(Bloomberg) – Acting U.S. Secretary of Labor Julie Su said on Wednesday that Boeing Co. and the union representing 33,000 striking factory workers are fighting a devastating five-week campaign that shows little sign of ending. He is visiting Seattle to help resolve the strike.
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The International Machinists and Aerospace Workers District, which represents Boeing workers, said in a statement Friday that the two countries are “actively engaged in indirect discussions” mediated by top U.S. labor officials. Separately, the Labor Department said Suh had met with the union and the embattled aircraft maker’s chief executive, Kelly Ortberg, and had been in repeated contact with both.
This latest development highlights the attention the controversy is garnering in Washington, D.C., just weeks away from the U.S. presidential election. Hsu returned to Seattle for the second time this week after previously urging both sides to move forward with the negotiation process. Several Democratic politicians also visited the picket line to show support for the striking workers.
“We are committed to these discussions as part of our responsibility to seek a fair resolution,” IAM District 751 said on its website.
Boeing had no immediate comment.
Pressure is mounting on Boeing, its suppliers and workers as the strike drags on, with little progress made since formal negotiations broke down more than a week ago. Work stoppages spread along the West Coast, forcing Boeing to shut down assembly lines for its 767s and 777s, as well as its cash cow 737 Max.
The strike by machinists is Boeing’s first major labor dispute in 16 years. Hourly workers are demanding big pay increases and better retirement benefits, despite the fact that over the past decade senior executives have received only modest pay increases, even though they were well-compensated. I feel angry that it didn’t happen.
The company plans to cut its workforce by 10%, the first step in a broader reorganization of the business under Ortberg. The pain is beginning to ripple through Boeing’s supply chain, with Spirit AeroSystems Holdings Inc. announcing it will furlough 700 employees who make parts for its 767 and 777 planes.
Boeing also took initial steps to raise up to $25 billion in capital over the next three years to strengthen its business and maintain its investment-grade credit rating.
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Boeing stock was little changed in after-hours trading on Friday. The company’s stock price has fallen about 40% this year, making it the second-worst performer in the Dow Jones Industrial Average.
–With assistance from Josh Idelson.
(Updates the shared, DOL comment, and second paragraph context.)
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