Boeing's union has the aerospace company over a barrel. Boeing can afford to raise wages but only at the cost of a big cut in profits.

The International Association of Machinists and Aerospace Workers (IAM) said late on Friday that its pay deal talks with Boeing had broken off and that there were no further dates scheduled for negotiations at this time.

Boeing and the International Association of Machinists were set to meet Friday to negotiate but remained at odds on key issues{beacon} Business & Economy Business &

Amid a union strike over a pay dispute, Boeing has made what it describes as its "best and final offer" to roughly 33,000 striking union machinists, intensifying efforts to end the strike, which has entered its second week.

Boeing has started rolling furloughs of nonunion employees as a week-old labor strike by 33,000 union machinists shows no signs of ending.

Boeing Co.’s largest union said talks with the planemaker have broken off as the two sides failed to reach a deal to potentially resolve a debilitating strike.

The union for striking Boeing workers said Friday that talks with the aviation giant "broke off" without agreement, after some 33,000 US employees walked out this month.