Boeing Loses the Battle but Wins the WarAfter nearly eight weeks, Boeing and its International Association of Machinist andAerospace Workers Union (IAM) reached an agreement that ended a strike involving27,000 workers. The striker followed days of “last minute”, around the clocks talks thatbegan when management and union negotiators failed to reach an agreement overcompensation and job protection issues. As a result of the agreement, IAM workers won benefits in areas that includehealthcare, pensions, wages, and job security for 2.900 workers in inventorymanagement and delivery categories. Boeing also agreed to retrain workers who arelaid off or displaced. Despite these concessions, a spokesman for Boeing was quoted as saying that theagreement “gives us the flexibility we need to run the company”. The four-yearagreement allows Boeing to retain critical subcontracting provisions it won in paststruggles with the union. Commenting on all this, one analysis concluded that “the union probably won thebattle and Boeing probably wins he war”. Can you explain what this analystmeans?
AT&T Puts Halt to T-Mobile MergerA few years ago, the U.S. Justice Department filed suit to block the merger betweenAT&T share of the wireless subscription market at 32 percent, while T -mobile ‘s sharewas 10 percent. This market had two other major competitors: Verizon with a 34 percentshare and Sprint with a 17 percent share. After spending million on merger plans, AT&Tdecided to call off the deal. The impact on AT&T bottom line was so significant that its