Boeing has been in the news for many different scandals in the last six years and the company’s problems are not ending. The company’s troubles may be added to with the 32 thousand employee strike at the end of this month. The latest news from Boeing shows that even the company has no idea what to do. Here are the details…
Boeing faces strike threat
The contract between the famous company and the International Association of Machinists (IAM) expires at midnight on September 12. If a new agreement cannot be reached, workers manufacturing aircraft in Washington state have announced that they will strike for the first time in 16 years. As of now, it seems unlikely that an agreement will be reached between the parties.
“We are at odds on all the major issues – salaries, healthcare, retirement, leave time – and we are trying to resolve those issues, but it has been very difficult to move forward,” said Jon Holden, IAM 751 Regional President.
Boeing’s problems include fatal crashes caused by a design flaw on its best-selling aircraft, accusations that it prioritized profits and production speed over quality and safety, declining aircraft sales, a plea deal in which it pleaded guilty to deceiving regulators and huge financial losses due to rising debt levels.
Boeing’s new CEO Kelly Ortberg met with union leaders in her first week on the job and said she wanted to improve relations with the union. But Holden said she has not seen a change in Boeing’s stance at the bargaining table.
Former CEO Dave Calhoun told investors in July that Boeing intended to avoid the strike and appeared willing to make the necessary payments to avoid a work stoppage.
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