Boeing, BA, has cut healthcare coverage for 33,000 workers and their families as their union strikes continue
Boeing, $BA, has cut healthcare coverage for 33,000 workers and their families as their union strikes continue.
Boeing's (BA.N) largest union called on new CEO Kelly Ortberg on Tuesday to take a more active role in contract negotiations to resolve a strike by approximately 33,000 West Coast workers, following the company's decision to cut off their healthcare benefits.
Ortberg, who took over as CEO in August after leading Rockwell Collins, now faces multiple challenges at Boeing, including the ongoing strike, which has disrupted production of the company’s top-selling 737 MAX jets.
"It's time for the new CEO to engage directly in the proposals and take control from subordinates who are mishandling critical decisions like this one," said Brian Bryant, president of the International Association of Machinists (IAM) and Aerospace Workers, which represents the striking workers.
Bryant criticized Boeing’s handling of the healthcare benefits issue, saying, "There was no reason the health benefits question couldn't have been deferred to allow more time for negotiations."
The union had warned workers on Monday that the September 30 deadline for accessing their Boeing health insurance was approaching and advised them to seek alternatives.
Negotiations between Boeing and the IAM's District 751, which is handling the talks, broke down last week, and there is no indication of when discussions will resume.
In a statement, Boeing said, "We remain committed to resetting our relationship with our represented employees, negotiating in good faith, and reaching an agreement as soon as possible."
The strike, which began on September 13, marks the first walkout by Boeing workers in Seattle and Portland since 2008, halting the production of three commercial airplane models and adding to the company’s financial strain.
The union is pushing for a 40% pay increase and the restoration of a defined-benefit pension, which was removed from the contract a decade ago.
Last week, Boeing presented an updated offer, calling it its "best and final" proposal, which included a 30% raise over four years and the return of a performance bonus. However, a union survey of its members showed that the offer was still insufficient.