Investing.com– Boeing Co (NYSE 🙂 said on Tuesday it had withdrawn an offer to the International Association of Machinists and Aerospace Workers and suspended negotiations with the union after a nearly month-long strike.
The plane maker said the union had made “non-negotiable” demands and that new negotiations did not “make sense at this time.” The company had previously offered a 30% pay increase and better retirement benefits.
The breakdown of talks came after two days of negotiations with a federal mediator, and presents little chance of ending a strike affecting the company’s northwest operations, specifically in Washington.
Boeing’s first major strike in 16 years began in mid-September after the IAM’s 33,000 members suspended operations over demands for better pay and benefits.
The company is reportedly losing cash due to the strike and is considering selling at least $10 billion in new stock.
Chief Operating Officer Stephanie Pope said in a statement that the aircraft maker was taking steps “to preserve cash” and that the strike had “deeply affected (its) business.”
The company could now face a downgrade of its credit rating. S&P Global Ratings said Monday it was considering downgrading Boeing to junk, citing cash concerns. Moody’s had also said last month that it was reviewing the planemaker’s investment grade rating.