Boeing Union Resumes Contract Talks Amid Strike and Wage Dispute

Boeing and its largest union, the International Association of Machinists and Aerospace Workers, will resume contract negotiations on Wednesday. The union, which initiated a strike over wages and pensions, has demanded a 40% raise, while Boeing's offer of 25% was rejected. The strike has halted production and affected suppliers.

Boeing and its largest union, the International Association of Machinists and Aerospace Workers, are set to resume contract negotiations on Wednesday, with federal mediators present. Talks stalled on Tuesday over significant issues like wages and pensions, leading to a strike that began last Friday.

The union, representing over 30,000 factory workers, is demanding a 40% raise over four years in its first full contract negotiations with Boeing in 16 years. The planemaker had proposed a 25% increase, which was resoundingly rejected by the workers. Union statements indicate frustration with the company's approach to mediation.

The ongoing strike has already halted production of Boeing's popular 737 MAX jets, as well as 777 and 767 widebody aircraft, causing delays in deliveries to airlines. Boeing, burdened with $60 billion of debt, is freezing hiring and considering temporary furloughs to manage costs.

(With inputs from agencies.)