Boeing’s labor strike is so bad that the US Labor Secretary just flew to Seattle to help

Labor Secretary Julie Su flew to Seattle to help with Boeing negotiations.

Boeing’s worker strike appears to be in such a stalemate that the US’s top labor official flew to Seattle to mediate.

In separate Monday meetings, Acting Secretary of Labor Julie Su urged both parties to move forward, according to the International Association of Machinists and Aerospace Workers.

Analysts at Anderson Economic Group estimated that the first month of Boeing’s 33,000-worker strike, which started on September 13, cost the company and workers $5 billion. The last strike, in 2008, shuttered plants for eight weeks and hit revenue by an estimated $100 million per day.

In regulatory filings Tuesday, Boeing announced plans to raise up to $35 billion. That includes a $10 billion credit agreement, while it may also sell up to $25 billion of securities.

While Su has spoken with Boeing and the union before and encouraged both sides to find a fair contract before the strike, this week’s trip was her first time in Seattle meeting both sides in person.

“While it is important to return to the table, the Union remains firm on securing an agreement that truly reflects the respect our members have earned and deserve,” said the negotiating committee for IAM District 751.

Boeing confirmed that Su met with the company’s negotiating team on Monday in Seattle.

“We will work with the union when they are ready to bargain an agreement that recognizes our employees and preserves our company’s future,” the planemaker said.

Su mediated a 75,000-person healthcare worker strike against Kaiser Permanente in October 2023. She also encouraged negotiations during the stoppage earlier this month involving 45,000 dockworkers on the East and Gulf Coast ports. The Biden administration nominated Su in February 2023.

Boeing workers rejected a proposal to raise pay by 25% over four years, demanding 40%. The company’s second offer of 30% was withdrawn after talks broke down.

According to figures provided by the union and company, the average pay for Boeing machinists has risen about 15% over the past decade to $75,000. The cost of living in the US has risen 33% in the same period, according to government inflation data.

Since the strike began, the company has announced plans to cut 17,000 jobs and put some white-collar workers on a furlough plan. It’s changed production, too, further delaying its 777X plane and discontinuing a 767 cargo plane — all measures to cut costs as the company bleeds money.

Boeing’s cash problems have put it on the radar of credit graders Moody’s and S&P. They may downgrade the company to “junk” bond status, which would make borrowing money more expensive.

Resuming negotiations — and concluding them swiftly — is important for the industry because Boeing has about 40% of the airline manufacturing market share.

United Airlines, Alaska Airlines, Emirates, and Ryanair executives have expressed frustrations with Boeing since the start of the year, following a series of production delays and manufacturing issues.