Boeing’s newly appointed CEO, Kelly Ortberg, has urged employees to avoid striking, stating it would jeopardize the company’s recovery efforts. This plea comes just before a critical union vote that might lead to industrial action within the troubled aerospace manufacturer.
Earlier this week, company executives and union leaders brokered an agreement that proposes a 25% salary increase over four years, although it still requires ratification by union members. Should the workers reject this deal, it could prompt a subsequent vote to initiate a strike as soon as Friday.
In a direct appeal to the workforce, Mr. Ortberg emphasized the importance of moving forward together despite previous challenges. “I ask you not to sacrifice the opportunity to secure our future together, because of the frustrations of the past,” he stated, adding that collaboration is crucial for overcoming past hurdles, but a strike could severely hinder progress.
The tentative agreement also includes enhanced healthcare and retirement benefits, along with 12 weeks of paid parental leave, and a commitment from Boeing to construct its next commercial aircraft in the Seattle region, provided the project commences within the contract’s duration.
Although initial union demands included a 40% wage increase, the reaction among the 30,000 unionized Boeing workers has been mixed. Union chief negotiator John Holden expressed uncertainty about the agreement’s acceptance among members, citing prevailing discontent, as reported by Reuters.
The current labor contract, established in 2008 following an eight-week strike, was extended in 2014 and is set to expire at midnight on Thursday. A failure to ratify the new agreement would mark a significant setback for Boeing, potentially halting aircraft production amidst financial difficulties and ongoing efforts to restore its reputation after recent mishaps and two deadly crashes five years prior.
This situation also represents a critical challenge for Mr. Ortberg, an experienced aerospace engineer and industry veteran, who assumed the role of CEO last month with the goal of steering Boeing on a recovery path.
