Boeing's Chief Executive Kelly Ortberg expressed concern on Wednesday about the potential impact of a labor strike as negotiations with the Society of Professional Engineering Employees in Aerospace (SPEEA) continue. Ortberg emphasized that a work stoppage could disrupt essential plane certification processes.
Significant Risks to Production and Certification
Essentially, 777X certification program shuts down until we get the engineers back, and it will have ripple effect even into our production.
Kelly Ortberg, CEO of Boeing
- Current contract with SPEEA expires on October 6.
- Latest SPEEA proposal includes a 10 percent wage increase.
The urgency of these negotiations comes as Boeing faces a deadline. SPEEA's membership roundly rejected an earlier offer, leading to heightened tensions and the potential for a strike. The union's latest proposal includes provisions aimed at improving pay and working conditions.
Ortberg's previous experience with a prolonged strike of Boeing machinists in 2024 adds weight to his caution. He revealed he is 'very hopeful' about reaching an agreement soon, anticipating a union vote on the new contract within weeks.
In addition to labor concerns, Ortberg stated that Boeing expects U.S. certification of the 737 MAX 10 to be completed shortly. This follows the FAA's recent approval of the 737 MAX 7, a critical step in Boeing's strategy to enhance production and recover financially after previous setbacks.
Regarding the 777X aircraft, Ortberg acknowledged ongoing flight testing and the need for further approvals, indicating that some testing might extend into next year. He maintained that deliveries are still anticipated by 2027.