Boeing’s Continued Incompetence
By 
Boeing and its largest union appear to be digging in for a long fight — even as some striking workers start to look for temporary jobs and the company risks having its credit rating downgraded to junk status.
Nearly a month into the strike, negotiations between Boeing and the union resumed this week under federal mediation after a long break. But they collapsed on Tuesday with the company withdrawing its latest offer. The two sides traded blame for the breakdown.
In a message to employees, Stephanie Pope, the chief executive of Boeing’s commercial airplane unit, said the union had made “demands far in excess of what can be accepted if we are to remain competitive as a business.”
The union accused Boeing of being “hellbent” on sticking to the offer that labor leaders had previously rejected for being insufficient to garner the support of most of its more than 33,000 members.
A long strike is the last thing Boeing needs. The company, which hasn’t reported a full-year profit since 2018, is now losing tens of millions of dollars more every day that striking workers are not building planes. Boeing is also trying to persuade regulators to let it produce more 737 Max jets, its best-selling plane. And on Tuesday, S&P Global Ratings said it was considering lowering the company’s credit rating, which sits just above junk status, depending on the strike’s length.
The walkout, which began on Sept. 13, is also difficult for workers, many of whom are living off savings and have had to find health coverage after Boeing dropped them from its plan this month.
But in interviews and online forums, many workers said they were prepared to wait for a better deal after growing frustrated by wages that failed to keep pace with rising costs and concessions that they made in previous contracts. They have also drawn inspiration from the gains that unions in other industries have secured for their members.
“The union membership is really unified right now,” said Rob Tompkins, a quality assurance inspector on the 777X plane in Everett, Wash. “I’m ready to stay out until January if need be.”
How many billions is Boeing willing to lose here? Given the utter foolishness of this disastrous company over the last 10 years, perhaps an endless amount.