(Bloomberg) — Acting US Labor Secretary Julie Su is in Seattle to help Boeing Co. and the union representing 33,000 striking factory workers resolve a crippling five-week strike that has shown little sign of ending.
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Both sides are “actively engaged in indirect discussions” facilitated by the top US labor official, the International Association of Machinists and Aerospace Workers district representing Boeing’s workers said in a Friday statement. The Labor Department separately said Su has met with the union and Kelly Ortberg, the embattled planemaker’s chief executive officer, and has been in touch with both sides multiple times.
The latest development underscores the attention that the contentious dispute has garnered in Washington, DC, with the US presidential election just weeks away. Su returned to Seattle for a second time this week after earlier urging both sides to move forward in the bargaining process. Multiple Democratic lawmakers have also visited the picket lines to show support for striking workers.
“As part of our responsibility to seek a fair resolution, we are fully committed to these talks,” IAM District 751 said on its website.
Boeing didn’t immediately comment.
Pressure is mounting on Boeing, its suppliers and workers as the strike drags on, with little progress since formal negotiations collapsed more than a week ago. The work stoppage stretches along the West Coast and has forced Boeing to shut down assembly lines for its 767 and 777 aircraft as well as the cash-cow 737 Max.
The strike by the Machinists is the first major labor strife at Boeing in 16 years. While hourly workers are pushing for large pay increases and better retirement benefits, they’re driven by resentment over paltry wage increases over the past decade while senior executives were richly rewarded.
The planemaker is moving forward with plans to cut 10% of its workforce, the first step toward a broader realignment of its businesses under Ortberg. The pain is also starting to ripple through Boeing’s supply chain, with Spirit AeroSystems Holdings Inc. announcing it would furlough 700 workers building components for the 767 and 777 programs.
Boeing has also taken initial steps to raise as much as $25 billion in capital over the next three years to shore up its operations and maintain its investment-grade credit rating.
Boeing’s shares were little changed in after-hours trading on Friday. The stock has declined roughly 40% this year, the second-worst performance in the Dow Jones Industrial Average.
–With assistance from Josh Eidelson.
(Updates with shares, DOL comment and context from second paragraph.)
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