Military

Engineers Union Rejects Four-Year Deal with Boeing

Boeing Co. (NYSE: BA) lost a round in its effort to settle labor issues with its engineers. The Society of Professional Engineering Employees in Aerospace said that more than nine in 10 of its members who voted on a four-year deal voted no.

The Wall Street Journal reports:

The contract guaranteed wage increases of 2.5% – 3.5% over each of the contract’s four years. But the union says the offer wouldn’t keep pace with inflation, and it reduces medical and retirement benefits. Boeing called the offer “competitive” and “market-leading.”

Boeing still has a little time to come to an agreement. The workers cannot strike until November. Boeing management must remember that a similar fight with unions slowed the production of its troubled 787 Dreamliner.

Douglas A. McIntyre

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