Commercial aircraft manufacturer Boeing Co. (BA) has withdrawn a contract offer for 33,000 machinists who have been on strike since September after negotiations between the two sides broke down.
In a news release, Boeing said that continuing collective bargaining “does not make sense at this point” given the fractious state of negotiations.
The machinists have been on strike since Sept. 13 of this year, halting production of most Boeing aircraft.
Management has made several offers to the International Association of Machinists and Aerospace Workers union that have included hefty pay raises, a ratification bonus, and improvements to healthcare benefits.
The union has rejected each contract offer, claiming that the offers from management were not negotiated. The strike is reportedly costing Boeing more than $1 billion U.S. per month.
S&P Global Ratings earlier this week issued a negative outlook for Boeing’s credit rating due to the impacts of the strike on the company’s finances.
Management at Boeing has said that the union’s demands cannot be accepted if the company is to “…remain competitive as a business.”
Boeing’s stock has declined 40% so far this year and is down 60% over the last five years. The company’s shares currently trade at $154.65 U.S.
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