Julie Su’s intervention comes days after Boeing unveiled plans to cut 10 percent of its workforce as labour negotiations came to a halt.
United States Acting Labor Secretary Julie Su has flown to Seattle to meet with Boeing and the union representing about 33,000 striking workers to nudge both sides back to the bargaining table, Reuters news agency has reported, citing an unnamed source.
Her intervention comes days after the planemaker, dealing with a crippling strike now in its fifth week, unveiled plans to cut 17,000 jobs and take a $5bn hit to cover costs related to problems across its various units.
It was not immediately clear whether Su would meet with Boeing CEO Kelly Ortberg, the source added.
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 parties to move forward in the bargaining process,” a spokesperson said.
Boeing and the International Association of Machinists and Aerospace Workers were not immediately available for comment. A White House spokesperson declined to comment.
Shares in the debt-laden aerospace giant fell 3 percent in early trade following the company’s surprise after-hours announcement on Friday, which also included a new delay to the 777X jetliner and the ending of civil 767 freighter production.
Boeing plans a series of internal meetings this week to lay out the jobs plan, which is likely to rely at least partially on involuntary cuts to curb costs and prevent an exodus of people whose skills are still needed, industry sources said.
The latest crisis comes at a time when Boeing’s markets are growing and many of its rivals are scooping up scarce labour to relieve pressure on aerospace supply chains.
“The trick will be not losing the 10 percent of people you want to keep, which is even more important than usual in the post-pandemic skill shortage environment,” said Agency Partners analyst Nick Cunningham.
Angry clients
The delay of one year in 777X deliveries to 2026 enshrines a deferral already widely anticipated in the industry after certification and testing delays. It points to the planned successor to the 777 mini-jumbo entering service six years late.
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 has had to make significant and highly expensive amendments to our fleet programmes as a result of Boeing’s multiple contractual shortfalls and we will be having a serious conversation with them over the next couple of months,” he said in a rare written statement on the issue of delivery delays.
Clark also poured scorn on Boeing’s new timetable. Citing the suspension of a certification testing milestone and the ongoing four-week-old strike, he said: “I fail to see how Boeing can make any meaningful forecasts of delivery dates.”
Emirates is the largest user of the 777 jet family, a long-distance best-seller whose original success has been clouded by delays to its successor and the crisis engulfing Boeing’s smaller 737 cash cow over 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.
JP Morgan said it would also give Boeing’s management a bit more dry powder in its battle with the machinists union.
Reaching a deal to end the stoppage is critical for Boeing, which depends on the 737 production for much of its cash.
Ratings agency S&P has warned that Boeing risks losing its prized investment-grade credit rating.
The union representing striking workers said on Friday that the decision to halt the 767 freighter was troubling and dismissed Boeing’s claims about the conduct of labour talks as groundless.
