The Zhitong Finance App learned that Boeing (BA.US) bypassed angry trade union leaders and directly proposed a 30% salary increase to the strikers in an attempt to quell a strike that had seriously damaged their energy. The strike has already led to the closure of Boeing's aircraft manufacturing plant in the Pacific Northwest.

The aircraft manufacturer proposed a 30% salary increase for Seattle factory workers over four years, up from the 25% pay increase that was rejected by 0.033 million members of the International Association of Mechanics and Aerospace Workers (IAM) earlier this month. Boeing said these terms are the final plan and will be valid until September 27.

The IAM 751 district union posted a harshly worded response on its website a few hours later, saying the proposal was “thrown at us without any discussion.” The union said Boeing has refused to meet since negotiations broke down last week, adding that it will not arrange a vote on the latest proposal.

“This strategy is a blatant disrespect for you — our members — and the negotiation process,” IAM said in a statement. It called Boeing's “direct deal strategy” a “huge mistake.”

Negotiations have been at a standstill since September 18, when the US federal government mediated for two days, but there was little progress. Earlier this month, workers voted almost unanimously to go on strike, and the local government said it plans to push for drastic salary increases and demand that Boeing resume the fixed income pension plan provided to employees.

On the eve of the US presidential election, Boeing's dispute with trade unions received close attention from Wall Street and the White House. The extension of the strike will make Boeing's already strained financial situation worse. In the first half of this year, Boeing spent more than $8 billion in cash due to slowing production to address quality issues revealed by the January plane crash.

Since this year, Boeing's stock price has dropped 40%, making it the second-worst performing stock among the constituent stocks of the Dow Jones Industrial Average.

Jefferies analyst Sheila Kahyaoglu said the clash has caused Boeing's “Cash Cow” 737 Max and other jet airliners to stop production, and could cost the company an additional $1.3 billion in cash each month. As Boeing faces the risk of losing investment-grade credit ratings, the aircraft manufacturer has begun putting employees on leave and taking other measures to preserve cash during the strike.

Additionally, Textron Airlines' mechanics went on strike on Monday after they declined a 26% salary increase contract offer over the weekend. A potential strike by dockworkers could cripple US shipping.