Boeing’s newly appointed chief executive, Kelly Ortberg, is focusing on rebuilding and resetting relations with a crucial union that represents tens of thousands of the company’s workers. In an effort to foster a more positive and collaborative working environment, Ortberg met with the presidents of IAM 751 and W24 in Seattle to engage in meaningful discussions and actively listen to their concerns.
Negotiating a New Labor Contract
The International Association of Machinists and Aerospace Workers, which represents around 33,000 Boeing employees in the Seattle area, is currently in negotiations with the aerospace giant for a new labor contract. The current 16-year-old agreement is set to expire soon, and union members have already voted in favor of strike action if an agreement is not reached by the deadline.
The union is advocating for Boeing to commit to manufacturing its next aircraft in the region, which is expected to be announced in 2035. Additionally, they are seeking a pay raise of at least 40 percent over three years, as well as improved benefits in areas such as health insurance and pensions. The IAM District 751 negotiating committee emphasized the importance of securing jobs locally to rebuild trust that has been eroded over the past two decades.
Despite not being directly involved in the bargaining process, Kelly Ortberg’s leadership and influence are pivotal in shaping the outcome of the negotiations. Ortberg, who succeeded Dave Calhoun as Boeing’s CEO, has already started engaging with various stakeholders in the company, including visiting production facilities and meeting with key executives.
Ortberg’s commitment to resetting the relationship with the union and reaching a mutually beneficial contract reflects a proactive approach to addressing labor challenges. By fostering open communication, transparency, and a collaborative spirit, Boeing aims to build a strong foundation for its employees and ensure a prosperous future for all parties involved.
Boeing’s new CEO’s proactive stance on labor relations and commitment to listening and engaging with the union signal a positive shift towards building a more harmonious and productive work environment. By prioritizing the needs and concerns of its employees, Boeing aims to cultivate a culture of trust, respect, and collaboration that will benefit the company as a whole in the long run.
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