Boeing union rejects labor contract extension

In a closely watched vote, Boeing's (BA) machinist union rejects a labor contract extension aimed at keeping 777X production in Washington State for the next two decades.

The union voted 67% against the deal, which they said would have cut pension and healthcare benefits.

For its part, BA is "very disappointed" and says it now has "no choice but to open the process competitively and pursue all options for the 777X."

Still, some analysts expect BA to negotiate with the union given the advantages of keeping 777X work in the Puget Sound region.

For more on the union and BA's next-gen 777, see here.

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Comments (15)
  • jasonhad
    , contributor
    Comments (104) | Send Message
    Lesson #1 - Never put all your eggs in one basket . . .


    I forsee yet another manufacturer off-shoring more manufacturing in the face of the high costs of US production. Or at least spreading the risk by putting another line into production in a less unfavourable labour environment
    14 Nov 2013, 06:22 AM Reply Like
  • chopchop0
    , contributor
    Comments (5271) | Send Message
    They already have. It's called "right-to-work" SC.
    14 Nov 2013, 06:48 AM Reply Like
  • Bret Jensen
    , contributor
    Comments (14992) | Send Message
    Have to agree.....over the last decade for every job created in pro-union Blue states, 4 jobs have been created in right to work states.....something the MSM rarely covers.
    14 Nov 2013, 06:50 AM Reply Like
  • User 3950401
    , contributor
    Comments (556) | Send Message
    Contrary to your comment, i have the following:
    1) Specifically, Boeing will re-negotiate with the Union and the 777 will remain in production there, and
    2) Generally, American corporations have learned the hard way (and, some are slow to learn with lumps on their heads) that sending company capital and production secrets to China will only lead to their (the company's) demise.


    It truly amazes me that all you "enlightened" business people seem to think you are smarter than Henry Ford, Andrew Carnegie, et al. Do you not understand that without a middle class there will be no stock market? Do you not understand that without a middle class the country you live in (called the USA) will not survive much longer?


    Capitalism is a two way street, not a one way street as you would believe - e.g., corporate profits are the only measure of capitalism. When personal incomes/opportunities/... match those of the corporations (as they have in the past), you will see USA return to it's dominance. Of course, it will take many years for the country to recover from corporate and government scheming to destroy labor.


    "What is good for labor, is good for the union [of these united states]"- Abraham Lincoln
    14 Nov 2013, 06:51 AM Reply Like
  • Rope a Dope
    , contributor
    Comments (708) | Send Message
    jsijimmy, It worked out well for Detroit, didn't it?
    14 Nov 2013, 07:45 AM Reply Like
  • havok5
    , contributor
    Comments (6) | Send Message
    When unions stop being GREEDY and unreasonable, then maybe their membership won't continue declining.


    Remember the bakers union that essentially shut down Hostess and made all those other union jobs get lost?


    Here's a true story for you. My company was going to move offices to a better location and space. The rent was cheaper, but in the end we didn't move because physical changes we wanted made at the new location would cost more in the long run than if we just renewed our lease and has the current building make physical changes to our offices.


    So why did it cost more at the new location? Because the building was a 'union' building and that drove up the cost. In the end, we stayed where we were, had the NON-UNION building workers get the job done (and probably quicker) and saved money.
    14 Nov 2013, 08:09 AM Reply Like
  • SoldHigh
    , contributor
    Comments (991) | Send Message
    Ignorant and greedy unions will get served a dose of reality when BA shows it isn't bluffing by moving production to RTW states.
    14 Nov 2013, 08:42 AM Reply Like
  • Withermania
    , contributor
    Comments (54) | Send Message
    Fact is unions are dying. Companies are more nimble nowadays than the days of "Henry ford and Carnegie". Detroit, Pittsburg, Chicago., etc are all big union towns and they are dying. Detroit is bankrupt, Chicago has a 200 billion dollar shortfall of future pension obligations. Boeing should just build a world class facility in Texas or SC. Be done with unions. They don't deserve it.
    14 Nov 2013, 08:52 AM Reply Like
  • combie
    , contributor
    Comments (102) | Send Message
    Fact really is, Companies continue to think they can save money by going offshore or moving to a "right to work" state. Does not always work out so well. SC is a mess and most everything coming out of that facility has to be reworked, of course Boeing is going to tell the world how great SC is, but the people that know inside will say, it is going to be a long time before SC can be a real production line.
    Union workers from Washington that have the skill will always build better product. Unions are not the problem, it is greedy leadership that has no interest other than stock holder value which equates to huge bonuses for them. If they did their job, the unions would not be needed, but they don't so the unions live on. And anyone that thinks it is cheaper to move offshore has not lived it, it is about offset, but not cheaper product. Even MHI has a plan to move production back to the US where they have land. The dollar makes it very easy to build in the US these days.
    14 Nov 2013, 09:02 AM Reply Like
  • Rope a Dope
    , contributor
    Comments (708) | Send Message
    Unions are in fact the problem. There is probably no greater example than that of GM, driven into bankruptcy in large part by pensions demanded by the union, but which it could obviously not afford. Now GM is owned in part by the union and US taxpayers (the few that do pay taxes) will lose an estimated $10 billion because of the GREED of the union, not GM.
    14 Nov 2013, 09:59 AM Reply Like
  • Withermania
    , contributor
    Comments (54) | Send Message
    Combie- your union bias is adorable. The machinist union in Washington just pissed away thousands of jobs. Also, you think the members of that union don't hold stock in the company they work for? Boeing stock goes up it creates wealth for everyone. Leadership and the union. Now, the union will go by the wayside and miss out on a long term opportunity.
    14 Nov 2013, 08:17 PM Reply Like
  • Duckmaster4193
    , contributor
    Comment (1) | Send Message
    Ford Is doing great record profits and sells, they never barrowed a dime from the government. All because the Union and Leadership worked together. Allen M. never went to there employees and said take it or leave it like Boeing is doing. Boeing's biggest mistake was letting him go.
    14 Nov 2013, 01:48 PM Reply Like
  • thomas85225
    , contributor
    Comments (552) | Send Message
    Fact from all the fiction, Wow did everyone just wake up


    The Press and the IAM leadership and the IAM workforce has had over 10 year to
    do their home work


    Boeing has been building aircraft since 1916 without all the stories in the press and the need of 27 Billions of tax payer dollars


    Boeing has assembly 694 747-400 for 63 airline without water down the union contact, 747 is
    build supplies like Northrop build the super panel in Hawthorne ca


    The 737 after 2005 are building by Sprint AeroSystems in Kansas
    The 787 is Risk Sharing program build by suppliers Japan
    has 35% of the 787 program see Manufacturing and suppliers



    The Boeing 777-X files get updated About the 777-x see




    Is Qatar Airways serious about no 777-X orders? | Plane Talking


    Air NZ helps explain why the 777
    isn't right for Qantas - Wings ...


    Udvar-Hazy earlier this week said the 777X needs further “design
    refinements” before he would consider ordering the aircraft.



    Where the Market for the 777-X at !


    Boeing has offer a update 777 twice before at the Pair Air Show in 1995 with a 777-100 and Combi


    In 1997 Boeing offer the double decker 747-500 and -600


    Boeing slows the pace on 777X | Business & Technology | The ...



    How airline will need and aircraft that fly 9000 miles carry 406 passenger


    The 777-X must be code “E” aircraft to use existing airport and gateway see



    The 777-X is only need on the Asia- Pacific, Singapore Airlines, Australia route.


    China, Philippines, Koran, Japan, Europe, South American north American and Africa
    does not need a 777-X since the aircraft can land and refuel


    Air India has decided to sell five out of its eight Boeing 777-200LR aircraft owing to changes in market dynamics due to the Global recession, steep increase in fuel prices and poor yields on non-stop



    How many airports can handle 777-X or A-380


    The 787 is risk shaving program where the other aircraft companies build
    the 787 and its assembly in Everett, Sprit aero system build the 737 and
    shipped it to Renton


    Vought in south Caroline build the plant to build the section 47 and 48 and its partner to
    assembly the center that ship to Everett Boeing all Boeing aircraft are build outside vendor


    When the IAM turn down the request for No strike clause for the 787 Boeing issues an PFP and 88 city responded and Vought won the bid to have the 787 2nd assembly line


    South Caroline has 1100 area of land, ( Everett is on 98 area) 480 feet wide
    assemble bay ( Everett 235 feet assembly bay) climate control building , clean
    room, composite equipment, auto clay, and train workforce for composites Everett
    does not.


    Boeing has stated that other aircraft work like 737MAX and engine assemble will done there


    Boeing breaks ground on 737 MAX jet propulsion plant –The …



    Boeing has sold off its location in Washington state, Kent, Auburn, 90% Renton is now a shopping center, plant 2 has been torn down and the work and not the worker has move to
    other state and counties


    Boeing is no longer a Mom and Pop shop or American company but an Multinationals Corporation that build aircraft in 70% of aircraft in 70 countries and 25 state that use Everett and Renton as completion center


    Since 1943 Boeing has offloading to other company and there no laws or agreement that required Boeing to assemble aircraft in Washington state


    Boeing has plant in 25 states and 70 counties, Boeing has only 30% left to off load out of Washington state.


    Did everyone forget about the 787 program when Boeing ask for a no strike clause and Boeing made the 787 a Risk Sharing programming and sold off the manufacture capability to other company


    2009 Speculation grows for Boeing 787 plant in South


    Michael Bair, the former head of the 787 program, saying
    once that all the company needed for final assembly was "a place to keep
    the rain off


    No "sucking sound"


    "I don't think that you'll hear a sucking sound of production jobs moving
    away from Seattle" to South Carolina, he said. "But future aircraft
    lines will be built like the 787, and that means final assembly can be pretty
    much anywhere."



    Boeing is being ran by the GE 'Corporate Raider,
    Harry C. Stonecipher, James McNerney and the Board of
    Directors. and Boeing is MUILTNATIONAL CORPATOR that build 70% of commercial aircrafts in 70 countries and 25 states


    The vote was not about the IAM, there no law or agreement
    that required Boeing to assembly aircraft in Washington State


    The vote was a smoke screen to get the 27 Billions of taxpayer money


    Washington Governor Jay Inslee, a Democrat, called the session to seek roughly 8 billion in tax breaks, a streamlined permitting process for Boeing and $10 billion in funding for transportation improvements, and construction of 1.5 million square feet of new facilities in the Puget Sound Alone with the exiting 9 Billions to the year to 2040 ( 8+10+9 = 27 billions)


    How many airline will need 777-X that can fly 9000 miles and carry 406 passenger


    How many 777-X will Boeing need to sell to break even on the 777-X?




    Boeing Ron Woodard state in 1990 that Boeing got screws when Boeing built the 777-200 complex in Everett, Ron state with all the studies, report and the fees Boeing could have bought a close down military base! See Boeing news


    8 Billion dollars for a (one) building permit and the government is broke!
    is this building made from Gold bars ?
    10 Billions for transportation is this for light rail to
    the Everett plant ? or personal limo services for every employee and Valet
    parking and parking spot and the government is still broke!


    It’s not 8.7 billion its 27 billion and state payer money and the state payer are not Boeing stock holder any money to Boeing should a Bond issues, this would allow the tax payer to get back paid back


    The IAM has only assembly 96 787-8 in the last ten years that been in the news for the last 4 years with problems alone with
    the 747-8 that has delivery 52 out the 117 747-8 that been sold, that is 2.04 billion over budget and over weights


    Boeing CEO Frank Shrontz stated in 1999 that if Washington stated does become more business friendly Seattle could become the next rust belt Boeing labor cost is highest in the country



    All this has been outline in following reporters


    Washington council on aerospace - Washington State Legislature



    Washington Aerospace Partnership Aerospace Competitiveness Study



    Only 35% of Boeing is union 20% IAM, 13% Speea, 2% UAW


    UAW represents Boeing in Long Beach California and Philadelphia


    The IAM only represent Boeing in Washington State, Missouri, Portland Oregon, Kansas


    There are about 300 aerospace company in Washington state how many are union?



    AZ, Fl, TX, OK. PA, TX, AL, LA, SC, China and Canada are not represented by a union


    In 2008 The IAM was FIRED as the Union in south Caroline for non performance and in 2011 the IAM file a complaint with the labor board


    South Caroline was built by Vought not by Boeing



    Note Right to Work State does stop not anyone from jointing a Union, Boeing has plants in right to work states , Lockheed ft worth Texas is Union!


    14 Nov 2013, 07:20 PM Reply Like
  • thomas85225
    , contributor
    Comments (552) | Send Message
    Ford is doing great ? there share of stock is at $17.02


    Boeing has spent 32 billion on the first 40 787 aircrafts not including late fee that has and the program 3 is years later and 55 of the 70 787-8 need to rework, 40 787-8 had to be park due to the lost of configuration control
    in ten year Boeing has delivery only 98 787 and in the last two years only 57 747-8 has been delivery


    Alan is the father of worldwide suppler chain management systems for the 787


    After Phil Condit became Ceo Alan reverse all the house cleaning and streamlining that Phil had done


    In 1993 Allen Mulally run the 777-200 program 14 billion over budget causing Boeing to have one its largest layoff in the company history 37% of Boeing was laid off which latest still 1996,
    Ron Woodard call the 1993 laid off Boeing 2nd biggest misstate
    8700 of Boeing top worker took retirement in 1993; Alan was not a people person a lot of top worker when out the door and did return to Boeing
    Boeing had to hire and retrain a workforce which cost the company 30% in delay and #30 more in cost of aircrafts
    The 737-700 had its share of problems the 737-700 was the first time Boeing did not sent a 737 to air show
    Ron Woodard was fired by for all the problems with 737-700 by Boeing Ceo Harry Stonecipher
    From 1993-1996 Alan Mulally laid 37% of Boeing workforce and at Ford he laid off 40% of the American worker
    Alan Mulally and other left Boeing over the kc-767 tanker scandal where Boeing was paying off Darleen A. Druyun United States Air Force civilian official Principal Deputy Undersecretary of the Air Force for Acquisition off for over 10 years that predate Phil time as CEO
    Alan Mulally gets a lot of credit for work that done by Bill Ford
    Alan Mulally has done a great job for American Car Company, Ford which has its factor in North American Canada, Brazil, Mexico and, India


    Ford has built the most modem car plant in the world….. Brazil


    Ford is close plant in the UK and in Australia




    South Caroline was Union local 751 till they was fore for non performance in 2008


    Washington state inducing or half of American is Employee at will state




    Right to work to state does not Union, or people belonging to a union
    Boeing has plant that are union in right to work state


    Lockheed in fort worth Texas is a union shop
    the 300 aerospace companies in Washington state how are union


    The IAM was FIRED as the union in south Caroline for non performance


    Only 35% of Boeing is union 20% IAM, 13% Speea, 2% UAW
    UAW represents Boeing in Long Beach California and Philadelphia
    The IAM only represent Boeing in Washington State, MO, OR, Kansas
    AZ, Fl, TX, OK. PA, TX, AL, LA, SC, China and Canada are non union, alone with most of the300 aerospace suppliers in Washington State


    Airbus is union and offer more vacation time
    15 Nov 2013, 11:13 AM Reply Like
  • 3350885
    , contributor
    Comments (3) | Send Message
    The right to work law forces a union to deliver the promises. And it keeps them honest. So what's wrong with that? Government already provides solutions to most of the union issues. I moved my company out from under the IAM twenty years ago. Labor rates were just one of the problems. More importantly I regained the right to manage the plant. Win. Win.
    16 Nov 2013, 09:49 AM Reply Like
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