You Won't BELIEVE What Boeing Did To Their Workers!

Summary

The video explores the implications of a prolonged strike at Boeing, analyzing its impact on workers, the company's operations, and its future. The speaker reflects on how Boeing's past decisions led to the strike and how the workers' demands focus on restoring the company's glory days, where both the business and its employees thrived. The video touches on the shift away from defined benefit pensions and speculates that a similar contract offer before the strike may not have been accepted. It ends by questioning if the strike could have been avoided and invites viewers to share their thoughts.

Takeaways

• 😀 The strike at Boeing was influenced by longstanding issues within the company and its relationship with employees.
• 😀 The workers' contract negotiations resulted in a decent deal, though they didn't regain their original pensions.
• 😀 Defined benefit pension plans have largely been phased out by U.S. companies and globally, which impacted the negotiations.
• 😀 The speaker believes that if Boeing had offered the same contract before the strike, employees would have likely demanded more.
• 😀 The prolonged strike was seen as unavoidable due to Boeing’s management decisions over the past 25 years.
• 😀 Workers are hoping for Boeing to return to its successful past, where both the company and employees thrived.
• 😀 The contract resolution represents a shift in how labor negotiations are approached in modern companies.
• 😀 The speaker reflects on whether there was a way to avoid the strike, questioning if it could have been handled differently.
• 😀 The video engages viewers by asking for their opinions on the strike and its resolution, inviting comments and discussion.
• 😀 The speaker promotes their channel and Patreon, encouraging support and early access to content.

Q & A

What was the major cause of the Boeing labor strike in 2023?

The labor strike was primarily caused by decades of growing discontent among Boeing employees over stagnant wages, deteriorating benefits, and increasing costs of living in the Puget Sound region. It also stemmed from a decline in worker loyalty due to management's focus on cost-cutting, outsourcing, and aggressive pension cuts.

How did the merger between Boeing and McDonnell Douglas impact employee morale?

The 1997 merger between Boeing and McDonnell Douglas marked a significant shift in corporate culture. New management under McDonnell Douglas prioritized cost-cutting, shareholder returns, and outsourcing, which led to a breakdown in the company’s historic relationship with its workers. This change eroded the loyalty that workers once had toward the company.

What was the direct financial impact of the strike on Boeing?

The strike cost Boeing approximately $6.5 billion in direct losses. This included not only the cessation of production but also significant disruptions across the broader U.S. economy, particularly impacting Boeing’s suppliers, like Spirit AeroSystems.

How did Spirit AeroSystems respond to the strike?

Spirit AeroSystems, a major supplier to Boeing, expressed concerns about its financial survival without financial support during the strike. As a supplier heavily dependent on Boeing, Spirit AeroSystems was deeply affected by the halt in production.

Why were Boeing workers dissatisfied with their compensation and benefits prior to the strike?

Workers were dissatisfied because of long-standing stagnation in wages, deteriorating benefits, and the rising cost of living in the Seattle area. They also faced the loss of pensions, which was a key issue in the strike negotiations.

What key improvements were made in the final labor contract for Boeing workers?

The final contract offered Boeing workers a 38% pay increase, improved health and retirement benefits, and a new pension plan for the new hires. However, pensions were not fully reinstated, which remained a point of dissatisfaction for many workers.

What was the significance of Boeing's decision to outsource production of the 787?

Boeing's decision to outsource much of the production of the 787 was a key turning point in the company's relationship with its workers. This move was seen as a cost-saving measure that ultimately led to dissatisfaction among employees, contributing to the loss of trust in management.

How did Boeing's leadership under Harry Stonecipher and Jim McNerney contribute to the decline in worker loyalty?

Under leaders like Harry Stonecipher and Jim McNerney, Boeing shifted its focus to cost-cutting and maximizing shareholder returns. This strategy led to job cuts, outsourcing, and reductions in employee benefits, which weakened the long-standing relationship between the company and its workforce.

What lesson can be learned from the Boeing strike in terms of company-employee relationships?

The Boeing strike highlights the importance of maintaining strong, trust-based relationships between a company and its employees. When a company focuses solely on profit maximization and neglects the welfare of its workforce, it can face significant labor unrest, which can have serious financial and operational consequences.

Could the Boeing strike have been avoided, according to the video’s analysis?

According to the analysis, the strike was likely unavoidable due to the decades of poor treatment and mistrust that had built up between Boeing's management and its workers. Even if Boeing had offered a similar contract before the strike, it is believed that workers would have likely demanded more, given the historical context of their grievances.