Boeing Withdraws Offer to Union Amid Strike

Investing.com– Boeing Co (NYSE:BA) on Tuesday announced it has withdrawn its offer to the International Association of Machinists and Aerospace Workers (IAM) and suspended negotiations with the union following a nearly month-long strike.

The planemaker stated that the union made "non-negotiable" demands, and further negotiations no longer appeared feasible. Previously, Boeing had offered a 30% wage increase and enhanced retirement benefits.

This breakdown in discussions occurred after two days with a federal mediator and diminishes any hopes of resolving the strike affecting Boeing’s northwest operations, particularly in Washington.

The current strike, which began in mid-September, is Boeing's first significant labor disruption in 16 years, initiated by the IAM’s 33,000 members over demands for better wages and benefits.

Due to the strike, the company is reportedly losing cash and is contemplating the sale of at least $10 billion in new stock.

Chief Operating Officer Stephanie Pope stated that the airplane manufacturer is taking actions to "preserve cash" and acknowledged that the strike has "deeply affected (its) business."

Additionally, Boeing may face a downgrade in its credit rating. S&P Global Ratings mentioned on Monday that it is considering downgrading Boeing to junk status due to cash concerns. Similarly, Moody’s indicated last month that it was reviewing the company's investment-grade rating.