For 33,000 machinists who have been on strike since mid-September, Boeing withdrew a contract offer and stated that further talks “do not make sense at this point.”
After decisively rejecting a preliminary labor agreement, the machinists went on strike on September 13, which put an end to production of the majority of Boeing’s aircraft, which are produced in the Puget Sound region. The union rejected Boeing’s later sweetening of the offer, claiming it was not bargained, and Boeing increased wage increases, a ratification bonus, and other benefits.
This week, negotiations went down once more, so the strike will go on. S&P Global Ratings stated on Tuesday that the delay will cost Boeing more than $1 billion monthly and that the company’s credit ratings are expected to decline.
The commercial aircraft division CEO of Boeing, Stephanie Pope, stated that during this week’s negotiations, the firm increased contract compensation; nevertheless, she added that the union rejected the proposals.
Pope said in a staff letter, “Instead, the union made non-negotiable demands far in excess of what can be accepted if we are to remain competitive as a business.”
The International Association of Machinists and Aerospace Workers, the union representing the workforce, claimed on Tuesday that Boeing has resisted changes to pay, benefits, and sick or vacation time.
