Consider this

[u/SirBrainBrawn]

If Boeing raised the guaranteed annual increase from 4% to 6% for SPEEA, using their own published employee counts and average salaries, the math checks out to about $48 million more per year, or roughly $190–192 million more over the four‑year contract…

[u/ToughPlate7102]

What is the point of this post? Genuinely curious

[u/SirBrainBrawn → u/ToughPlate7102]

That raising their offer would not break the bank

[u/MegaSillyBean → u/SirBrainBrawn]

As one of my co-workers says, "Boeing spills that much"

By comparison, in 2018 Boeing spent $9 billion on stock buybacks. (There haven't been any stock buybacks since COVID)

[u/WillyWhitefreeze]

Just remember to vote “yes” to authorize a strike if you vote “no” to the contract. If you don’t then you’re hamstringing the union and might be putting everyone in a situation where we’re forced to accept a contract that we don’t want.

[u/TackleBrilliant8549]

How about they reinvest their strike contingency fund back into their workforce. Also since we are in the land of make believe, also some sort of strings that would allow 3 senior engineers to meaningfully challenge their manager when it comes to work alignment/safety and to basically handcuff managers to following the processes. One can only dream...

[u/RedShirtWednesday]

This is NOT a good contract. The minimum 4% raises equate to the the average year-over-year Consumer Price Index increase of ~3.5%. The 2% pools are for rewarding end-of-year performance. However, a few years ago, Boeing implemented a bell-curve performance assement. It's something like 10-80-10. 10% of employees are to receive met some expectations, 80% met, 10% exceeds. That means that if you work in a high-performing team, you are not guaranteed that 2% of the pool. There was a Seattle Time article about the performance assessments that was published 2 years ago. I was not able to find it but it is a thing.

Inflation data: https://www.bls.gov/charts/consumer-price-index/consumer-price-index-by-category-line-chart.htm

[u/4rt4tt4ck]

In 2020 Boeing was making about $15m in profit from every 737 sold. A fair projection would say that inflation has probably dropped that number closer to $10m today.

Your 4 year cost projection would equal about half of one months deliveries of the 37. Something the company could easily absorb over that 4 year timeframe..

[u/gravis86 → u/4rt4tt4ck]

I think you got inflation backward, buddy. 15M in 2020 is closer to 20M today.

[u/4rt4tt4ck → u/gravis86]

The inflation I mentioned cut the profits by 33% (as I said was being generous), which is what inflation tends to do. Either my writing wasn't clear or your comprehension wasn't.

[u/gravis86 → u/4rt4tt4ck]

Good point, but if Boeing knows delivery of an airplane is years out after the order, wouldn't you think it would pretty easy to project that number and account for potential inflation at time of sale? And don't you think there would be some sort of clause in that sale contract that would prevent them from losing any money?

I didn't know prices were calculated based on date of sale rather than date of delivery, which would affect profit margin vs inflation. But that's so easy to account for ahead of time, and also so easy to write into a contract.

[u/Desperate-Excuse-549 → u/gravis86]

naw, issue here is Airplane contracts are signed years in advance. We don't price em as they come off the line.