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Contract negotiations between Boeing and its largest union, representing 33,000 U.S. West Coast factory workers, remain unresolved after a 25-day strike. The ongoing strike has severely impacted the production of Boeing's key aircraft, including the 737 MAX, 777, and 767 models.
Union Demands and Stalled Talks
The International Association of Machinists and Aerospace Workers (IAM) resumed talks with Boeing and federal mediators on Monday. However, no significant progress was made, with the union continuing to push for a 40% pay increase over four years and the reinstatement of a defined-benefit pension, which was removed a decade ago.
Boeing's Offer Falls Short
Last month, Boeing presented a revised offer that included a 30% wage increase and the reinstatement of a performance-based bonus. While Boeing described the proposal as its "best and final" offer, a union survey indicated that members felt the offer did not meet their demands, particularly concerning pension restoration.
Impact on Boeing's Financials
The strike has halted production of Boeing's top-selling 737 MAX, a key source of revenue at a time when the company faces challenges in its defense division. As the strike continues, Boeing's ability to meet delivery targets and maintain its financial outlook remains under pressure.
