Boeing’s nightmare start to the year is about to get even more challenging.
A decade-long deal between the company and its largest labor union is due for renewal in September. Talks with the Seattle-area machinists group started late last week to find a new agreement.
A six-month lead time to conclude the deal might sound generous, but with the union demanding pay raises of over 40%, the process is unlikely to be quick or easy.
The timing of the renewal could hardly be worse for Boeing. Alongside well-documented internal problems, the company is also battling wider macroeconomic headwinds. Labor shortages, inflation, and post-pandemic supply chain issues are all hitting hard.
“People are angry, and we’re going to have that be part of the leverage we bring to the negotiations,” said Jon Holden, president of District 751 of the International Association of Machinists and Aerospace Workers (IAM).