SEATTLE, WA—Negotiators from Boeing and its largest union, the International Association of Machinists and Aerospace Workers (IAM), are set to resume talks on Tuesday over a labor contract as the company seeks to quickly resolve a strike that is costing the company an estimated $100 million per day.
Over 30,000 Boeing workers in the Seattle area went on strike last Friday after rejecting the company’s first contract offer in 16 years. The proposal included a 25% pay increase over four years but eliminated an annual performance bonus.
Top negotiators from both sides will meet with federal mediators in Seattle for preliminary discussions. These initial talks will focus on setting the framework for future negotiations rather than introducing new offers, according to sources familiar with the situation. Both Boeing and IAM have declined to comment.
A prolonged strike could cost Boeing billions and put additional pressure on the company’s finances, which are already strained by $60 billion in debt. The company recently froze hiring and is considering furloughs to mitigate the impact of the strike.
The strike has halted production of Boeing’s popular 737 MAX jets, along with its 777 and 767 widebody aircraft, delaying deliveries to airlines. Ryanair CEO Michael O’Leary expressed optimism that an agreement could be reached within three to four weeks, though he acknowledged that such delays could push aircraft deliveries into 2025.
Workers on the picket lines in Seattle remain skeptical of a quick resolution and are prepared for a lengthy strike. Many younger employees, frustrated by years of stagnant wages and rising living costs, are finding part-time jobs to supplement the $250 weekly strike pay.
The initial contract rejection highlights a miscalculation by both Boeing and union leaders, with over 94% of IAM members voting against the proposed deal. Analysts predict that rebuilding trust and negotiating a new agreement will take time. Some experts believe Boeing may have to offer more competitive wages to avoid a prolonged strike, even if it further strains the company’s finances.
As the strike continues, industry analysts and workers alike are watching closely, anticipating what could be a defining moment in Boeing’s labor relations and financial future.
This story was originally reported by Reuters.
