Boeing and the International Association of Machinists and Aerospace Workers (IAM) Local 751 resumed negotiations Tuesday following the union’s rejection of a revised contract offer last week, Reuters reports.
The meeting, facilitated by Acting US Labor Secretary Julie Su, marked the first face-to-face discussions between Boeing and IAM since the union rejected a proposed 35% pay increase over four years. IAM members, who have been on strike for nearly seven weeks, are seeking a 40% pay raise and the reinstatement of a defined-benefit pension plan.
The recent contract rejection has compounded the impact of the strike on Boeing’s operations, leading the company to extend a halt on accepting components for its 737, 767, and 777 programs. Supply chain concerns are growing, as several suppliers have been forced to furlough workers or lay off staff. Earlier this week, Republican governors from Utah, Missouri, and Montana called on both sides to resolve the dispute, citing economic pressures on suppliers across the states.
In a communication with suppliers, Boeing’s senior vice president of global supply chain, Ihssane Mounir, warned that the continued production pause may require additional adjustments. Boeing’s production slowdown comes as the company manages financial strains and is taking steps to reinforce its position by launching a $24.3 billion stock offering.
As Boeing and IAM continue discussions, the company has announced plans to cut 17,000 jobs globally over the next year as part of broader cost-cutting measures.
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