By love-89.com On October 14, Acting Labor Secretary Julie Su visited Seattle to personally intervene in the labor negotiations between Boeing and the International Association of Machinists and Aerospace Workers (IAM). This marks her first direct involvement in the discussions, which have been stalled amidst a month-long strike at Boeing, putting considerable pressure on CEO Kelly Ortberg.
According to Reuters, the Labor Department confirmed that Su’s engagement comes on the heels of Boeing’s announcement on October 11 that it would lay off 10% of its global workforce, amounting to approximately 17,000 jobs.
A spokesperson for the Labor Department stated, “On October 14, Acting Secretary Su will meet with representatives from both sides at Boeing to assess the situation and encourage progress in negotiations.”
While Su had previously held talks with both parties, this visit represents her first face-to-face meeting with them in Seattle.
Since September 13, around 33,000 IAM workers have been on strike, demanding a 40% wage increase and the reinstatement of a defined-benefit pension plan they agreed to forfeit in 2014.
On October 14, Boeing’s stock fell by 1.3%, closing at $148.99. This decline followed Boeing’s announcement on October 11 that the delivery of its 777X jet would be delayed, and production of the 767 commercial freighter would cease.
Industry sources indicated that Boeing plans to meet this week to develop a detailed plan, with no specifics provided in the announcement made on October 11.
Insiders revealed that Boeing will issue 60-day notices to thousands of employees in its commercial aviation sector on November 15, which means those notified will be laid off by mid-January. Should additional layoffs be necessary, a second wave of notifications will be sent out in December.
As the IAM strike enters its fifth week, internal pressures and rising costs at Boeing continue to mount, placing significant stress on CEO Ortberg, who took the helm at Boeing this summer. S&P Global Ratings has estimated that the strike is costing Boeing over $100 million each month.
This strike compounds what has been a challenging year for Boeing, which faced setbacks earlier when an embedded door on an Alaska Airlines Boeing 737 MAX 9 fell off during flight, necessitating an emergency landing. Additionally, Boeing is still grappling with the fallout from two fatal MAX crashes six years ago.
The strike has led to shutdowns at Boeing’s factories in Seattle and elsewhere, causing a sharp decline in cash flow. Last week, Boeing withdrew a contract proposal that had been rejected by the union, asserting that the content had not been negotiated.
Harry Katz, a professor specializing in collective bargaining at Cornell University’s School of Industrial and Labor Relations, remarked, “There’s no doubt that Boeing needs to increase wages.” However, he expressed skepticism about the likelihood of the IAM’s demand to restore the pension plan being met, estimating that the strike could potentially last another two to five weeks.