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US transportation chief says it is increasingly important to resolve Boeing strike
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US transportation chief says it is increasingly important to resolve Boeing strike
Oct 10, 2024 11:46 PM

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Boeing ( BA ) said on Tuesday it had withdrawn its pay offer to the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.

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