The ongoing strike is putting the American aircraft manufacturer Boeing in a financially challenging situation. The company has withdrawn the wage increase offer that impacts about 33,000 workers. It was also noted that no new negotiating session is planned.

Boeing, one of the world’s two major commercial aircraft manufacturers, is unable to produce its best-selling models, the 737 MAX series, and the 767 and 777 types due to the strike. According to a source close to the negotiations between Boeing and the union, the parties engaged in talks on Monday and Tuesday but clashed and did not make progress.

“UNION UNWILLING TO NEGOTIATE”
Stephanie Pope, who heads Boeing’s commercial aircraft division, stated in a message to employees that the union did not take their offers seriously and regarded the union’s demands as “non-negotiable.” Pope mentioned that “it is pointless to engage in new negotiations in this situation, so we have withdrawn our offer” and indicated that Boeing is taking steps to preserve its cash.

CAPITAL INCREASE ON THE HORIZON
Boeing is considering issuing capital-like debt instruments or a rights issue for increasing new cash sources. The union demands a 40% increase in wages over four years and the reintroduction of the fixed pension benefit eliminated in a contract ten years ago. Boeing had presented an offer last month that included a 30% wage increase for workers and the reinstatement of bonuses, but the union found the offer inadequate.