Boeing Labor Union Pushes For Board Voice: Report

Boeing Company‘s BA largest labor union, the International Association of Machinists District 751, representing 32,000 workers in Washington state, reportedly aims to secure a board seat, citing quality control issues.

Union president Jon Holden emphasized the need for a “grounding and a balancing” presence on Boeing’s 13-person board to address production concerns, reported Financial Times.

Quality concerns intensified after a door panel detachment incident on a 737 Max plane in January, prompting investigations by the FAA and the US Department of Justice. 

The union seeks a 40% pay rise over three years and advocates for Boeing’s next aircraft to be built in Washington state, as per the report.

Negotiations include a strategy to attain a board seat, first through contract talks and later through a campaign targeting Boeing’s 2025 shareholder meeting.

Corporate governance expert Charles Elson reportedly highlighted the conflict of interest posed by union representation on corporate boards, noting the challenge in balancing worker interests with shareholder duties.

Read Next: Boeing Foresees Q1 Cash Drain Amid Regulatory Scrutiny: Report

Price Action: BA shares closed higher by 0.61% at $188.85 on Friday.

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