Boeing and Union Continue Contract Talks

(Reuters) – Boeing and its largest union will resume contract negotiations on Tuesday, as they seek to resolve a strike involving approximately 33,000 U.S. West Coast factory workers.

The discussions, which resumed on Monday with federal mediators present, have seen both sides engaged for 25 days.

The International Association of Machinists and Aerospace Workers stated, "Although we met with Boeing (NYSE:BA) and federal mediators all day, there was no meaningful movement to report. We will be back at it tomorrow."

Boeing confirmed that mediation will continue on Tuesday. The union is advocating for a 40% salary increase over four years and the reinstatement of a defined-benefit pension eliminated a decade ago.

Last month, Boeing presented an improved offer it labeled as its "best and final," featuring a 30% raise and a performance bonus restoration. However, a union member survey revealed that it fell short of expectations.

The strike has interrupted production of Boeing's top-selling 737 MAX jet, in addition to its 777 and 767 widebody aircraft. The MAX is crucial for the company's revenue, especially as it faces challenges with low margins in its defense sector.