Boeing Offer Falls Short (Update)

In conversations with executives, employees have asked for time to consider a final offer, he said, noting: "As leaders it is not only our right, but also our obligation, to talk to our employees."

In an interview on Wednesday, Mark Blondin, lead negotiator for the IAM, has said the tactic of ending negotiations reflects a corporate arrogance. "Our union believes in the bargaining process, where two parties sit at the table and hammer things out," he said.

While the 11% increase is more than the earlier 9% offer, it is less than the 13% the IAM had sought.

Outsourcing remains a sticking point. Blondin said on Wednesday that the IAM would be willing to allow existing outsourcing to remain in place, but wants the right to retain the jobs it currently has. "We have said we don't want changes, but we want to be involved in the process of keeping work in-house for the people in this community," he said.

Three years ago, when the IAM struck the aircraft maker for four weeks, outsourcing was a key issue. According to aviation consultant Scott Hamilton, a month-long strike would force Boeing to defer revenue of about $3 billion, and to further delay delivery of its 787 aircraft. The plane is already more than a year behind the original schedule.