Acting US labour secretary to meet with Boeing and union to end impasse

According to an unnamed source, acting acting labor secretary of the United States, Julie Su has traveled to Seattle to meet with Boeing and the union representing about 33, 000 strikers to nudge both sides to the bargaining table.

Her intervention comes days after the planemaker, which is currently in its fifth week, announced plans to eliminate 17, 000 jobs and take a $5 billion hit to cover costs incurred by issues across its various divisions.

The source added that it was unclear when Su and Kelly Ortberg, the CEO of Boeing, would meet.

On Monday, the US Department of Labor made a decision that was confirmed.

A spokesperson stated that acting secretary Su is meeting with both parties today to discuss the situation and urge them to advance the bargaining process.

The International Association of Machinists and Aerospace Workers did not immediately have the opportunity to comment on Boeing. A representative for the White House made no comment.

Following the company’s surprise after-hours announcement on Friday that included a new delay for the 777X jetliner and the end of civil 767 freighter production, the debt-laden aerospace giant’s stock dropped 3 percent in early trade.

According to industry sources, Boeing will hold a number of internal meetings this week to lay out the jobs plan, which is likely to rely, at least partially, on involuntary cuts to lower costs and stop a population exodus whose skills are still required.

The most recent crisis comes as Boeing’s markets are expanding and its rivals are acquiring scarce labor to ease pressure on the aerospace supply chains.

The key to keeping the 10% of people you want to keep, which is even more crucial in the post-pandemic skill shortage environment, said Agency Partners analyst Nick Cunningham.

Angry clients

Due to certification and testing delays, a deferral is already widely anticipated in the industry due to the one-year delay in 777X deliveries to 2026. It indicates that the 777 mini-jumbo’s anticipated replacement will be in service six years later.

Emirates Airline President Tim Clark, whose initial order for 150 jets helped launch the world’s largest twin-engined jet more than a decade ago, quickly hit back.

Emirates will be having a serious conversation with them over the next few months as a result of Boeing’s numerous contractual shortfalls, he said in a rare written statement regarding the issue of delivery delays.

Clark also poured scorn on Boeing’s new timetable. He criticized Boeing for the suspension of a certification testing milestone and the ongoing four-week-old strike, saying: “I don’t understand how Boeing can make any meaningful forecasts of delivery dates.

Emirates is the biggest user of the long-distance bestseller 777 jet, whose success was hampered by delays for its follow-up and the financial crisis involving Boeing’s smaller 737 due to safety and quality issues.

Friday’s announcements included just over $10bn of gross cash. Analysts said that would ease some near-term pressure, but Boeing would still need to raise money by year-end.

In its fight with the machinists union, JP Morgan said it would also give Boeing’s management some extra dry powder.

Boeing, which has a significant cash flow from 737 production, is dependent on striking a deal to put an end to the stoppage.

Ratings agency S&amp, P has warned that Boeing risks losing its prized investment-grade credit rating.