{"id":71581,"date":"2025-07-29T17:20:51","date_gmt":"2025-07-29T17:20:51","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2025\/07\/29\/boeing-ceo-says-defense-business-can-weather-looming-worker-strike\/"},"modified":"2026-08-08T01:24:03","modified_gmt":"2026-08-08T01:24:03","slug":"boeing-ceo-says-defense-business-can-weather-looming-worker-strike","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/air\/2025\/07\/29\/boeing-ceo-says-defense-business-can-weather-looming-worker-strike\/","title":{"rendered":"Boeing CEO says defense business can weather looming worker strike"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Boeing CEO Kelly Ortberg said Tuesday he\u2019s not worried about the impact of an impending strike that would include 3,200 union workers that produce fighter aircraft and munitions at factories in Missouri and Illinois. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The threat of a strike follows the employees\u2019 rejection Sunday of <a href=\"https:\/\/www.goiam.org\/news\/iam-district-837-members-in-st-louis-vote-to-reject-boeing-defense-contract\/\" target=\"_self\" rel=\"\" title=\"https:\/\/www.goiam.org\/news\/iam-district-837-members-in-st-louis-vote-to-reject-boeing-defense-contract\/\">Boeing\u2019s most recent contract proposal<\/a>. The International Machinists and Aerospace Workers Union said in statement a strike could begin Aug. 4 if the parties don\u2019t reach a deal before the end of a weeklong cooling off period. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Ortberg noted during the company\u2019s second quarter earnings call that the scope of the potential strike \u2014 which includes mechanics in plants in St. Louis and St. Charles, Missouri \u2014 would be much smaller than that of the 30,000-worker strike last fall. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">During that strike, the company took a $661 million charge on its KC-46 tanker development contract with the U.S. Air Force, in part due to work stoppages on <a href=\"https:\/\/www.defensenews.com\/air\/2024\/11\/25\/air-force-awards-boeing-24-billion-contract-for-kc-46-tankers\/\" target=\"_self\" rel=\"\" title=\"https:\/\/www.defensenews.com\/air\/2024\/11\/25\/air-force-awards-boeing-24-billion-contract-for-kc-46-tankers\/\">the Air Force\u2019s KC-46 tanker.<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWe\u2019ll manage through this,\u201d he said. \u201cI wouldn\u2019t worry too much about the implications of the strike.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Along with the KC-46, Boeing holds contracts for several major Defense Department programs, including the Air Force\u2019s F-47 and F-15EX fighters, T-7 training jet and the Air Force One recapitalization effort. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Ortberg, who took over as CEO nearly a year ago, said the company is making a \u201cturnaround,\u201d <a href=\"https:\/\/www.defensenews.com\/air\/2024\/10\/23\/strike-fixed-price-contracts-leave-boeing-defense-bleeding-cash\/\" target=\"_self\" rel=\"\" title=\"https:\/\/www.defensenews.com\/air\/2024\/10\/23\/strike-fixed-price-contracts-leave-boeing-defense-bleeding-cash\/\">after taking major losses in 2024<\/a>. On the defense side, the firm is making \u201crenewed efforts around baseline and risk management\u201d on key military programs. The goal is to get to \u201chigh single-digit\u201d profit margins in the near future.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">One of those efforts is to avoid entering into fixed-price development contracts with DOD, which put the company at risk of accruing major charges from the government for exceeding cost and schedule targets. Boeing\u2019s KC-46 work offers <a href=\"https:\/\/www.defensenews.com\/industry\/2024\/01\/09\/cautionary-tale-how-boeing-won-a-us-air-force-program-and-lost-7b\/\" target=\"_self\" rel=\"\" title=\"https:\/\/www.defensenews.com\/industry\/2024\/01\/09\/cautionary-tale-how-boeing-won-a-us-air-force-program-and-lost-7b\/\">a cautionary tale for this approach<\/a>, after years of quality problems and overages have resulted in more than $7 billion in additional costs for the company. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWe\u2019re not making the errors of the past and signing up for fixed-price development, high-risk programs,\u201d Ortberg said, noting that while the company carries several major development programs, it\u2019s working closely with the DOD to de-risk that work.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWe\u2019re just going to have to keep doing that,\u201d he said. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Approximately 3,200 Boeing employees who build fighter aircraft and munitions could strike as soon as next 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