Boeing Withdraws Offer to Union and Suspends Negotiations Amid Strike

Boeing Co has announced that it has withdrawn its offer to the International Association of Machinists and Aerospace Workers and has halted negotiations with the union following a nearly month-long strike.

The aerospace manufacturer stated that the union’s demands were “non-negotiable” and that continuing discussions was no longer viable. Previously, Boeing had proposed a 30% wage increase along with improved retirement benefits.

The breakdown in negotiations occurred after two days of discussions facilitated by a federal mediator, diminishing any hopes of resolving the strike that is impacting the company’s operations in the Pacific Northwest, particularly in Washington.

This significant strike, which started in mid-September, involves 33,000 members of the IAM who have suspended work in pursuit of enhanced wages and benefits.

As a result of the strike, Boeing is reportedly experiencing significant financial difficulties and is contemplating raising at least $10 billion through new stock sales.

Chief Operating Officer Stephanie Pope remarked that the company is taking measures “to preserve cash” and that the strike has “deeply affected” its business operations.

Additionally, Boeing could face a downgrade in its credit rating. S&P Global Ratings indicated that it is evaluating a downgrade to junk status due to concerns about cash flow, while Moody’s had also mentioned reviewing the company’s investment-grade status last month.