Boeing stated that it had withdrawn its wage offer to about 33,000 workers at its US plants and did not plan any further negotiations, according to Reuters.
Boeing and the union held the latest round of talks with federal mediators on Monday and Tuesday, but the talks collapsed. The sides remained at an impasse, showing no signs of resolution.
Boeing Commercial Airplanes head Stephanie Pope declared:
Unfortunately, the union did not seriously consider our proposals. Further negotiations do not make sense at this point and our offer has been withdrawn.
It said Boeing was taking steps to preserve money. The company was considering options to raise billions of dollars by selling stock and other securities. Meanwhile, factories producing its best-selling 737 MAX aircraft and 767 and 777 planes remain closed.
The striking West Coast factory workers’ union is seeking a 40% wage increase over four years and the restoration of a defined benefit pension eliminated in the contract a decade ago. More than 90% of workers voted against a proposal for a 25% pay rise over four years before going on strike.
Last month, Boeing made an improved offer that it called “best and final.” The offer would have given workers a 30% raise and reinstated performance bonuses.
Our team bargained in good faith and made new and improved proposals to try to reach a compromise, including increases in take-home pay and retirement.
However, the International Association of Machinists and Aerospace Workers (IAM) union said Boeing was “hell-bent on standing on the unnegotiated offer,” proposed last month.
They refused to propose any wage increases, vacation/sick leave accrual, progression, ratification bonus, or the 401k Match/SCRC Contribution. They also would not reinstate the defined benefit pension.
