BENGALURU – Boeing said on Oct 8 that it had withdrawn its pay offer to around 33,000 US factory workers and no further negotiations were planned with their union representatives as a financially damaging strike nears its fourth week.
Boeing and the union held their latest round of negotiations with federal mediators on Oct 7 and 8. But talks collapsed and the sides were left locked in an acrimonious stalemate showing no signs of being resolved anytime soon, a person briefed on the talks said.
“Unfortunately, the union did not seriously consider our proposals,” Boeing Commercial Airplanes head Stephanie Pope said in a note to the employees, calling the union’s demands “non-negotiable”.
“Further negotiations do not make sense at this point and our offer has been withdrawn.”
She noted Boeing had been taking steps to preserve cash.
Reuters reported on Oct 8 that the company is examining options to raise billions of dollars through a sale of stock and equity-like securities while the factories producing its best-selling 737 Max as well as 767 and 777 planes are shut.
Boeing, which is on the brink of losing its prized investment grade credit rating, has also introduced temporary furloughs for thousands of salaried employees.
The striking union of its West Coast factory workers is seeking a 40 per cent pay rise over four years and restoration of a defined-benefit pension that was taken away in the contract a decade ago.
More than 90 per cent of workers voted down an offer of a 25 per cent pay rise over four years before going on strike.
Boeing made an improved offer last month that it described as its “best and final”, which would give workers a 30 per cent raise and restore a performance bonus.
But the union said a survey of its members found that
