CONTRACT talks between Boeing and its largest union will restart on Wednesday (Sep 18), with federal mediators present, the International Association of Machinists and Aerospace Workers said.
This comes after they failed to agree on key issues such as wages and pensions. The union has been pushing for a 40 per cent raise over four years. This is its first full contract negotiations with the aerospace company in 16 years, where its demands were resoundingly rejected.
A prolonged strike could cost Boeing several billion dollars, further straining the planemaker’s finances and threatening a downgrade of its credit rating, analysts said.
The strike enters its sixth day on Wednesday, and is Boeing’s first since 2008.
“After a full day of mediation, we are frustrated, the company was not prepared and was unwilling to address the issues we’ve made clear are essential for ending this strike: wages and pension,” said the union, which represents more than 30,000 Boeing factory workers.
“The company doesn’t seem to be taking mediation seriously. With a 96 per cent strike vote, we thought Boeing would finally understand that IAM 751 machinists are demanding more. We are fighting for what is right and just – for what we have earned over the past 16 years,” it added.
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This is the latest event in a tumultuous year for the planemaker, which began when a door panel detached from a new 737 Max jet mid-air in January.
Boeing and the US Federal Mediation & Conciliation Service did not immediately respond to emails seeking comment outside normal business hours.
The strike has halted production of Boeing’s best-selling 737 Max jets, along with its 777 and 767 wide-body aircraft, delaying deliveries to airlines.
Boeing is freezing hiring and weighing temporary furloughs to cut costs as its balance sheet is already burdened with US$60 billion of debt, it said on Monday. A prolonged strike could damage it further.
The company has also stopped placing most orders for parts for all Boeing jet programmes except the 787 Dreamliner, in a move that will hurt its suppliers.
Shares of the company are down about 40 per cent this year. REUTERS
