US acting labor secretary to meet with Boeing and union to end rift | Labor Rights Issues

Julie Su’s intervention comes days after Boeing unveiled plans to cut 10 percent of its workforce as labor negotiations stalled.

Acting Secretary of Labor in the United States Julie Su has flown to Seattle to meet with Boeing and the union representing about 33,000 striking workers to bring the two sides back to the negotiating table, Reuters reported, citing an independent source.

His intervention comes days after the planemaker, which is facing a paralyzing strike now in its fifth week, revealed plans to cut 17,000 jobs and take $5bn to cover costs related to problems across its various units.

It is not clear whether Su will meet with Boeing CEO Kelly Ortberg, the source said.

The US Department of Labor confirmed the move on Monday.

“Acting Secretary Su is meeting with both parties today to assess the situation and encourage both sides to move forward in the negotiation process,” the spokesperson said.

Boeing and the International Association of Machinists and Aerospace Workers were not immediately available for comment. A White House spokesman declined to comment.

Shares of the debt-ridden airline fell 3 percent in early trading following the company’s surprise announcement on Friday, which also included new delays for the 777X plane and the end of production of the 767 civil cargo.

Boeing is planning a series of internal meetings this week to lay out the jobs plan, which is likely to rely at least partially on unplanned layoffs to cut costs and prevent the exodus of people whose skills are still in demand, industry sources said.

The latest crisis comes at a time when Boeing’s markets are expanding and many of its competitors are hiring less skilled workers to ease pressure on aviation supply chains.

“The trick is not to lose 10 percent of the people you want to keep, which is more important than usual in a post-pandemic skills shortage environment,” said Agency Partners analyst Nick Cunningham.

Angry customers

The one-year delay in delivery of the 777X to 2026 includes the industry’s widely anticipated delay in post-certification and testing delays. It marks the planned successor to the 777 mini-jumbo entering service six years late.

Emirates Airline president Tim Clark, whose initial order of 150 jets helped launch the world’s largest twin-engine airliner a decade ago, quickly backed down.

“Emirates has had to make significant and costly amendments to our fleet plans due to the shortfall in Boeing’s contract and we will have a serious discussion with them over the next few months,” he said in a rare written statement about the company. delivery delay issue.

Clark also criticized Boeing’s new timetable. Citing the landmark suspension of certification tests and the four-week strike, he said: “I fail to see how Boeing can make any reasonable predictions of delivery dates.”

Emirates is the largest user of the 777 family of jets, a long-haul seller whose early success has been overshadowed by delays to its successor and a crisis plaguing Boeing’s small cash cow 737 over safety and quality issues.

Friday’s announcements include just under $10bn of total funding. Analysts say that will ease near-term pressure, but Boeing will still need to raise cash by the end of the year.

JP Morgan said it would also give Boeing executives dry powder in their battle with the machinists’ union.

Reaching an agreement to end the suspension is important for Boeing, which depends on 737 production for much of its cash.

Ratings agency S&P has warned that Boeing is at risk of losing its investment-grade credit rating.

The union representing striking workers said on Friday the decision to ground the 767 was troubling and dismissed Boeing’s claims about continuing labor negotiations as baseless.