REUTERS/David Ryder
Talks between Boeing and union leaders have broken down two days after restarting.
Some 33,000 members of the International Association of Machinists and Aerospace Workers have been on strike since September 13.
The first offer of a 25% pay rise was overwhelmingly rejected, while the union criticized Boeing for sending its second offer to the media and not negotiating with union leaders.
"The company was hell-bent on standing on the non-negotiated offer," the union negotiating committee for IAM District 751 said on Tuesday.
Boeing withdrew its offer after negotiations collapsed, the CEO of its commercial airplanes divison, Stephanie Pope, said in a message to employees.
"The union made non-negotiable demands far in excess of what can be accepted if we are to remain competitive as a business," she said.
Boeing had offered a 30% pay rise, a contract signing bonus of $6,000, and a commitment to building the next airplane in the Seattle area if that begins in the next four years.
Pope said that Boeing proposed increases in take-home pay and retirement, but accused the union of not "seriously" considering this.
However, IAM District 751 said Boeing "refused to propose any wage increases, vacation/sick leave accrual, progression, ratification bonus, or the 401(k) Match/SCRC Contribution."
It has called for a 40% pay rise over four years and the reinstatement of the traditional benefit pension plan, which was replaced with a 401(k) in 2014 negotiations.
Boeing could be losing about $50 million a day due to the strike, according to an estimate from Ron Epstein, a Bank of America analyst.
"The strike in the Pacific Northwest has deeply affected our business, our customers, and our communities," Pope told employees Tuesday.
"We understand that the steps we're taking to preserve cash affect you and your loved ones. We do not take these impacts lightly as we take actions and consider next steps."
Jon Ostrower, editor in chief of The Air Current, said on X post that for Boeing, "next steps" has historically referred to layoffs.
Boeing is trying to save money during the strike by barring executives from flying business class and asking some staff to take one week of furlough every month.
Asked for comment on talks breaking down, a Boeing spokesperson referred to Pope's message to employees.
"We remain committed to finding a resolution and will work with the union when they are ready to bargain an agreement that recognizes our employees and preserves our company's future," Pope said.
The IAM District 751 negotiating committee also said it "remains ready to continue mediated or direct talks."
The negotiation stalemate marks another challenge for the embattled planemaker and its CEO, Kelly Ortberg, who took two months ago.
He has also had to contend with supply-chain constraints, certification delays, and the fallout from January's Alaska Airlines blowout.
S&P Global Ratings may also downgrade Boeing's bonds to "junk" status because of the company's mounting financial issues.
Do you work at Boeing? Reach out to this reporter at psyme@businessinsider.com
