The White House has called on Boeing and its striking workers to continue efforts to reach a contract agreement, following the union’s rejection of Boeing’s latest contract proposal.
The vote from the International Association of Machinists and Aerospace Workers (IAM) came amid a six-week-long strike involving approximately 33,000 machinists, which has significantly affected the planemaker’s production operations.
White House Encouragement and Federal Support
On Thursday, White House Press Secretary Karine Jean-Pierre told reporters President Joe Biden had directed his team to encourage both parties to keep negotiating towards an agreement that works for everyone involved.
She noted that the administration is closely monitoring the ongoing discussions.
The Labor Department confirmed Acting Secretary Julie Su had been in contact with both Boeing and IAM representatives.
Su had traveled to Seattle twice last week to support the negotiations, which aim to resolve the prolonged strike.
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Sticking Points in the Negotiations
The latest proposal from Boeing included a 35 percent wage increase over four years. It, was rejected by 64 percent of union members.
The union had initially voted against a previous offer that included a 25 percent pay hike.
Union leaders have emphasized the workers’ long-standing frustrations and have demanded a 40 percent pay increase along with the restoration of a defined-benefit pension.
The strike, which began on September 13, has caused delays in Boeing’s production of its popular 737 MAX, as well as the 767 and 777 wide-body aircraft programs.
The impact of the strike on Boeing’s financial stability has been significant, with the company planning to cut 17,000 jobs and seeking to raise up to $15 billion from investors to maintain its investment-grade credit rating.
Some airlines have also had to adjust their schedules due to delayed aircraft deliveries.
What’s Next?
Union leaders have expressed their readiness to resume negotiations with Boeing immediately, and the White House has reiterated its support in pushing for a resolution that benefits both parties.
However, the company has declined to comment on the matter, and the union has yet to issue a new statement.
As the strike continues, all eyes remain on the negotiations to see whether both sides can find common ground and restore production stability at Boeing.
