Boeing and Union to Resume Talks Amid Strikes

Boeing and its largest union will restart contract negotiations on Wednesday with federal mediators. The union demands a 40% wage increase over four years, while Boeing offered 25%. The ongoing strike, which has halted key production lines, is projected to significantly affect Boeing's finances and credit rating.

Boeing and its largest union are set to resume contract negotiations on Wednesday, facilitated by federal mediators, as both sides have yet to agree on crucial issues including wages and pensions, according to the International Association of Machinists and Aerospace Workers (IAM). The union, whose members initiated a strike last Friday, demands a 40% wage increase over four years, far exceeding Boeing's 25% offer which was overwhelmingly rejected.

A prolonged strike could potentially cost Boeing several billion dollars, exacerbate its financial strain, and risk a downgrade of its credit rating, analysts warn. In a statement following mediation talks on Tuesday, the union expressed frustration, stating, 'The company was not prepared and unwilling to address crucial issues like wages and pensions, which are essential for ending the strike.'

The strike, now entering its sixth day, marks Boeing's first significant labor stoppage since 2008 and compounds a tumultuous year that included a January incident in which a door panel detached from a new 737 MAX jet mid-air. Boeing's production of 737 MAX, 777, and 767 aircraft have been suspended, delaying deliveries to airlines and affecting the company's balance sheet already laden with $60 billion in debt. Boeing has also temporarily halted orders for parts except for the 787 Dreamliner and is contemplating temporary furloughs.

(With inputs from agencies.)