After the intense strike, Boeing Company (BA.US) and the union will resume contract negotiations on Wednesday.

The first large-scale strike initiated by employees of Boeing Company (BA.US) in 16 years is set to encounter new developments. Following the failure to reach agreement on key issues such as wages and pensions on Tuesday, the International Association of Machinists and Aerospace Workers stated that Boeing Company and the union will resume contract negotiations on Wednesday with a federal mediator present. Last Friday, union members began their strike in the early hours of the 13th with approximately 33,000 participants. In the first comprehensive contract negotiations with Boeing Company in 16 years, the union has been pushing for a 40% wage increase over the next four years, significantly higher than the 25% wage increase proposal previously rejected by Boeing Company. Following the meeting on Tuesday, the union representing over 30,000 Boeing Company factory workers stated: "After a full day of mediation, we are frustrated that the company is unprepared and unwilling to address the critical issues that have been clearly identified as essential to ending the strike: wages and pensions." "It seems like the company is not taking mediation seriously. With a 96% strike vote, we believe that Boeing Company will eventually understand the demands of IAM 751 Mechanics. We are fighting for justice, for everything we have gained in the past 16 years." Boeing Company and the Federal Mediation and Conciliation Service (FMCS) did not immediately respond to emails seeking comment outside of normal working hours. On Saturday, union leader Jon Holden stated that the priority for union members is a higher wage increase and the restoration of the fixed-benefit pension plan, which IAM lost in the previous negotiations with Boeing Company ten years ago. Holden said: "We have the greatest influence and power in our history at the most appropriate time, and our members want us to use it. I know our members are confident, standing shoulder to shoulder and prepared. So the strike may last for some time." Boeing Company is currently working to address the financial impact of the strike and announced cost-cutting measures in a notice to employees on Monday. Boeing Company stated that with $60 billion in debt already on its balance sheet, an extended strike could further damage its balance sheet, freeze hiring, and consider temporary layoffs to reduce costs. Chief Financial Officer BrianWest said, "This strike is a serious threat to the company's recovery, and we must take necessary action to preserve cash and secure our collective future." It is reported that the strike has halted production of Boeing Company's best-selling 737 MAX jets, as well as the 777 and 767 wide-body aircraft, and delayed deliveries to airlines. The company has also suspended most of its component orders for all Boeing Company aircraft projects except the 787 Dreamliner, which could harm its suppliers.