On September 14, 2024, U.S. Federal Mediation officials announced that Boeing and union negotiators will return to the bargaining table early next week in an effort to quickly end the strike.
The U.S. Federal Mediation & Conciliation Service stated late on Friday that mediators were convening both labor and management representatives of Boeing to negotiate an end to the strike as soon as possible.
In a statement, the agency said, “Both sides will resume negotiations early next week.”
Around 33,000 Boeing employees in Seattle and Portland factories began the strike on Friday after voting against a labor contract that offered a 25% wage increase over four years. The employees are demanding a 40% raise and other benefits.
After midnight on September 13, crowds of strikers gathered outside Boeing’s factory in the Seattle area.
Brian West, the Chief Financial Officer of Boeing, mentioned that the strike would impact the delivery of Boeing’s popular 737MAX aircraft. The International Association of Machinists and Aerospace Workers (IAM) also expressed the desire to return to the bargaining table promptly.
Boeing’s Seattle factories are the production base for its top-selling MAX, 777, and 767 jetliners, where workers have been protesting for a week.
Boeing’s stock fell by 3.7% on Friday. The company’s stock has dropped nearly 40% this year, resulting in a decrease in market value of about $58 billion and a devaluation of its bonds.
The ongoing strike will further strain Boeing’s financial situation. As of the end of June this year, the company’s accumulated debt exceeded $60 billion. The aerospace giant urgently needs sufficient cash flow to repay its debts.
Moody’s announced an evaluation of Boeing’s rating, while Fitch warned that a prolonged strike could increase the company’s downgrade risk.
On Thursday, S&P Global Ratings stated that Boeing’s rating is only one notch above junk status and that continuous strikes could lead to an overall downgrade, thereby increasing the company’s borrowing costs.
Boeing mentioned that they have offered workers everything they could, and now it is crucial to reach an agreement to end the strike.
Additionally, Boeing plans to make necessary investments to replace its popular single-aisle aircraft models. CFO West stated that Boeing would “laser-focus on saving cash” and added that the strike “threatens our recovery.”
White House spokesperson Robyn Patterson mentioned that the Biden administration is in contact with both Boeing and labor representatives, urging them to negotiate in good faith to reach an agreement that benefits employees and strengthens the company.