Boeing To Resume Contract Negotiations With Striking Union On Monday As Cash Struggles Pile Up

Boeing announced on Friday that the company will resume contract negotiations with its largest union on October 7, 2024 as both the parties look to finalise an agreement to put an end to the strike by nearly 33,000 of the firm’s US West Coast factory workers. The planemaker and the International Association of Machinists and Aerospace Workers will now sit down to find a mutual agreement to end the strike which has been going on for some time now. Speaking to employees, Boeing CEO, Kelly Ortberg, said, “A resolution with the IAM stands as a priority for me, and our team is ready to resume mediated talks this Monday,” reported Reuters.Notably, both the parties have failed to find common ground and complete an agreement on key issues in the presence of federal mediators. The manufacturer’s priority is to finalising a deal with the IAM to put an end to the stoppage as it struggles with increasing debt, cash burn, and the threat of losing its investment grade rating. District 751, which is negotiating the deal from the IAM, said it will continue talks with the planemaker on Monday with help from federal mediators.Also Read : Paramount Sued By Former Employees Alleging Mass Layoffs Without Prior NoticeThe union noted, “This meeting is another critical opportunity to push for the priorities of our membership.” The strike has resulted in a halt in the production of Boeing’s 777, 767, and 737 MAX jet. The MAX is the major contributor to the company’s revenue.Recently, the firm made a ‘best and final pay offer’ including a 30 per cent pay hike over four years, reinstatement of a performance bonus, better retirement benefits, and increasing the ratification bonus by double to $6,000. However, union leadership declined to put the proposal to a vote.Notably, Boeing started furloughing tens of thousands of its employees in the US last month for one week every four weeks in a desperate attempt to conserve cash. The CEO noted, “I want to thank everyone for their commitment to our cash conservation measures.”