Boeing’s new CEO, Kelly Ortberg, recently made efforts to “reset” relations with a key union representing tens of thousands of its workers. In a message to the aerospace giant’s employees, Ortberg expressed his commitment to building a stronger future for the employees in the region by reaching a new labor contract. This move comes as negotiations for a new labor contract are in the “final phase,” with the current agreement set to expire soon.
The International Association of Machinists and Aerospace Workers, representing around 33,000 Boeing employees, have demanded certain terms in the new contract. These include the demand for Boeing to manufacture its next aircraft in the region, expected in 2035. Additionally, the union is seeking a pay raise of at least 40 percent over three years, along with improved benefits such as health insurance and pensions. The union believes that securing these jobs within their region is crucial for rebuilding the trust that has been shattered over the last two decades.
Kelly Ortberg, who took over as Boeing CEO from Dave Calhoun, has quickly made his presence felt in the negotiations. Despite not being directly involved in the bargaining process, Ortberg’s influence on the negotiation process has been significant. Ortberg’s visit to various Boeing facilities and meetings with airline customers have indicated his commitment to understanding the concerns of all stakeholders involved.
As Boeing navigates through this critical phase of negotiations, it is essential for both the company and the union to find common ground for the mutual benefit of all parties involved. Ortberg’s readiness to engage in open conversations and his commitment to building a stronger relationship with the union are positive steps towards reaching a new labor agreement that benefits everyone. By focusing on the future and working together collaboratively, Boeing and the union can create a sustainable and prosperous path forward.
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