Aerospace business Boeing has withdrawn its previous 30% pay rise offer to striking US staff after being unable to reach an agreement.
The Seattle and Portland-based employees, who work on constructing planes including the 737 Max and 777, are members of the International Association of Machinists and Aerospace Workers union. More than 30,000 took part in strike action, with 95% of those who voted in the ballot rejecting the offer, while 96% were in favour of strike action until a new agreement could be reached.
In a statement issues to its employees, Boeing explained that the strike in the Pacific Northwest has affected its business, customers and communities. It concluded a third round of bargaining with a federal mediator, which included two negotiation days this week, to try to reach a compromise regarding increases in pay and retirement.
The employer stated that it did not feel the union was considering its proposals and that it made “non-negotiable demands far in excess of what can be accepted if we are to remain competitive as a business”.
As a result, it added that further negotiations do not make sense at this point and withdrew the offer.
Stephanie Pope, president and chief executive of Boeing Commercial Airplanes, said: “I want to share my sincere appreciation for all that you are doing for our customers and each other at this challenging time. We understand that the steps we’re taking to preserve cash affect you and your loved ones. We do not take these impacts lightly as we take actions and consider next steps.
“This is a disappointing outcome and not one we wanted. We remain committed to finding a resolution and will work with the union when they are ready to bargain an agreement that recognises our employees and preserves our future. I will provide updates and keep you informed throughout the process.”
The International Association of Machinists and Aerospace Workers Union was contacted for comment prior to publication.
