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.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo Courtesy: Tada Images On Shutterstock.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
