The new CEO of Boeing, Kelly Ortberg, recently expressed his intentions to reset relations with the International Association of Machinists and Aerospace Workers, representing tens of thousands of the company’s employees. Ortberg emphasized the importance of building a stronger future for the employees in the region through a new labor contract. This move comes as negotiations are in the final stages, with the current agreement set to expire soon.
The local branches of the union, based in the Seattle area, are demanding significant changes in the new contract. This includes a demand for Boeing to manufacture its next aircraft within the region, expected in 2035. Additionally, the union is seeking a pay raise of at least 40 percent over three years, along with improvements in benefits such as health insurance and pensions. The union insists that Boeing must commit to securing jobs within the region to rebuild the trust that has been damaged over the years.
Ortberg, who took over as CEO earlier this month, is stepping into the role at a crucial time for the company. With the previous CEO, Dave Calhoun, stepping down after a series of quality control issues, Ortberg’s leadership is closely watched. While Ortberg may not be directly involved in the negotiations, his influence on the process is deemed significant by the negotiating committee.
Commitment to Building Trust
The IAM District 751 negotiating committee expressed confidence in Ortberg’s commitment to finding a way forward, despite past challenges. They acknowledged that rebuilding trust will require a joint effort from both parties and a genuine commitment to securing jobs within the region. Ortberg’s recent visits to key Boeing facilities and meetings with stakeholders demonstrate his dedication to understanding the company’s operations and challenges.
As the negotiations enter the final phase, both Boeing and the union face critical decisions that will shape the future of their relationship. The outcome of these discussions will not only impact the 33,000 employees represented by the union but also have broader implications for the company’s reputation and operations in the region. Ortberg’s leadership during this pivotal moment will be closely watched by employees, stakeholders, and industry observers alike.
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