Aviation Boeing withdraws offer to striking workers

After an inconclusive round of negotiations, Boeing has withdrawn its offer to its striking workers. The IAM union had made demands that Boeing could not accept without losing competitiveness.

This was stated by the head of the commercial aircraft business, Stephanie Pope. Therefore, further talks are currently pointless from the company's point of view.

The union, for its part, pointed out that the aircraft manufacturer had not been prepared to make any improvements to the two-week-old offer. Among other things, Boeing had proposed an increase in income of 30 percent over four years.

The workers had previously rejected the previous proposal of 25 percent by an overwhelming majority. In the view of the union leadership, the subsequent concession did not go far enough.

40 percent wage increase demanded

The union entered the negotiations with the demand for a 40 percent increase in wages over the four-year term of the contract. Boeing workers had accepted several zero wage increases over the past decade. Some complained in the US media that as an aircraft assembler you sometimes earn less than in the kitchen of a burger restaurant.

Boeing's largest union, the IAM, with around 33,000 employees, went on strike in mid-September. The work stoppage affects Boeing production around Seattle in the north-west of the USA, where the best-selling 737 model and the long-haul 777 jet, among others, are built. Boeing is already behind schedule with deliveries to many airlines, particularly for the 737.

Boeing's response to the strike included a hiring freeze. In addition, employees were placed on leave and business trips were reduced to a minimum.

The union last went on strike in 2008. The strike lasted 57 days and cost the company around two billion dollars, according to analysts' estimates.

SDA