Boeing Faces Union Scrutiny Over Alleged Job Relocation Practices
Union Investigation Underway Amid Downsizing Concerns
Boeing’s engineering union, the Society of Professional Engineering Employees in Aerospace (SPEEA), is formally investigating claims that the company is relocating jobs to non-union sites across the United States and abroad. Rich Plunkett, SPEEA’s Director of Strategic Development, revealed Wednesday that the union launched its investigation in December after requesting related information from Boeing.
Union officials are particularly concerned that Boeing may be leveraging a broad downsizing mandate to move work away from the Seattle area, where SPEEA represents 17,000 employees. The allegations come at a time when Boeing is implementing widespread workforce reductions, raising alarms about the potential impact on unionized labor.
Boeing’s Workforce Cuts and Financial Struggles
In October, Boeing CEO Kelly Ortberg announced a plan to reduce the company’s workforce by approximately 10%, amounting to 17,000 jobs. The cuts are part of efforts to address what Ortberg described as the company’s “financial reality.” Boeing reported nearly $8 billion in losses during the first nine months of 2024, with further losses anticipated when the company releases its year-end results next week.
Between November and December, the aerospace giant issued over 4,000 layoff notices to U.S. employees, including 660 notices to SPEEA members. The layoffs were documented in publicly available state employment records, underscoring the scale of the reductions.
Union Members Raise Alarms Over Job Relocation
Following the initial wave of layoff notices, union leaders began receiving reports from SPEEA members that some of the work previously performed by laid-off employees was being transferred to other Boeing facilities. “At least some of the work that was being performed by those subject to layoffs is now being sent to other Boeing locations,” Plunkett explained. These reports have fueled union concerns that Boeing is reallocating jobs to areas with fewer unionized workers or lower labor costs.
SPEEA’s Fight to Protect Jobs
SPEEA’s investigation aims to determine the extent of Boeing’s alleged job relocation practices and whether they undermine union representation. The union is advocating for transparency from the company and accountability regarding how workforce reductions are being implemented.
As Boeing prepares to release its financial results and grapple with continued losses, the tension between the company and its engineering union highlights the broader challenges facing the aerospace industry.
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