Boeing Union Rejects Tentative Labor Contract Amid Ongoing Strike
Boeing’s largest labor union decisively voted against a proposed labor contract on Wednesday, delivering a significant setback to the aerospace giant and complicating efforts by the Biden administration to resolve an economically damaging strike that has persisted for over five weeks. The tentative agreement, which marks the second contract to be rejected by workers, faced a substantial defeat, with an overwhelming 64 percent of those who cast their votes opposing the deal, according to the International Association of Machinists and Aerospace Workers (IAM). This union represents approximately 33,000 employees, although the specific number of participants in the vote was not disclosed.
“This wasn’t enough for our members,” stated Jon Holden, president of District 751 of IAM, which encompasses the majority of the affected workforce. “They’ve spoken loudly, and we’re going to go back to the table.”
The rejection poses a notable challenge for Boeing’s new chief executive, Kelly Ortberg, who is striving to restore the company’s reputation and operational stability. Earlier on the same day, Mr. Ortberg detailed the necessary steps for revitalizing Boeing’s business practices. He emphasized the need for a “fundamental culture change” within the organization to enhance operations and the overall execution of projects.
In his address to employees and investors, Mr. Ortberg remarked, “Our leaders, from me on down, need to be closely integrated with our business and the people who are doing the design and production of our products.” He elaborated that it is essential for leadership to be actively present on the factory floors, in back shops, and within engineering labs to better understand both the products and the workforce.
Mr. Ortberg’s remarks coincided with the company’s quarterly financial report, which revealed a staggering loss exceeding $6.1 billion. In light of the ongoing challenges, Boeing has also announced plans to reduce its workforce by approximately 10 percent, translating to around 17,000 jobs cut. Furthermore, the company has disclosed intentions to raise up to $25 billion through debt or stock sales over the next three years, in a bid to avert a detrimental downgrade of its credit rating.
