Copyright Simple Flying
Entering the 15th week of the strike, the union machinists of Boeing’s St. Louis-based “Air Dominance” division still have not reached an agreement with America's top aerospace manufacturer. On the heels of a failed attempt to reach a deal with a federal mediator, Boeing is now offering a $6,000 bonus as part of the new employee incentives, according to First Alert 4 News. Employees have rejected multiple offers over the course of the nearly four-month labor dispute. The uniquely skilled Americans construct the United States Air Force’s top fourth-generation fighter, the F-15EX “Eagle II,” and will produce the world’s first sixth-generation stealth fighter, the F-47. The Boeing Stalemate The situation has not progressed since it began in the early days of August, when over 3,000 employees at multiple facilities in the St. Louis area went on strike. After the Union members of IAM 837 voted to reject Boeing's fourth offer and the company rejected the counter proposal on October 30. Democratic senators of the Armed Services Committee have begun to press Boeing CEO, Kelly Ortberg, to resolve negotiations and get back on track. One of the primary points of contention is Boeing's desire for a five-year contract, whereas the Union is seeking a four-year contract. The company began to roll out a “contingency plan” to stabilize production, which included hiring permanent replacement workers. Boeing, however, claims that if the latest deal is ratified, all employees on strike can return to work. According to the union, none of the terms of the Boeing offer have changed from the 4th proposal that was rejected, except for the cash bonus. First Alert 4 News relayed this statement from Steve Parker, president and CEO of Boeing Defense, Space & Security (BDS): “We’ve heard from many of you that you’re ready to vote on another contract offer, and that you’d like more cash up front rather than Boeing stock. We’ve taken all of that to heart with a revised offer…” Shareholders Before Workers Or The Troops A bipartisan group of 17 senators has begun to urge the company to prioritize the needs of the military over its pursuit of profit. The Crux of the issue is that Boeing wants to save $8 million over 4 years in payroll to employees. After being awarded the US military’s first 6th-Gen fighter contract, and recording revenue of $23 billion in this third quarter, the company is sitting on a $76 billion dollar backlog of defense orders. Boeing rejected IAM 837’s fourth proposal flatly, with no counteroffer. Yet, the company has paid over $100 million to its fired CEOs who were responsible for catastrophes like the 737 MAX’s fatal software flaws due to outsourcing and a toxic company culture. Once again, Boeing is putting short-term profit above workers and product quality. The company is so unwilling to raise pain benefits for highly skilled and exceptionally experienced employees that it has flown in workers from out of state and provided housing, as well as food and travel expenses. Despite this elaborate effort to avoid meeting Union demands, the production of the final US Navy F/A-18 Super Hornets and the newest USAF F-15EX, as well as munitions, has essentially ground to a halt, as Kelly Ortberg himself said. A Case Of Flailing Leadership Despite being one of the largest defense contractors of the US Military, which has the largest defense budget in the entire world by an enormous margin, Boeing has repeatedly stated that it is continuing to lose money. Mismanagement of projects like the Next Generation Air Force One mirrors the disastrous program records of commercial endeavors like the 737 MAX and 777X jetliners. Boeing was very nearly the first US Corporation to ever be tried for a criminal felony offense in the aftermath of the 737 Max crashes that killed nearly 350 people. Investigation into that incident found that simple neglect of quality and cost-cutting measures was directly responsible for the fatal mishaps. The decisions of leadership have managed to turn the bottom line red despite the titanic planemaker's market dominance. At the same time, the US government has awarded Boeing enormous contracts in the years that followed, including the F-47. Now that the company has been entrusted with decades more of military contracts that constitute tens of billions of dollars, there appears to be no change of course. Actions like choosing to discard employees with vital skills to the national defense industrial base instead of negotiating is just “business as usual” at Boeing. The same leadership style that has seen the company fall from its great heights, even slipping behind Airbus into second place for best-selling airliner of all time.
