Boeing has announced that it has retracted its pay raise offer to striking workers after negotiations with union representatives stalled.
The aerospace giant accused the union of failing to seriously consider its proposals.
The International Association of Machinists and Aerospace Workers (IAM) responded, stating that Boeing was “determined to uphold the non-negotiated offer,” which the union claims was rejected by its members.
Last month, Boeing presented what it termed its “best and final” offer, proposing a 30% pay increase over four years, which is less than the 40% sought by the union.
“The union made non-negotiable demands far in excess of what can be accepted if we are to remain competitive as a business,” Boeing Commercial Airplanes President Stephanie Pope said in a letter sent to employees.
“Given that position, further negotiations do not make sense at this point and our offer has been withdrawn.”
Union representatives stated that Boeing was unwilling to negotiate the terms of the latest offer made by the aircraft manufacturer.
Negotiators attempted to address several priorities that could have led to a voteable offer, but the IAM noted that “the company wasn’t willing to move in our direction.”
Last month, over 30,000 Boeing workers in the northwest United States went on strike after overwhelmingly rejecting a tentative agreement that included a 25% pay increase.
In response to the strike, which has halted production of some aircraft, Boeing has suspended the jobs of tens of thousands of employees.
The company announced that U.S.-based executives, managers, and staff would be required to take one week of furlough every four weeks for the duration of the strike.
Boeing indicated that the impact of the strike would depend on how long it lasts, but analysts warn that a prolonged stoppage could cost the company and its suppliers billions of dollars.
The last strike at Boeing in 2008 lasted approximately eight weeks.
This standoff adds to the challenges faced by Boeing’s new CEO, Kelly Ortberg, who was appointed in August with the goal of revitalizing the business.
Prior to the strike, the company was already grappling with historic losses and had slowed production in response to concerns about manufacturing quality.