STORY: The crippling strike at Boeing, now in its fifth week, has prompted an intervention by U.S. Acting Labor Secretary Julie Su.
That’s according to a source familiar with the matter, who said on Monday that the Biden cabinet member has flown to Seattle in an effort to nudge Boeing executives and the union representing roughly 33,000 striking machinists back to the bargaining table.
The Labor Department confirmed her visit.
Her intervention comes after the planemaker late Friday made the surprise announcement that it was cutting 17,000 jobs and taking $5 billion in charges.
It also made significant production changes, most notably delaying the delivery of its 777X jetliner by one year, to 2026.
The plane, which has undergone certification and testing delays, will now enter service a total of six years late.
That provoked the ire of at least one major airline executive.
Emirates Airline President Tim Clark, who placed an initial order of 150 of the 777X planes, issued a rare written statement regarding the delay.
Clark said that Emirates (quote) “has had to make significant and highly expensive amendments to our fleet programs 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 also derided Boeing’s new timetable, citing both the strike and certification snafus, by adding (quote), “I fail to see how Boeing can make any meaningful forecasts of delivery dates.”
Boeing and the striking union of the International Association of Machinists and Aerospace Workers were not immediately available for comment.
Shares of Boeing traded lower on Monday.
