Boeing has officially retracted its pay increase proposal to striking employees following stagnant negotiations with union representatives.
The aerospace leader accused the International Association of Machinists and Aerospace Workers (IAM) of dismissing its offers without serious consideration. IAM representatives claimed Boeing is “adamant on maintaining a non-negotiated offer” that its members have already rejected.
Last month, Boeing revealed its “best and final” proposal, which suggested a 30% wage increase over four years, a figure that falls short of the union’s 40% demand. Boeing Commercial Airplanes President emphasized in a letter that the union’s demands were excessive and unfeasible for maintaining business competitiveness, leading to the withdrawal of the offer.
Union negotiators expressed disappointment, stating they aimed to address critical issues that could lead to a feasible proposal but found Boeing unwilling to compromise.
The strike, initiated by over 30,000 Boeing workers in the northwestern US, began after a previous tentative deal — which included a 25% pay increase — was overwhelmingly rejected. Boeing has since suspended the employment of thousands of staff in response to the ongoing strike that has disrupted production.
The company has implemented a furlough plan where US-based executives, managers, and staff are required to take one week of furlough every four weeks throughout the duration of the strike. Analysts warn that an extended walkout could result in billions of dollars in losses for both Boeing and its suppliers, with historical context noting that the last strike in 2008 lasted approximately eight weeks.
This ongoing labor conflict presents additional obstacles for Boeing’s newly appointed CEO, who has been tasked with revitalizing a company already facing significant financial challenges and production slowdowns due to quality concerns.
