Boeing withdraws offer to union and suspends strike negotiations

Boeing said on Tuesday it had withdrawn its offer to its largest union and suspended negotiations, while the union charged that the aircraft maker was unwilling to make any improvements to its offer.

The International Association of Machinists, with around 33,000 employees, went on strike on September 13, after 95% of its members voted down the company's previous proposal for a four-year contract.

President of Boeing Commercial Airplanes Stephanie Pope said the strike had "deeply affected" the business, customers and communities.

Three rounds of bargaining had taken place, she said.

"Our team bargained in good faith and made new and improved proposals to try to reach a compromise, including increases in take-home pay and retirement."

However, the union did not seriously consider the proposals, Pope said.

"Instead, the union made non-negotiable demands far in excess of what can be accepted if we are to remain competitive as a business. Given that position, further negotiations do not make sense at this point and our offer has been withdrawn," she said.

"This is a disappointing outcome and not one we wanted. 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."

The union said Boeing's offer from two weeks ago for a 30% increase in income over four years was not enough. The workers had rejected the previous proposal of 25% by an overwhelming majority.

The union entered the negotiations demanding a 40% pay rise over the four-year term of the contract. Boeing workers had accepted several pay freezes over the past decade. Some complained in the US media that aircraft assemblers sometimes earned less than the kitchen staff at a burger restaurant.

The union last went on strike in 2008. That action lasted 57 days and cost the company an estimated $2 billion, according to analysts.