More Trouble for Boeing, and It Doesn’t Involve Its Planes

by Christopher Freeburn | January 18, 2013 9:32 am

More Trouble for Boeing, and It Doesn’t Involve Its Planes

Boeing 1 300x199 More Trouble for Boeing, and It Doesnt Involve Its Planes[1]As if having the worldwide fleet of its brand new 787 Dreamliners grounded over safety concerns wasn’t bad enough, Boeing‘s (NYSE:BA[2]) engineers union on Thursday recommended that its members reject the company’s final contract offer, setting the stage for a potential strike[3].

Members of the Society of Professional Engineering Employees in Aerospace will vote on the four-year contract offer, which includes salary-increase pools of 5% per year, within several weeks, Bloomberg notes.

The vote will likely also include an proposal to authorize a strike. The contract offer transfers new employees to a 401(k)-style defined contribution retirement program, instead of the defined-benefit pension plan offered to current employees, but health insurance plans remain unchanged.

Switching away from a pension plan for new employees shows “disrespect” for its engineers and technicians, a union official said.

On Wednesday, the U.S. Federal Aviation Administration (FAA) ordered all 787 Dreamliners grounded in the U.S. following a series of incidents relating to the new plane’s batteries and power systems[4]. European regulators quickly followed suit.

Dreamliners won’t be allowed to fly again until Boeing can prove to the FAA that the litium-ion batteries used in the new jet are safe[5].

Shares of Boeing slipped fractionally in Friday morning trading.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/05/Boeing-1.jpg
  2. BA: http://studio-5.financialcontent.com/investplace/quote?Symbol=BA
  3. setting the stage for a potential strike: http://www.bloomberg.com/news/2013-01-18/boeing-engineers-move-toward-strike-amid-787-woes.html
  4. a series of incidents relating to the new plane’s batteries and power systems: http://investorplace.com/2013/01/faa-steps-in-and-grounds-troubled-boeing-787s/
  5. can prove to the FAA that the litium-ion batteries used in the new jet are safe: http://investorplace.com/2013/01/the-dreamliner-has-boeing-going-sleepless/

Source URL: http://investorplace.com/2013/01/more-trouble-for-boeing-and-it-doesnt-involve-its-planes/
Short URL: http://invstplc.com/1fHYdXO