US transportation chief says it is increasingly important to resolve Boeing strike

October 11

By David Shepardson

WASHINGTON (Reuters) -U.S. Transportation Secretary Pete Buttigieg said on Thursday it is increasingly important to see a resolution to a four-week old strike by 33,000 Boeing workers seeking a new contract from the planemaker.

“The solution is going to be one that supports workers, that’s compatible with the business succeeding,” Buttigieg told reporters at the department’s headquarters. “We think both those things are absolutely compatible, and there’s a deal to be had.”

Asked when the labor stoppage impact would cause concerns about the broader airplane supply chain, Buttigieg did not specify a date but said with “each passing day it becomes more important… for them to come to terms.”

Boeing said on Tuesday it had withdrawn its pay offer to the International Association of Machinists and Aerospace Workers after two days of talks, and accused the union of not seriously considering its proposals. The strike has halted 737 MAX production as well as older 767 and 777 wide-body programs.

Boeing shares fell 1.8% on Thursday and are down 42% this year.

A letter sent on Wednesday from 30 House Democrats to Boeing CEO Kelly Ortberg and the union representing the striking workers urged the two sides to bargain in good faith to reach a fair contract in a “timely manner.”

“It is clear that both sides must return to the bargaining table in good faith,” the lawmakers said.

The company’s suppliers are now fretting about how to retain thousands of workers that could face furloughs in the coming weeks during the planemaker’s first strike in 16 years.

To conserve cash, Boeing put thousands of white-collar staff on rolling furloughs and said it would freeze most parts orders except for the 787, made in South Carolina. It also faces a risk of losing its investment grade credit rating.

The company and its suppliers are also reeling from a series of crises including a MAX safety grounding after two fatal crashes, a global slump in air travel during the pandemic and a quality crisis compounded by output curbs placed on Boeing since the blowout of a door plug in January.

(Reporting by David Shepardson; Editing by Jamie Freed)

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