I'm working on a bunch of other things this afternoon, but I wanted to keep in touch via Twitter.
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on October 28, 2008 1:55 PM | Reply
I'm not sure how you can call this a win-win Jon...seriously, that is the great analysis of the mighty flightblogger???
I guess if you take the short sighted approach that for 2 months of vacation, the union protected what they have, and for 2 months of virtually 0 revenue on the commercial division, boeing was able to maintain the status quo being a win-win, great...
I think that this contract and this negotiation provides further incentive for boeing to outsource jobs on the 737 and 777 replacements. In fact, it was vital for boeing to keep the status quo for all current projects in order to placate the union now and fulfill their obligations to their customers. Long term however is where boeing wins and the union loses...
Long term, boeing is still free to outsource jobs...so do expect a strike in 4 years folks. Long term, the union will be further weakened by the globalization and nationalization of the airline industry as new players are certain to begin to change the market and partner countries demand a slice of the pie.
I think the folks in Washington need to look at the people and factories where Lockheed, M-D, and others that used to build planes in Long Beach, Wichita, St. Louis and elsewhere who now are either unemployed, outsourced or downsized
on October 28, 2008 2:09 PM | Reply
Andy,
I see your point, but I wasn't saying that the strike had a winner - because both sides lost over the last 53 days because there was a strike in the first place.
I was saying that the contract isn't a loss for either side. The fact that they came to an agreement is a win for both sides and looking at the terms of the contract, there's no clear winner or loser. It's called a compromise for a reason. There are different types of victories and getting to this point is best for both sides.
Four years from now is a different story. Union dynamics have shown that precedent is there to suggest that strikes happen when new contracts are discussed. Outsourcing will continue, it's a company strategy - it won't happen all at once, but it will continue to happen.
I don't pretend to think that both sides got what they wanted, because they didn't. But the contract that is being presented to the union membership (with the endorsement of the leadership) is better than still being on strike.
Jon
on October 28, 2008 10:00 PM | Reply
Andy,
Richard Aboulafia posted some very insightful comments along those very same lines on his website:
http://www.richardaboulafia.com/shownote.asp?id=280