Boeing 2011 Annual Report Download - page 16

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As of December 31, 2011, our principal collective bargaining agreements were with the following
unions:
Union
Percent of our
Employees
Represented Status of the Agreements with the Union
The International Association of
Machinists and Aerospace
Workers (IAM)
20% We have two major agreements; one expiring in
January of 2015 and one in September of 2016.
The Society of Professional
Engineering Employees in
Aerospace (SPEEA)
13% We have two major agreements; one expiring in
October of 2012 and one in December of 2013.
The United Automobile,
Aerospace and Agricultural
Implement Workers of America
(UAW)
2% We have two major agreements; one expiring in
October of 2014 and one in February of 2015.
Competition
The commercial jet aircraft market and the airline industry remain extremely competitive. We face
aggressive international competitors who are intent on increasing their market share, such as Airbus,
Embraer and Bombardier, and other entrants from Russia, China and Japan. We are focused on
improving our processes and continuing cost reduction efforts. We intend to continue to compete with
other airplane manufacturers by providing customers with greater value products, services, and
support. We continue to leverage our extensive customer support services network which includes
aviation support, spares, training, maintenance documents and technical advice for airlines throughout
the world to provide a higher level of customer satisfaction and productivity.
BDS faces strong competition in all market segments, primarily from Lockheed Martin Corporation,
Northrop Grumman Corporation, Raytheon Company and General Dynamics Corporation. Non-U.S.
companies such as BAE Systems and European Aeronautic Defence and Space Company (EADS),
the parent of Airbus, continue to build a strategic presence in the U.S. market by strengthening their
North American operations and partnering with U.S. defense companies. In addition, certain of our
competitors have occasionally formed teams with other competitors to address specific customer
requirements. BDS expects the trend of strong competition to continue into 2012 with many
international firms attempting to increase their U.S. presence.
Regulatory Matters
Our businesses are heavily regulated in most of our markets. We deal with numerous U.S. government
agencies and entities, including but not limited to all of the branches of the U.S. military, NASA, the
Federal Aviation Administration (FAA) and the Department of Homeland Security. Similar government
authorities exist in our international markets.
Government Contracts. The U.S. government, and other governments, may terminate any of our
government contracts at their convenience, as well as for default, based on our failure to meet
specified performance measurements. If any of our U.S. government contracts were to be terminated
for convenience, we generally would be entitled to receive payment for work completed and allowable
termination or cancellation costs. If any of our government contracts were to be terminated for default,
generally the U.S. government would pay only for the work that has been accepted and can require us
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