Boeing’s new CEO has made a last-ditch appeal to workers, urging them not to vote for a strike that could jeopardize the company’s recovery.
Kelly Ortberg’s plea comes just hours before a pivotal union vote that could trigger industrial action at the aviation giant.
Boeing and its largest union, representing around 30,000 employees, reached a tentative agreement earlier this week.
The deal includes a 25 percent wage increase over the next four years. It also features improved healthcare and retirement benefits, and 12 weeks of paid parental leave.
It also includes Boeing’s commitment to building its next commercial aircraft in the Seattle area if the project moves forward during the contract’s lifespan.
However, the deal has yet to be approved by union members. If workers vote against the agreement, a second vote could be held as early as Friday to determine whether to proceed with a strike.
Ortberg’s Appeal to Workers
In a message to employees, Ortberg urged them to consider the long-term impact of their decision. emphasizing that the company’s recovery and future are at stake.
He said:
“I ask you not to sacrifice the opportunity to secure our future together, because of the frustrations of the past.
“Working together, I know that we can get back on track, but a strike would put our shared recovery in jeopardy.”
The vote comes at a time of intense financial pressure for Boeing.
The company has faced mounting losses and reputational damage following two fatal accidents involving its 737 MAX aircraft, which have cast a shadow over its operations for the past five years.
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Mixed Reactions to the Deal
Despite the proposed pay rise and benefits, the response from union members has been lukewarm. Some workers have expressed frustration that the deal falls short of the union’s initial demands. This included a 40 percent pay increase.
Union leader and chief negotiator John Holden said the level of support for the deal remains uncertain.
“They are angry,” Holden told Reuters, reflecting the mood of many workers as they prepare to vote.
The current labor agreement was established in 2008 after an eight-week strike. It was extended in 2014 but is set to expire at midnight on Thursday.
Boeing’s leadership is keen to avoid another strike. This is especially given the potential for disruptions in aircraft production.
The Stakes for Boeing
A rejection of the deal and the subsequent strike would mark a significant setback for Boeing. The firm has been working hard to recover from its financial losses. It is also looking to repair its reputation, and a prolonged labor dispute could undermine these efforts.
Ortberg took the helm of Boeing just last month. He faces the immense task of guiding the company through its current difficulties.
A strike would not only delay production but could also have a ripple effect on the company’s global supply chain and customer base, further deepening its financial woes.
The stakes are equally high for Boeing’s union members. While many are frustrated with the terms of the proposed deal, rejecting it and voting for a strike would come with risks. A walkout could drag on for weeks or even months, leading to lost wages and prolonged uncertainty.
Looking Forward
With the outcome of the vote hanging in the balance, Boeing’s future direction remains unclear. If the workers accept the deal, it could pave the way for a period of stability and recovery for the company.
However, a rejection could lead to a major industrial dispute, further complicating the path forward for Boeing and its new CEO.
Ortberg is looking to rebuild trust and turn around the company’s fortunes. the upcoming vote will be a defining moment for both the leadership and workforce at Boeing.
Whether the two sides can come together or face another confrontation will shape the company’s trajectory for years to come.
