Boeing strike could end this week

Oct 21, 2024

By Sam Ogozalek, Chris Marquette and Oriana Pawlyk

Quick Fix

— The machinists walkout at Boeing may be over soon thanks to a deal on wages. Rank-and-file members plan to vote on the proposal Wednesday.

— A new NHTSA probe centered around Tesla’s inaccurately-marketed “Full Self-Driving” mode is the latest in a history of federal inquiries into Elon Musk’s cars.

— Boeing is under further scrutiny at the FAA. This time, the agency is conducting a three-month review into the company’s safety practices.

IT’S MONDAY: You’re reading Morning Transportation, your Washington policy guide to everything that moves. We’re glad you’re here. Send tips, feedback and song lyrics to Sam at sogozalek@politico.com, Chris at cmarquette@politico.com, Oriana at opawlyk@politico.com and Cassandra at cdumay@politico.com and follow us at @SamOgozalek, @ChrisMarquette_, @Oriana0214 and @cassandra_dumay.

“ Everybody speeds in the fast lane truly now/ Revvin’ through the gears tryin' to keep ourselves from stressing out, ah/ Take a look in your heart and your soul/ This is really it? Is it all that you are?/ We’re so caught up in the riddle and we suffer for so little, oh Lord.”

Want to receive this newsletter every weekday? Subscribe to POLITICO Pro . You’ll also receive daily policy news and other intelligence you need to act on the day’s biggest stories.

Driving the Week

STRIKE OVER SOON: Rank-and-file machinists at Boeing plan to vote Wednesday on a new contract offer from the plane maker, which is facing financial headwinds as the union’s five-week-long walkout continues. The International Association of Machinists and Aerospace Workers District 751 announced Saturday it had struck a tentative agreement with the company. The deal, which acting Labor Secretary Julie Su helped broker, needs a simple majority vote to pass later this week.

— The agreement includes a 35 percent general wage increase over four years, a one-time signing bonus of $7,000 and retirement plan improvements, according to the union. Boeing in a statement said it looks forward to its employees voting on the negotiated proposal. Members previously rejected a tentative agreement that would have raised wages by 25 percent over four years.

CHALLENGES MOUNT: Boeing has said it will cut 10 percent of its workforce, or about 17,000 employees, and said it will delay first deliveries of its new 777X wide-body passenger jet. S&P Global Ratings warned that it might downgrade the company’s credit rating to junk, estimating that the strike costs Boeing over $1 billion per month.

IMPACTS REACH KANSAS: Spirit AeroSystems said Friday it plans to furlough about 700 employees working on the Boeing 767 and 777 programs starting Oct. 28 due to the ongoing machinists strike. The 21-day furloughs are in addition to a hiring freeze and travel and overtime restrictions, according to the Wichita, Kansas-based supplier.

— “We do not have [the] storage capacity necessary to continue producing new units,” CFO Irene Esteves said in a message to employees Friday.

Electric Vehicles

TESLA TECH TO BE REVIEWED: NHTSA said Friday it is examining Tesla’s “Full Self-Driving” system (which despite its name is not fully autonomous) after four crashes where there was sun glare, fog or airborne dust — including one case in which a Tesla vehicle fatally struck a pedestrian. The auto safety regulator said it wants to assess the system’s ability to detect and adjust to reduced visibility, among other things. The investigation covers an estimated 2.4 million vehicles: the 2023-2024 Cybertruck and Models S, X, 3 and Y from a variety of years, Chris reports . Tesla didn’t immediately respond to a request for comment. (The company doesn’t maintain a press operation.)

ADD IT TO THE LIST: MT readers will know this is not Tesla’s first run in with NHTSA or other federal officials — and it raises questions about how agencies will continue to oversee Musk’s companies, ranging from his electric car brand to SpaceX, should Republican presidential nominee Donald Trump win in November. (If reelected, the former president says Musk would head up a new government efficiency commission, presenting a maze of potential conflicts of interest for Musk.) The billionaire also has to worry about:

— A Justice Department inquiry into the Full Self-Driving and Autopilot features. DOJ has issued subpoenas to the EV maker while it looks into the two driving systems, according to an SEC filing from Tesla last year. The department declined to comment on the status of its probe.

— Another ongoing NHTSA investigation, which it announced in April, centered around a recall that Tesla issued in December for roughly 2 million vehicles equipped with Autopilot. The agency is assessing whether the recall was adequate after it identified 20 crashes involving vehicles with the updated software.

Aviation

LATEST SCRUTINY: The FAA has launched a three-month review of Boeing’s safety processes amid continued scrutiny of the company’s quality-control and production lines. It’s part of the FAA’s broader oversight of Boeing, and the agency is looking into how the plane maker assigns its resources and performs risk assessments. Oriana has the story.

REGULATION IMMINENT: A final rule for powered lift aircraft — aka air taxis — through the FAA’s “special federal aviation regulation,” or SFAR, process is expected to drop as soon as Tuesday, two air taxi industry officials tell Oriana. The SFAR is seen as the stepping stone for industry members to receive certification as special class aircraft under FAA’s current regulations while the agency works out how to incorporate the budding technology into the airspace.

ELECTION 2024

RUST BELT POLITICS: Vice President Kamala Harris on Friday sought to shore up support among United Auto Workers members in Michigan — a key demographic in a “Blue Wall” state that Trump is also courting. The two remain in a tight race for Michigan’s 15 electoral votes, with FiveThirtyEight’s polling average as of Sunday giving Harris a slight edge over Trump, 47.4 percent to 47.2 percent.

— During a speech at UAW Local 652 in Lansing, Michigan, Harris noted that Trump’s running mate, Sen. JD Vance (R-Ohio), earlier this month refused to commit to keeping industrial investments in the state funded by the Inflation Reduction Act, such as $500 million for an electric vehicle plant in the city. (Vance later tried to walk back those comments, Gavin Bade reports.) “I will always have your back and will keep fighting to make sure that you keep your jobs right here in Lansing and keep these most noble and important jobs for America’s strength,” Harris said.

HER VISION FOR EVs: Harris also repeated that if elected she would ensure that advanced batteries and EVs are both invented in America and built by union workers. She said the U.S. would beat China in the “competition for the 21st century,” adding that in the past three and a half years, “with your help we announced the opening of more than 20 new auto plants.” She criticized Trump’s auto industry track record as a “disaster,” saying six factories closed while he was president.

TARIFFS, TARIFFS, TARIFFS: Trump, meanwhile, has said he would use tariffs to push manufacturers overseas to open factories and hire workers in the U.S., aims to renegotiate the USMCA trade agreement and has promised to ax the Biden administration’s EV “mandate,” likely referring to stringent tailpipe emissions rules.

Infrastructure

IIJA FUNDS FLOW: DOT announced Monday more than $4.2 billion in funding for 44 projects across the nation made possible through two grant programs funded by the 2021 infrastructure law, including the “Mega” program, which supports large, complex projects that would be hard to fund by other means and are likely to generate national or regional economic, mobility or safety benefits. The winners include:

— The California Department of Transportation, with $54.5 million in Mega funds for a high-speed rail station in rural Madera County. It will include new platforms, trackwork, a bus depot and an access roadway network.

— The Massachusetts Bay Transportation Authority, with $472.3 million in Mega funds to replace the Draw 1 rail drawbridge in Boston used by Amtrak and MBTA, among other things.

STORM RELIEF: FHWA announced Friday the release of $10 million in emergency relief funds to the Virginia DOT to help with immediate repair work following Hurricane Helene. The storm damaged roads and bridges in the southwestern part of the state.

Space

SURPRISING SUPPORT: Even as Musk becomes one of Trump’s biggest backers, California Gov. Gavin Newsom (D) — who is no fan of Musk — said he’s “with Elon” when it comes to the billionaire’s ongoing dispute with an independent state agency that recently rejected a plan to allow more SpaceX satellite launches off the California coast. Christopher Cadelago and Debra Kahn have the details.

Shifting Gears

— Katherine Ambrose is joining the NTSB as chief of staff to Chair Jennifer Homendy. She most recently was part of the majority professional staff on the Senate Commerce Committee’s surface transportation subcommittee.

The Autobahn

— “U.S. Agencies Fund, and Fight With, Elon Musk. A Trump Presidency Could Give Him Power Over Them.” The New York Times.

— “7 Dead After Georgia Ferry Dock Gangway Collapses.” The New York Times.

— “ How San Francisco Learned to Love Self-Driving Cars.” The Wall Street Journal.

— “Boeing’s CEO Is Shrinking the Jet Maker to Stop Its Crisis From Spiraling.” The Wall Street Journal.

— “Indonesia to export EV battery material to US next month, minister says.” Reuters.

— “Hyundai Motor to Raise More Than $3 Billion in Record India IPO.” The Wall Street Journal.

— “Cessna, American Airlines 737 have mid-air close call; FAA investigating.” CBS News.

— “ NYC-bound Boeing 767 makes emergency stop during take-off in Senegal.” Reuters.

— “After Nevada lithium deal, GM eyes other sources for EV minerals supply.” Reuters.

— “Italian autoworkers go on strike, as troubled Stellantis faces pressure over production plans.” AP.

— “NYC officials envision turning Fifth Avenue into a grand boulevard.” AP.