Boeing (BA) Accuses Union of Unfair Labor Practices Amid Ongoing Strike

Author's Avatar
Oct 11, 2024
Article's Main Image

After a month-long stalemate, Boeing (BA, Financial) announced it has filed an unfair labor practice complaint with the U.S. National Labor Relations Board against the union representing workers at its U.S. West Coast plants. The company accuses union leaders of failing to negotiate in good faith.

Boeing retracted its wage proposal to the International Association of Machinists and Aerospace Workers after two days of talks with a federal mediator, citing the union's refusal to consider the deal seriously. Boeing claims the union misrepresented the terms of the agreement and prevented worker representatives from negotiating. This marks the fifth week of the strike, illustrating an escalating conflict that poses significant financial challenges for Boeing and disrupts the global aviation supply chain.

The union has expressed that Boeing's initial proposal from the start of the strike, a 30% wage increase over four years, was not adequate and refused to put it to a vote. Boeing acknowledged it improved its offer but noted the changes were minimal. The union seeks a 40% raise and the restoration of pension benefits eliminated in 2014.

The union previously filed its own unfair labor practice charge against Boeing, which remains unresolved. Boeing stated it had to respond legally to ensure all parties understand the facts of the situation.

U.S. Transportation Secretary Pete Buttigieg emphasized the growing importance of resolving the Boeing strike, stating that supporting workers and businesses simultaneously is achievable. The parties have participated in three mediation sessions but have not made significant progress.

Thirty U.S. Congress members have urged both sides to reach an agreement quickly to stabilize the aviation market, warning the strike could affect U.S. labor market data.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.