“Boeing and its largest union will resume contract talks as a strike that has halted production of some planes could cost the airline billions of dollars.”, — write: www.epravda.com.ua
Boeing and its largest union will resume contract talks as the continuation of a strike that has halted production of its most popular planes could cost the airline billions of dollars.
This is reported by the Reuters agency.
The union, whose members went on strike last Friday, is demanding a 40 percent pay rise over four years in the first full-scale negotiations with Boeing in 16 years, well above the company’s 25 percent offer that was roundly rejected.
Analysts say a prolonged strike could cost Boeing several billion dollars, further straining the company’s finances and threatening to downgrade its credit rating.
“After a full day of mediation, we are disappointed that the company was not ready and willing to address the issues we clearly identified as essential to ending this strike: pay and pensions,” said the union representing more than 30,000 workers at Boeing plants.
“The company doesn’t seem to be taking mediation seriously. With 96% of the strike votes, we thought Boeing would finally understand that the IAM 751 drivers were demanding more. We’re fighting for justice – for what we’ve earned over the past 16 years.” , – the trade union added.
The strike, which will enter its sixth day on Wednesday, is Boeing’s first since 2008 and the latest episode in a tumultuous year for the company that began with an incident in January when a door panel on a new 737 MAX jet fell off mid-flight.
Boeing and the US Federal Mediation and Conciliation Service did not immediately respond to emails seeking comment outside business hours.
The strike halted production of Boeing’s most popular 737 MAX, as well as the 777 and 767 wide-body planes, causing delays in deliveries to airlines.
Boeing said Monday it was freezing hiring and considering temporary furloughs to cut costs as its balance sheet is already burdened with $60 billion in debt and a prolonged strike could further hurt the company.
The company has also stopped placing most orders for parts for all of Boeing’s jet programs except the 787 Dreamliner, which will hurt its suppliers. The company’s shares are down about 40% this year.
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We will remind:
Workers at a Boeing plant on the US West Coast went on strike after 96% of union workers voted in favor.
Boeing Airlines has agreed with the union on a 25% salary increase for workers, which may prevent a large-scale strike on September 13.