Anita Mendiratta, aviation leadership adviser, joins BNN Bloomberg to talk about Boeing workers strike after being rejected with the agreement.
But the hourly workers have the final say with their Oct. 23 vote, and approval is far from certain. They overwhelmingly rejected a deal in September that had labor leaders’ blessing. This time, union negotiators aren’t endorsing the proposal. The strike has become a defining episode for Ortberg, who inherited a set of interlocking crises when he took over in early August. He’s already announced a 10% workforce reduction that will sweep across all ranks of the planemaker, and he put together the first contours of a $25 billion refinancing package that aims to steady the company in the next three years.
Ortberg’s efforts to reset Boeing’s culture and relations with employees have been hurt by the strike. The announcement of job cuts, alongside a wide range of other measures, threatens to drive a wedge into the already fragile rapport between senior management and the shop floor. The strike has exposed fault lines inside a company where senior executives long focused on returns, while Machinists saw their wages eaten up by inflation and their pension plan evaporate under a controversial 2014 contract. Many employees have therefore vowed hold out for a significantly better deal.
With the main results already out, Ortberg will have more leeway to address his plans for Boeing. The turnaround effort will be easier once the main commercial factories restart around Seattle, ending a walkout that has cost it about $100 million a day in lost revenue, by some estimates.
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