As the third week of the current strike unfolds, Boeing has made a notable announcement: it will not engage in further discussions with the International Association of Machinists and Aerospace Workers (IAM), which is pushing for a substantial 40% wage increase. This decision follows Boeing’s recent withdrawal of its prior offer, which included a 30% pay rise over three years for 33,000 U.S. employees, marking a significant standoff in the negotiations.

In a message directed to employees, Stephanie Pope, CEO of Boeing Commercial Airplanes, expressed disappointment, saying, “Unfortunately, the union did not seriously consider our proposals.” She described the union’s demands as “non-negotiable,” adding, “Further negotiations do not make sense at this point, and our offer has been withdrawn.”

The IAM has countered that Boeing appears to be sticking to a previously proposed plan from last month without making room for negotiation. This strike adds to Boeing’s ongoing challenges, particularly in light of past safety concerns, including a recent incident where a door panel on a 737 Max 9 blew out mid-flight due to missing bolts.

Earlier this year, Boeing admitted guilt in a criminal fraud case related to the tragic crashes involving the 737 Max that resulted in 346 fatalities. The company agreed to a plea deal requiring a nearly $250 million fine and a commitment of $455 million to improve safety measures.

Recently, the Federal Aviation Administration issued alerts about potential safety risks concerning rudder components in over 40 foreign-operated Boeing 737 aircraft.

To address the mounting challenges, Boeing has appointed Robert “Kelly” Ortberg as its new president and CEO, hoping this leadership change will foster a turnaround. In conjunction with this, Boeing has enacted temporary furloughs for thousands of salaried employees and is on the brink of losing its investment-grade credit rating.

The striking workers at the West Coast factory are demanding a 40% wage increase over four years, alongside the reinstatement of a defined-benefit pension plan that was eliminated a decade ago. In a significant vote, over 90% of union members previously rejected an offer of a 25% pay raise over the same four-year period before commencing the strike.

Last month, Boeing presented what it labeled its “best and final” offer: a 30% raise paired with the reinstatement of a performance bonus. However, the IAM noted that their members found this proposal lacking. Pope emphasized that the negotiating team had made good faith efforts to enhance both take-home pay and retirement benefits during a two-day negotiation session this week.

In response, the IAM has accused Boeing of not offering any wage increases or improvements to benefits, including sick leave and pension contributions. Meanwhile, as production facilities for the popular 737 Max, along with the 767 and 777 models, remain shuttered, Boeing is exploring ways to raise billions through the sale of stock and equity-like securities.