Boeing has withdrawn a contract offer that would have given striking workers 30% raises over four years after talks broke down. The aircraft manufacturer stated that it had increased its offer for union workers regarding take-home pay and retirement benefits during two days of negotiations. However, Boeing announced that negotiations do not make sense anymore as the union’s demands were far beyond what the company could accept to remain competitive.
In response to Boeing’s latest offer, the union conducted a survey among its members, who overwhelmingly rejected the proposal. The International Association of Machinists and Aerospace Workers District 751 expressed disappointment, stating that the company was not willing to move in their direction during negotiations. The union had previously criticised Boeing for publicising its offer to the 33,000 striking workers before bargaining with union negotiators.
The initial proposal, which included 25% raises, was turned down when workers went on strike on September 13. The union had originally requested a 40% increase over three years. Boeing projected that average annual pay for machinists would escalate from $75,608 to $111,155 by the end of the four-year contract. The union represents factory workers involved in assembling some of Boeing’s popular aircraft models.
Meanwhile, the strike continues as Boeing grapples with various other challenges, including the suspension of production for 737s, 777s, and 767s. Work on 787s is ongoing with non-union workers in South Carolina. Boeing Co.’s shares, headquartered in Arlington, Virginia, saw a decline of nearly 2% before the market opened on Wednesday and have fallen by 41% throughout the year.