DOT’s Buttigieg says he’s optimistic about Boeing strike resolution

Pete Buttigieg, secretary of the U.S. Department of Transportation, on Thursday said he believes Boeing (NYSE:BA) and union members want to reach an agreement in their dispute over a new labor contract.

About 30,000 members of the International Association of Machinists and Aerospace Workers last week voted against a proposed labor contract and went on strike. The work-stoppage halted production of Boeing’s (BA) 737 Max narrowbody jets, and of its 777 and 767 widebody planes.

“I do believe that both parties want to get to a resolution here, and hoping to see one that makes sense for the workers and it works for a company that really needs to find its way forward on so many fronts,” Buttigieg said in an interview on cable channel CNBC. Airlines and the Biden administration are closely watching the situation, he said.

Boeing (BA) on Wednesday announced temporary layoffs for some U.S. executives and other employees to help conserve cash.

Boeing (BA) management and representatives for the union met on Wednesday in the presence of a federal mediator, and didn’t come to an agreement.

“Throughout the day, we conveyed the priorities of our members to the company via the mediator,” the union chapter said on its website. “Unfortunately, mediation concluded today without reaching any resolution….While we remain open to further discussions, whether directly or through mediation, currently, there are no additional dates scheduled.”