Boeing, Union held talks with Federal mediator: report

(Reuters) - U.S. aircraft maker Boeing Co (BA.N) and its striking machinists union held talks over the weekend with the assistance of a federal mediator, The Wall Street Journal said.

Both sides agreed to keep the details of the talks secret, the paper said.

A person familiar with the situation told the paper that the two sides were "showing signs of making progress," but they remained apart on some key issues, making quick progress on a new three-year agreement uncertain.

Production at Boeing's Seattle-area factories has been suspended since September 6 when 27,000 workers represented by the International Association of Machinists and Aerospace Workers walked off the job with a key issue being the plane maker's plan to outsource production of many components.

Federal mediators shuttled between the parties as they attempted to work through a number of issues, including language that would balance the company's insistence on having the final say on manufacturing decisions while giving the union more of a say in what types of work can be outsourced, the paper said citing people familiar with the situation.

Spokespersons for Boeing and the IAM could not be immediately reached for comment by Reuters.

(Reporting by Ajay Kamalakaran in Bangalore)