Boeing withdraws offer of 30% wage increase to striking workers

Boeing said it had withdrawn its offer to raise wages for striking workers after negotiations with union representatives stalled.

The aviation giant accused the union of not seriously considering its proposals.

The International Association of Machinists and Aerospace Workers (IAM) union said Boeing was “committed to sticking with the non-negotiated offer,” which it said was rejected by its members.

Last month, Boeing announced its “best and final” offer to workers, which included a 30% raise over four years – less than the 40% sought by the union.

“The union has made non-negotiable demands that go far beyond what can be accepted if we are to remain competitive as a company,” Stephanie Pope, president of Boeing Commercial Airplanes, said in a letter to employees.

“Against this background, further negotiations do not make sense at this point and our offer has been withdrawn.”

But union officials said Boeing was unwilling to negotiate the terms of the plane maker's latest offer.

Negotiators “tried to address several priorities that could have resulted in an offer that we could bring to a vote, but the company was unwilling to go our way,” IAM said in a statement.

More than 30,000 Boeing workers in the northwestern United States went on strike last month after overwhelmingly rejecting a tentative agreement that would provide a 25% wage increase.

The company has suspended the jobs of tens of thousands of employees in response to the strike that halted production of some of its aircraft.

Boeing has said that U.S.-based executives, managers and employees will be asked to take one week of vacation every four weeks while the strike continues.

The company said the impact of the strike would depend on its duration, but analysts expect a prolonged strike could cost the company and its suppliers billions of dollars.

The last strike at Boeing in 2008 lasted about eight weeks.

The stalemate increases the challenges we face Boeing's new CEO Kelly Ortbergwho was appointed in August with the task of turning the business around.

Before the strike, the company was already struggling with historic losses while production had declined as the company responded to concerns about the quality of its manufacturing.