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Boeing, striking union hold first meeting since latest contract rejection
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Boeing, striking union hold first meeting since latest contract rejection
Nov 3, 2024 2:38 PM

*

Acting US labor secretary helps company, union restart

talks

again

*

Boeing ( BA ) extends pause to accepting most components for 737,

767,

777 programs

*

Governors warn extended Boeing ( BA ) strike could force more

suppliers

to cut jobs

(Recasts paragraphs 1-5 with new round of talks)

By David Shepardson

Oct 29 (Reuters) - A union representing about 33,000

striking U.S. West Coast factory workers said late on Tuesday it

had met with Boeing ( BA ) for the first time since members

voted down an improved contract offer from the planemaker last

week.

The International Association of Machinists and

Aerospace Workers Local 751 said with the assistance of Acting

U.S. Labor Secretary Julie Su, the union's bargaining committee

"had a productive 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 it "will continue to engage with the company

to secure the best possible outcome for our members."

A Boeing ( BA ) spokesperson confirmed the company met with the

union on Tuesday for negotiations, assisted by Su.

Earlier this month, Su had helped the parties restart

discussions, ultimately leading to last week's vote on an offer

of a 35% pay rise over four years that was rejected by 64% of

union members.

The union has been seeking a 40% pay rise over four years

and the return of a defined-benefit pension. Last month, about

95% of workers rejected a 25% pay hike.

Boeing ( BA ) on Monday launched a stock offering that could raise

up to $24.3 billion to strengthen finances squeezed by the halt

to production of its best-selling 737 MAX and its 767 and 777

widebody programs due to the strike.

SUPPLY CHAIN IMPACT

Earlier on Tuesday, the Republican governors of Utah,

Missouri and Montana urged Boeing ( BA ) and the union to end the

strike, citing the "far-reaching" impact to their states and the

planemaker's suppliers.

"Boeing ( BA ) has stopped buying from most suppliers, most of whom

are now making the very difficult decision to furlough or lay

off their own employees," Governors Spencer Cox, Mike Parson and

Greg Gianforte said in the letter to Boeing ( BA ) and the union.

Boeing ( BA ) and IAM declined to comment on the letter.

Ihssane Mounir, senior vice president of global supply chain

for Boeing's ( BA ) commercial airplanes unit, separately told hundreds

of suppliers in an email on Tuesday seen by Reuters that the

planemaker will need to continue a pause on shipping components

for the 737 MAX, 767 and 777 programs.

"We understand this may drive you to take additional and

difficult actions for your production schedules as well as for

your teams," Mounir wrote.

He added: "Our team will be in touch soon and we remain

dedicated to continuing to work with you - part by part - to

maintain as much stability in our shared production system as we

can."

Boeing's ( BA ) vast global network of suppliers that produce parts

from sprawling modern factories to tiny garage workshops was

already stressed by the company's quality and safety crisis,

which began in January after a mid-air panel blow-out on a new

Alaska Airlines 737 MAX 9.

Boeing ( BA ) this month announced plans to cut 17,000 jobs

globally - or 10% of its workforce - a one-year delay to a key

new jet and other cuts.

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