Boeing Issues Ultimatum To Strikers

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Key Takeaways:

  • Boeing CEO Kelly Ortberg has issued an ultimatum to striking factory workers, warning that the current offer is the most generous and any future deal will be "regressive."
  • The tentative deal includes a 38% wage increase and a 1% cut in employee health insurance contributions, which union leaders are strongly urging members to accept.
  • Union leaders believe the CEO's threat is serious, potentially impacting future pledges like building the 777X in Washington State, and view the current offer as a significant "victory."
  • The ongoing strike, which began on September 13, is costing Boeing approximately $1 billion monthly due to halted deliveries.
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Boeing CEO Kelly Ortberg has warned striking factory workers to accept its latest offer or the next deal it offers will be less generous. The company and negotiators for the International Association of Machinists reached a tentative deal based on a 38% wage increase and a 1% cut on employee health insurance contributions. The membership previously rejected a 35% wage hike. Union leaders told the Seattle Times Ortberg means business and they’re imploring members to take the deal when they vote on Monday. The 33,000 workers have been off the job since Sept. 13 and the company is bleeding about $1 billion a month because deliveries have stopped.

Union leader Jon Holden said Ortberg told him the company cannot give any more and future offers will be “regressive.” Holden said Ortberg didn’t say what will be stripped from the next offer. “They said anything’s on the table,” Holden told the Times, up to and including previous pledges to build the 777X in Washington State. “They are looking at other options.” He also said the offer is the richest ever presented to the union. “Our bargaining committee believes that it’s time to lock in this win,” Holden said. “We feel strongly that this is a victory.”

Russ Niles

Russ Niles is Editor-in-Chief of AVweb. He has been a pilot for 30 years and joined AVweb 22 years ago. He and his wife Marni live in southern British Columbia where they also operate a small winery.
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