Boeing Strike: Union Urges CEO to Intervene as Healthcare Benefits Cut Off
By Allison Lampert and David Shepardson
The largest union at Boeing is calling on new CEO Kelly Ortberg to step in and help end a strike by 33,000 U.S. West Coast workers after the company terminated their healthcare benefits. Ortberg, who took over as CEO in August, is facing multiple crises at the U.S. planemaker, including the strike that has impacted production of the popular 737 MAX jets.
The International Association of Machinists and Aerospace Workers, representing the striking employees, is urging Ortberg to get more involved in negotiations. The union president, Brian Bryant, criticized the company's decision to cut off healthcare benefits and called for a more hands-on approach from the CEO.
Despite the union's efforts to find alternatives for healthcare coverage, talks between Boeing and the IAM's District 751 have stalled. The strike, which began on September 13, has halted production of several commercial airplane models and is putting financial pressure on the company.
The union is seeking a 40% pay increase and the reinstatement of a defined-benefit pension that was removed in a previous contract. Boeing recently made an improved offer to the striking workers, but the union deemed it insufficient based on a member survey.
Analysis:
The ongoing strike at Boeing is causing disruptions in production and financial strain for the company. As negotiations continue, the outcome of the strike could impact Boeing's operations and financial performance. Investors should monitor the situation closely for potential implications on the company's stock price and overall market dynamics.
