The Boeing Company (NYSE:BA) New 777X Location Hinges On Employee Vote
The Boeing Company (NYSE:BA) which is tracked by both the Dow Jones Industrial Index and the S&P 500 index has been involved in a series of delicately poised negotiations with its employee unions, the outcomes of which will determine the contours of its next big aircraft development and construction project. The current negotiations between the Seattle based $103 billion market capped airspace and defense products and services firm and its employee unions is centered around new contract terms for its employees.
Deal On The Table
Analysts have opined that the management of The Boeing Company (NYSE:BA) have skilfully linked any likely concessions around health care and pension perks to the successful completion of the assembling of its new flag ship aircraft 777X in Washington state. The ongoing negotiations have seen a unlikely breaking of ranks among the union representatives even as the local political figures and the management have been seen piling on pressure on the unions, by publicly making a case that this deal is much required to sustain the business profitability and the social economic equilibrium in the Puget Sound region of Washington.
The Boeing Company Keeping Its Options Open
Readers should note that The Boeing Company (NYSE:BA) has kept it options open to look for more industry friendly states to set up the plant, in the event of the talks with the unions ending unfavorably. If it does transpire that the aircraft manufacturer relocates to a different state, it is being feared that the region and the local economy would he see a brain drain leading to other negative impacts on the local social economic scenario.
Union leaders have been seeking a strengthening of their negotiation position and hence have pleaded with their members to summarily reject the offer in a vote which is slated to take place on January 10. They promised to seek and receive from the aircraft carrier more concessions on the workers pay issue, at these times of company profitability.