Source: AFP
Boeing’s practice of aggressively pressuring suppliers on costs has damaged its own supply chain, contributing to the aviation giant’s current woes, a top union negotiator told AFP this week.
“Boeing has spent a long time, since 2012 trying to squeeze the supply chain by forcing it to reduce its cost to Boeing, year after year,” said Jon Holden, president of the International Association of Mechanical and Aerospace Engineers (IAM). for the Region. 751.
“I’m fine with efficiency,” Holden said. “What I’m not OK with is undermining the health of the production process.”
Holden’s local Seattle division represents 32,000 workers, with about 30,000 at Boeing. The union is hoping for significant gains from the new contract after negotiations begin in March.
“Boeing has made an effort to sell different factories, to reduce their net assets and these factories are now part of the supply chain,” Holden told AFP, adding that such moves contributed to the current woes of the famous manufacturer.
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“The company is looking at ways to do things more efficiently, but is cutting major redundancies like quality assurance,” he said.
For months, Boeing has faced production problems on three commercial jets — the 737 MAX, the 787 Dreamliner and the 777.
The company has been in crisis mode since a 737 MAX flown by Alaska Airlines was forced to make an emergency landing in January after a fuselage panel exploded.
Source: AFP
Boeing has undertaken training programs and other initiatives to strengthen quality control and reassure the Federal Aviation Administration. Many of these efforts are focused on the IAM-represented Boeing plant in Renton, Washington, where the MAX is built.
Along with another Boeing union, the Society of Professional Engineering Employees in Aerospace (SPEEA), the IAM has sought two seats on Boeing’s board of directors, an effort Boeing opposes.
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A “significant” increase is sought
Given Boeing’s current difficulties, the union wants to be able to negotiate any quality management changes that could affect the production system.
“We’ve never suggested these things before, but it’s our reputation, it’s our jobs, it’s our livelihood,” Holden said.
Key demands include a “significant” wage increase of at least 40 percent, as well as provisions for health care, retirement and job security.
Holden said a big pay rise was warranted after workers had only received nominal cost-of-living support for the past eight years, despite “massive inflation” in recent years.
The union is also seeking assurances from Boeing that it will build its next new jet — expected around 2035 — in the Seattle area.
“It’s job security for the next 50 years,” he said.
In a congressional hearing earlier this month, Boeing CEO Dave Calhoun said of the workers, “they’re definitely going to get a raise.”
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Source: AFP
Holden said most of the major issues in the contract talks remain unresolved, meaning the two sides will add hours to the upcoming negotiations.
The IAM plans to hold a vote on July 17 to approve a possible strike. To mark the occasion, he has rented T-Mobile Park in Seattle, the stadium for the Seattle Mariners baseball team, which seats up to 48,000 people.
“When we all participate in this important event, the factory will be quiet,” the union said on its website.
The current contract, which runs for 16 years, expires at midnight on September 12. The union last called a strike in 2008 that lasted 57 days.
During a media visit to the Renton plant by Boeing this week, an AFP reporter watched a raucous union rally with representatives wearing IAM buttons and holding signs as they marched through the plant in solidarity.
“We have very strong leverage right now and we’re going to use it,” Holden said.
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Boeing is currently in talks to acquire 737 MAX fuselage supplier Spirit AeroSystems. The company was once part of Boeing before it was spun off in 2005.
Holden welcomes the move, saying it was “stupid” for Boeing to split from Spirit, adding, “it’s important they’re healthy.”
Source: AFP