
You’ve got to hand it to Boeing. After only a month and a half of negotiations with its machinists union, it reached a deal that not only appeared fair to its workers, but also relieved the company of a potentially lengthy and costly litigation related to its effort to head off any further labor disruptions by building a new 787 plant in North Charleston, S.C.
The relatively quick and apparently smooth road to labor peace might lead one to wonder why Boeing historically had experienced such trouble reaching agreements with the International Association of Machinists and Aerospace Workers (IAM) in the past. In fact, no fewer than four strikes since 1989 have cost Boeing billions of dollars in revenues and less tangible currency with customers. The latest—in the autumn of 2008—contributed to the delays of the 787 Dreamliner and, at least in part, prompted Boeing to build a new factory in a so-called right-to-work state to mitigate some of the risk of future strikes.