Boeing Co. is already dealing with the aftermath of a near-catastrophe on a 737 Max jet, with investigations into manufacturing lapses underway. But the US plane maker now faces an additional risk: a labor rift a decade in the making.
The company’s largest union, the International Association of Machinists and Aerospace Workers, is still feeling the impact of a deal made in 2014. That agreement ended pensions, introduced minimal raises, and restricted union activists for a decade. Now, union leaders are looking to make significant compensation demands, citing they will pursue a 40% pay raise spread over three to four years.
Inspired by recent shifts within the US labor market, including significant gains made by auto workers and individuals within the Hollywood industry, machinists are rallying for their own substantial increase. A strike is not their preferred outcome; however, they have indicated it is an option they are willing to consider if necessary.
The potential for another major disruption comes as Boeing grapples with egregious issues related to its 737 Max jet. It underscores the cyclical nature of the challenges the aircraft manufacturer must navigate, bonding regulatory, manufacturing, and now labor hurdles into a tangled fabric of corporate adversity.
For more detailed information on the labor strife that Boeing Co is currently experiencing and how it poses the next big risk to plane production, please refer to the original Bloomberg article here.