Key Takeaways
- Boeing and its largest union partner are resuming contract negotiations under federal mediation Wednesday.
- The union is demanding a 40% wage increase over three to four years and rejected the company’s offer of a 25% raise.
- The International Association of Machinists and Aerospace Workers began a strike of the company following a vote last Thursday.
Boeing (BA) and its largest union partner are resuming contract negotiations with federal mediators present Wednesday, the International Association of Machinists and Aerospace Workers (IAM) said in a social media post.
The union accused Boeing of not “taking mediation seriously,” particularly on the issues of wages and pensions, days after IAM members approved a strike of the airplane producer.
“We will not mince words—after a full day of mediation, we are frustrated,” the union wrote Tuesday night. “…With a 96% strike vote, we thought Boeing would finally understand that IAM 751 Machinists are demanding more.”
The IAM is demanding a 40% increase in wages over three to four years. Boeing offered 25%, which the union rejected. The IAM represents roughly 33,000 Boeing employees across Washington, Oregon, and California.
Boeing did not immediately return an Investopedia request for comment.
Boeing Pauses Orders
In a memo to Boeing staff shared earlier this week with Investopedia, Chief Financial Officer (CFO) Brian West said the company will halt most purchase orders for the 737, 767, and 777 aircraft. Boeing also is pushing back pay raises for salaried employees and suspending all first- and business-class air travel, including for its executives.
Shares of Boeing edged higher in midday trading Wednesday but are down about 40% this year following a string of safety incidents, most notably an Alaska Airlines flight in January when a door plug blew off in midair.