🧐 ProPicks AI October update is out now! See which stocks made the listPick Stocks with AI

Striking Boeing union asks CEO to 'truly engage' after workers' health coverage cut

Published 10/01/2024, 04:18 PM
Updated 10/02/2024, 04:35 AM
© Reuters. FILE PHOTO: The Boeing logo is displayed on a screen, at the New York Stock Exchange (NYSE) in New York, U.S., August 7, 2019. REUTERS/Brendan McDermid/File Photo
BA
-

By Allison Lampert and David Shepardson

(Reuters) -Boeing's largest union urged new CEO Kelly Ortberg on Tuesday to get more involved in contract negotiations to end a strike by around 33,000 U.S. West Coast workers, after the U.S. planemaker cut off their healthcare benefits.

In August, the former Rockwell Collins (NYSE:COL) boss took over the reins of Boeing (NYSE:BA), which has been rocked by multiple crises this year, including the strike that has hit production of Boeing's strongest-selling 737 MAX jets.

"It’s time for the new CEO to truly engage at the proposal-based level and to take the reins from his subordinates who are fumbling critical decisions like this one," said Brian Bryant, president of the International Association of Machinists (IAM) and Aerospace Workers, which represents the striking workers.

"There is no reason the health benefits question could not have been punted on to allow more time for negotiations at the table," Bryant added in a statement.

The Sept. 30 limit for striking workers to access their Boeing health insurance plans was long known, with the union urging workers on Monday to find alternatives.

Talks between Boeing and the IAM's District 751, which is negotiating the deal, broke off last week and it is not clear when discussions will resume.

"We remain committed to resetting our relationship with our represented employees and negotiating in good faith, and want to reach an agreement as soon as possible," Boeing said in a statement.

Boeing workers in the Seattle area and Portland, Oregon, walked off the job on Sept. 13 in the union's first strike since 2008, halting production of three commercial airplane models and adding financial strain to the planemaker.

© Reuters. FILE PHOTO: The Boeing logo is displayed on a screen, at the New York Stock Exchange (NYSE) in New York, U.S., August 7, 2019. REUTERS/Brendan McDermid/File Photo

The union is seeking a 40% pay rise and the restoration of a defined-benefit pension that was taken away in the contract a decade ago.

Boeing made an improved offer last week to the striking workers that it described as its "best and final", which would give workers a 30% raise over four years and restore a performance bonus, but the union said a survey of its members found that was not enough.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.