Boeing and its largest union announced on Friday that contract negotiations will resume on October 7, as both parties aim to reach an agreement to end a strike involving approximately 33,000 of the company’s U.S. West Coast factory workers.
Negotiators from Boeing and the International Association of Machinists and Aerospace Workers (IAM) have been unable to find common ground, with recent attempts to reach a deal in the presence of federal mediators failing to yield results.
“A resolution with the IAM remains a top priority for me, and our team is prepared to resume mediated talks this Monday,” Boeing CEO Kelly Ortberg informed employees on Friday. Securing a deal with the IAM to end the strike is crucial for Boeing, which is currently grappling with increasing debt, cash burn, and the risk of losing its investment-grade rating.
IAM’s District 751, which is handling the negotiations, stated it will resume talks with Boeing on Monday with the support of federal mediators. “This meeting represents another vital opportunity to advocate for our members’ priorities,” the union noted.
The negotiations have garnered attention from the administration of U.S. President Joe Biden, with Acting U.S. Labor Secretary Julie Su and her team continuing to engage with both sides, according to a spokesperson.
The strike has halted production of Boeing’s 777, 767, and its best-selling 737 MAX jet, with the MAX being a significant revenue driver for the company amid struggles in its defense business.
This strike, Boeing’s first since 2008, is the latest in a series of challenges for the company, which began with a January incident where a door panel detached from a new 737 MAX jet during a flight.
Boeing recently proposed a “best and final” pay offer, including a 30 percent pay raise over four years, the reinstatement of a performance bonus, enhanced retirement benefits, and a doubling of the ratification bonus to $6,000. However, union leadership opted not to put the offer to a vote.
An earlier tentative agreement, offering a 25 percent raise over four years and a commitment to manufacture a new plane in the Seattle area if launched within the four-year period, was rejected by over 90 percent of workers in September.
Boeing shares closed 3 percent higher on Friday. The company began furloughing tens of thousands of U.S. employees last month, with workers taking one week off every four weeks as part of efforts to conserve cash.
“I want to express my gratitude to everyone for their dedication to our cash conservation measures,” Ortberg said, commending employees for their resilience during this challenging time, particularly as many are asked to take temporary furloughs.
