(Reuters) – Boeing (NYSE:) and its largest union will resume contract talks in the presence of federal mediators on Wednesday after failing to reach an agreement on key issues such as wages and pensions, the International Association of Machinists and Aerospace said Workers.
The union, whose members went on strike last Friday, has pushed for a 40% increase over four years in its first full contract negotiations with Boeing in 16 years, well above the planemaker’s 25% offer, which has been firmly was rejected.
A prolonged strike could cost Boeing several billion dollars, further straining the planemaker’s finances and threatening a downgrade in its credit rating, analysts said.
“After a full day of mediation, we are frustrated. The company was unprepared and unwilling to address the issues you have made clear are essential to ending this strike: wages and pensions.” The union representing more than 30,000 Boeing factory workers said at X after Tuesday’s meeting.
“The company doesn’t seem to be taking mediation seriously. With a 96% strike vote, we thought Boeing would finally understand that IAM 751 operators are demanding more. We’re fighting for what’s right and just – for what we’ve earned over the past 16 years” , it added.
The strike, which entered its sixth day on Wednesday, is Boeing’s first since 2008 and the latest event in a tumultuous year for the plane maker that began with an incident in January when a door panel on a new 737 MAX plane became loose in midair.
Boeing and the U.S. Federal Mediation & Conciliation Service did not immediately respond to emails seeking comment outside normal business hours.
The strike has halted production of Boeing’s best-selling 737 MAX jets, along with its 777 and 767 widebody planes, delaying deliveries to airlines.
Boeing said Monday it is weighing hiring freezes and temporary furloughs to cut costs, as its balance sheet is already burdened with $60 billion in debt and a prolonged strike could do further damage.
The company has also stopped placing most orders for parts for all Boeing jet programs except the 787 Dreamliner, which will hurt its suppliers.
Shares are down about 40% this year.
