Boeing resumes talks with 'frustrated' union partner amid strike

Key points

• Boeing and its largest union partner will resume federally mediated contract negotiations on Wednesday.

• The union is demanding a 40% pay rise over three to four years and has rejected the company's offer of a 25% increase.

• The International Association of Machinists and Aerospace Workers launched a strike at the company following a vote last Thursday.

Boeing (bachelor of arts) and its largest union partner are resuming contract negotiations with federal mediators present on Wednesday, the International Association of Machinists and Aerospace Workers (IAM) said in a social media post.

The union accused Boeing of failing to “take mediation seriously,” particularly on wage and pension issues, days after IAM members approved a strike of the aircraft producer.

“We won't mince words: After a full day of mediation, we are frustrated,” the union wrote Tuesday night. “… With a 96% strike vote, we thought Boeing would finally understand that the IAM 751 machinists are demanding more.”

The IAM is demanding a 40% salary increase in three or four years. Boeing Offered 25%which the union rejected. The IAM represents about 33,000 Boeing employees in Washington, Oregon and California.

Boeing did not immediately respond to a request for comment. Investopedia Request for comments.

Boeing suspends orders

In a memo to Boeing staff shared earlier this week with Investopedia, Chief Financial Officer (CFO) Brian West said the company will pause most orders for the 737, 767 and 777 airplanes. Boeing is also delaying pay increases for salaried employees and suspending all first- and business-class air travel, including for its executives.

Boeing shares rose slightly in midday trading Wednesday, but are down about 40% this year following a series of safety incidents, the most notable of which was an Alaska Airlines flight in January, when a The door stopper came off between heaven and earth.

Read the original article at Investopedia.