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Boeing To Cut Labor Force Sounds Like A Move Toward Non Union Workers

March 31, 2016 - Boeing to cut as many as 4,000 jobs over 2016, in it's commercial airplane division through layoffs, buyouts, attrition and by leaving unfilled positions open.

The company's goal is to cut 2 percent of its workforce whereby reducing its operating costs by $1 billion.

It is believed that Boeing's broader goal is to cut 80,000 employees, which would represent 10 percent of it workforce in its commercial airplane unit. Saving the company billions of dollars in labor costs.


Boeing representatives have stated the savings are necessary to win in the market, fund growth and operate as a healthy business. In addition the company states there is no employment reduction target. "The more we can control costs as a whole, the less impact there will be to employment."

It's not clear how laying off workers will give Boeing a more competitive edge. In 2015, Boeing manufactured and delivered a record number of aircraft valued over a hundred billion dollars. If Boeing's sales are doing well, how will the company keep up with sales?

So why would Boeing want to cut jobs? The giant company has farmed out a large portion of its manufacturing needs to companies that pay lower wages and hire non-union workers for higher profits. The company has fought with its unions a number of times over wages and has made threats  of moving its plants to other states in order to hire non union workers. Instead, Boeing has received millions of dollars in tax incentives to keep its workforce in place. In 2015, Boeing released a report "Current Market Outlook" in which the company stated;



"Over the next 20 years, we are forecasting a need for 38,050 airplanes valued at more than $5.6 trillion. Aviation is becoming more diverse, with approximately 40 percent of all new airplanes being delivered to airlines based in the Asia Pacific region. An additional 20 percent will be delivered to airlines in Europe and North America, with the remaining 20 percent to be delivered to the Middle East, Latin America, the Commonwealth of Independent States, and Africa."

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