Boeing (BA) late in making headway with union

Boeing (NYSE:BA) has gotten a federal mediator on board to help in its negotiations with machinists. It does so as its 787 Dreamliner's deliver date gets later and later. That will further anger customers who have lived though two delays, help rival Airbus pick up business, and allow airlines to ask for compensation for late delivery.

According to Reuters, "Production at Boeing's Seattle-area factories has been suspended since September 6 when 27,000 workers represented by the International Association of Machinists and Aerospace Workers walked off the job." Boeing wants to outsource more of its work. The union objects for obvious reasons.

Boeing should have done almost anything necessary to keep the unions in. The labor contract is for three years and Boeing has a massive backlog for that period. It is unlikely cutting a deal with workers would hurt its margins much. Delaying has almost certainly hurt its revenue and customer relations.

Boeing executives have helped take the firm's stock down 35% in the last month. Even with the market turmoil, the Dow is only off 25%. Management is responsible for that significant difference.

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