“The union has made non-negotiable demands far beyond what we can accept to remain competitive as a company,” Stephanie Pope, president of Boeing Commercial Airplanes, said in a letter to employees.
“Given that position, further negotiations are meaningless at this point and our offer has been withdrawn.”
But union leaders say Boeing is not willing to negotiate on the terms of the planemaker’s latest offer.
“Negotiators attempted to address a number of priorities that could lead to a proposal that we could put to a vote, but the company was unwilling to move in our direction,” IAM said in a statement.
More than 30,000 Boeing employees in the northwest US went on strike last month after overwhelmingly rejecting a tentative agreement that included a 25% wage increase.
In response to the strike, which halted production of some aircraft, the company put tens of thousands of employees off work.
Boeing said it would require U.S.-based executives, managers and employees to take one week of vacation every four weeks while the strike continues.
The company said the impact of the strike would depend on its duration, but analysts say an extended strike could cost the company and its suppliers billions of dollars.
Boeing’s last strike in 2008 lasted about eight weeks.
The standoff compounds the difficulties facing Boeing’s new CEO, Kelly Ortberg, who was appointed in August with a mission to transform the business.
Before the strike, the company was already dealing with historic losses and production had slowed as the company raised concerns about manufacturing quality.
