Boeing, union negotiators to resume contract talks Wednesday By Reuters

(Reuters) – Boeing and its largest union will resume contract negotiations on Wednesday in the presence of federal mediators after failing to agree on key pay and pension issues on Tuesday, the Machine and Laborers International Association said Aeronautics (IAM).

Boeing (NYSE: ) and the U.S. Federal Mediation and Conciliation Service did not immediately respond to an email seeking comment.

Last week, 94.6 percent of the IAM’s more than 30,000 members, including workers who make Boeing’s best-selling 737 MAX and other planes in the Seattle and Portland areas, rejected Boeing’s offer and 96 percent favored a strike.

The rejected four-year deal included a 25 percent across-the-board pay increase, far less than the 40 percent workers had demanded. Boeing also offered a commitment to build its next commercial jet in the Seattle area.

A prolonged strike could further damage Boeing’s finances, already reeling from a $60 billion debt pile.

Aircraft must generate sufficient cash flow to meet debt payments. A strike would also affect airlines that fly Boeing planes and suppliers that make parts.