Boeing has withdrawn a pay offer to some 33,000 striking workers, after the latest round of negotiations again ended in stalemate.
The beleaguered airframer and its machinists’ union held talks with federal mediators on 7 October, hoping to end a financially damaging strike that is entering its fourth week.
In a note to employees, Boeing Commercial Airplanes head Stephanie Pope says the International Association of Machinists and Aerospace Workers (IAM) “did not seriously consider our proposals”.
“Instead, the union made non-negotiable demands far in excess of what can be accepted if we are to remain competitive as a business,” says Pope, who is also the company’s chief operating officer .
She confirms Boeing will not negotiate further with the IAM, until the union is “ready to bargain an agreement that recognises our employees and preserves our company’s future”.
Union members walked off the job on 13 September over pay and retirement packages. The strike forced Boeing to halt aircraft production and delivery activities, and other work, in the Pacific Northwest. Boeing’s 737 lines in Renton and 767 and 777 lines in Everett have stopped.
It is also costing Boeing dearly: analysts have estimated Boeing needs about $10 billion in cash and cash equivalents to operate comfortably and that the strike is costing it $1.5-3.0 billion monthly.
Before the strike started, Boeing had offered 25% wage gains. Union leaders approved that proposal but members voted it down by a wide margin.
The airframer raised its offer to a 30% increase, but saw this rejected again.
The IAM is seeking 40% wage gains and a reinstatement of pension benefits. In its latest statement, it claims Boeing was “hell-bent” on its offer, and refused to bargain, which “made it harder to reach an agreement”.
Pope, who says Boeing negotiated “in good faith”, calls the latest breakdown of talks “disappointing”, but says it remains committed to “finding a resolution” to the disputes.
The union says it will be working on a survey “to ask our members where the priorities are”, adding that it is also ready to resume talks with Boeing.
