Boeing withdraws offer to union, suspends negotiations over strike

Investing.com– Boeing Co (NYSE:) on Tuesday said it had withdrawn an offer to the International Association of Machinists and Aerospace Workers, and had suspended negotiations with the union after a nearly month-long strike. 

The planemaker said the union had made “non-negotiable” demands, and that further negotiations did not “make sense at this point.” The firm had previously offered a 30% wage hike and improved retirement benefits. 

The breakdown in talks came after two days of negotiations with a federal mediator, and present little chances of ending a strike affecting the company’s northwest operations, specifically in Washington. 

Boeing’s first major strike in 16 year began in mid-September after the IAM’s 33,000 members suspended operations over demands for better wages and benefits. 

The company is reportedly hemorrhaging cash due to the strike, and is considering selling at least $10 billion of new stock.

Chief Operating Officer Stephanie Pope said in a statement that the airplane maker was taking steps “to preserve cash,” and that the strike had “deeply affected (its) business.” 

The company may now face a downgrade in its credit rating. S&P Global Ratings said on Monday it was considering downgrading Boeing to junk, citing concerns over cash. Moody’s had also said last month that it was reviewing the plane maker’s investment-grade rating.