Boeing has withdrawn its latest pay offer to approximately 33,000 U.S. factory workers as a strike that has severely impacted production enters its fourth week. The aerospace giant announced that no further negotiations were planned with union representatives after the most recent talks, facilitated by federal mediators, broke down. The collapse has left both sides at an impasse, with little hope for a resolution in the near future.
Stephanie Pope, head of Boeing Commercial Airplanes, stated in a message to employees that the union had not taken the company’s proposals seriously and called the union’s demands “non-negotiable.” She added that further talks would be futile, prompting Boeing to withdraw its offer entirely. “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,” Pope said. Boeing has also been focused on cash preservation efforts as the strike’s financial impact mounts.
The company is reportedly exploring options to raise billions of dollars through stock sales and equity-like securities as production halts at key facilities. These include factories responsible for producing the 737 MAX, 767, and 777 planes. Boeing, now on the verge of losing its investment-grade credit rating, has also introduced temporary furloughs for thousands of salaried employees.
The West Coast factory workers’ union is pushing for a 40% pay increase over the next four years, along with the reinstatement of a defined-benefit pension plan that was removed a decade ago. Last month, more than 90% of union members rejected an offer that included a 25% pay raise over four years. Boeing subsequently improved the offer to a 30% raise and the restoration of a performance bonus, which the company labeled as its “best and final” offer. However, a union survey found this was still insufficient.
In a statement, the International Association of Machinists and Aerospace Workers union expressed frustration, accusing Boeing of being unwilling to negotiate. The union criticized the company for refusing to address key demands, such as wage increases, vacation and sick leave accrual, and reinstating the defined-benefit pension.
With both sides entrenched and Boeing focused on cash-saving measures, the strike continues with no resolution in sight.