“Further negotiations make no sense at this point.” The strike at Boeing has reached an impasse

There are no signs of resolution of the conflict between Boeing and the International Association of Machinists and Aerospace Workers, Reuters reports. The dispute started on September 13 and has been going on for 27 days. It is the result of a breakdown in talks regarding remuneration and other contract terms.

“Unfortunately, the union has not seriously considered our proposals,” Stephanie Pope, head of Boeing Commercial Airplanes, said in a memo to employees, calling the union's demands “non-negotiable.”

The agreement between Boeing and the International Association of Machinists and Aerospace Workers expired on September 12 at 11:59 p.m. According to Reuters, citing estimates from S&P Global Ratings, the monthly cost of the strike is over $1 billion.

Boeing's stock price fell 2.4% on Wednesday, and it has lost more than 40% this year. its value.

The International Associations of Machinists and Aerospace Workers union objected to these claims that the Boeing team “negotiated in good faith and presented new and improved proposals to try to reach a compromise, including net pay increases and pensions“, claiming that Boeing “stubbornly sticks to the unchanged offer” submitted last month, writes Reuters.

“They refused to propose any salary increases, calculation of holiday and sick leave, promotion, bonuses (…). They also did not restore the defined pension,” we read.

The union representing factory workers on the West Coast is demanding a 40 percent wage increase over four years and the restoration of a defined benefit pension that was removed from the contract a decade ago.

At the beginning of September, Boeing announced a preliminary agreement with the union representing nearly 33,000 employees, which was supposed to avoid a strike.

The proposed four-year contract was hailed by the union as the best ever negotiated. As part of the agreement, Boeing committed to building the 737's successor at plants on the Northwest Coast USAalthough the planemaker has not yet shown the new jet.

The terms of the contract with the union included an overall wage increase of 25 percent. within four years, although it is less than 40 percent. wage increase demanded by the International Association of Machinists and Aerospace Workers (IAM) union.

Finally, as Reuters reports, the American aircraft manufacturer withdrew its offer to raise wages for its factory workers, claiming that the trade union did not take the proposal seriously after two days of talks.

Read also: Boeing reached an agreement with trade unionists. 25 percent increase >>>

The strike deepens Boeing's financial and production problems and extends many years of backlog in deliveries to airlines dependent on Boeing, Reuters emphasizes.

Boeing's problems have caused operating losses of $33.3 billion over the past five years, forcing the company into deep debt. It is facing a downgrade of its debt rating to junk bond status, but Holden insists the union can still have a say in the talks.

Despite its problems, Boeing remains a significant force in the American economyand its closure would have far-reaching consequences. The company employs almost 150,000 people. people in the U.S., supporting 1.6 million direct and indirect jobs with more than 9,900 suppliers in all 50 states.

But perhaps more importantly, Boeing is one of only two major suppliers of commercial jets to the aviation industry. It is already struggling with delayed Boeing deliveries that cannot be accelerated until safety and quality issues with the planes are resolved.

Boeing is currently considering raising capital from the market by issuing shares and securities in order to rebuild its endangered rating, writes Reuters.

In addition, the company placed thousands of employees on temporary unpaid leave, and some factories producing the 737 MAX, 767 and 777 aircraft were closed.