Sustainable Switch -Boeing workers strike as VW tensions rise
Oct 17 -
By Sharon Kimathi
Energy and ESG Editor, Reuters Digital
sharon.kimathi@thomsonreuters.com
Hello!
Today’s newsletter focuses on the plight of Boeing and Volkswagen factory workers as they keep up the fight for better working conditions, higher wages and improved pensions.
In the United States, Boeing workers held a large rally in Seattle to demand a better wage deal, raising pressure on new CEO Kelly Ortberg to end a strike that has plunged the planemaker deeper into a financial crisis.
Over in Germany, the country’s largest industrial union slammed a proposed pay rise for almost 4 million workers in key sectors as too little too late, teeing up difficult collective bargaining negotiations and possible strikes in Europe's largest economy.
‘One day longer, one day stronger!’
Around 33,000 of Boeing's unionized West Coast workers, most in Washington state, have been on strike since Sept. 13, demanding a 40% wage increase spread over four years and halting production of the planemaker's best-selling 737 MAX and its 767 and 777 widebody jets.
"We want Boeing management to know that we're strong and united, and their scare tactics aren't going to work," said Matthew Wright, a 52-year-old electrician who works on the 767 jet. "We're not afraid of them."
Hundreds of striking workers packed the main hall at their union's headquarters chanting "Pension! Pension! Pension!" and "One day longer, one day stronger!"
Outside, factory workers told Reuters that the recent 17,000 job cuts announced by the company would not deter them from continuing to fight for higher wages and improved pensions.
The International Association of Machinists and Aerospace Workers and Boeing leadership are locked in a paralyzing blame game over the strike, with both sides filing charges accusing the other of unfair labor practices during negotiations.
‘Serious, critical and controversial’
In Germany, tensions at the carmaking giant are running high as the specter of factory closures, which would be a first for the company in the country, sets it on a collision course with worker representatives who make up half of its supervisory board and can sway decisions on company strategy.
Volkswagen's works council chief Daniela Cavallo said that talks with the carmaker over planned cuts to its German sites were "abysmal" at the start and continued to be "serious, critical and controversial".
The 3.6% raise over a period of 27 months – announced formally by the regional employers' association Nordmetall and in line for what would be put on the table nationally – is considerably lower than the 7% sought by the union.
"We expect the company to finally present a master plan for the next decade that will ensure employment and capacity utilization."
In the first round of negotiations in late September, unions called for a reinstatement of job guarantees extending beyond 2030, utilization of all German sites and a 7% raise in line with IG Metall's wage demands for the entire industry, on which separate negotiations are ongoing.
Talking Points
The number of women in executive roles at Britain's top 350 companies has declined for the first time in eight years, dropping to 32% in 2024 from 33% last year, according to consultancy The Pipeline. This "unacceptable" setback could delay gender parity by five generations.
Nigeria fuel accident: A fuel tanker overturned in Nigeria's northern Jigawa state causing an explosion that killed at least 147 people, authorities said. The accident is one of the deadliest in recent times in the country, which is already grappling with security and a cost of living crisis.
The U.N. Palestinian refugee agency is close to a possible breaking point for its operations in the Gaza Strip due to increasingly complicated conditions, said UNRWA chief Philippe Lazzarini in Berlin. He highlighted financial, political, and operational challenges, with aid urgently needed to combat disease and famine.
Bosnia landslides: Hundreds of people attended prayers for 19 villagers who died when flash floods and landslides swept through swathes of central and southern Bosnia 10 days ago, killing at least 26 people and destroying whole villages and roads.
Some of the most prominent artificial intelligence models are falling short of European regulations in key areas such as cybersecurity resilience and discriminatory output, according to data seen by Reuters. Click here for the full story.
European Union ambassadors agreed to delay implementation of the bloc's landmark deforestation law by a year till the end of December next year, they said in a statement.
ESG Lens
Reuters Breakingviews Francesco Guerrera writes about income disparities within nations amid the Nobel committee bestowing its prestigious economics prize on Daron Acemoglu, Simon Johnson and James A. Robinson as a reminder that addressing inequality is just as important as climate change, the AI “revolution” and aging societies.
Click here for the full commentary.
ESG Spotlight
My home country features in today's spotlight about animal conservation.
Kenya is moving 50 elephants to a new home after overcrowding in the Mwea National Reserve has seen the creatures stray into nearby human settlements and damage local ecosystems.
The last national wildlife census recorded 156 elephants at Mwea, more than three times the reserve's capacity. As a result, elephants have strayed into nearby villages, damaging crops, infrastructure and property.
Today’s Sustainable Switch was edited by Jane Merriman
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