Investing.com– Boeing Co (NYSE:) on Tuesday mentioned it had withdrawn a proposal to the Worldwide Affiliation of Machinists and Aerospace Employees, and had suspended negotiations with the union after an almost month-long strike.
The planemaker mentioned the union had made “non-negotiable” calls for, and that additional negotiations didn’t “make sense at this level.” The agency had beforehand provided a 30% wage hike and improved retirement advantages.
The breakdown in talks got here after two days of negotiations with a federal mediator, and current little probabilities of ending a strike affecting the corporate’s northwest operations, particularly in Washington.
Boeing’s first main strike in 16 yr started in mid-September after the IAM’s 33,000 members suspended operations over calls for for higher wages and advantages.
The corporate is reportedly hemorrhaging money as a result of strike, and is contemplating promoting at the very least $10 billion of latest inventory.
Chief Working Officer Stephanie Pope mentioned in an announcement that the airplane maker was taking steps “to protect money,” and that the strike had “deeply affected (its) enterprise.”
The corporate might now face a downgrade in its credit standing. S&P International Rankings mentioned on Monday it was contemplating downgrading Boeing to junk, citing considerations over money. Moody’s had additionally mentioned final month that it was reviewing the aircraft maker’s investment-grade ranking.
