WASHINGTON, Oct 10 (Reuters) - U.S. Transportation
Secretary Pete Buttigieg said on Thursday it is increasingly
important to see a resolution to a four-week old strike by
33,000 Boeing ( BA ) workers seeking a new contract from the
planemaker.
"The solution is going to be one that supports workers,
that's compatible with the business succeeding," Buttigieg told
reporters at the department's headquarters. "We think both those
things are absolutely compatible, and there's a deal to be had."
Asked when the labor stoppage impact would cause concerns
about the broader airplane supply chain, Buttigieg did not
specify a date but said with "each passing day it becomes more
important... for them to come to terms."
Boeing ( BA ) said on Tuesday it had withdrawn its pay offer to the
International Association of Machinists and Aerospace Workers
after two days of talks, and accused the union of not seriously
considering its proposals. The strike has halted 737 MAX
production as well as older 767 and 777 wide-body programs.
Boeing ( BA ) shares fell 1.8% on Thursday and are down 42%
this year.
A letter sent on Wednesday from 30 House Democrats to Boeing ( BA )
CEO Kelly Ortberg and the union representing the striking
workers urged the two sides to bargain in good faith to reach a
fair contract in a "timely manner."
"It is clear that both sides must return to the
bargaining table in good faith," the lawmakers said.
The company's suppliers are now fretting about how to retain
thousands of workers that could face furloughs in the coming
weeks during the planemaker's first strike in 16 years.
To conserve cash, Boeing ( BA ) put thousands of white-collar staff
on rolling furloughs and said it would freeze most parts orders
except for the 787, made in South Carolina. It also faces a risk
of losing its investment grade credit rating.
The company and its suppliers are also reeling from a
series of crises including a MAX safety grounding after two
fatal crashes, a global slump in air travel during the pandemic
and a quality crisis compounded by output curbs placed on Boeing ( BA )
since the blowout of a door plug in January.