Boeing’s contract talks break down on pension, pay issues

Boeing’s (NYSE:BA) largest union said late on Friday that its talks with the planemaker had broken off and that there were no further dates scheduled for renegotiation at this time.

In a post on X, the International Association of Machinists and Aerospace Workers (IAM) said that it had not made any progressions on pensions, with Boeing’s (BA) refusing to unfreeze the defined benefit plan.

“The company also would not engage substantively about other issues that the membership has made clear remain top priorities, like higher pay, quicker wage progression, and more PTO,” said IAM.

“We remain committed to resetting our relationship with our represented employees and negotiating in good faith, and want to reach an agreement as soon as possible,” the company said in a statement. “We are prepared to meet at any time.”

On September 13, workers at rejected Boeing’s (BA) offer of a 25% pay increase and voted to go on strike. The first rounds of negotiations ended last week without a deal.

Boeing (BA) this week sweetened its offer, proposing directly to workers a plan to give them a 30% raise over four years. Union leaders criticized the attempt to bypass them.

The union has demanded a pay raise of 40%, a seat on the company’s 13-member board and the reinstatement of its defined-benefit pension plan.

The strike by over 33,000 Boeing (BA) workers has left its factories near Seattle, Washington idle. Those factories are responsible for the production of its various planes, including the lucrative 737 Max.