WEBVTT - Jon Holden, President of Union Striking Boeing, Talks Negotiations

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news. Boeing the worst performer

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<v Speaker 1>in the Dow Industrials. Moody says, it's putting the playmaker

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<v Speaker 1>on review for a possible downgrade to junk status. And

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<v Speaker 1>of course this is as thirty three thousand workers in

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<v Speaker 1>the Seattle area rejected the latest labor deal and voted

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<v Speaker 1>to strike. They walked off the job this morning.

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<v Speaker 2>Yeah, the International Association of Machinists and Aerospace Workers walking

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<v Speaker 2>off the job here. Kind of a blow here for

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<v Speaker 2>a new CEO that's really been on the job for

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<v Speaker 2>less than two months. Here we do talk about that

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<v Speaker 2>strike and what the effect is on Boeing, and we're

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<v Speaker 2>going to continue that story right now with the head

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<v Speaker 2>of their union. We welcome in right now our Bloomberg

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<v Speaker 2>audiences across all of our platforms, a discussion here about

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<v Speaker 2>those thirty three thousand workers walking off the job.

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<v Speaker 3>We're joined right now.

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<v Speaker 2>By the lead negotiator of those talks on the labor

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<v Speaker 2>union side, John Holden. He's president of IAM District seven

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<v Speaker 2>five one. John, Thanks for being here on the day

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<v Speaker 2>we were looking at a twenty plus percent pay raise

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<v Speaker 2>down the lad line for workers that was rejected their

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<v Speaker 2>original plan or the original proposal that had come out

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<v Speaker 2>of the labor union side. What was that percentage and

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<v Speaker 2>do you think you're going to get there?

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<v Speaker 3>You know, thank you for having me.

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<v Speaker 4>You know, our members have worked hard over the last

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<v Speaker 4>ten years to place themselves in a position of leverage.

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<v Speaker 3>It's been a long road.

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<v Speaker 4>We haven't renegotiated our full contract since two thousand and eight,

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<v Speaker 4>so there's a lot to address. We've certainly, you know,

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<v Speaker 4>had some tough times when our membership was threatened with

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<v Speaker 4>job loss and moving jobs away from our production facilities

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<v Speaker 4>here in Washington, and so there are some pretty deep

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<v Speaker 4>wounds that our members had to work through. We proposed

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<v Speaker 4>over forty percent wage increases, and you know, our members

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<v Speaker 4>certainly deserved those those wages, but there's many other things

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<v Speaker 4>as well. We have also lost our defined benefit pension,

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<v Speaker 4>there was a mass cost shift on healthcare, and there's

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<v Speaker 4>many other issues that our members are looking to address,

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<v Speaker 4>and we're going to work hard to do that.

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<v Speaker 3>They're confident, they're ready.

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<v Speaker 4>They've put themselves in the strongest leverage position possible at

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<v Speaker 4>the right time.

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<v Speaker 3>So that's where we're at.

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<v Speaker 2>What's the relationship right now? Like John, with management at Boeen,

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<v Speaker 2>particularly at the executive side, do they seem meanable to

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<v Speaker 2>maybe compromising on some of these issues.

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<v Speaker 3>Well, we'll see, we'll see.

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<v Speaker 4>I know they're going through their own issues, but I

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<v Speaker 4>will tell you that I'm focused solely on what our

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<v Speaker 4>members need, what their priorities are, and we need more

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<v Speaker 4>and we're going to definitely push that forward.

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<v Speaker 3>John.

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<v Speaker 1>We know the White House has been in touch with

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<v Speaker 1>both Boeing and the union. Is that helpful to you?

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<v Speaker 1>Have they been able to move the needle in any way?

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<v Speaker 4>You know, we'll see. That remains to be seen, I

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<v Speaker 4>hope so. But at this point, you know, we're going

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<v Speaker 4>to talk with our members. We just are getting our

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<v Speaker 4>picket lines up and running. It will be a little

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<v Speaker 4>chaotic for the first few days here as we get

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<v Speaker 4>into a well oiled machine sending a strong message.

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<v Speaker 3>Our members united, a massive rejection.

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<v Speaker 4>Of the contract and a massive vote to go on

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<v Speaker 4>strike at ninety six percent. So you know, our members

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<v Speaker 4>are united across all of our demographics, whether they've worked

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<v Speaker 4>here for a few months or for forty five years,

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<v Speaker 4>everyone's united, and we intend to go after the items

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<v Speaker 4>that our members deserve.

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<v Speaker 1>So I would like you to be able to outline

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<v Speaker 1>for us at the next steps for you from where

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<v Speaker 1>you say, do you plan to head back to the

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<v Speaker 1>bargaining table this weekend?

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<v Speaker 4>FMCS is involved in is calling both sides to come

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<v Speaker 4>back to the table. So we're working through some of

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<v Speaker 4>those items. We will certainly get back to the table

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<v Speaker 4>as quickly as we can. We also have to talk

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<v Speaker 4>to our members since the strike was called last night

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<v Speaker 4>at midnight, we still have some engagement we need to

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<v Speaker 4>do so that when we go back to the table

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<v Speaker 4>we can propose the items that we feel we can

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<v Speaker 4>make headway on to get a deal done. So we

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<v Speaker 4>have a little bit of time and hopefully early next week.

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<v Speaker 2>Are you in a position, meaning the union, are you

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<v Speaker 2>in a position right now to provide support for work

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<v Speaker 2>or should this strike be prolonged.

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<v Speaker 4>Yeah, we have a very strong strike fund and our

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<v Speaker 4>members will be eligible for that.

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<v Speaker 3>There's a lot of opportunity for our members.

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<v Speaker 4>We've spent the last five years talking about saving for this,

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<v Speaker 4>you know, putting into your individual strike fund, preparing so

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<v Speaker 4>that we could stand on principle and make sure that

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<v Speaker 4>financial decisions aren't what will you know, make people decide

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<v Speaker 4>whether they can accept an agreement or not, but standing

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<v Speaker 4>on principle so that we can all move ourselves forward.

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<v Speaker 2>I'm wondering if you could go back in time for me, John,

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<v Speaker 2>to the line as contract, the last negotiations, and why

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<v Speaker 2>you feel now that that maybe came up short. I

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<v Speaker 2>know that you have the benefit of hindsight of being

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<v Speaker 2>able to judge what was done then, but what could

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<v Speaker 2>have been done differently that maybe would have put or

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<v Speaker 2>maybe made you feel a little bit better about the

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<v Speaker 2>contract situation today.

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<v Speaker 3>Well, a lot of.

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<v Speaker 4>This is coming from an extension that happened in twenty

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<v Speaker 4>thirteen fourteen, and in that extension, you know, our members

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<v Speaker 4>did lose their defined benefit pension. They were threatened that,

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<v Speaker 4>you know, a major portion of their work would be

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<v Speaker 4>sent somewhere else for thousands of our members, you know,

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<v Speaker 4>threatening thousands of their families. In our community, we had

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<v Speaker 4>a massive cost shift on healthcare, and we also had

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<v Speaker 4>stagnated wages over the last eight years, eight to ten years.

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<v Speaker 4>And that was on the heels of being threatened that

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<v Speaker 4>the seven three seven Max aircraft would also be built

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<v Speaker 4>somewhere else unless we agree to an extension and a

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<v Speaker 4>car shift of healthcare at the time, so there's some

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<v Speaker 4>deep wounds that we're trying to kal.

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<v Speaker 3>And I believe this agreement had it been off of.

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<v Speaker 4>A previous agreement from three years ago or something, might

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<v Speaker 4>have been perceived different. But this was just a bridge

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<v Speaker 4>too far, and our members are fighting for what they deserve,

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<v Speaker 4>and there's many issues that we're trying to address. It's

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<v Speaker 4>hard to pick just one, but that's what kind of

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<v Speaker 4>led to this overwhelming vote to strike.

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<v Speaker 1>Thank you for providing the context there. I understand that

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<v Speaker 1>the union has requested mediation for the negotiations. How does

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<v Speaker 1>this process change with a mediator from the NLRB leading

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<v Speaker 1>the discussions. Does it, I don't know, prevent or rule

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<v Speaker 1>out the chance of a quick resolution the way that

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<v Speaker 1>we saw at the Boeing supplier Spirit Aerosystems.

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<v Speaker 4>Well company reached out to FMCS Federal Mediation and Conciliatory Services,

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<v Speaker 4>and so we want to get back to the table

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<v Speaker 4>as well. That's our job is to reach an agreement

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<v Speaker 4>that provides a better agreement for our members. I think

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<v Speaker 4>there are benefits to having mediation, and hopefully those can work,

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<v Speaker 4>but it doesn't deter us from addressing the needs that

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<v Speaker 4>our members have set, they have spoken loudly. They are

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<v Speaker 4>standing shoulder to shoulder, speaking with one voice, and we

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<v Speaker 4>are determined to make the demands to make the improvements

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<v Speaker 4>that they're demanding.

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<v Speaker 1>So, as you know, Bloomberg Television speaks to or we.

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<v Speaker 1>Our audience is analysts, whether it's equity analysts or credit analysts,

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<v Speaker 1>and investors, bond investors and equity investors. What is your

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<v Speaker 1>message from the union to this audience. What do you

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<v Speaker 1>want them to know?

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<v Speaker 4>It's not usually a group of folks that I talk

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<v Speaker 4>to a lot, so kind of the message that I

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<v Speaker 4>gave the company I might give to them. You can

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<v Speaker 4>either meet the demands of our membership now, it can

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<v Speaker 4>cost more later. I think it's important that we resolve

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<v Speaker 4>this as quickly as we can if they take seriously

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<v Speaker 4>our proposals, it's what our members have earned and deserved,

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<v Speaker 4>and I think that's the best way to resolve this quickly.

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<v Speaker 2>And just real quickly. Here too, there's been a lot

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<v Speaker 2>of talk anytime you have these big labor strikes, it's

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<v Speaker 2>not always just about the workers at that particular company,

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<v Speaker 2>particularly with an ecosystem like making airplanes. Here, this is

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<v Speaker 2>going to have reverberations for other companies, even restaurants and

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<v Speaker 2>other things in the area.

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<v Speaker 3>Here.

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<v Speaker 2>Have you had any discussions at all with other workers

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<v Speaker 2>and those lines of work, other business leaders and those

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<v Speaker 2>areas small business leaders about how they're going to get

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<v Speaker 2>through this should this extend for some period of.

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<v Speaker 4>Time, Well, we've had discussions with the community at.

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<v Speaker 3>Large for the last couple of years.

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<v Speaker 4>In fact, you know, our efforts to fight for job

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<v Speaker 4>security are fighting for certainly our members to have jobs

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<v Speaker 4>long into the future, but that also brings jobs for

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<v Speaker 4>everyone else, the other Boeing employees that aren't represented by

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<v Speaker 4>the IM, those in the community that are in the

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<v Speaker 4>aerospace supply chain, that have committed their lives to you know,

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<v Speaker 4>be in aerospace and help aerospace thrive, and in everyone

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<v Speaker 4>else that's benefited from these good jobs in the community.

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<v Speaker 4>So it's been a it's been a fight not just

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<v Speaker 4>for ourselves but for everyone else to ensure that we

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<v Speaker 4>have long term jobs long into the future.

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<v Speaker 1>John Holden, President of IAM Districts seventy five to one,

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<v Speaker 1>thank you so much for spending some time with us

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<v Speaker 1>and explaining your side