Boeing CEO Looks to Reset Relations with Union

Boeing’s new CEO, Kelly Ortberg, recently expressed his commitment to “reset” relations with the International Association of Machinists and Aerospace Workers (IAM) representing tens of thousands of Boeing employees. The IAM District 751 and IAM District W24, who together represent around 33,000 Boeing workers, are in the final phase of negotiations for a new labor contract. Ortberg acknowledged the need to mend the relationship and work towards a mutually beneficial agreement that secures a strong future for the employees in the region.

The union has put forth specific demands, including the requirement for Boeing to manufacture its next aircraft in the Seattle region, expected to be launched in 2035. Additionally, they are seeking a pay raise of at least 40 percent over three years, along with improved benefits such as enhanced health insurance and pension plans. The IAM negotiating committee emphasized the importance of Boeing committing to preserving jobs in the local area to rebuild the trust that has been eroded over the past two decades.

Influence of Ortberg on Negotiations

Even though Ortberg may not be directly involved in the bargaining process, his influence is significant in guiding the negotiations. Taking over as CEO from Dave Calhoun, Ortberg has been proactive in engaging with various stakeholders, including visiting Boeing’s manufacturing facilities and meeting with key airline customers. The IAM negotiating committee emphasized the pivotal role Ortberg plays in shaping the outcome of the contract talks and in rebuilding the strained relationship between Boeing and the union.

As the negotiations enter a critical phase with the current contract set to expire soon, both Boeing and the union have a shared interest in reaching a mutually beneficial agreement. Ortberg’s focus on creating a collaborative future where both parties work towards a common goal of securing jobs and ensuring the well-being of the employees signals a positive shift in the dynamics between the aerospace giant and the union representatives. By acknowledging past challenges and looking towards a future of cooperation, Boeing under Ortberg’s leadership is poised to set a new precedent in its relations with the union.