The White House has called on Boeing and the union representing approximately 33,000 striking machinists to return to the negotiating table after workers decisively rejected the planemaker’s latest contract offer.
On Thursday, White House press secretary Karine Jean-Pierre told reporters that President Joe Biden has directed his team to encourage both parties to continue working towards an agreement. “We’re going to continue to monitor those negotiations and continue to make sure that we encourage that,” Jean-Pierre stated.
The call for renewed discussions comes a day after union members voted against Boeing’s proposed contract, which included a 35% wage increase over four years. According to the union, 64% of workers opposed the deal.
Acting Labor Secretary Julie Su has been actively involved in facilitating the negotiations. The Labor Department confirmed that Su was in contact with both Boeing and the International Association of Machinists and Aerospace Workers (IAM). She visited Seattle twice last week to assist in the contract talks aimed at ending the six-week strike that has halted production of Boeing’s key aircraft models, including the 737 MAX, 767, and 777.
A spokesperson for Su emphasized her commitment to the process, stating that she “is available to support” both Boeing and the IAM in reaching a satisfactory agreement.
The rejection of the latest offer follows a similar vote last month, where 95% of workers turned down a contract offering a 25% pay hike. The union is pushing for a 40% wage increase and the reinstatement of a defined-benefit pension plan.
Union leaders expressed readiness to resume negotiations immediately. The ongoing strike is seen as a manifestation of years of worker resentment and has deepened financial strains on Boeing.
Since the strike commenced on September 13, Boeing has announced plans to cut 17,000 jobs and is close to securing up to $15 billion from investors to maintain its investment-grade credit rating. The production slowdown has also impacted airlines, some of which have been forced to adjust their schedules due to delays in aircraft deliveries.
The situation remains critical for both Boeing and the workers. The White House’s involvement underscores the broader economic implications of the strike, not only for the aerospace industry but also for the global supply chain and markets interconnected with it.
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White House urges Boeing, striking union to work to reach deal
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