Boeing and its largest union resumed contract talks on Monday in a bid to reach a deal to end the strike of about 33,000 U.S. West Coast plant workers after a 25-day strike. Despite a full day of talks in front of federal mediators, the International Association of Machinists and Aviation Workers said no meaningful progress had been made and planned to continue negotiations on Tuesday. Boeing also confirmed that mediation will continue.
The union is seeking a 40% pay rise over four years and the restoration of defined benefit pensions lost a decade ago. Boeing's "best and last" proposal last month included a 30% pay increase and reinstatement of performance bonuses for workers, but the union said it was not enough.
The strike has disrupted production of Boeing's best-selling 737 MAX jet and its 777 and 767 wide-body aircraft. The 737 MAX is a key revenue source for Boeing, especially as the company's defense business has lower profit margins.
Boeing also faces legal and financial pressure stemming from the 737 Max crashes, including upcoming hearings in October and its defense of a criminal plea agreement with the U.S. Department of Justice.
In response, Boeing this year pleaded guilty to criminal conspiracy in connection with two fatal crashes in 2018 and 2019 and agreed to spend at least $455 million to strengthen its compliance and safety programs.
In addition, the company faces at least $243.6 million in fines, the amount it paid under a 2021 deferred prosecution agreement that prosecutors later ruled was violated. The labor dispute therefore puts additional pressure on Boeing, which already faces significant challenges.