Tentative agreement

We got the word last night that we’ve reached a tentative agreement with the IAM.

It’s a hopeful sign that we may soon get back to the work of delivering on the more than 3,700 airplanes in our backlog, and get our factories humming again.

The tentative deal is a new four-year contract. Union leaders are recommending that members ratify it. In a statement, the Boeing team points out that we retained the necessary flexibility to manage our business, while making changes to the contract language to address the union’s issues on job security, pay and benefits.

Meantime, Boeing and SPEEA agreed to a one day delay in the start of main-table talks while our negotiators return to Seattle. Those talks will now begin tomorrow.

Comments (13)

Saj (UK):

Its good to see both sides converging and working things out.

While the deal still needs to be finalised, lets hope that both Boeing and SPEEA equally find mutual ground on which to detail a new labour contract.

Lets hope it goes well for all involved.

Paulo M (Johannesburg, RSA):

Great! Ladies and Gentlemen, the market needs those planes yesterday!

If you look at the stock decline, it's about 10 percentage points more than the overall averages decline. That probably means the market has priced in lower economic activity over the short to medium term - for the majority of the stock decline - which was beyond the control of anyone involved with anything Boeing.

Fuel prices may have fallen through the floor, but financing has gone through the roof. Manufacturing the best planes will save the day.

Norman (Long Beach, California, United States):

I am glad that progress has been made and I hope things go well with SPEEA.

I certainly look forward to discussing airplanes again and getting back to the progress of the 787 and the 747-8.

Chris C (South Africa):

Excellent news!!! Well done to Boeing and IAM for reaching this stupendous tentative agreement. Let's get back now to building the finest commercial airplanes in the world: Boeing Commercial Airplanes! Period.

JAHC (Monterrey, Mexico):

Wonderful news. I´m glad to hear that things can get back on track. My best wishes to all Boeing employees, at all levels. Can´t wait to see those new birds waiting to fly.

Kinbin (Taipei, Taiwan):

The proposed yet-to-be-ratified settlement is long overdue.

Boeing's credibility has taken another long beating, on timely aircraft deliveries. First the technical challenges on the 787, which was likely forgivable for the sake of innovation refinements and flight safety, but these were compounded by the people who don't want to go to work.

There will come a time when there is no work to go back to, irrespective of the new union terms. The market meltdown will make its way into the livelihoods of all, and inevitably it will yield job losses spanning all industries, including Boeing. It may be driven by cost pressures, or depressed business volume pressures leading to production line closures.

Its best to earn those wages as much as possible now while the sunshine remains, albeit at a lower rate than expectations. The perfect economic Category 5 hurricane is almost upon us all, and when it hits, there will be little pickings remaining.

Unless of course we pick on a war, that leads to another world war reminiscent of WWII. Then the men will be conscripted to put their lives on the line again, and the wives end up riveting military aircraft together again to get the economy out of the current tailspin.


John (St.Louis, MO):

I am glad to see we are going to get back to business
but I am glad the IAM stood their ground. There are too many of our jobs going overseas.

Don Harrington (Bellevue, WA):

One of my neighbors is in the IAM. He is fairly confident that they will all be back to work on Monday. Great work by all involved. It's unfortunate that it took this long.

James Cliborn (El Segundo, CAliforrnia):

Is there some ad-hoc executive level working group within Boeing that can address on a case-by-case basis the competitiveness of a bid by internal Boeing work cells with respect to outsourcing the product? I have seen instances where we Boeing engineers could have been competitive with anybody in the world, but the rush to outsource (apparently an issue in the strike) was the only consideration. Factor in outsource foulups, quality issues and technology transfer to companies not capable of operating at a Boeing technical level and the competitive playing field becomes level.

Alan Pollard (Colorado Springs, CO, USA):

I'm glad to see the strike being settled but am worried that we are still bound to the archaic paradigm of unions and union contracts - the very antithesis of Lean. Union contracts and strikes severely limit our ability to be agile and lean in competing against the developing world. As a non-union engineer, I gladly accept the challenge of competing every day against all comers to justify my salary and continued employment with excellence and productivity. I'd like to see more of that attitude on the factory floor and among my SPEEA colleagues as well.

Farzin Shadpour (Cheltenham, UK):

I have a question,

Do you see any interest in the market for a 747-8D ( Domestic ) ? Couldn't China make the same use of them as Japan did during its growing years ?

ATS (USA):

I'm glad it's settled but for one am not totally pleased that Boeing had to offer additional concessions other than the already generous pre-strike package. Hopefully this doesn't negatively affect garnering future business in this extremely competitive world. I trust the company did the right thing.

Alessandro:

I doubt we see a B748SR, the B743SR wasn´t a bestseller and speedtrains are shrinking the market, I only see use for routes over water like Taiwan to mainland China.

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