(Bloomberg) -- The US’s top labor official met with leaders of Boeing Co. and striking union workers as the monthlong stoppage takes an increasing toll on the planemaker.
Acting Secretary of Labor Julie Su traveled to Seattle to urge both sides to move forward in the bargaining process over a new contract, the International Association of Machinists and Aerospace Workers said in a statement Monday.
The latest contract talks between Boeing and the union, which represents 33,000 workers, broke down last week. The IAM’s local leadership endorsed the company’s initial offer of a 25% wage increase over four years, well below what many members wanted. IAM members overwhelmingly rejected the offer and voted to strike. Boeing later offered a 30% pay boost, but this was also rejected.
“While it is important to return to the table, the union remains firm on securing an agreement that truly reflects the respect our members have earned and deserve,” it said in the statement.
Boeing reiterated it was committed to resolving the strike. “We will work with the union when they are ready to bargain an agreement that recognizes our employees and preserves our company’s future,” it said in a statement.
With the strike straining an already stretched financial situation, Boeing has announced plans to cut 10% of its workforce, equivalent to 17,000 jobs, to conserve cash. It also announced a delay to its 777X program, angering customers like Emirates. The intention to cut jobs comes as the planemaker seeks to stave off warnings of a possible ratings downgrade from S&P Global Ratings.
(Adds Boeing comment in fourth paragraph.)
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