October 10, 2024 – In a move that has escalated tensions, aerospace giant Boeing has withdrawn its wage increase proposal to striking workers, citing a breakdown in negotiations with union representatives. The company has placed blame on the union for not giving due consideration to its offer.
The International Association of Machinists and Aerospace Workers (IAM) responded, stating that Boeing was “fixated on a non-negotiable proposal” that had already been rejected by its membership.
Last month, Boeing announced its “best and final” offer, which included a 30% wage increase over four years. However, this figure fell short of the union’s demand for a 40% raise.
In a letter addressed to employees, Boeing Commercial Airplanes President Stephanie Pope expressed, “The union’s non-negotiable demands far exceed what we can accept as a business to remain competitive. Given this stance, further negotiations are pointless at this time, and our offer has been withdrawn.”
Union representatives countered, alleging that Boeing was unwilling to negotiate the terms of its latest proposal.
The strike, involving over 30,000 Boeing workers in the northwestern United States, was sparked last month after the rejection of a tentative agreement that included a 25% wage increase.
In response to the strike, Boeing has implemented furloughs for tens of thousands of its employees. The company stated that executives, managers, and employees in the U.S. would be required to take one week of unpaid leave every four weeks as long as the strike continues. Boeing indicated that the impact of the strike would depend on its duration, but analysts warned that a prolonged stoppage could cost the company and its suppliers billions of dollars.
It’s worth noting that the last employee strike at Boeing occurred in 2008 and lasted approximately eight weeks.
Prior to the strike, Boeing was already facing historic losses and had slowed production rates due to concerns about manufacturing quality.