Wednesday, November 30, 2011

Boeing makes peace with labor

Boeing Co. and leaders of its main union reached a tentative settlement that could end one of the biggest U.S. labor disputes in recent times but leave unresolved key questions about the government's right to determine where companies locate their plants.

Boeing's labor troubles took on political overtones in April when the National Labor Relations Board accused the jet maker of trying to illegally shift union work to a nonunion facility. That triggered outrage at the Obama Administration from the business community. Some accused it of interfering in basic business decisions at a fragile time for the economy.

The deal announced Wednesday between Chicago-based Boeing and the International Association of Machinists & Aerospace Workers, if ratified by union members, would help pave the way for a planned jump in production by the aerospace giant.

It would alleviate the threat of strikes that could derail ambitious sales plans for a retooled version of Boeing's best-selling 737 aircraft, its new 787 Dreamliner and other jets.

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