Boeing set to meet with union reps, mediators on strike talks

Boeing (NYSE:BA) executives are set to meet on Tuesday with representatives from its biggest labor union and federal mediators as the aviation giant seeks to end a costly strike. The talks are considered preliminary, Reuters reported, citing a person familiar with the matter.

The strike started on Friday after workers at Boeing’s (BA) factories in the Seattle and Portland areas voted against their first full contract in 16 years. The proposed deal would have raised pay by 25% over four years while also removing a yearly performance bonus.

Boeing (BA) and representatives for the International Association of Machinists and Aerospace Workers union aren’t expected to discuss the details of a new offer at Tuesday’s meeting. Instead, they set out the rules for future talks, Reuters reported.

The strike has brought production of new 737, 777 and 767 jets to a halt, forcing Boeing (BA) to take steps to conserve cash. The ultimate effect on Boeing’s (BA) finances will vary by the length of the strike, reducing cash flow by as much as $8 billion, according to analysts at financial-services firm UBS.

The strike has left Boeing (BA) shareholders to speculate about how the strike will affect the company’s stock value. Several analysts said the 2008 strike by machinists that lasted eight weeks may offer some idea of what to expect.