Boeing and Union Resume Contract Talks

By David Shepardson and Allison Lampert

(Reuters) – Boeing and its largest union will resume contract talks on Friday to resolve a strike impacting production and finances.

More than 32,000 Boeing (NYSE:BA) workers in Seattle and Portland initiated the strike on Sept. 13, marking the first strike since 2008, halting production of models including the popular 737 MAX.

Negotiations between Boeing and the International Association of Machinists and Aerospace Workers (IAM) will involve federal mediators after previous discussions failed. IAM expressed readiness to address critical issues for an agreement.

Boeing confirmed the upcoming talks but offered no additional comments. Prior to the strike, nearly 95% of IAM members rejected an initial Boeing offer of a 25% pay raise over four years, citing insufficient compensation after years of stagnant wages.

Boeing then presented its “best and final” offer of a 30% raise over four years and a restored performance bonus, which the union deemed inadequate based on their members’ feedback from a survey.

IAM is pushing for a 40% pay rise and the reinstatement of a defined-benefit pension lost in a decade-old contract.