Boeing has withdrawn its pay increase offer to striking workers after reaching a deadlock in negotiations with union representatives.
The aerospace giant accused the International Association of Machinists and Aerospace Workers (IAM) of not seriously considering its proposals, reports the BBC.
IAM countered that Boeing was adamant about sticking to its "non-negotiated offer", which was rejected by IAM union members. Last month, Boeing presented what it called its "best and final" offer, which proposed a 30% pay rise over four years, falling short of the union’s demand for 40%.
Boeing Commercial Airplanes President, Stephanie Pope, addressed the situation in a letter to employees. "The union made non-negotiable demands far in excess of what can be accepted if we are to remain competitive as a business. Given that position, further negotiations do not make sense at this point and our offer has been withdrawn."
However, the union insisted that Boeing was unwilling to engage in meaningful negotiations. In a statement, IAM said: "Negotiators attempted to address multiple priorities that could have led to an offer we could bring to a vote, but the company wasn’t willing to move in our direction."
The strike, which began last month, involves over 30 000 Boeing workers in the US northwest who overwhelmingly rejected a tentative agreement that included a 25% pay raise. Boeing has responded by suspending the jobs of tens of thousands of workers and halting the production of several aircraft models, as reported by Travel News.
While the company has acknowledged that the strike's impact will depend on its length, analysts suggest that a prolonged work stoppage could cost Boeing and its suppliers billions of dollars.
This ongoing stand-off presents yet another challenge for Boeing's recently appointed CEO, Kelly Ortberg, who took over in August amidst production slowdowns and historic financial losses.
