Union Negotiations at Boeing

By David Shepardson

(Reuters) – A union representing striking machinists at Boeing (NYSE:BA) announced on Friday that they are "actively engaged in indirect discussions" with the planemaker, facilitated by Acting U.S. Labor Secretary Julie Su.

The International Association of Machinists and Aerospace Workers Local 751 stated, "We are fully committed to these talks. It is our responsibility to attempt to reach a resolution" in a social media post.

Approximately 33,000 of Boeing's unionized West Coast workers, primarily based in Washington state, have been on strike since September 13. Their demands include a 40% wage increase over four years and the restoration of workers' defined benefit pension. The strike has halted production of Boeing’s best-selling 737 MAX, as well as the 767 and 777 widebody aircraft.

This marks the first sign of progress in the month-long strike, particularly after Boeing withdrew its enhanced offer on October 8, which included a 30% wage increase over four years. This decision came after negotiations, which included federal mediators, broke down, leading Boeing to file an unfair labor practice charge against the union.

Boeing declined to comment on Friday.

Acting Secretary Su visited Seattle on Monday to contribute to the contract negotiations and returned on Thursday after a trip to Detroit. A spokesperson for Su mentioned, "[She] is currently in Seattle having discussions with both parties. She has met with the CEO and the union, and has been in touch multiple times throughout the process."

Last Friday, Boeing announced it would reduce its workforce by 17,000 jobs, or 10% of its global staff, incurring $5 billion in charges, continuing a tumultuous year for the company after a mid-air emergency involving a new Alaska Airlines 737 MAX 9.

On Tuesday, Boeing announced plans for up to $25 billion in stock and debt offerings over the next three years, alongside a $10 billion credit agreement.

In September, nearly 95% of the West Coast workers rejected Boeing's contract offer of a 25% pay increase over four years, leading to the ongoing strike.