A strike may be Boeing's (BA) next problem


Airlines may not get the Boeing (NYSE: BA) Dreamliner on its new revised schedule after all. The plane has been delayed three times because of manufacturing and supplier glitches. If Boeing has problems with one of its unions, it might have to push back the launch date again. Some airlines are already asking Boeing for compensation for the late deliveries.

According to The Wall Street Journal, "With its aircraft order books so full that some customers must wait as long as five years for deliveries, Boeing can ill afford a strike -- especially one that could further delay the rollout of its new 787 Dreamliner jet."

At the center of the negotiations are pay and pensions, making them little different from most such talks. But the solution for both sides could involve an incentive.

Boeing does not want to be faced with a strike that could hurt its revenue. The unions want a bigger piece of Boeing's sales pie. Boeing should return to the bargaining table with a simple proposal. If its new jets are delivered on time, wages will go up at a rate close to the union's requests. If not, the increases will be lower.

Boeing could set up a partnership with its labor force driven by the common goal of product launches. That is better than a strike that does neither the union nor Boeing any good.

Douglas A. McIntyre is an editor at 247wallst.com.

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