Boeing and striking union hold first meeting since latest contract rejection

International Association of Machinists and Aerospace Workers Local 751 said that, with the assistance of Acting U.S. Labor Secretary Julie Su, the union’s bargaining committee “had a productive face-to-face meeting with the company to resolve key negotiating issues.”

Reuters

October 31, 2024, 12:25

Last modified: October 31, 2024 12:28 pm.

Boeing factory workers picket the first day of a strike near the entrance to the manufacturing facility in Renton, Washington, USA, September 13, 2024. Photo: REUTERS/Matt Mills McKnight/File Photo

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Boeing factory workers picket the first day of a strike near the entrance to the manufacturing facility in Renton, Washington, USA, September 13, 2024. Photo: REUTERS/Matt Mills McKnight/File Photo

The union representing about 33,000 striking West Coast factory workers said late Tuesday it was meeting with Boeing representatives for the first time since union members voted down last week the planemaker’s improved contract offer.

International Association of Machinists and Aerospace Workers Local 751 said that, with the assistance of Acting U.S. Labor Secretary Julie Su, the union’s bargaining committee “had a productive face-to-face meeting with the company to resolve key negotiating issues.”

The union, whose members have been on strike for nearly seven weeks, added that it will “continue to work with the company to ensure the best outcome for our members.”

A Boeing spokesman confirmed that the company met with the union on Tuesday for talks facilitated by Su.

Earlier this month, Su helped the parties restart discussions that ultimately led to last week’s vote on a proposal to raise wages by 35% over four years, which was rejected by 64% of union members.

The union is seeking a 40% wage increase over four years and the return of the defined benefit pension. Last month, about 95% of workers refused a 25% pay increase.

Boeing on Monday announced a stock offering that could raise up to $24.3 billion to shore up its financial position, which has been strained by the grounding of production of its best-selling 737 MAX and wide-body 767 and 777 programs due to the strike.

SUPPLY CHAIN ​​IMPACT

Earlier Tuesday, the Republican governors of Utah, Missouri and Montana called on Boeing and the union to end the strike, citing “far-reaching” consequences for their states and the planemaker’s suppliers.

“Boeing has stopped purchasing from most suppliers, most of whom are now making the very difficult decision to furlough or lay off their employees,” Governors Spencer Cox, Mike Parson and Greg Gianforte said in a letter to Boeing and the union.

Boeing and IAM declined to comment on the letter.

Ihsan Mounir, senior vice president of global supply chain for Boeing’s commercial aircraft division, separately told hundreds of suppliers in an email on Tuesday seen by Reuters that the aircraft maker would have to continue its pause in component deliveries for the 737 MAX, 767 and 777 programs.

“We understand that this may force you to take additional and complex actions for your production schedule, as well as for your teams,” Munir wrote.

He added: “Our team will be in touch with you shortly and we remain committed to continuing to work with you – step by step – to maintain as much stability as possible in our overall production system.”

Boeing’s vast global network of suppliers that make parts, from huge, state-of-the-art factories to tiny garage workshops, has already been strained by the company’s quality and safety crisis that began in January after a mid-air panel explosion on Alaska Airlines’ new 737 MAX 9 plane.

Boeing this month announced plans to cut 17,000 jobs worldwide (or 10% of its workforce), delay the release of a key new aircraft by one year and make other cuts.