On October 15, 2024, Acting U.S. Secretary of Labor Julie Su flew to Seattle to meet with Boeing Company and representatives of about 33,000 striking workers’ union in order to encourage both sides to return to the negotiating table.
According to Reuters, Su intervened in the matter for the first time after Boeing announced the cutting of 17,000 jobs. The Department of Labor confirmed this news on Monday.
A spokesperson stated, “Acting Secretary Su will meet with both parties today to assess the situation and encourage progress in the negotiation process.”
The spokesperson added that although Su had previously spoken with Boeing and the union, this was her first time meeting with them in person in Seattle.
The strike initiated by the International Association of Machinists and Aerospace Workers (IAM) started on September 13. Workers are demanding a 40% raise and the restoration of fixed retirement benefits they gave up in 2014.
Boeing announced last Friday, October 11, an expected quarterly loss of $9.97 per share, revenue of $17.8 billion, and operating cash flow of -$1.3 billion. The company’s third-quarter financial report will be released on October 23.
Boeing’s stock has fallen by 42% so far in 2024. According to S&P Global, the international credit rating agency, the strike is causing Boeing to lose $1 billion per month, potentially jeopardizing its valuable investment-grade credit rating.
Reuters reported that industry insiders said Boeing will hold multiple meetings this week to devise detailed plans.
Insiders mentioned that to save on severance costs and prevent the exodus of technical personnel, Boeing is likely to avoid voluntary layoffs and primarily opt for involuntary layoffs.
In addition, Boeing’s CEO Kelly Ortberg stated last Friday that aside from the 10% layoffs, the company would delay the first delivery of its uncertified 777X wide-body aircraft by another year, not expected to be delivered for use before 2026, and will cease manufacturing the 767 commercial aircraft in 2027.
This means that with certification and testing, this long-range wide-body aircraft is expected to be delayed by at least 6 years before it can potentially enter service.
As the largest user of the 777 series aircraft, Tim Clark, President of Emirates Airlines, expressed concern in a statement about Boeing’s delivery delays, stating, “Over the coming months, we will engage in serious discussions with them.”