Boeing Issues Ultimatum To Strikers

Wikimedia Commons/Jetstar Airlines
Gemini Sparkle

Key Takeaways:

  • Boeing CEO Kelly Ortberg has issued an ultimatum to striking factory workers: accept the latest tentative deal (38% wage increase, 1% health insurance contribution cut) or face less generous, "regressive" future offers, potentially impacting commitments like 777X production in Washington State.
  • Union leaders believe the CEO's threat is serious and are strongly urging members to approve the current proposal, calling it the "richest ever" offer and a significant victory.
  • The ongoing strike, which began on September 13, is significantly impacting Boeing, costing the company approximately $1 billion per month in halted deliveries.
See a mistake? Contact us.

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.
Sign-up for newsletters & special offers!

Get the latest stories & special offers delivered directly to your inbox

SUBSCRIBE

Please support AVweb.

It looks like you’re using an ad blocker. Ads keep AVweb free and fund our reporting.
Please whitelist AVweb or continue with ads enabled.