initial offer includes salary adjustment funds – for both the Professional and Technical units – in each year of the contract. Salaries are adjusted after employees go through the annual performance management process,” says Kight.
Image courtesy of Boeing
With IAM union staff still returning to production lines after their two month strike, Boeing has already been hit with the news that the 787 Dreamliner would now not be making its first flight by Dec 31st, 2008 and that the 737 line has been discovered to have non-conforming nutplates that require retrofits and replacement parts.
Boeing is gearing up production to stabilise to pre-strike levels in January 2009 - it is also thought that any rejection of the contract by SPEEA would result in their industrial action taking place around the same time, damaging prospects for Boeing to complete missed deliveries from 2008 and take a hit for deliveries in 2009 too.
Some observers note that Boeing did not relent in the wake of IAM pressure during their walkout and see the same stance being taken with SPEEA should they elect to strike too.
Boeing CEO Jim McNerney made clear that “none of us want to go through this again next time around.“
Interpreted - that could mean Boeing could hypothetically rescind to SPEEA’s contractual demands or forcibly stick to its guns and pressure SPEEA into accepting its terms.
Outsourcing will remain a contentious issue at Boeing, and with China, Japan and Russia all eyeing a route into splitting the Airbus-Boeing duopoly, failure to agree a contract without a strike may just force Boeing’s hands in farming out more design and technical work to places like its Design and Technology Centers in Moscow.
Notwithstanding Boeing’s relationship with Russia for advanced titanium and other materials used on all 7-series airplanes, the relative ease with which the company can move such critical work overseas will mean any hard bargaining by SPEEA may prove to be counter-productive.
Once the best and final offer is presented, the ballot will ultimately decide the long term fate of such high value work.
(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, here and here.)
Sphere: Related ContentEntry Filed under: Aerospace, Air Transport, Air Travel, Airlines, Airplane, Airplane Order, Airplanes, Airport, Airports, Aviation, Boeing, Boeing Commercial Airplanes, Boeing Orders, IAM, Ray Goforth, SPEEA, Scott Carson
8 Comments Add your own
1. DonS | November 10th, 2008 at 7:14 am
I note that there is a special SPEEA council meeting scheduled for a strike * recommendation * vote on tuesday evening Nov 11-
http://www.speea.org/Council/index.html
I think it is highly probable that in some fashion - a strike recommendation vote will be taken for both profs and techs and that the recommendation will be to strike.
Even if the BAFO is not available by that time
SPEEA does things much differently than IAM
2. Precocious | November 10th, 2008 at 10:33 am
We have been bloodied enough mr. Kight. keep the best and let’s get on with business. The house is in shables and you need to bring back to the pNW work that is worthy of hire. You just want cheap not well done. Let’s make planes not labor problems. A house divided against itself can not stand. You just want to kill the bird. you should step down from your job.
3. boeing investor | November 10th, 2008 at 5:32 pm
I’m sure SPEEA will not strike.
The IAM gained nothing by it - except a two month, unpaid vacation - if that can be seen as a “bonus” somehow.
With the Christmas period and holidays approaching, they wont risk a strike.
4. SPEEA WORKER | November 10th, 2008 at 9:18 pm
I DONT THINK THAT SPEEA WILL STRIKE BECAUSE ALOT OF THE ENGINEERS AND OTHERS HAVE SAID THAT THEY DONT WANT TO GET A CRAPPY CONTRACT BUT THEY DONT WANT TO STAND OUT IN THE RAIN AND STRIKE FOR ANYTHING BETTER. WHAT A BUNCH OF @SSES.
5. roger | November 10th, 2008 at 10:47 pm
I have no personal contact with either SPEEA or IAM members. However I have worked many, many years with engineers; and many years with craft.
I believe/hope that SPEEA members will not support a strike because; a) they are more reflective and b) they know how to add.
I’ll be surprised if they decide to strike and dumbfounded if they use vague uttterances that what they really need is “respect” (like a bunch of gang-bangers).
6. mike j | November 11th, 2008 at 3:01 am
Boeing is getting cheaper by the year.
7. boeing investor | November 11th, 2008 at 11:58 am
SPEEA WORKER has a valid point.
Cranking up the talk of a strike and disagreements during talks makes it look like SPEEA will copy the IAM.
Wont work.
IAM voted for a practically unchanged deal after losing two months paychecks. SPEEA folk wont be that stupid.
8. Get Real | November 12th, 2008 at 8:17 pm
In the past I have seen SPEEA leadership recommend no on the contract and yes on strike and the membership vote the opposite. In my opinion, SPEEA members will not strike. But even if they do I will ignore that and go to work like I did in the last strike. I work for myself and my family. Every advance and raise I have earned over the years has been a result of my own hardwork and abilities. SPEEA may take my money against my will but I will never be a member and I will continue to ignore it’s existence the best I can.
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