Boeing’s Union Urges CEO to Engage in Contract Talks

(Reuters) – Boeing’s largest union on Tuesday urged new CEO Kelly Ortberg to get more involved in contract negotiations to end a strike by around 33,000 U.S. West Coast workers, following the cut-off of their healthcare benefits.

In August, Ortberg, the former Rockwell Collins boss, took the helm at Boeing, which has faced multiple crises this year, including the ongoing strike impacting production of the company’s highly sought-after 737 MAX jets. Boeing was not immediately available for comment.

Brian Bryant, president of the International Association of Machinists and Aerospace Workers (IAM), expressed that it’s time for Ortberg to engage more directly in negotiations, taking control of critical decisions that have been mishandled by his subordinates. He specifically criticized the decision to cut healthcare benefits, suggesting it could have been delayed to allow for further negotiation time.

Negotiations between Boeing and IAM District 751, the union representing the striking workers, broke off last week, with no clear timeline for when discussions will resume.

Workers in the Seattle area and Portland, Oregon, initiated the strike on September 13, marking the first major labor action since 2008. This walkout halted production of three commercial airplane models, placing additional financial pressure on Boeing.

The union is advocating for a 40% pay increase and the reinstatement of a defined-benefit pension plan that was removed a decade ago. Boeing made an improved offer last week, which it labeled as its “best and final” proposal, featuring a 30% raise over four years along with a performance bonus. However, the union indicated that a survey of its members showed this offer fell short of their demands.