Acting Labor Secretary visits Seattle in bid to end strike at Boeing

U.S. Acting Labor Secretary Julie Su traveled to Seattle to meet with Boeing (NYSE:BA) and the union representing about 33,000 striking workers, Reuters reported Monday, citing a person familiar with the matter.

Su will seek to bring Boeing (BA) management and union negotiators back to the bargaining table as the strike enters its fifth week.

The visit comes days after Boeing (BA) said it would cut 17,000 jobs and book $5 billion in charges amid efforts to keep its credit rating above junk status. A lower credit rating has the potential to raise its borrowing costs or to limit its access to capital.

It wasn’t known if Su would meet with Boeing (BA) Chief Executive Kelly Ortberg, Reuters reported. The Labor Department confirmed that Su was meeting with both sides in the labor talks to urge them to resolve their differences.

Su has been acting Labor secretary since February 2023 after the U.S. Senate failed to muster enough votes to confirm her. A civil rights lawyer and former head of California’s labor department, Su has participated in labor deals with West Coast dockworkers, and between freight rail companies and rail workers.

“The strike will eventually end, and the question becomes, ‘what does Boeing (BA) look like after the strike?'”‘ Ronald Epstein, analyst at Bank of America, said in an October 13 report. “Not only do we expect Boeing’s costs to rise (pressuring 737 margins), but we also expect more delivery delays, which would limit its ability to seek any reprieve from customers.”