By Shivani Tanna and David Shepardson
(Reuters) – Boeing said on Tuesday it had withdrawn its pay offer to about 33,000 U.S. factory workers and no further negotiations were planned with their union representatives as a financially damaging strike nears its fourth week.
Boeing and the union held their final round of negotiations with federal mediators on Monday and Tuesday, but the talks broke down and the sides were left in an acrimonious standoff showing no signs of resolution in the near future, a person briefed said. negotiations.
“Unfortunately, the union has not seriously considered our proposals,” Stephanie Pope, director of Boeing Commercial Airplanes, said in a memo to employees, calling the union’s demands “non-negotiable.”
“Further negotiations do not make sense at this stage and our offer has been withdrawn.”
She noted that Boeing had taken steps to preserve its liquidity.
Reuters reported earlier on Tuesday that the planemaker was studying the possibility of raising billions of dollars through the sale of stocks and related securities, as factories producing its best-selling 737 MAX and its 767 and 777 planes were closed .
The company, which is on the verge of losing its valuable investment-grade credit rating, has also implemented temporary furloughs for thousands of employees.
The striking union of West Coast factory workers is demanding a 40% pay rise over four years and the reinstatement of a defined benefit pension that was removed from the contract ten years ago. More than 90% of workers rejected an offer of a 25% pay rise over four years before going on strike.
Boeing presented an improved offer last month that it called “better and final” that would give workers a 30% raise and restore a performance bonus, but the union said a survey of its members revealed that this was not enough.
Pope, referring to the two days of negotiations this week, said: “Our team negotiated in good faith and made new and improved proposals to try to reach a compromise, including increases in take-home pay and pensions. “
In contrast, the International Association of Machinists and Aerospace Workers union said in a statement that Boeing was “strongly committed to accepting the non-negotiated offer” proposed last month.
“They refused to offer salary increases, vacation/sick leave, progression, a ratification bonus or the 401k Match/SCRC contribution. Nor would they reinstate the defined benefit pension,” he said. he declared.
(Reporting by Shivani Tanna in Bengaluru, David Shephardson in Washington and Joe Brock in Los Angeles; editing by Christian Schmollinger and Jamie Freed)
