While his factory workers are on strike, Boeing's CEO paid $4.1 million on a new Seattle residence, fulfilling his promise to relocate from Florida.
Robert "Kelly" Ortberg, 64, took the helm as Boeing CEO on August 8 after former chief executive Dave Calhoun announced his decision to step down amid mounting safety concerns. Notably, Ortberg also holds the positions of president and board member.
Boeing CEO's $4.1M Splurge Fuels Worker Anger
According to Zillow, the newly appointed Boeing CEO closed on a $4.1 million mansion in a gated community in Seattle on Tuesday. The move came just days after thousands of Boeing factory workers went on strike. The strike followed the rejection of a new contractor offer by 96 percent of union members.
The 4,180-square-foot, four-bedroom home, built in 1926, boasts five bathrooms, three fireplaces, and multiple patios. After taxes, the 96-year-old house costs $4,212,580, sitting on a 9,217-square-foot lot. "We know they got the money. If they can pay the CEO, they can pay us too," Boeing worker Ethel Dominique told FOX 13.
"You know, we're not asking for much. And we're happy that he can afford a nice new mansion; some of us can't. Some of us are paycheck to paycheck," added Dominique. Over 33,000 Boeing workers in Washington, Oregon, and parts of California are represented by the Association of Machinists and Aerospace Workers' Union (IAM). The IAM is demanding a 40 percent pay raise.
Following Ortberg's claim that "no one wins" in a walkout, workers protested outside Boeing factories in Washington state on Friday. "For Boeing, it is no secret that our business is in a difficult period, in part due to our own mistakes in the past," Ortberg said.
"Working together, I know that we can get back on track, but a strike would put our shared recovery in jeopardy, further eroding trust with our customers and hurting our ability to determine our future together," the top executive added.
By relocating to Seattle, Ortberg aims to bridge the decades-old divide between Boeing's management, engineering, and manufacturing teams. This move is also seen as a strategy to mitigate the negative publicity surrounding the company in western Washington.
Boeing's Troubles: A Legacy of Mergers And Mishaps
Boeing, once a global leader in aerospace, has faced significant challenges in recent years, particularly within its commercial aircraft division. A key turning point in the company's struggles is its merger with McDonnell Douglas.
The merger with McDonnell Douglas eroded Boeing's safety-first culture, transforming it into a profit-driven company. This cultural shift contributed to the company's current reputation for cutting corners. According to a report by Simple Flying, the 737 MAX crashes and other safety lapses were a direct result of the cultural shift within Boeing.
In February, United Airlines Flight 354, a Boeing 757-200 carrying approximately 165 passengers from San Francisco to Boston, was forced to make an emergency landing in Denver after experiencing wing damage mid-air.
These incidents have raised questions about the safety of other Boeing aircraft, including the Starliner space capsule, which recently returned to Earth without its astronauts due to technical issues.
Boeing's Path To Redemption
Since relocating its headquarters to Crystal City, Virginia, in 2022, Boeing has faced challenges maintaining effective communication between its manufacturing and management divisions. Earlier this year, a proposal to move the headquarters back to Seattle, a hub for Boeing's operations, was considered but ultimately rejected.
Despite the CEO's relocation, Boeing continues to face challenges. The company is currently grappling with a strike by nearly 33,000 workers, who voted overwhelmingly to reject a tentative deal. The ongoing strike by Boeing machinists is the first in 16 years. The last major strike occurred in 2008, lasting nearly two months.
During that time, the CEO pleaded with workers to avoid a strike, saying, "[a strike] would put our shared recovery in jeopardy, further eroding trust with our customers and hurting our ability to determine our future together."
While a timeline for the current strike is uncertain, analysts estimate a 30-day strike could cost Boeing $1.5 billion.
