(Bloomberg) — Boeing Co.’s largest union said talks with the planemaker have broken off as the two sides failed to reach a deal to potentially resolve a debilitating strike.
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There was no progress made on pensions, and the company “would not engage substantively” on issues such as higher pay and quicker wage progression, the International Association of Machinists and Aerospace Workers said in a statement on Friday night. No further talks are scheduled for now, it said.
The two sides have been at odds over wages and other demands of roughly 33,000 members of the union. The workers have been on strike since Sept. 13, idling Boeing factories near Seattle where it jetliners including the cash-cow 737 Max are built.
“We remain committed to resetting our relationship with our represented employees and negotiating in good faith, and want to reach an agreement as soon as possible,” Boeing said in a statement after the talks ended. “We are prepared to meet at any time.”
Boeing and the union began the second round of talks overseen by a federal mediator earlier on Friday in a sign of progress after IAM District 751 negotiators dismissed a 30% wage increase offered directly to workers. The maneuver injected additional tension into the contentious talks because it bypassed traditional negotiating sessions, enraging union leaders who refused to bring the proposal for a vote.
The union said it had “again stressed the need for the reinstatement of the defined benefit pension” in the latest talks, but that Boeing “remains adamant that it will not unfreeze” it.
“We remain open to talks with the company, either direct or mediated,” the union said.
Each day of strike has cost Boeing about $100 million by some estimates, forcing the company to embark on a broad savings push that includes worker furloughs, a hiring freeze and cutting back on corporate travel.
Avoiding a protracted work stoppage is critical to prevent further damage to Boeing’s already strained finances. The planemaker’s credit ratings are teetering on the edge of junk and the company is burning cash at a rapid clip.
Reaching a resolution would be a major achievement for Kelly Ortberg, Boeing’s new chief executive officer. He began the role last month with a mandate to rescue the company from its latest crisis that was unleashed after a door-sized panel blew off a 737 Max shortly after takeoff in January.
The near-catastrophe led to a series of revelations of quality control shortcomings at its jetliner factories, triggering investigations by US regulators and prosecutors.
(Updates with Boeing, union’s comments from fourth paragraph)
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