Topline

Boeing said Tuesday it had withdrawn a pay raise offer to its striking factory workers after negotiations between the two sides failed, extending a major work stoppage that began last month as the plane maker grapples with multiple financial and regulatory problems .

Important facts

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Crucial quote

“Line holding and picketing are more important than ever. “The members are doing their utmost to survive this strike and stand on principle…Boeing may have started this fight, but the machinists will end it,” the union statement continued.

What was Boeing’s last offer?

Late last month, Boeing gave striking factory workers what it said was its “best and final offer,” which called for wage increases totaling 30% over four years – more than the 25% in the company’s first offer, but lower than the union’s demand of 40% – a ratification bonus of $6,000 and the reintroduction of an annual productivity bonus. The IAM accused Boeing of disrespecting “our entire union” by sending the offer directly to workers and media while the union’s negotiating team was reviewing it.

Important background

Last month, Boeing appeared to have managed to avert a strike after reaching a tentative agreement with unions, offering a 25% pay raise over four years and promising to build its next new plane in the Puget Sound area of the US state of Washington. However, on September 12, the union said its members had voted 94.6% to reject a contract offer from the company and 96% to go on strike. The strike has halted production of most of the company’s commercial aircraft and prompted Boeing to furlough its executives, managers and other employees every four weeks for the duration of the strike.

Further reading

Boeing makes “best and last offer” to striking workers – union fights back (Forbes)