Boeing has withdrawn a 30% pay offer for striking workers as talks between the company and unions reached a stalemate in the third week of a standoff over pay.
The US planemaker said it had removed its offer that would result in a pay increase by almost a third over four years for 33,000 US staff, with no further negotiations with the International Association of Machinists and Aerospace Workers (IAM) planned.
Boeing and the union held their latest round of negotiations with federal mediators on Monday and Tuesday, but talks collapsed with both parties locked in an acrimonious stalemate showing no signs of being resolved soon, Reuters reported.
“Unfortunately, the union did not seriously consider our proposals,” the Boeing Commercial Airplanes chief executive, Stephanie Pope, said in a note to employees, calling the union’s demands “non-negotiable”. She said: “Further negotiations do not make sense at this point and our offer has been withdrawn.”
The IAM, which is demanding a 40% increase for staff, has accused Boeing of being “hell-bent on standing on the non-negotiated offer” proposed last month.
“‘One day longer, One day stronger’ is more than just a catchphrase. It’s our battle cry that we must all use as we stand together, united and defiant against one of the most powerful companies in the world. Stand strong, brothers and sisters. We are all in this together. Boeing may have started this fight, but the Machinists will finish it,” the union wrote to members.
The industrial action is the latest headache for executives at the aviation company this year, which began when a door panel blew out in mid-air on one of Boeing’s 737 Max 9s, shortly after it took off from Portland, Oregon in January.
Investigations by the US safety regulator later discovered the panel appeared to be missing four key bolts.
In July, Boeing pleaded guilty to a US criminal fraud charge stemming from the crashes of two 737 Max jetliners in 2018 and 2019, which killed 346 people. The plea deal would mean Boeing paying a fine of almost $250m (£191m) and investing $455m in improving safety.
On Tuesday, Boeing faced another safety headache as the Federal Aviation Administration issued safety alerts warning that more than 40 foreign operators could be using Boeing 737 aeroplanes containing rudder components that posed safety risks.
The Aerospace industry veteran Robert “Kelly” Ortberg was announced as Boeing’s new president and chief executive in July, to replace Dave Calhoun in an attempt to turn around the fortunes of the struggling company.
Boeing, which is on the brink of losing its prized investment grade credit rating, has also introduced temporary furloughs for thousands of salaried employees.
The striking union of its west coast factory workers is seeking a 40% pay rise over four years and the restoration of a defined-benefit pension that was taken away in the contract a decade ago. More than 90% of workers voted down an offer of a 25% pay rise over four years before going on strike.
Boeing made an improved offer last month that it described as its “best and final”, which would give workers a 30% increase and restore a performance bonus, but the union said a survey of its members found that was not enough.
Pope, referring to the two days of negotiations this week, said: “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.”
The IAM said the company had “refused to propose any wage increases” or improvements to benefits such as sick leave or pension contributions.
The planemaker is also examining options to raise billions of dollars through a sale of stock and equity-like securities while the factories producing its bestselling 737 Max and its 767 and 777 planes are shut, Reuters reported this week.
Reuters contributed to this report.
