Boeing says it has withdrawn its proposal to increase wages for striking workers after negotiations with union representatives reached an impasse.
The airline giant has accused the union of not considering its proposals.
The International Association of Machinists and Aerospace Workers Union (IAM) said Boeing was “determined to stand by the non-negotiable offer” it says was rejected by its members.
Last month, Boeing announced what it called its “best and final” offer to workers, which proposed a 30% raise over four years – less than the 40% the union is seeking.
“The union is making non-negotiable demands that are beyond what is acceptable if we want to remain competitive as a business,” said Boeing Commercial Airplanes President Stephanie Pope in a letter sent to employees.
“Given that position, further negotiations do not make sense at this time and our request has been withdrawn.”
But union representatives say Boeing is unwilling to negotiate the terms of the plane maker’s latest proposal.
Negotiators “tried to address a number of important issues that could lead to a proposal that we could bring to a vote, but the company was unwilling to move forward,” the IAM statement said.
More than 30,000 Boeing workers in the northwest US went on strike last month after strongly rejecting a deal that included a 25% pay increase.
In response to the outage that has halted production of some of its aircraft, the company has laid off tens of thousands of workers.
Boeing said managers, executives and workers based in the US will be asked to take one week off every four weeks for as long as the strike continues.
The company said the impact of the strike will depend on its duration, but analysts say a temporary suspension could cost the company and its suppliers billions of dollars.
The last strike at Boeing in 2008 lasted about eight weeks.
The stand-off adds to the challenges they face New Boeing CEO Kelly Ortbergwho was appointed in August with the intention of transforming the business.
Prior to the exit, the company was already experiencing historic losses, and production had declined as the company responded to concerns about the quality of its production.
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