Associated Press | Negotiations between Boeing Co. and its striking aircraft workers in
Long Beach, Calif., entered their second day Friday in a federally mediated push
to end a nearly monthlong walkout.

Officials from the Federal Mediation and Conciliation Service convened the talks, which had been at a stalemate since the 1,700 unionized workers who build C-17 military transport aircraft walked out May 11.

The government stepped in “because of the economic impact on the community and region created by the ongoing labor dispute,” according to a letter sent to the parties Wednesday.

Boeing spokeswoman Cindy Anderson said federal mediators had previously given negotiation training to both sides. The latest round of talks started Thursday.

United Aerospace Workers Local 148 is striking over Boeing’s proposal to raise employees’ share of health care coverage from 12 percent to 15 percent starting in 2014, 44 months into the proposed 46-month contract. The union also wants a larger pension increase.

Boeing said the hike in health care contributions is due to inflation and will help the company weather dwindling orders for the C-17.

The company is offering workers a lump sum of $4,000 each, a 3.4 percent raise over the life of the contract, and a hike in the basic pension benefit to $79 per month per year of service, up from $70.

The union notes the company posted a $1.31 billion profit last year and says it can afford better compensation for its workers.

Anderson said the strike so far has not disrupted contracts with suppliers because of the long lead time on orders. About 3,000 non-unionized employees are reporting to work, she said.

Officials say, however, that the labor dispute has affected nearly 700 suppliers employing 30,000 people in 44 states.