Boeing's Contract Turbulence: Striking Workers Reject New Offer

Boeing has withdrawn a contract proposal that included 30% raises over four years after union negotiations failed. The union, representing workers who assemble Boeing planes, rejected the offer, demanding higher raises. Boeing has paused production of key aircraft models as the strike continues.

Boeing has retracted its contract proposal promising 30% raises over four years after negotiations with the union representing striking workers failed. The aerospace giant initially enhanced the offer to improve take-home pay and retirement benefits.

However, Boeing accused the union of making non-negotiable demands, which they could not accept without losing business competitiveness. Consequently, Boeing withdrew the proposal after union members overwhelmingly rejected it. The union stated that Boeing's unwillingness to compromise led to the breakdown in talks.

The union, representing factory workers assembling Boeing's aircraft, demanded a 40% raise over three years. Meanwhile, Boeing halted production of its 737s, 777s, and 767s. This ongoing strike adds to Boeing's challenges, with its stock down 41% this year.

(With inputs from agencies.)