Boeing Co.’s largest labor union said on Friday that contract talks will resume on Oct. 7, as the two sides seek to reach an agreement to end a strike by about 33,000 U.S. West Coast aircraft plant workers.
Negotiators for the US planemaker and its largest union have struggled to find common ground, recently failing to reach agreement on key issues in the presence of federal mediators.
Reaching an agreement with the International Association of Machinists and Aerospace Workers that would end the grounding is a priority for Boeing, as it grapples with mounting debt, worsening cash burn and the threat of losing its investment grade rating.
IAM’s District 751, which is negotiating the deal, said in a post on X that it would resume talks with Boeing on Monday with the help of federal mediators.
“This meeting is another critical opportunity to push for our members’ priorities,” the union said.
Boeing confirmed that negotiations will resume on October 7. A spokesman for the administration of US President Joe Biden said that the talks have attracted the interest of the administration of US President Joe Biden, as Acting US Secretary of Labor Julie Su and her staff continue to communicate with both parties.
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The strike led to the halt of production of Boeing 777 and 767 aircraft and its best-selling 737 MAX. MAX is a key driver of the company’s revenue at a time when it is struggling with weak margins in its defense business.
The strike, Boeing’s first since 2008, is the latest event in a tumultuous year for the company that began with a January accident in which a door panel separated from a new 737 MAX plane during flight.
Boeing recently put forward a “best and final” pay offer that includes reinstating a performance bonus, improving retirement benefits, and doubling the certification bonus to $6,000, but union leadership has refused to put it to a vote.
An earlier tentative deal between Boeing and the union that offered a 25% raise over four years and a commitment to build a new plane in the Seattle area if it was launched within the four-year agreement was voted down by more than 90%. workers in September.
Boeing shares rose 2.1% in afternoon trading on Friday.
—(Reporting by Alison Lambert, David Shepherdson and Mike Stone; Reporting by Muhammad) Editing by Bill Berkrot
