Boeing has announced the withdrawal of its pay proposal to approximately 33,000 factory workers amid an ongoing strike that is now nearing its fourth week.
The decision comes after the latest negotiations with federal mediators failed to yield any results.
The latest round of discussions took place on Monday and Tuesday but ended without any agreement, leaving both Boeing and the International Association of Machinists and Aerospace Workers (IAM) in a contentious stalemate. Boeing Commercial Airplanes head Stephanie Pope expressed disappointment, stating in a note to employees that the union did not seriously consider Boeing’s proposals, which she described as non-negotiable. Consequently, she indicated that further negotiations are not planned.
Boeing has been exploring various options to raise billions of dollars through potential stock sales while facing significant financial pressures. The company is currently losing an estimated $100 million daily due to the strike, which has led to the closure of key manufacturing facilities for its 737 MAX, 767, and 777 aircraft.
The union is demanding a 40% wage increase over the next four years and the reinstatement of a defined-benefit pension plan eliminated in a previous contract. Prior to the strike, more than 90% of the union members rejected a Boeing offer of a 25% wage increase over four years.
Last month, Boeing proposed what it termed its “best and final” offer, which included a 30% pay raise and the reinstatement of a performance bonus. However, the union indicated that this proposal was insufficient based on member feedback.
In the wake of the ongoing strike and subsequent financial strain, Boeing has also implemented temporary furloughs for thousands of salaried employees. The company’s challenges are compounded by recent safety alerts issued by the Federal Aviation Administration regarding potential risks associated with certain Boeing aircraft, further complicating the company’s operational landscape.
With input from Reuters, Bloomberg, and the Giardian.
