Boeing withdrew a contract offer for 33,000 machinists who had been on strike since mid-September, saying further negotiations “do not make sense at this time.”
The machinists left their jobs on Sept. 13 after overwhelmingly rejecting a tentative labor contract and halting production of most Boeing aircraft manufactured within the Puget Sound region. Boeing later softened the offer, increasing pay raises, a ratification bonus and other improvements, which the union rejected, saying it had not been negotiated.
Talks failed again this week, meaning the strike will proceed. The shutdown will cost Boeing greater than $1 billion a month, S&P Global Ratings said Tuesday, issuing a negative outlook for the aerospace giant's credit standing.
Stephanie Pope, CEO of Boeing's industrial aircraft division, said the corporate improved contract wages during talks this week but that the union didn’t consider the proposals.
“Instead, the union made non-negotiable demands that went far beyond what can be accepted if we are to remain competitive as a company,” Pope said in a staff memo.
The union, the International Association of Machinists and Aerospace Workers, said Tuesday that Boeing has refused to enhance wages, pension plans and vacation or sick leave.
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