Union Turmoil Could Force Boeing To Move Production
Turmoil inside the International Association of Machinists may cause Boeing to move production of its new 777X jet airliner outside of Washington. A major cause of the turmoil is the union's lack of democracy.
No non-incumbent candidate opposing the current leadership at IAM has managed to get on the ballot for election since 1961. That has created an apparent rift between the rank and file and the leadership. This was most clearly seen on Nov. 13, when…
Rank and file members objected to the contract, which would have included a $10,000 signing bonus per worker, modest raises and shifted the workers from a defined benefit pension plan to a 401(k) system. Workers said they wanted to keep the defined benefit system.
As a consequence of the rejection, Boeing has said it is considering moving the airline's production out of Washington's Puget Sound region.