The week the IAM strike began, the Dow Jones Industrial Average was trading at 11,500. Seven weeks later, the DJIA is trading almost 2500 points lower and this planet is face-to-face with the spectre of a global recession.
Having watched the strike unfold, it has become easy to lose sight of those at the center of the debate. The story of the strike at its heart is about outsourcing, the 787 program and the future of jetliner production. Though if these issues speak to its heart, its soul is found in the 27,000 people, customers and supplier held in limbo, unsure of what’s next.
The IAM membership was given reassurances by their union leadership that a vote to strike in the face of what they felt was an inadequate contract would eventually yield a better outcome than first presented. They had fair reason to see it that way. The IAM cited $13 billion in profit, a record $160 billion 787 backlog and more than 3000 orders waiting to be filled. There was no reason why, as the IAM saw it, that they couldn’t negotiate a contract with Boeing that would leave them better off than they were three years prior.
I spoke to one 787 machinist last week, whose frustration over the situation was evident. His lament was less about the specific minutiae of negotiations and spoke to the perceived culture that each side has brought to the table and has cornered suppliers, customers, the workforce and their families.
“I don’t know exactly what they are bargaining for currently, but I’m sure they aren’t doing any, just telling each other what they want. There is no give and take. Only demands.”
This machinist prepared for the strike with his family by saving in advance, though he has faced the challenge of not being able to find temporary work in a sagging economy. Local businesses are hesitant to hire someone who they know will leave once the strike ends.
Thursday’s restart of negotiations is vital progress, yet each side must go in realizing what is at stake. Each side has much to lose if the talks fail, but an amicable solution allows both much to gain.
A senior labor leader speaking about the upcoming SPEEA negotiations made an interesting point that carries over to the IAM negotiations:
“The workforce wants to be treated as an important part of the team not like a vendor selling Chicago a service. Boeing’s best-and-final offer needs to speak to this emotional need. It has to make the members feel valued. If it doesn’t, then the specific numbers in the pay raise, retirement, etc. will fall in importance. Collective bargaining isn’t a math problem. It’s managing a relationship.”
Both sides must keep in mind that the longer this impasse continues, Boeing is more and more likely to move significant production operations out of Puget Sound to right-to-work states like Texas. In addition, Boeing risks being branded as unreliable by its customers, potentially putting future orders in jeopardy.
It is said that a good compromise is one where both and neither side is happy with the final result. Boeing and the IAM must not let the perfect be the enemy of the good and end this strike.
This post was originally published to the internet between 2007 and 2012. Links, images, and embedded media from that era may no longer function as intended.
This post originally appeared at Flightglobal.com from 2007 to 2012.
