We have talked plenty about obstacles that grind union contract talks to a halt. Often, these issues impact initial negotiations after workers vote to be unionized. However, contract renewal efforts have been grounded for a very different reason at a major airline manufacturer. As a result, labor fervor stoked by Shawn Fain’s theatrics during the 2023 UAW negotiations could take a drastic turn, creating a potentially severe labor problem at a time when they least need it.
Let’s back up a moment and discuss how Boeing Co. got here.
You have undoubtedly seen the headlines about the Boeing 737 Max 9 door problem tied to supplier Spirit AeroSystems. That ominous chain of events began with a January 5th midair door-plug blowout on an Alaska Airlines flight. As of January 6th, the Federal Aviation Administration ordered the grounding of all 737 Max 9s with a plug door while the agency conducts a rigorous process for inspection and maintenance.
The last FAA update on January 17 stressed that these aircraft would remain grounded until further notice, and the agency declared, “the safety of the flying public, not speed, will determine the timeline for returning these aircraft to service.” Further, the FAA limited production increases on the 737 until the investigation into the manufacturing process is complete. And this week, the National Transportation Safety Board’s (NTSB) preliminary findings pointed toward missing bolts as a critical cause of the incident.
It’s only one of several headaches: Boeing is also facing a potential strike by 31,000 Seattle-area machinists represented by the International Association of Machinists and Aerospace Workers (IAM). Contract renewal negotiations between the company and the union were due to begin in early February. As a result of the ongoing investigation, Boeing requested to push talks back to March 8, with the current contract set to expire on September 12.
These discussions were already expected to be contentious, given that the union has been grousing for ten years over 2014 negotiations that led to pension freezing. Fast forward to 2024, and the union is demanding 40% pay raises, increased benefits, and improved working conditions.
How could this affect negotiations? This isn’t the first time that Boeing’s 737 Max issues brought aircraft to a halt. In 2018 and 2019, fatal crashes in Indonesia and Ethiopia occurred due to flight-control software failure. As a result, certain Max jets remained grounded for almost two years. Then, the years-long pandemic further stressed Boeing’s bottom line.
Unfortunately, the door-plug blowout issue adds to tension for a company that has already been dealing with labor shortages in this increasingly weird market. As a result, the incident could give the union more bargaining leverage when talks do begin.
Could we see a strike? IAM District 751 President Jon Holden insists, “We don’t take going on strike lightly. But we’re willing to do it.” If that strike does happen, assembly lines for 737 jets will shut down in Washington and Oregon. The IAM is also said to be considering a copycat “UAW stand-up strike” by progressively walking out at more locations.
