Boeing Strike Update

By David Shepardson

WASHINGTON (Reuters) – The White House announced on Thursday its support for ongoing negotiations between Boeing and the union representing approximately 33,000 striking machinists. This follows the workers' rejection of Boeing's latest contract proposal.

President Joe Biden has instructed his team to encourage both sides to remain engaged in discussions to reach a mutually beneficial agreement. White House press secretary Karine Jean-Pierre stated, "We're going to continue to monitor those negotiations and continue to make sure that we encourage that."

The Labor Department also revealed that Acting Secretary Julie Su has been in contact with Boeing and the International Association of Machinists and Aerospace Workers. Su previously visited Seattle to assist in contract negotiations aimed at concluding a six-week strike, which has disrupted production of Boeing's 737 MAX as well as its 767 and 777 programs.

According to a spokesperson for Su, she is available to provide support to both Boeing and the union. Boeing chose not to comment on the current situation, while the IAM did not respond to a request for comment.

The union reported that 64% of its members voted against the recent offer, which proposed a 35% wage increase over four years. This rejection follows last month’s contract proposal that 95% of its members also opposed, which offered a 25% wage increase. The workers' discontent stems from years of grievances, contributing to Boeing's ongoing financial troubles.

In response to the vote, union leaders expressed their willingness to resume negotiations with Boeing promptly. The union is advocating for a 40% wage increase along with a return to a defined-benefit pension plan.

Since the strike started on September 13, Boeing has announced plans to lay off 17,000 workers and is nearing a strategy to generate up to $15 billion from investors to sustain its investment-grade credit rating. Several airlines have begun to adjust their flight schedules due to delays in aircraft deliveries.