Sept 17 (Askume) – Boeing Co (BA.N) and its largest union will resume operations on Tuesday after failing to reach an agreement on a key pay and pension contract, the International Association of Machinists and Aerospace Workers (IAM) said.
Boeing and the Federal Mediation and Mediation Service did not immediately respond to emails seeking comment.
Last week, 94.6% of IAM’s more than 30,000 members, including workers in the Seattle and Portland areas who build Boeing’s best-selling 737 Max and other jets, rejected Boeing’s offer, with 96% supporting a strike.
The rejected four-year deal included a 25% overall wage increase , far below the workforce’s 40% demand. Boeing has also committed to building its next generation of commercial airplanes in the Seattle area.
A prolonged strike could further hurt the finances of Boeing, which is already struggling with a $60 billion debt burden.
Aircraft manufacturers need to generate enough cash flow to repay loans. The strike will also impact airlines that fly Boeing planes and suppliers who make parts.
