The verdict is still out on who exactly won the Boeing Machinists strike of 2008, but it has nonetheless given a shot in the arm to a weakening organized labor movement in America.
“This is not a case where the union caved, even in these times with this type of job market and national pressure,’’ said Philip Dine, an expert on labor relations and author of “State of the Unions.’’ “This strike showed that labor can still hold its own.”
Members of the International Association of Machinists and Aerospace Workers ratified a new four-year contract Saturday that they say gives them improved job security language — a key issue that kept members on the picket line for eight weeks.
As some of the members of Boeing’s largest union began packing up their picket signs and preparing to start building commercial airplanes again, labor talks with the company’s second-largest union — SPEEA — moved into the final phase of contract talks on Wednesday.
Negotiators for the company and the Society of Professional Engineering Employees in Aerospace convened in a hotel outside Seattle to negotiate a deal they hope can be presented to the white-collar union's membership by mid-November.
Leverage for SPEEA
The ongoing talks cover two SPEEA contracts, both of which expire Dec. 1. One covers about 14,000 scientists, engineers and other professionals with average salaries of about $83,000 and the other covers nearly 7,000 manual writers, technicians and other hourly workers paid an average of $68,000. About 550 are in Utah, California and Oregon and the rest are in the Seattle area.
Labor experts believe the Machinists strike, which was closely watched by industry groups nationwide, strengthened the union and gives SPEEA even more leverage in talks for its own labor pact. Job security and outsourcing of design and engineering work are key negotiating points in the ongoing talks.
The pressure is now on Boeing, which lost about $100 million in revenue a day from the Machinists strike, to reach an accord with SPEEA and avoid another costly walkout.
The Machinists strike, which began Sept. 6, has also further delayed the new 787 Dreamliner, which already is at least 15 months behind schedule and was supposed to fly for the first time in November. On Oct. 22 Boeing said third-quarter profit dropped 38 percent, more than analysts projected.
As the labor movement across the country has seen membership and leverage decline in recent years, the Machinists walkout was widely viewed as a far-reaching fight for labor in all manufacturing sectors.
Unlike other smaller and less-militant unions nationwide, Boeing’s Machinists flexed its solidarity muscle, proving to the country that there still is ground to be made in the area of job security.
While Boeing didn’t give away the farm, it did rewrite job security language allowing the company to use contractors for the delivery of aircraft components to assembly lines, but giving union workers responsibility for those components once they enter the factories and to oversee their delivery to their final destinations.
“Labor’s biggest problem is that people question their relevance. This (Machinists strike) raises the profile and lends legitimacy of unions,’’ Dine said.
He added, however, that Boeing’s unions are unique. While the nation’s failing economy has cost many unions their clout, Boeing’s unionized engineers, electricians and assembly workers had unusually strong leverage because they are skilled laborers working for a profitable company in a critical industry that has huge demand for its products both in defense and commercial aviation.
Boeing, among the world’s largest maker of commercial airplanes, recorded a record profit of $4 billion last year and has a record $300 billion worth of commercial plane orders in its books. Revenues for 2007 rose 8 percent to $66.4 billion.
Strained relations
While the company appears to be weathering the global financial crisis that hit during the strike, analysts say there is little hope for improved relations between the company and its Machinists union.
Some predict the strike could backfire, landing a potentially fatal blow to an already battered relationship between Boeing management and its union.
The walkout by the IAM was the longest in 13 years and the fourth at Boeing in 20 years. The union struck for 48 days in 1989, 69 days in 1995 and 28 days in 2005. In 2002, a contract was adopted by default, as it was rejected by workers but less than two-thirds of them approved a strike.
Richard Aboulafia, an aerospace analyst with the Teal Group in Fairfax, Va., predicts Boeing will eventually pull up its commercial airplane stakes in Seattle and follow in the auto industry’s path to Southern states with weaker unions and right-to-work laws that diminish union power.
Despite Boeing’s 92-year history in Seattle, the company moved its headquarters to Chicago in September 2001.
Because Seattle has a much more diverse economy than it did 30 years ago when everything revolved around Boeing, the city won’t wind up like Detroit after the automakers left. But he said a departure from Seattle would still hurt the economy and future generations of manufacturing workers.
Analyst Joseph Campbell, with Barclays Capital, agrees. “Boeing is now more likely than less likely to take work out of the Pacific Northwest and put it somewhere else where they think people will be more grateful,’’ he said. “It’s not vengeful — just business.”
Analyst Joseph Campbell, with Barclays Capital, agrees. “Boeing is now more likely than less likely to take work out of the Pacific Northwest and put it somewhere else where they think people will be more grateful,’’ he said. “It’s not vengeful — just business.”
I believe unions have helped move jobs off shore:
problems with unions:
- Anti-competitiveness. The Socialstudieshelp.com website suggests that, "unions. are victims of their own success. Unions raised their wages substantially above the wages paid to nonunion workers. Therefore, many union-made products have become so expensive that sales were lost to less expensive foreign competitors and nonunion producers."
- A decline in the value of merit. In many union settings, workers can't advance much or at all on their merits, but must generally progress within the limits defined by union contracts. Employers may have trouble weeding out ineffective employees if they belong to unions. In theory, at least, unionized workers might become so comfortable and protected that they lose the incentive to work hard for their employer. And outstanding employees might lose their get-up-and-go if there's no incentive to excel -- or worse, if they're pressured by the union to not go the extra mile.
http://www.fool.com/investing/general/2003/10/30/unions-good-or-bad.aspx
get ready for massive offshoring of jobs if obambam wins...CEO magazine reports that 79% of companies are fearful of his policies, and will move operations overseas in order to remain competitive.
I have never understood the difference between unions an thieves. If I employeed a plumber to fix my toilet, and he said "you will never have your toilet fixed until you pay $500.00 over the going rate" and he blocked me from simply hiring another plumber, he would be a criminal. When a group of machinist do the same thing to an airplane manufacturer, it is called a union, and people think it is a good thing.
What is wrong with society?
When workers get smarter and stop letting a group of greedy Union officials think for them they will find them selves in a much better position to keep there jobs. Unions have out lived there usefullness. Look at the auto industry, the unions have kept there pockets lined with cash as jobs go overseas. There is nothing they will be able to do as another 40,000 jobs go away with this next merger of the automakers. The unions have put themselves in this position and now the American worker will suffer.
Autoworker, get smart, get smart fast and vote your union out. Your jobs depend on you thinking for yourself.
Geez, all this union bashing! While unions are far from perfect, do you folks honestly think that management would pay so much as a penny more that the federaly mandated minimum wage and even offer any kind of benefit package if it wasn't for the power of collective bargining? Do you really want to go back to 14 - 16 hour days in grossly unsafe conditions achieving no more that a growing debt to the company store?
That is what labor laws are for. Unions are for blackmailing.
Firstly a note to the author: Last year for the first time since 1984 the union membership has risen in America, hence a strengthening labor movement is more accurate, secondly to all the people who have posted before me, and those who read afterwords:
I believe that the complacent American people have moved jobs overseas, and I'm right.
The day you all decided that the poison pet food from China was OK, the cheap plastic piece of crap toy with the lead paint from Wal-Mart was fine for your kid to put in their mouth, the day you blamed the US auto worker and not the greedy companies that used our tax money to make concept cars that got 80+ MPG over ten years ago and didn't bring it to market, that was when YOU gave our jobs overseas. When you decided to talk to Apu in India, masquerading as "Charlie" for your PC's tech support and didn't demand an American at the other end of the phone, the day you let the undocumented worker mow your lawn, that day you all closed your eyes and bought Nike sneakers that some Vietnamese guy made for a whopping $64 a month over the New Balance that was half the price and made by the head of an American family.
You watched with your head up your behind when such staples of American life as Wrangler Jeans moved to Haiti, where even the workers make less than $2 a day and are forced to eat clay sandwiches with salt to stave off the hunger pains, and to such places as Bangladesh, where even the highest paid of the regular working class must stand in thousand people lines to get government subsidized rice, you still sit there idle and watch Hershey's chocolate move 1,500 jobs to Mexico for $2 an hour wages, and you allow the media to brainwash you with fluff of Paris and Britney's sniffer, you are the reason we are here today. You closed your eyes and gave our industry and our jobs away.
Don't blame the unions for the loss of good American jobs, blame yourself. You blindly point your fingers at the only institutions that try to help the American worker, because that's exactly what they want you to do.
Your ignorance disgusts me, your grandparents would slap you. They fought for what you have blindly gave away, even child labor has made a comeback, as an immigration raid in Pottsville, Iowa, which grabbed almost 400 workers in the Agriprocessors Kosher meatpacking plant, has been found to have over 30 workers who were underage, the youngest was on the KILL floor, she was 13. This year also saw how a 13 year old who was working with his father in Illinois fell 3 stories from a forklift and watched his father die. That doesn't even mention the pregnant teenager from Mexico who died on a California vineyard because she wasn't allowed to stop for a water break. Yes, you allow that and wonder why the Salmonela has spread into out food supply, and no one in any media outlet comes to the conclusion that maybe they don't get a potty break either. You all get what you deserve, less and less. Until you get rid of your blinders and see exactly how they have sold us out, it's only gonna get worse.
So enjoy your crap from Wal-mart, your now made in China air conditioner that 1 in 10 don't work, your poison food and your self-created rat race to compete with workers that have no rights in foreign lands and within our own borders.
When the labor movement dies, when we must all fend for ourselves, when you must have at least 3 sources of income to survive and work 12 hours a day with no hope for a dignified retirement , don't come crying to me. Just keep your mind occupied with all the crap they throw your way and make sure your kid's can pass a test and are discouraged from critical thinking so the manager's at McDonalds and the military recruiter's can be well stocked with another group of clean slates to work with.
Joe,
Firstly a note to the author: Last year for the first time since 1984 the union membership has risen in America, hence a strengthening labor movement is more accurate, secondly to all the people who have posted before me, and those who read afterwords:
I believe that the complacent American people have moved jobs overseas, and I'm right.
The day you all decided that the poison pet food from China was OK, the cheap plastic piece of crap toy with the lead paint from Wal-Mart was fine for your kid to put in their mouth, the day you blamed the US auto worker and not the greedy companies that used our tax money to make concept cars that got 80+ MPG over ten years ago and didn't bring it to market, that was when YOU gave our jobs overseas. When you decided to talk to Apu in India, masquerading as "Charlie" for your PC's tech support and didn't demand an American at the other end of the phone, the day you let the undocumented worker mow your lawn, that day you all closed your eyes and bought Nike sneakers that some Vietnamese guy made for a whopping $64 a month over the New Balance that was half the price and made by the head of an American family.
You watched with your head up your behind when such staples of American life as Wrangler Jeans moved to Haiti, where even the workers make less than $2 a day and are forced to eat clay sandwiches with salt to stave off the hunger pains, and to such places as Bangladesh, where even the highest paid of the regular working class must stand in thousand people lines to get government subsidized rice, you still sit there idle and watch Hershey's chocolate move 1,500 jobs to Mexico for $2 an hour wages, and you allow the media to brainwash you with fluff of Paris and Britney's sniffer, you are the reason we are here today. You closed your eyes and gave our industry and our jobs away.
Don't blame the unions for the loss of good American jobs, blame yourself. You blindly point your fingers at the only institutions that try to help the American worker, because that's exactly what they want you to do.
Your ignorance disgusts me, your grandparents would slap you. They fought for what you have blindly gave away, even child labor has made a comeback, as an immigration raid in Pottsville, Iowa, which grabbed almost 400 workers in the Agriprocessors Kosher meatpacking plant, has been found to have over 30 workers who were underage, the youngest was on the KILL floor, she was 13. This year also saw how a 13 year old who was working with his father in Illinois fell 3 stories from a forklift and watched his father die. That doesn't even mention the pregnant teenager from Mexico who died on a California vineyard because she wasn't allowed to stop for a water break. Yes, you allow that and wonder why the Salmonela has spread into out food supply, and no one in any media outlet comes to the conclusion that maybe they don't get a potty break either. You all get what you deserve, less and less. Until you get rid of your blinders and see exactly how they have sold us out, it's only gonna get worse.
So enjoy your crap from Wal-mart, your now made in China air conditioner that 1 in 10 don't work, your poison food and your self-created rat race to compete with workers that have no rights in foreign lands and within our own borders.
When the labor movement dies, when we must all fend for ourselves, when you must have at least 3 sources of income to survive and work 12 hours a day with no hope for a dignified retirement , don't come crying to me. Just keep your mind occupied with all the crap they throw your way and make sure your kid's can pass a test and are discouraged from critical thinking so the manager's at McDonalds and the military recruiter's can be well stocked with another group of clean slates to work with.
Joe,
Those UAW folks are sure a shining example of what unions can do for you. I heard that as many as 50,000 could get layed off once Crysler and GM merge.
The more incentive you give for companies to move overseas, the more that will. And don't believe that all these jobs are moving to underdeveloped countries. A number of companies have moved jobs to Ireland, among other developed countries.
Give example of all those new Irsish jobs, c'mon
I have reposted what I have written with supporting links at my own site:
w w w joesunionreview dot com
Single handidly blaming the UAW for the Big 3's shortcomings is a scapegoat attitude, remember when the imports were coming in and more gas economic the Big 3 forced out crappy vehicles, think "K" Car, you blame that on the workers?
uh joe? pick up the WSJ, IBD, or FT or Economist....ireland is giving money to banks and insurance companies to move their operations there. about 100,000 of them from NYC.
let's see, unlike the US and nyc/nys, ireland (and the rest of the world, besides the US and zimbabwe) only taxes business on what they make in ireland, not the entire world. the US corporate rate is nearly 40%-2nd highest in the world, only behind japan.
so ireland, along with most other european and asian competitors, is eating our economic lunch because they want to encourage business expansion, not chase them away.
if you want to blame anyone for American companies offshoring, start with the dems in congress...
-who demonize employers and engage in class warfare
-who are puppets to the tort lobby which chases manufacturing jobs away
-who passed an asinine law called sarbanes oxley which helped precipitate this financial meltdown
-who won't allow the SEC to revoke the ominous quarterly earnings forecast requirement, which, if the company misses the target only leads to more lawsuits-see delaware chancery court dockets.
the majority of the blame-not all-is squarely at the feet of the leftwing ideologues in congress from your party.
as for the vietnamese guy making $64 a month? he's living like royalty there. same with the $2 a day haitian, the $2 an hour mexican.
all you posted was talking points from policy wonks in bambam's campaign, and union talking points. why don't you read what happens in the real world, from the publications i listed? you might learn something.
hey wildweasel66-358178, what exactly is my party? Simply because I endorsed 2 Democrats in this years election doesn't make it my party. Far from it, check out the stories at my site and you will see I don't hold them on a pedestal, not by a long shot. I will also have you know that I was taxed at the highest rate possible for an individual, so my earnings are probably above the average.
Just for the record, there are plenty of illegal Irish workers here in the New York metro area, so i would have to place some money on the idea that Ireland isn't tops on places to get a good job, and if $2 an hour was so grand in Mexico, then why have about 12 million of them emigrated to the United States in the past 12 years? I worked in a warehouse here in Brooklyn, NY in the Clinton years and when Immigration raided and checked for citizenship, 3 people out of 800 did not have their paperwork, two of them had it at home, it's now 13 years later, find me a warehouse in Brooklyn that has even 3 citizens working there.
No, I will not blame the Dems in Congress, I blame the American people for complacency, why is that so hard to fathom, we are a dumbed down class of people who eat the BS the media dishes out.
Oh, and while Ireland does have a low tax rate for corporations, the US tax rate is a variable amount, from 15-39%, that's not including loopholes and hand outs by our own tax dollars. Answer this, why is produce made in this country by an illegal alien workforce, cheaper to buy in Jamaica, than the produce that they make themselves, same with Haiti, Mexico, the list goes on, is it the hand outs of our tax dollars to Big Agri? Is it the main reason why they emigrate here? You tell me, why is it happening? Why does every so-called first world country in the entire globe being invaded by illegal workers? Is it the Democrats? Is it the Republicans? Could it be unfair Free Trade agreements? Is it the people who refuse to hold their leaders accountable and believe the lies that "there is nothing we can do about it?"
You have insulted me with my sources, you have insulted me with "union" talking points, and you have pinned me as a liberal, whereas my views are basically very conservative, people should care about buying things that put food on their countryman's table. You show me a union site that shares my views and I'll gladly agree with you, I wasn't always a union worker and I have been screwed by one in the past, but I write to help all working people, regardless of their affiliation, regardless of whether they are an accountant, a physician or a Starbauck's employee, not everyone has to be a rocket scientist, but they should be able to provide for themselves and not have us foot the bill. We have a choice of 2 parties, the lesser of two evils, or the better of the 2 giant criminal organizations. Is it any wonder why many big corporations have their PAC contributions being spread equally? Don't you wonder why many TV stations have decided to become the polar opposite of FOX news, they know where their money is.
I will investigate more of what you have posted at a later date, as if I am wrong about certain issues, I would be sure to stand corrected, but please don't pigeonhole me as a member of any party, I would rather think of myself as a human being and an American worker who is pissed off that we are being failed by our leadership and our own media encouraged separatism. It is our failure to realize that we are all flesh and blood, all just in this to be able to put food on the table, eek bye and hopefully one day retire in a dignified fashion.
Gotta run, gotta go vote. I hope that is on everyone's agenda too, whoever they vote for, I'm so sick of people who say that doesn't matter either. I say that if you don't vote, they have no reason to do anything.
Tomorrow I start holding whoever gets in accountable, I hope you will find a common ground and join me, even if our views vary, I'm sure if we have a lot more in common than different. All of us are getting picked apart as smallish solitary units. When one day we can hone in on our similarities, and put our efforts towards building a better world, one where life is held to a higher regard and not a world which is solely for profit over people, we may find a better tomorrow for all us.
Yeah, you hit a nerve insinuating what party I belong to, but I still thank you for enlightening me about Ireland's new tax structure, it's too bad there is no way for entering links here in comments (at least as far as I can tell), I'd gladly read more a lot easier.
Why do so many insist on getting it backwards? The unions bust thier ass to keep jobs here, they give away pay and benefits, give back holidays, all because the bosses say it's the only way we can stay in business. Yet show me one time where the Stell workers union decided to take apart a plant and move it to China? Show me one time where the members of UFCW made the call to close a pet food plant and take the brand over seas. Yes and it was those unions that pushed NAFTA and WTO down their own throats over the stong objections of major employers. You guys are as bad the Firestone exec back in the early 90's who when asked after record profits when the workers would see some of the money said 'hey we have to compete with Korea and Brazil, when we have wages like that we can afford to share'. Work is not democratic unions are, all officers are elected, most at the local level serve without pay (I'm one). I give the state of Washington 40 hours a week and my union 12-30 depending on what's needed, I work a second job part time. and even see my family. As for auto workers no they need to do the opposite get involved replace the guys that are in thier 50's and 60's with a new generation of smater union leadership-don't just tell the boss how much he has to pay you to build a car tell him you want to build the right cars for the time and his engineers/designers are falling down on the job. I live in Seattle and I know the IAM, when was the last time the Boeing execs arranged a motorcycle ride to fight hunger? IAM does it every year, they run the United Way not the managment team. My union (AFSCME) sends it's own disaster teams in after hurricanes, floods etc. We run our chairty 'The Fallen Heroes Fund" to help our members in times of crisis. And when that flood or hurricane strikes odds are that the last person out and the first one back in will be AFSCME, and SEIU and the Teamsters, and all the unions large and small. You show me all the Exxon and Dell and Levi Strauss executives who serve on disaster teams. I'm ranting and I'll stop but you are so far out of line that one Joe was not enough to dump on the unionbahsers it took two of us
go joeunion i will look foward to more of your posts you certainly aren't shilling for the two pimps we are dealing with
So it's ok for Ceo's to threaten to offshore and get legislative protections but let a group of workers try to protect the value of thier work and it's the end of everything. As for WildWeasle and qulity of life show me where cost of goods has dropped to match drop in wages? Do power and water comapnies lower rates during a down turn nope. Does NIKE make across the board price cuts? Nope.
Would you as a realestate owner allow the value of your investmetn to drop to Hatian levels? Get real
Now Mr Lineberry you have demonstrated a complete case of stupid regarding the way this works. Plumbing is a craft union as such they set the value of the work in the marketplace. There are non union plumbers, and they are often not proerly trained or apprenticed. But the prevailing wage for plumbers (or anyother building trade) is based on union and non union rates in the area In my state all aprenticeship programs are union based. So if you want to risk a fire or flood or even building collapse by all means hire the lowest bid rat contractor you can find.
It is perfectly OK for a CEO to put a plant anywhere that is best for the stockholders' dividends. It will not be the end of everyything. It will mean that lazy leaches like Mr. Davenport will have to compete instead of blackmail a wage from stockholders like me.
I have never hired a union plumber here in NC. Never had a problem. I have bought a UAW-built car. I will never buy another one.
Hey Wild Weasel in todays biz on this very site Irish Unemployment at 10 year high 6.7%
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