Saturday, October 5, 2024

Boeing union demands 40pc pay rise for staff amid 737 Max crisis

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Earlier this month, Boeing’s outgoing boss, Dave Calhoun, delivered a faltering defence of Boeing’s revised approach to training, quality control and issues with its supplier base during a grilling by the US Senate.

Contract negotiations with the machinists union began in March and are expected to go on until September, when the existing 10-year agreement runs out.

Mr Holden said the chance to force Boeing’s hand on a new jet while it is assailed by regulators, federal lawmakers and the media was too good to pass up.

The union admitted that guarantees on production are not normally part of wage negotiation, but said staff have not had a new contract for 15 years and are habitually forced into accepting poor deals by the threat of losing production work entirely.

The last comprehensive pay deal was agreed in 2008 and was meant to span four years, he said. Before the deal ended, however, Boeing sought an extension in return for keeping the newly launched 737 Max in Seattle.

The company repeated the tactic in 2013 by demanding a further extension of terms when it came to launching the 777X widebody, leading to 10 years of stagnating wages, Mr Holden said.

Boeing said it does not comment on pay negotiations.

Mr Holden said the company is seeking to neutralise Boeing’s ability to force through minimal pay increases with the threat that production lines could be moved to other parts of the US or even abroad every time it comes to launching a new plane.

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