It appears that every week Boeing (BA) seems to sink deeper into controversy, and it may not get any better anytime soon.
This week, the aerospace company is facing a major threat from its employees, which can further exacerbate airline issues.
Related: Boeing accused of hiding information of retaliation against workers
Roughly 32,000 Boeing workers, who build planes at its facility in Washington state, are threatening to go on strike by the end of this month as the contract with the company and the International Association of Machinists is set to expire on Sept. 12.
Workers are demanding increased wages, retirement security, lower out-of-pocket healthcare costs, quality and safety measures, etc.
“Boeing makes billions of dollars off the skills, hard work, and dedication of our members,” said IAM International President Brian Bryant in a press release on July 18. “Our members deserve their fair share. They’ve earned their fair share. And the time has finally come when they will get their fair share.”
If a strike does go into effect, it would be the first one Boeing will face in 16 years. While speaking to CNN earlier this week, IAM District 751 President Jon Holden revealed that Boeing and its unionized workers are currently “far apart” on several issues they are negotiating for the new contract.
“We’re far apart on all the main issues – wages, health care, retirement, time off,” said Holden while speaking to CNN on Sept. 2. “We continue to work through that, but it’s been a tough slog to get through.”
A strike at Boeing could cause major issues
The possible strike comes at a time when Boeing’s quality and safety issues found in its plane production processes are causing delays in the delivery of new planes to multiple airlines. Boeing is one of the two main commercial plane manufacturers across the globe, and delivery delays have so far led to airlines being forced to reduce travel schedules during the summer and slow down hiring of pilots and flight attendants.
The delays are even predicted to lead to higher ticket prices for travelers as airlines struggle to meet high demand.
A strike could very well exacerbate these issues, and can even have a negative impact on the 1.6 million direct and indirect jobs its supports across the country.
Related: Another Boeing whistleblower dies after raising safety concerns
Boeing’s quality and safety issues were placed under a microscope after an Alaska Airlines flight on Jan. 5 was forced to make an emergency landing after a door plug blew off of the Boeing 737 Max 9 aircraft mid-flight. The incident led to an investigation by the Federal Aviation Administration which looked into the company’s safety and quality control practices. Boeing’s production of its 737 Max expansion was also put on pause.
More Boeing:
- Boeing to get off easy for 737 Max crashes, victims’ families say
- New Boeing whistleblower alleges company lost faulty plane parts
- New Boeing CEO has a huge mess to untangle
Boeing recently gained a new CEO early last month. Kelly Ortberg took the position as the company’s CEO on Aug. 8, succeeding David Calhoun after he stepped down during a challenging time for the company.
Ortberg has reportedly made it clear to employees that he is aiming to change the culture at Boeing. According to a recent report from Reuters, Ortberg wrote to employees that he told the FAA that the company will be focusing on “true culture change, empowering employees to speak up when they see potential issues and bringing the right resources together to solve them” going forward.
Related: Veteran fund manager sees world of pain coming for stocks
