By Allison Lampert and David Shepardson
(Reuters) -Boeing’s and its largest union said on Friday contract talks will resume on Oct. 7 as both sides seek an agreement to end the strike by about 33,000 factory workers on the plane maker’s U.S. West Coast.
Negotiators from the US plane maker and the International Association of Machinists and Aerospace Workers have struggled to find common ground, recently failing to reach agreement on key issues in the presence of federal mediators.
“Resolving the IAM is a priority for me, and our team is ready to resume mediated discussions on Monday,” Boeing (NYSE:) CEO Kelly Ortberg told employees on Friday.
Reaching a deal with the IAM to end the strike is a priority for Boeing as the company struggles with mounting debt, worsening cash burn and the threat of losing its investment grade rating.
IAM’s District 751, which is negotiating the deal, said it would resume talks with Boeing on Monday with help from federal mediators.
“This meeting is another crucial opportunity to highlight the priorities of our members,” the union said.
The talks have drawn the attention of US President Joe Biden’s administration, with acting US Secretary of Labor Julie Su and her staff continuing to work with both sides, a spokesperson said.
The strike has halted production of the Boeing 777, 767 and the best-selling 737 MAX. The MAX is an important source of revenue for the company at a time when it is struggling with weak margins in its defense business.
The strike, Boeing’s first since 2008, is the latest event in a tumultuous year for the company that began with a January incident in which a door panel came off a new 737 MAX plane during a flight.
Boeing recently made a “best and final” pay offer that included a 30% pay increase over four years, reinstatement of a performance bonus, enhanced retirement benefits and a doubling of the ratification bonus to $6,000, but union leadership refused to put it to a vote.
An earlier tentative deal between Boeing and the union, which offered a 25% increase over four years and a commitment that a new plane would be produced in the Seattle area if launched during the four-year agreement, was canceled voted down by more than 90%. of employees in September.
Shares of Boeing closed down 3% on Friday.
Boeing last month began laying off tens of thousands of American workers for one week every four weeks as it seeks to save money.
“I would like to thank everyone for their commitment to our money-saving measures,” Ortberg said, praising employees for “the resilience to help during this difficult time, especially as we ask many of our teammates to take temporary leave to take.”
