Oct. 23 (UPI) — Boeing CEO Kelly Ortberg called for a fundamental culture change to stabilize the company as it reported a third quarter net loss of $6.17 billion. Boeing had a negative $1.3 billion operating cash flow.
The losses and effort by Ortberg to re-focus the company culture come as the machinists union votes on whether or not to approve a labor contract offer from Boeing to end the union’s strike.
“We have a lot of work to do, we have a plan and change is already underway,” Ortberg said in a statement. “This is a big ship that will take some time to turn, but when it does, it has the capacity to be great again. This is a company that ushered in the new era of air travel and helped land the first man on the moon. Getting back to the values that helped define this legacy is what will define our future.”
IAM District 751 said in a statement Wednesday that the 30,000 striking Boeing workers could be back on the job as soon as Friday if workers vote to accept the company’s offer on a new labor contract.
The four-year contract includes a 35% wage hike over four years and a $7,000 ratification bonus per worker.
According to the Anderson Economic Group, the strike has caused an estimated $7.6 billion in losses — at least $4.35 billion in losses to Boeing directly and another $2 billion lost by its suppliers.
Ortberg said Boeing is at a crossroads.
“The trust in our company has eroded. We’re saddled with too much debt,” Orberg said in prepared remarks. “We’ve had serious lapses in our performance across the company which have disappointed many of our customers.”
As a result he said Boeing needs a fundamental culture change and must improve execution discipline as it builds new jets.
He said he is committed to resetting Boeing’s relationship with the IAM representing 30,000 Boeing workers.
“I met with the union leadership the first week on the job and let them know that I was committed to resetting the relationship,” he said in his prepared remarks. “And I remain committed to getting the team back and improving our relationship, so we don’t become so disconnected in the future. I’m very hopeful that the package we put forward will allow our employees to come back to work so we can immediately focus on restoring the company.”
