The month-long Boeing Co strike to continue on as the latest talks with federal mediators were not successful, and the plane maker has retracted its proposed 30% pay rise over four years.
“Unfortunately, the union did not seriously consider our proposals. Instead, the union made non-negotiable demands far in excess of what can be accepted if we are to remain competitive as a business,” Boeing said in a statement. “Given that position, further negotiations do not make sense at this point and our offer has been withdrawn.”
A union negotiator representing about 33,000 workers said on Wednesday that union members understand that they are in this ordeal for the long haul, adding that the union has strong funding to support the livelihood of its members with a payout of US$250 per week during the strike period.
Ratings agency S&P estimates the strike is costing the planemaker US$1 billion a month and the company is at risk of credit rating downgrade.
Even before the strike began on Sept 13, the company had been burning cash as it recovered from a mid-air panel blowout crisis in January calling for reexamination of its safety protocols.
The walkout by the US West Coast members of the International Association of Machinists and Aerospace Workers shut production of Boeing’s strong-selling 737-, 767- and 777-series jets, according to Reuters.
Shares of Boeing closed down 3.4% on Wednesday. The stock has lost more than 40% of its value in 2024 as the corporate side is considering options to raise billions of dollars.
