Leading multinational aerospace and defense contractor The Boeing Company (NYSE:BA) is reportedly seeking federal mediators to help resolve an ongoing renegotiation of contracts for some 23,000 engineers that expired on Sunday. The engineers are represented by the Society of Professional Engineering Employees in Aerospace, or SPEEA, union.
CHEAT SHEET Analysis: Is This Good or Bad News for Boeing?
One of the core components of our CHEAT SHEET investing framework focuses on catalysts that will move a company’s stock. Difficulty in reaching an agreement with unions on new contracts is nothing new, but an employee walkout could seriously cripple Boeing’s output. The fact that Boeing is calling in federal mediators suggests that management does not see a clear path to resolution.
The union reports that it is disappointed with Boeing’s alleged failure to take the negotiations seriously. Union leaders are encouraging members to “continue workplace actions, including refusing to work voluntary overtime and other ‘work-to-rule’ actions to bring pressure on Boeing corporate.”
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Workers are clearly displeased with Boeing’s actions but unless progress is seriously barred in the coming federally-mediated negotiations, there’s no reason to expect a walkout or strike by union members. Boeing maintains that its proposals, which include a cut to the rate of growth for professional and technical employee compensation, are in line with a tough competitive environment.
What are the Major Factors Involved in the Negotiations?
“Discussions during the negotiations today (Nov. 29) included medical benefits, SPEEA salary raise pools and the pension. In the middle of our pension discussion, The Boeing Company stopped negotiation and recommended a federal mediator be brought in,” comments the union…