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Boeing CEO Urges Workers to Avoid Strike Amid Critical Union Vote

Chethma De Mel, Jadetimes Staff

C. J. De Mel is a Jadetimes news reporter covering Entertainment News

 
Boeing CEO Urges Workers to Avoid Strike Amid Critical Union Vote
Image Source : Jennifer Buchanan/Pool/Reuters

Boeing chief executive Kelly Ortberg has urged employees not to go on strike, which he said could jeopardize the fragile recovery of the company. His appeal comes just hours before a key union vote that might lead to industrial action at the struggling aerospace giant.


Executives and union representatives reached a tentative deal last month that would boost pay 25% over the next four years, but the agreement still must be ratified by the union's 30,000 members. If rejected, a second vote could be held as early as Friday to decide whether workers will strike.


Ortberg urged employees, in the same letter, not to pass up an opportunity that could seal in a better future for both parties despite any frustrations carried forward from the past. "A strike would put our shared recovery in jeopardy," he warned.


In addition to the pay rise, the tentative deal also includes improved health and retirement benefits, 12 weeks of paid parental leave, and a commitment to build Boeing's next commercial airplane in the Seattle area-if the project begins during the life of the contract.


Boeing CEO Urges Workers to Avoid Strike Amid Critical Union Vote
Image Source : Robert Giroux/Getty Images

Yet union reactions have been mixed. The union had originally demanded a 40 percent wage increase, and some members are unhappy with the current offer. Union leader John Holden would not say if he thought the pact will gain sufficient support. "They are angry," he told Reuters, capturing the mood of many.


The existing Boeing-union contract dates from a 2008 agreement that came after a two-month strike, and it expires at midnight Thursday. A workers' rejection of this deal would represent a serious setback that could even halt aircraft production, as the company grapples with mounting financial pressure and tries to regain its battered reputation from two fatal crashes in the last year.


To Ortberg, who only took on the chief executive mantle last month, avoiding a strike is crucial to his attempt to turn Boeing around.

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