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As Boeing tries to avoid its third major strike in as many years, company leaders are assessing the emotions and economics driving its engineers union — and curbing spending in case there’s a work stoppage.
The aerospace manufacturer faces a crucial vote on its second contract offer with less than a month remaining before a possible strike by the Society of Professional Engineering Employees in Aerospace (SPEEA). The latest Boeing proposal, presented to union negotiators on Sept. 11, would boost pay by 34% over four years, with members getting a 14% guaranteed wage increase in the first six months after the new contract is ratified.
Company officials quietly began cost-cutting and contingency planning after SPEEA’s two bargaining units voted overwhelmingly to authorize a strike in August, people familiar with the matter tell The Air Current. Boeing rolled out a soft hiring freeze, urging managers to hold off filling non-critical positions amid the uncertainty, said the people, who aren’t authorized to publicly discuss internal matters.
Boeing is also limiting non-essential travel and executives have been asked to delay planning off-site retreats, the people told TAC. At the same time, Boeing is advertising for temporary workers to fill in if there’s a work stoppage. Job postings on Indeed.com offer to pay upwards of $100 an hour in some instances for contract engineers at Boeing sites in Washington and California.
“Well, let me be clear: We’re working very hard to try to avoid any kind of a work stoppage,” Boeing CEO Kelly Ortberg told a Morgan Stanley conference on Sept. 16. “That’s our key number one, two, three, four, five priority because that impact would be significant if we did have a strike. Essentially, the 777 certification program shuts down until we get the engineers back, and it will have a ripple effect even into our production.”
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