Still, Hamilton said, the NLRB ruling comes at an unfortunate time, because the relationship between Boeing and the IAM appear to have improved recently. "Clearly Boeing has recognized that Local 751 members are producing airplanes at an unprecedented rate with top quality, and then this thing comes up -- it's just a real setback in terms of the larger picture," he said. Significantly, the IAM lobbied side-by-side with Boeing in its successful bid to win the $35 billion contract to build aerial refueling tankers for the Air Force.
With Boeing eyeing the possibility of increasing 787 production beyond 10 a month, an obvious solution to the NLRB problem is to build 10 in Washington, and then to build additional airplanes in Charleston, Hamilton said, adding: "I know they are talking about 17, although they haven't acknowledged that yet." Nevertheless, Hamilton said he believes Boeing would prefer to pursue the case to the Supreme Court, where anti-labor sentiment seems to dominate, than to reach a compromise. "To settle would be to admit they were wrong, and Boeing doesn't do that," he said.
-- Written by Ted Reed in Charlotte, N.C. .
>To contact the writer of this article, click here: Ted Reed
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV