As the Boeing machinist strike continues, the American OEM has withdrawn its "best and final offer", it said on October 8, 2024.
In a message to employees from Boeing Commercial Aircraft CEO and chief operating officer of The Boeing Company Stephanie Pope said negotiators "did not seriously consider" the proposal set out by Boeing and was a "disappointing outcome".
"The union made non-negotiable demands far in excess of what can be accepted if we are to remain competitive as a business," continued Pope. "Given that position, further negotiations do not make sense at this point and our offer has been withdrawn."
Boeing has made consecutive annual net losses since 2019. It recorded annual net earnings of $10.4bn in 2018.
The company had concluded a third round of bargaining with a federal mediator, which included two days of negotiations during this week.
"The company was hell-bent on standing on the non-negotiated offer that was sent directly to the media on September 23, 2024," the union said in a post on X, formerly Twitter.
The union representing striking Boeing machinist workers in Washington had said it “will not be voting” on the newly offered contract from Boeing made on September 23, 2024.
The International Association of Machinists (IAM) District 751 & W24, representing workers in the Seattle and Portland area, said the offer was “thrown at us without any discussion”, accusing the OEM of trying to “bypass” negotiations.
The new offer bumped up general wage increases from 25% up to 30% for the length of the contract, edging closer to the initial demand for a 40% wage increase. The new offer also offered an immediate 12% increase, following by increments of 6% increases annually. The original tentative agreement included an immediate 11% wage increase.
Around 33,000 workers had rejected the offer, despite the union urging them to accept. They then voted in favour of strike action, walking out early morning on September 13, 2024.
Pope said the Pacific Northwest strike has "deeply affected" the business as well as its customers.
Bank of America analyst Ronald Epstein estimated in a report on October 2, 2024, that the strike is costing the company around $50 million per day. It if stretches to the month mark, the strike could cost Boeing around $1bn, Epstein added. Furthermore, the analyst forecast the company to raise around $10-12bn by the end of the year.
Pope said the company remains "committed to finding a resolution" and will continue to work with the union "when they are ready to bargain an agreement that recognises our employees and preserves our company's future".
However, the union seems unrelenting in its mission. It urged workers to "stand strong", stating that Boeing "may have started this fight" but promised the union and the striking workers "will finish it".