Sept 17 (Askume) – Boeing Co (BA.N) and its largest union will go before federal mediators on Wednesday after failing to agree on key issues such as pay and pensions, the International Association of Machinists and Aerospace Workers said.
Union members went on strike on Friday for the first time in 16 years in full contract talks with Boeing, demanding a 40% pay rise over four years, well above the aircraft maker’s 25% offer, but faced strong criticism.
Analysts said a prolonged strike could cost Boeing billions of dollars in losses, further pressuring the aircraft manufacturer’s finances and risking a downgrade in its credit rating .
“After a full day of mediation, we are disappointed that the company remains unwilling and reluctant to address the issues you have made clear are critical to ending the strike: wages and pensions.” The union represents more than 30,000 Boeing factory workers after Tuesday’s meeting
It added, “It appears the company is not taking the mediation seriously. With 96% voting in favour of the strike, we think Boeing will finally understand why the IAM 751 mechanics are asking for more and that we are fighting for what is right and fair,” it added. “It’s worth the money we’ve earned over the last 16 years.”
The strike, which entered its sixth day on Wednesday, is Boeing’s first since 2008 and the latest in a tumultuous year for the plane maker that began with an incident in January when a door panel on one of the plane’s new 737 Max jets was damaged.
Boeing and the Federal Mediation and Mediation Service did not immediately respond to emails seeking comment outside regular business hours.
The strike halted production of Boeing’s best-selling 737 MAX jet and 777 and 767 wide-body planes, delaying deliveries to airlines.
Boeing said on Monday it was freezing hiring and considering temporary layoffs as its balance sheet already has $60 billion in debt and a prolonged strike could lead to further losses.
The company has also halted most orders for all Boeing jet programs except the 787 Dreamliner, which will hurt its suppliers.
Shares are down about 40% this year.
