Talks between Boeing (BA.N), opens new tab and its key manufacturing union broke down, and no negotiations are currently planned as the financially damaging strike heads into a fourth week.þThe company said on Tuesday it withdrew its pay offer to around 33,000 U.S. factory workers, saying the union had not considered its proposals seriously after two days of talks.þThe stalemate shows no signs of resolution, a person briefed on the talks said. S&P analysts estimate the strike will cost Boeing about $1 billion a month.þþÿUnfortunately, the union did not seriously consider our proposals,ÿ Boeing Commercial Airplanes head Stephanie Pope said in a note to the employees, calling the union's demands ÿnon-negotiableÿ.þÿFurther negotiations do not make sense at this point,ÿ she said.þThe breakdown compounds financial and production problems at Boeing, one of the two primary global commercial aircraft makers. The company has been burning cash in 2024 as it struggles to recover from a January mid-air panel blowout on a new plane that exposed weak safety protocols and spurred U.S. regulators to curb its production.þþEarlier this year, Boeing replaced its CEO Dave Calhoun with Kelly Ortberg, who started in August with the hope to pull together a labor deal and shore up the company's reputation with customers and regulators. So far, none of that has happened.þþBoeing is now examining options to raise billions of dollars to shore up its balance sheet. Reuters reported that it was looking to sell stock and equity-like securities, with its prized investment grade credit rating at risk.þ
Source: reuters.com
