Boeing CEO Urges Workers to Avoid Strike Amidst Critical Union Vote

Boeing’s newly appointed CEO, Kelly Ortberg, has made a fervent appeal to employees to refrain from striking, warning that such action could jeopardize the company’s ongoing recovery efforts. His plea comes just hours before a pivotal union vote that could lead to industrial action at the struggling aerospace giant.

Earlier this week, Boeing’s executives and union representatives tentatively agreed on a deal that includes a 25% pay increase over four years. However, this agreement still needs to be ratified by union members. Should the vote not approve the deal, it would prompt a second vote on whether to commence a strike as soon as Friday.

In a heartfelt message to the workforce, Ortberg urged employees to consider the future of the company: “I ask you not to sacrifice the opportunity to secure our future together because of the frustrations of the past. Working together, I know we can get back on track, but a strike would put our shared recovery in jeopardy.”

In addition to the proposed 25% salary increase, the preliminary agreement includes enhanced healthcare and retirement benefits, along with 12 weeks of paid parental leave. The deal also features a commitment from Boeing to construct its next commercial aircraft in the Seattle region if the project commences during the contract period.

Initially, the union sought more substantial improvements, including a 40% salary increase. Despite the enhancements proposed in the deal, there appears to be significant dissatisfaction among the 30,000 Boeing employees represented by the union. Union leader and chief negotiator John Holden has expressed uncertainty over whether the deal has sufficient support among the members. “They are angry,” Holden told Reuters.

The existing contract between Boeing and the unions, which was established in 2008 after an eight-week strike, was extended in 2014 and is set to expire at midnight on Thursday. A rejection of the current preliminary agreement would mark another significant challenge for Boeing, which is already grappling with severe financial losses and efforts to restore its reputation following recent crises, including two fatal accidents five years ago.

A strike could severely impact aircraft production, exacerbating the company’s current struggles and potentially halting progress on its recovery. For Ortberg, an experienced aerospace industry professional who took the helm of Boeing last month, a strike would represent a major setback in his mission to revitalize the company.

As Boeing navigates these turbulent times, Ortberg’s urgent plea highlights the critical crossroads the company faces. The outcome of the union vote will be a crucial determinant of Boeing’s immediate future and its ability to stabilize and move forward from its recent challenge.