Two Unions at Boeing Host Investor Forum

Today, the International Association of Machinists and Aerospace Workers (IAM) and the Society of Professional Engineering Employees in Aerospace (SPEEA) – in conjunction with the AFL-CIO’s Office of Investment – hosted an investor forum to provide an update regarding their upcoming negotiations with The Boeing Company. Together, the IAM and SPEEA represent over 50,000 employees at Boeing. In total, over fifty Wall Street analysts, investment managers and pension funds were represented on the call.

David White, Assistant Director of Strategic Resources at the Machinists, cautioned the company from taking a hard-line stance in this year’s bargaining. “This round of negotiations is shaping up to be particularly critical for the future direction of Boeing,” he warned. “Given the myriad of issues currently facing the Dreamliner program, the company cannot afford a work stoppage right now.” Mr. White pointed out that three of the last four contract cycles resulted in a major strike at Boeing. “Our members have delivered for management. Now its time for Mr. McNerney and his executive team to acknowledge this contribution,” he said.

In preparation for the negotiations, the two unions have been raising concerns among institutional investors regarding the company’s failing global supplier business model and the coming demographic shift in its workforce. “If not proactively addressed by management in short-order, these two issues could pose serious risk for investors and will prevent the company from maximizing shareholder value in the long-term,” said Stan Sorscher, research director at SPEEA.

To hear a replay of the hour-long forum, call 1-800-475-6701, passcode: 955367.

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