Crossing over
Boeing Co. employees in Wichita who signed a consent form giving Onex Corp. access to their employment records will get a job offer from the Canadian company.
Those who didn't, company officials said this week, will have to go through an application process.
But before any offers can be made, Onex must come to terms with three unions that represent workers at Boeing Commercial Airplanes' facilities in Wichita and Oklahoma.
Employees started wondering if they would still have jobs when the sale was announced Feb. 22, despite promises from Onex officials to hire everyone they can from the existing workforce.
The anxiety increased when they were asked to sign consent forms allowing Boeing to hand over employment records to Onex. Many workers were worried about privacy issues regarding medical records, workers' compensation records or drug tests.
Boeing and Onex assured workers those records would remain private, and union leadership urged employees to sign the consent form.
"People who signed the consent have the automatic application for jobs and will receive offers prior to closing," says Nigel Wright, Onex managing director.
Wright says there is no deadline for turning in a consent form although a large number have already been returned.
Onex needs Boeing's current employees to reach its goal of increasing employment to 18,000 workers. Company officials also plan to invest $1 billion in facility improvements after it closes the sale.
Matter of trust
Before Onex can make good on the rehiring promise, and their commitment to Boeing to hold down costs, they must reach agreements with three unions that currently represent Boeing employees.
Formal negotiations with the International Association of Machinists and Aerospace Workers started March 17, and talks with the Society of Professional Engineering Employees in Aerospace and the International Brotherhood of Electrical Workers started this week.
Union officials did not return calls seeking comment. In memos to the rank-and-file, union leaders say they are trying to prevent wage and benefit cuts from becoming the sole source of Onex's cost-saving measures.
Martin Perline, professor of economics at Wichita State University, says ultimately the unions have to decide if they're better off taking less from Onex or taking their chances with Boeing and potentially watch more work get outsourced overseas.
"The trust issue, looking at it from the labor relations point of view, is crucial," he says. "There's some wiggle room in here, but I'm sure the workers are not going to be happy with it. But there are a lot of things we're not happy with that we don't have much control over, I'm afraid."
Union relations
In 1999, Onex tried to buy Air Canada and merge it with Canadian Airlines. At first, the Canadian Auto Workers, which represents workers at both airlines, opposed the plan.
CAW leadership dropped their opposition after hearing what Onex had to say during negotiations. But the Canadian courts ruled the buyout was illegal because it would give Onex more than a 10 percent ownership of Air Canada.
"We both understood that if (Onex) was successful in buying the airlines that some people would lose their jobs," says Gary Fane, CAW transportation director. "So we were working on making it worthwhile for individuals that they could leave voluntarily. I have only positive things to say about dealing with Onex."
Perline says that's a good indication that Onex can reach agreements with Boeing Wichita's three unions.
"If the CAW can get along with them -- and that's a powerful union, a little bit like the IAM in many ways -- that's a sign to the IAM that, 'Hey, we've got somebody we can work with,' " he says.
In communications with members, Steve Rooney, president of Machinists District Lodge 70, indicated that Onex could choose to walk away from the sale if it can't reach agreement with the union.
"I don't want to speculate on that," says Onex's Wright. "I think we're going to reach a successful conclusion to those talks. I don't want to talk about what will happen if we won't, because I think we will."
REACH KEN VANDRUFF at 266-6172 or on the Web at kvandruff@bizjournals.com.
No comments:
Post a Comment