By love-89.com On October 14, Julie Su, the Acting Secretary of Labor, made her first in-person appearance in Seattle to address the ongoing labor dispute between Boeing and the International Association of Machinists and Aerospace Workers (IAM). This comes as the Boeing strike, which began on September 13, enters its fifth week, amid significant pressure on CEO Kelly Ortberg.
According to Reuters, the involvement of Su follows Boeing’s announcement on October 11 that it will lay off 10% of its global workforce, amounting to approximately 17,000 jobs. A spokesperson from the Department of Labor confirmed that Su plans to meet with representatives from both sides on the 14th to assess the situation and encourage progress in negotiations.
The spokesperson noted that while Su had previously held discussions with Boeing’s labor representatives, this marks her first visit to Seattle for a direct engagement with both parties.
Since the start of the strike, approximately 33,000 IAM workers have been advocating for a 40% pay raise and the reinstatement of the defined-benefit pension plan they agreed to forfeit in 2014.
On the same day of Su’s visit, Boeing’s stock fell by 1.3%, closing at $148.99, as the company announced delays in the delivery of the 777X jet and the cessation of production for the 767 cargo aircraft.
Industry insiders revealed that Boeing will convene this week to develop a detailed plan, with the recent announcement lacking specifics. On November 15, the company is expected to issue 60-day notifications to thousands of employees in its commercial aviation division, indicating potential layoffs starting mid-January. Should further layoffs be necessary, additional notifications could follow in December.
The strike has exacerbated ongoing cost and labor tensions within Boeing, significantly increasing the pressure on CEO Ortberg, who took over the company this summer. S&P Global Ratings estimates that the ongoing strike is costing Boeing over $100 million per month.
This labor action adds to a tumultuous year for Boeing. Earlier in January, a Boeing 737 MAX 9 operated by Alaska Airlines experienced an in-flight door failure, leading to a forced emergency landing. Furthermore, the company is still grappling with the aftermath of two fatal crashes involving the MAX six years ago.
With the strike halting operations at factories in Seattle and other locations, Boeing is feeling the financial strain. Last week, the company withdrew a contract proposal that the union had rejected, claiming the contents had not been negotiated.
Harry Katz, a professor specializing in collective bargaining at Cornell University’s School of Industrial and Labor Relations, stated, “There’s no question that Boeing needs to raise salary offers,” but he believes the IAM’s demand for the restoration of the pension plan is unlikely to be met. He estimates that the strike could potentially continue for another two to five weeks.