Boeing CEO Kelly Ortberg Pleads With Union Not to Strike

Ortberg Warns of ‘Devastating’ Consequences

In a strongly-worded letter to the union representing Boeing machinists, CEO Kelly Ortberg pleaded with them not to go on strike, warning that it would have “devastating” consequences for the company and its employees.

Ortberg said that a strike would “paralyze” Boeing’s production and “put the jobs of thousands of our employees at risk.” He also warned that it would damage the company’s reputation and make it more difficult to compete in the global aerospace market.

Union Members to Vote on Strike

The union, the International Association of Machinists and Aerospace Workers (IAM), is scheduled to vote on whether to authorize a strike on July 20. The union has been negotiating with Boeing for months over a new contract, but the two sides have been unable to reach an agreement.

The main sticking point in the negotiations is wages. The union is demanding a 5% pay increase, while Boeing is offering 2.5%. The union also wants Boeing to improve its pension and health care benefits.

Boeing Faces Backlog of Orders

Boeing is facing a backlog of orders for its commercial airplanes, and a strike could further delay deliveries. The company has already been hit by production problems with its 737 MAX jet, which was grounded for 20 months after two fatal crashes.

If the union does vote to strike, it would be the first major strike at Boeing in more than two decades. The last strike, in 2001, lasted 40 days and cost the company an estimated $1 billion.