Boeing withdraws bid to union, suspends strike talks By Investing.com

Investing.com– Boeing Co (NYSE: ) said Tuesday it has withdrawn an offer to the International Association of Machinists and Aeronautical Workers and suspended negotiations with the union after a nearly month-long strike.

The plane maker said the union had made “non-negotiable” demands and further negotiations did not “make sense at this time”. The company previously offered a 30 percent salary increase and improved retirement benefits.

The break in talks came after two days of negotiations with a federal mediator and presents little chance of ending a strike affecting the company’s Northwest operations, particularly in Washington.

Boeing’s first major strike in 16 years began in mid-September after the 33,000 IAM members suspended operations over demands for better wages and benefits.

The company is reportedly hemorrhaging cash from the strike and is considering selling at least $10 billion in new stock.

Chief operating officer Stephanie Pope said in a statement that the planemaker was taking steps “to preserve cash” and that the strike had “profoundly affected its business.”

The company may now face a downgrade in its credit rating. S&P Global Ratings said Monday it was considering downgrading Boeing to junk, citing cash concerns. Moody’s also said last month it was reviewing the planemaker’s investment grade rating.