Boeing Union Rejects Contract, 72% Vote Against
SPEEA, Boeing's largest white-collar union, turns down four-year contract offer with 64% of engineers and 72% of technical workers voting against it, citing inadequate wage increases tied to inflation
Boeing's white-collar union, the Society of Professional Engineering Employees in Aerospace (SPEEA), has rejected the company's four-year contract offer. The union, which has 17,000 members, saw 64% of engineers and 72% of technical workers vote against the offer.
The contract offer included wage increases tied to inflation, capped at 3%, and individual performance. However, with the Consumer Price Index (CPI) rising 4.5% over the past year in the Seattle area, where most SPEEA members work, many employees felt that the offer did not adequately address inflation.
The rejection of the contract offer may have significant consequences for Boeing, as a work stoppage by SPEEA members would further delay the company's certification campaigns for its 737 Max 10 and 777-9 planes. Both of these planes are already several years behind schedule.
The contract is set to expire on October 6, and SPEEA members have authorized a potential strike when it does. Boeing's Ben Nimmergut, vice-president and functional chief engineer for production engineering, stated that the company is implementing its strike contingency plan.
## What happens next The union's negotiation team plans to survey members to determine what it will take to approve a four-year contract with Boeing. The company had offered better terms than expected, but the negotiating team's endorsement was not enough to secure the support of the union's bargaining unit councils.
The stakes are high for Boeing, as any further delays to its certification campaigns could have significant financial and reputational consequences. The company's CEO, Kelly Ortberg, had spoken to Wall Street analysts in July about the importance of reaching an agreement that supports employees and their families, while also creating greater clarity for the business.
The rejection of the contract offer and the authorization of a potential strike are the latest developments in the ongoing negotiations between SPEEA and Boeing. As the contract expiration date approaches, all parties will be watching closely to see how the situation unfolds.
## Why it matters The rejection of the contract offer and the potential for a strike have significant implications for Boeing's business and its employees. The company's ability to certify its 737 Max 10 and 777-9 planes on time is crucial to its financial success, and any further delays could have serious consequences. The union's demands for better wage increases and benefits are also an important issue for the employees, who feel that the current offer does not adequately address inflation and their financial needs.
The situation is a complex one, with multiple stakeholders and competing interests. As the negotiations continue, it remains to be seen how the situation will be resolved and what the ultimate outcome will be for Boeing and its employees.
