A union representing approximately 33,000 striking U.S. West Coast factory workers announced that it has met with Boeing for the first time since its members rejected an improved contract offer from the aviation giant last week. The two parties will continue to engage in discussions moving forward.
The 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 address key bargaining issues," Reuters reported.
A spokesperson from the airline that the company engaged in discussions with the union on Tuesday, facilitated by the acting labor secretary.
Secretary Su intervened to bring both parties back to the negotiating table, prompting last week's vote on a proposal that included a 35% pay increase over four years, which was rejected by 64% of union members.
The union is seeking a 40% pay increase over four years and the reinstatement of a defined-benefit pension. About 95% of workers previously turned down a 25% pay hike in September.
Prior to this latest development, the Republican governors of Utah, Missouri and Montana urged both Boeing and the union to resolve the strike, highlighting the "far-reaching" impact to their states and the planemaker's suppliers.
"Boeing has stopped buying from most suppliers, most of whom are now making the very difficult decision to furlough or lay off their own employees," said Governors Spencer Cox, Mike Parson and Greg Gianforte in the letter to the airline and union.
According to Reuters, Ihssane Mounir, senior vice president of global supply chain for Boeing's commercial airplanes unit, told hundreds of suppliers in a separate email that the company must continue to pause shipments of components for the 737 MAX, 767, and 777 programs.
"We understand this may drive you to take additional and difficult actions for your production schedules as well as for your teams," Mounir said, adding, "Our team will be in touch soon and we remain dedicated to continuing to work with you – part by part – to maintain as much stability in our shared production system as we can."
The ongoing strike has halted activity at two factories that assemble the 737 MAX and 777, costing an estimated $7.6 billion in direct losses -- including at least $4.35 billion for Boeing and almost $2 billion for its suppliers, according to the Anderson Economic Group consultancy.
Earlier this month, the aviation giant announced that it will reduce its workforce by 10% in the coming months, meaning a reduction of approximately 17,000 jobs, based on the company's total workforce figures from December 2023.
