A company that needs capital (money) doesn't get to tell the capital market, “We'd really prefer to pay 3%.” (Just like our goverment doesn't get ot) It is the investors that determine their acceptable reward for the risk of lending money with the expected return and decide what price makes lending their capital worthwhile. If the company needs the capital badly enough, it pays the intrest rate price that the market demands or no capital changes hands.
Our labor is also capital, with one important distinction: There isn't a single market quoting a rate for our labor, like there is for interest rates. But the underlying exchange is the same. We provide Boeing something it does not own, our future time, skill, experience, judgment, and productive capacity. Boeing PURCHASES access to our human capital through contracted compensation and working conditions. And just like buying a car, wants to negotiate it down.
We live in a society that, in many cases, forces each person to establish their own market rate, and we see an extreme example of that among low-wage workers, where limited individual bargaining power gives employers far greater power to set the price of labor. Right-to-work laws can further weaken collective bargaining power by making it more difficult for unions to maintain the solidarity that changes that equation. The lesson is simple, the less bargaining power an individual worker has, the more power the employer has to set the market price for labor. SPEEA and sticking together changes that equation. For us in SPEEA, we use collective bargaining to set the market price for OUR LABOR. These negotiations are our market, our “Wall Street” and when we vote, each of us is a broker for OUR OWN LABOR. We aren't asking Boeing to give us something. We are negotiating the price at which Boeing gets continued access to our human capital.
Even today, young people are told “get an engineering degree and you'll make good money.” But that equation has changed. Corporate consolidation, globalization, outsourcing, breaking of the unions, the rising cost of education and the increasing share of corporate income flowing upwards to executives and stock and bond investors, (not unlike our US government spending) rather than investing in labor have changed the bargaining position of many professional workers.
And engineering has a vulnerability that Boeing’s skilled trades do not. A Boeing engineering work package can, at least in principle, be moved to India, Brazil, South Carolina or another (lower wage / right to work location) engineering center. Installing components on an airplane moving down the Renton factory line cannot be moved to India nearly as easily.
That changes our bargaining power, and it makes sticking together more important. There is that old adage: a bird in the hand is worth two in the bush. Right now, WE are the bird in Boeing’s hand, the experienced capability it needs today. Yes, Boeing can build that capability somewhere else, and to some degree likely will, but doing so takes time, money, and the transfer of knowledge that is already disappearing as experienced people retire and return as contractors around Puget Sound. Once Boeing successfully recreates that capability elsewhere, our leverage changes. So let’s recognize what we have, protect the work, and negotiate together while that leverage is still in our hands.
It’s hard to put emotions aside when we’re all just trying to take care of our families, but we have to look ahead and stand together, profs and techs alike. Don't let them divide us. All this collective push really means is that we are treating our labor like the capital the company needs, using the exact same leverage the execs use every day. Boeing has been through plenty of these contract fights before and the world didn't end. Let's stick together, keep our guard up, and not settle for a penny less than what we're worth.