Boeing, the striking union held its first meeting since the latest rejected by Reuters
Written by David Shepardson
(Reuters) – The union representing striking U.S. West Coast factory workers said on Tuesday it was meeting with Boeing (NYSE: ) for the first time since members voted down an improved proposal from the plane maker last week.
The International Association of Machinists and Aerospace Workers Local 751 said with the help of US Acting Secretary of Labor Julie Su, the union’s negotiating committee “held a meaningful face-to-face meeting with the company to address key bargaining issues.”
The union, whose members have been on strike for nearly seven weeks, added that it “will continue to engage with the company to achieve the best possible outcome for our members.”
A Boeing spokesperson confirmed that the company met with the union on Tuesday for negotiations, facilitated by Su.
Earlier this month, Su helped the unions restart negotiations, which ultimately led to last week’s vote on a proposed 35% wage increase over four years that was rejected by 64% of union members.
The union has been demanding a 40% wage increase over four years and the return of defined benefit pensions. Last month, nearly 95% of workers rejected a 25% wage increase.
Boeing on Monday unveiled a potential stockpile of up to $24.3 billion to shore up finances strained by the suspension of production of the 737 MAX and its 767 and 777 widebody planes due to the strike.
SUPPLY CHAIN IMPACT
Earlier on Tuesday, the Republican governors of Utah, Missouri and Montana called on Boeing and the union to end the strike, citing the “profound” impact on their states and aircraft suppliers.
“Boeing has stopped buying from many suppliers, many of whom are now making the very difficult decision to lay off or lay off their workers,” governors Spencer Cox, Mike Parson and Greg Gianforte said in a letter to Boeing and the union.
Boeing and IAM declined to comment for the letter.
Ihssane Mounir, senior vice president of global supply chain for Boeing’s commercial aircraft division, separately told hundreds of suppliers in an email on Tuesday seen by Reuters that the plane maker would need to continue to temporarily suspend parts of the 737 MAX, 767 and 777 systems. . .
“We understand that this may force you to take additional and difficult measures in your production systems and in your teams,” Mounir wrote.
He added: “Our team will be in touch soon and we remain committed to continuing to work with you – part by part – to maintain as much stability in our shared production system as possible.”
Boeing’s vast global network of suppliers that produce parts from state-of-the-art factories to garage workshops was already strained by the company’s quality and safety crisis, which began in January after the mid-air panel on the new Alaska Airlines 737 MAX 9 exploded.
Boeing this month announced plans to cut 17,000 jobs worldwide – or 10% of its workforce – a one-year delay on a key new plane and other cuts.
