The International Association of Mechanics and Aerospace Workers (IAM) said on Friday evening EST, and $Boeing (BA.US)$ The salary negotiations have broken down, and no further negotiation dates have been scheduled at this time. In a post on X, IAM said, “We are still willing to negotiate with the company, whether directly or through mediation.” A Boeing spokesperson said in an email that the company remains committed to reorienting relationships with its representative employees and hopes to “reach an agreement as soon as possible” and “ready to meet at any time.”

The strike conflict between Boeing and IAM has been going on for almost three weeks. On September 13, more than 0.032 million Boeing workers went on strike in the Seattle area and Portland, Oregon. This was the union's first strike since 2008, causing aircraft models, including Boeing's best-selling 737MAX, to stop production. The union is demanding a 40% increase in wages and the restoration of the fixed income pension that was cancelled in the contract ten years ago.

Earlier, IAM said in a statement that they are prepared to use this negotiation opportunity to raise issues critical to reaching an agreement, and are convinced that the only way to resolve the strike is through negotiations. Before the strike began, IAM workers rejected Boeing's proposal to raise wages by 25% in four years by 95%, believing that it would not be able to make up for the effects of stagnant wage growth and inflation for more than a decade.

On Monday, Boeing made an improved “best and last” offer to workers on strike, saying it would raise workers' wages by 30% within four years and restore performance bonuses, but the union said a survey of its members showed that was not enough.

This labor dispute has put additional pressure on the already burdened Boeing. This year, the 737Max crash overshadowed Boeing, and the company's financial situation was also affected. On Friday, a federal judge in Texas ordered a hearing to be held in October to ask the US Department of Justice to defend the criminal plea agreement reached with Boeing in the two fatal cases, and the agreement was opposed by the families of the victims.

Boeing this year agreed to plead guilty to criminal conspiracy in connection with the crashes that killed 346 people in 2018 and 2019, and agreed to spend at least $0.455 billion to strengthen its compliance and safety plans. Boeing also faced a fine of at least $0.2436 billion, equivalent to the amount it paid under the 2021 deferred prosecution agreement, which prosecutors later ruled was breached.

The victim's family believes that Boeing should face greater financial penalties and stricter scrutiny by independent supervisory authorities. Boeing has agreed to accept independent supervision for a period of three years.

Edit/Rocky