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I've heard that some first-level managers are returning to SPEEA to avoid potential ILOs. This move not only provides them with better shelter, but it also allows them to maintain their incomes by stepping into a higher level than when they transitioned into management.
Why does contract need to be 4 years? Would it not be better to negotiate something shorter term (2 years) while the company is in the dumps, knowing it a better opportunity to negotiate would come soon (and potentially sync up closer with SPEEA)?
Sadly there are people who really believe they will get everything they want. It's a negotiation. Judging by the illiteracy on the FB pages they have reading comprehension and critical thinking issues. Many are conspiracy theorists. Dunning-Kruger is very real and alive and well in the rank and file. I believe Ortberg. They are your employer they pay you to do a job. The delusion is great. It wasn't management who left bolts off of the door plug. The contract is fair. Vote yes.
This happened several years ago in a (edit: non-SPEEA) engineering role.
My manager came back after submitting me for the annual promotion review, saying "the promotion board selected you, but HR blocked it on the grounds the jump from your current salary to your promoted salary would be too large."
I was given an out of cycle pay increase (3.5%), and told, "combined with the annual merit increase in March, you should have a high enough salary to be promoted next year." I took a new job outside the company before the merit cycle so I don't know how much closer my salary would have gotten to the next level's 1.0 comp.
Does anyone have insight on what sort of HR policy/guideline was in place for this? In the years since I've used the story as, "just wait until your company tells you it pays you too little to promote you," but have always been curious on what actually happened.
I haven't seen this posted yet. https://news.bloomberglaw.com/daily-labor-report/boeing-dismantles-diversity-team-as-pressure-builds-on-new-ceo
Are some skill codes more difficult to switch in to? How difficult is it to switch to GNC/flight controls engineering?
I was hired in Korea and have been working at Boeing for about 10 years. Based on my experiences, I'm going to write about Boeing's situation. English is not my native language, so I often use translators and Grammary. Please excuse my English. I tried to write them as simple as possible.
(added) **Note**: A few people mentioned it, so I'm adding it to avoid misunderstandings. I did not use an AI like GPT to generate this article. I think the misunderstanding comes from the fact that I use a translator and grammar corrector. I translate and grammar-check all most Asian languages into English with similar results. In case of any misunderstanding, I usually state in my posts that I used a translator and grammar corrector.
“The Pitfalls of Short-Term Cost Savings: Long-Term Risks of Cost-Cutting Strategies on Quality and Profitability”
The recent analysis of Boeing’s cost-cutting and outsourcing strategies illustrates the complex financial challenges that manufacturers often face. Although these measures can seem advantageous for reducing direct costs in the short term, many companies, including Boeing, have experienced that over time, challenges in quality control, erosion of customer trust, and rising overheads can ultimately hurt financial performance.
1. Outsourcing and Quality Issues: Boeing’s Experience as a Case Study
To reduce costs quickly, Boeing expanded outsourcing; however, some subcontractors struggled to maintain Boeing’s quality standards. This led to significant issues—such as recalls and unexpected repair expenses—that undermined Boeing’s finances, impacted its stock price, and strained its credibility with customers and industry partners.
This phenomenon isn’t unique to Boeing but is observable across many industries. When companies prioritize outsourcing without robust quality control processes, they risk compromising product standards. Such inconsistencies can result in unanticipated overhead costs as quality control demands increase and damage to their reputation mounts.
2. Overhead and Cost Volatility: Barriers to Profitability Forecasting
Outsourcing can complicate the financial picture further, as overhead costs often become highly unpredictable. These costs depend on various factors, including changes in outsourcing contracts, additional costs for rework due to quality issues, and supply chain disruptions. Such volatility can make it challenging to forecast profitability reliably. As production volume grows, these fluctuating overheads increase proportionately, challenging maintaining profitability over the long term.
3. The Case for Restoring Internal Production Capacity
Some manufacturers have mitigated these challenges by reinvesting in internal production capabilities, particularly critical components. This shift allows companies to control quality standards better and reduce the impact of external disruptions, ultimately strengthening customer trust and product consistency. While re-establishing internal production can be capital-intensive initially, it can also reduce overseas costs and improve response times in addressing quality concerns.
4. Reconsidering Outsourcing Strategies Over Time
Given these examples, Boeing may revisit its past strategies, recognizing that while short-term savings appeal, long-term financial health requires a balance of cost efficiency and quality. History has shown that aggressive cost-cutting measures can inadvertently lead to higher expenses if quality and reliability suffer.
Conclusion
Boeing’s best path may lie in gradually reinvesting in its production capacity. Although the lure of quick savings through outsourcing may persist, focusing on internal capabilities could provide a more stable foundation for long-term cost management and quality control. The benefits are financial and reputational, as consistent quality control can safeguard customer trust and protect against unpredictable overhead increases. Cost-cutting can be tempting, but history shows it can also be a ticking time bomb if not managed with a view toward the long term.
After more studying, I would like to materialize a long-term solution regarding quality management and supply chain risk management from an information management and financial perspective. My perspective may be completely different from yours in the U.S., and we may have different values and priorities so that I will be grateful for any advice and counter-arguments
Any update on the % per skill code? I heard rumors that manager would find out this week. Not much from the ET&T meeting… they emphasized Systems Eng, could that mean anything? Also saw a comment on another post that their leadership told them their specific skill code in BCA was not impacted… thoughts? Rumors? Leaks?
Morale is low and has been for a long time. This post isn’t about μnion history, trying to get made whole, or whatever else about the past. I hope wherever ℹ️🅰️Ⓜ️ settles, it satisfies enough people.
This discussion is about the future alone.
When the dust settles, all non-represented people will see that raises of 7% or more per year are possible. Bonuses are probably going to be low, if any paid at all.
How is Ortberg going to prevent morale for non-represented people from sinking even lower when they already feel undervalued and probably not receiving anywhere near those kinds of raises in the near term? Why won’t the best among us leave?
Bonus question: does this outcome affect BSC or others and their appetite to organize?
Hey all, Writing on a throwaway account because you never know these days… My team and I have been talking about this for a while and I wanted to see if anyone else had some insight to share. I am by no means an expert or well versed in unemployment benefits, so I figured I’d open it up to you all. I’ll start by stating some facts:
My question is: did Boeing purposely only do 1 round of furloughs knowing they wouldn’t have to pay out for the first week? By announcing 2, possibly 3 rounds, no one suspected this would be the case and accepted the circumstances. Did they effectively get a free 25% from all of us without having to pay into unemployment? 10% layoffs doesn’t seem to be something you plan and come up with on a whim. Was this their plan all along thinking nobody would notice?
Just wondering, that’s all.
Stay strong everybody :)
At least it's confirmed I won't be laid off...
So what does the skills team look at when ranking you besides performance? My manager asked us for our resume..do they look at what you majored in? What other companies/roles you’ve had? Are they ranking you based on your level and job code?
Explaining the why's....flattening the population?
The company is in trouble, I get it. I am really tired of hearing how bad the company is performing and would love to have an update about my own future and livelihood! Will I be able to keep supporting my family or not? Other than that, I don’t benefit from any financial gains the company makes or doesn’t make since the higher ups take most of the bonuses…
Washington State employee. Furloughed for the week of Oct 13-19th. I was wondering if anyone has received unemployment payment from the state already. I completed the survey from Workday and the survey from esd.wa.gov but has not received the 💵
Thanks!
I have been with Boeing since Jan of this year. Literally 4 days ago my marriage ended. The strike and the fact I was not making enough to make him happy was all to much. The yelling and throwing things had to end. I need to know if it is wise to take a loan from or withdrawal all my 401k so I can get a place instead of stying where I currently am. I just need help. Please don't be negative, I'm already fighting with a bunch of crap and just need help.
Wondering if there was any news on updates.
Also, anyone know what my chances are of being laid off as a Level 1 engineer, started half a year ago.
MAX 10 test flight overhead.
Here's an official overview here: https://youtu.be/apAufybRrrY?si=GfbL8PrDXzp5V0cL
Basically, instead of laying folks off, you reduce hours on an as needed basis. Employees collect a portion of unemployment based on those hours. It's done week to week based on employer need.
I know that overhead is a bit high now, but it would be easy to put folks on say 75% hours or whatever now, not do layoffs and then increase the hours as production increases later on.
This way you don't have skill loss and it's really easy to ramp up because you just add back hours. Folks can at least plan instead of having to worry about getting hit by a second or third wave of layoffs. The form literally takes ten minutes to fill out.
Is there any way I can subtly volunteer myself for layoff? Was already trying to pivot out of the company so some severance could be nice.
Received a call today which I assumed would be potentially pushing my start date back or an all clear to start working next week which is what my 0ni0n told me to expect.... Was instead a call stating in corporate speak that essentially my offer has been rescinded because the company came to the conclusion this week they cannot afford to hire the people who have already been through bg test, drug test, and the like - hiring freeze aside. They said they'd call me back when spots open back up. I know everyone will probably say it's good I got out before being hired while the storms happening, but I've been working for the better part of a year to get this job, I won't lie and say getting that call didn't sting.
Will my security clearance play a factor into whether or not I’ll be laid off? I imagine the company would want to keep those of us with clearance around right?
I highly recommend reading it.
The company laid out that, due to the work stoppage, supply chain disruption, quality issues, the pandemic, that 777X has taken a long time to roll out.
They say that they determined this quarter, that all the costs to finish the 777X, plus the costs of the inventories we already have, exceed the expected revenues of the program.
They are accounting for 500 planes to be made.
There are only 396 firm orders.
No one is talking about this?
What’s the timeline for when the conversion process will resume? Is it once the strikers come back or will we have to wait longer?
I’ve been hearing people say that today (10/29) is the day Boeing is supposed to determine which skill codes are in surplus; does anyone know if this is true? If it is indeed true does anyone have any information on whether anyone outside the c-suite will get to see it? For people who’ve gone through layoffs in the past did they ever make this public?