White House urges Boeing, striking union to work to reach deal

Boeing workers on strike gather near the entrance to a Boeing facility in Seattle, Washington, Oct 24, 2024. PHOTO: AFP

Published Fri, Oct 25, 2024 · 08:56 AM

THE White House said on Thursday it was encouraging Boeing and the union representing about 33,000 striking machinists to continue working to reach a deal, a day after workers rejected the planemaker’s latest contract offer.

President Joe Biden “directed his team … to encourage parties to continue working to achieve an agreement that works, certainly for all parties,” White House press secretary Karine Jean-Pierre told reporters. “We’re going to continue to monitor those negotiations and continue to make sure that we encourage that.”

Earlier on Thursday, the Labor Department said Acting Secretary Julie Su was in contact with Boeing and the International Association of Machinists and Aerospace Workers.

She was in Seattle twice last week to assist in contract talks that are aimed at ending a six-week strike that has halted production of Boeing’s best-selling 737 MAX as well as 767 and 777 wide-body programmes.

A spokesperson for Su said she “is available to support” Boeing and IAM.

Boeing declined to comment. The IAM did not respond to a request for comment.

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The union said 64 per cent of workers voted against the latest deal, which offered a 35 per cent rise in wages over four years.

The rejection of Boeing’s offer, which comes after 95 per cent of workers voted against a first contract last month with a 25 per cent pay hike, reflects years of resentment from workers and deepens a financial crisis at the company.

After the vote, union leaders said they were ready to immediately resume negotiations with Boeing.

Boeing workers reject contract, extend strike: union

Boeing's CEO Kelly Ortberg stressed the need for improving performance in its defence business and its 737 MAX and 777 programmes while broadly stabilising Boeing, which is “at a crossroads” after lapses in its performance disappointed customers and eroded trust.

Boeing CEO presses turnaround as loss balloons to US$6 billion

Boeing said earlier this month the first delivery of its 777X widebody aircraft would take place in 2026 – instead of 2025 – but that’s now five years later than originally planned.

Cathay Pacific says Boeing 777X delay a ‘disappointment’

Boeing still faces the challenge of quickly restoring producting to pre-strike levels once workers return.

Boeing to book more than US$1 billion in wage-related costs from new labour proposal, analysts forecast

Pressure is mounting for Boeing, its suppliers and striking workers as the strike enters a sixth week. The work stoppage that began on Sep 13 stretches along the West Coast and has forced Boeing to shut down assembly lines for its cash-cow 737 Max, 767 and 777 aircraft.

Boeing proposes 35% wage hike in new bid to end lengthy strike

The union has been seeking a 40 per cent pay rise and the return of a defined-benefit pension.

Since the strike began on Sept 13, Boeing has announced plans to cut 17,000 jobs and is closing in on a plan to raise up to US$15 billion from investors to help preserve its investment grade credit rating. Some airlines have had to trim schedules due to aircraft delivery delays. REUTERS

Boeing industrial action Unions

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