Boeing and its main union are in the final stages of negotiations before a potential strike by over 30,000 employees involved in constructing aircraft for commercial use. The strike could pose additional challenges for Boeing, which is grappling with financial losses and recently appointed a new CEO to lead a turnaround.
The International Association of Machinists and Aerospace Workers regional division and Boeing are facing significant gaps in positions on pay raises, healthcare, and job security. The initial union request included salary hikes exceeding 40% over three years, although the union’s president indicated that the final agreement might vary from this initial proposal.
A voting process has been scheduled for Thursday, where workers will consider Boeing’s latest contract offer and decide on strike authorization if the offer is rejected. The possibility of a strike looms, with a previous informal vote in July showing overwhelming support for such action among union members.
Regarding the negotiations, the union president emphasized the need for reasonable demands, citing the necessity of addressing stagnant wages, rising inflation, and escalating healthcare expenses. The union is prepared to resort to strike action if necessary, backed by a substantial strike fund.
Boeing refrained from providing additional comments on the negotiations, indicating confidence in reaching a mutually beneficial agreement that considers both employee interests and the company’s financial challenges. The new CEO, Kelly Ortberg, has been described as taking a conciliatory approach toward labor relations and is striving to improve the company’s interactions with unions.
Ortberg faces a daunting task of addressing various issues within Boeing, such as enhancing the manufacturing process, obtaining regulatory approval for projects like the 777X jumbo jet, managing government contracts effectively, reducing substantial debt, and integrating recently acquired assets like Spirit AeroSystems.
Restoring Boeing’s damaged reputation following the 737 Max crashes and other incidents remains a top priority for Ortberg. Despite the past financial setbacks, Boeing still holds a significant position in the global aircraft manufacturing industry, boasting a considerable backlog of orders.
Job security is a key concern during the ongoing negotiations, particularly concerning future projects and the distribution of work among union and non-union employees. The importance of job security is underscored by ongoing developments like the potential replacement of the 737 Max, impacting a considerable portion of the union workforce.
In light of Boeing’s challenges and the skilled labor force represented by the union members, IAM remains optimistic about securing a favorable contract. The union believes it holds leverage due to the substantial demand for Boeing’s aircraft and the company’s sizable backlog of airplane orders.
