Boeing shares rise 3.5% as CEO Dave Calhoun announces retirement by end of 2024. Leadership transition underway with Calhoun stepping down and Boeing Commercial Airplanes CEO Stan Deal planning retirement.
Larry Kellner will also step down as board chair, with Steve Mollenkopf taking his place. Stan Deal is retiring from his role in Commercial Airplanes, with Stephanie Pope set to succeed him. These leadership changes are part of Boeing’s ongoing efforts to enhance safety and quality, a commitment emphasized by Calhoun throughout his time as CEO.
The International Association of Machinists District 751 aims to secure a board seat at Boeing Company, prompted by quality control concerns highlighted by incidents such as the detachment of a 737 Max door panel. Union President Jon Holden underlines the necessity of board representation to address worker concerns, alongside advocating for improved pay and the relocation of aircraft production to Washington state. This proposal is integrated into continuous contract negotiations, with the union contemplating a shareholder campaign in anticipation of the 2025 meeting. Nevertheless, corporate governance specialists express reservations regarding potential conflicts of interest.
International Association of Machinists District 751, representing Boeing’s largest labor union with 32,000 workers in Washington state, is seeking a board seat within the company, citing quality control issues.
The aim behind this move is to address quality control issues, particularly highlighted after a door panel detachment incident on a 737 Max plane in January. This incident triggered investigations by both the FAA and the US Department of Justice.
As per the report from the Financial Times, Union president Jon Holden emphasized the importance of establishing a “grounding and a balancing” presence on Boeing’s 13-person board to effectively address production concerns.
Alongside the push for a board seat, the union is also advocating for a 40% pay rise over three years for its members.
Additionally, they are lobbying for Boeing’s next aircraft to be manufactured in Washington state.
The strategy to secure a board seat involves initial negotiations through contract talks, followed by a campaign aimed at influencing Boeing’s 2025 shareholder meeting.
Corporate governance expert Charles Elson has expressed concerns about the potential conflict of interest posed by union representation on corporate boards. He notes the difficulty in balancing worker interests with shareholder duties.
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