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.

The International Association of Machinists (IAM) union strike against Boeing is expected to result in a $1.05 billion loss for

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 and machinists’ union IAM will start “mediated negotiations” in a bid to settle strike action that began two weeks ago.

Boeing on Monday made a new offer to its striking machinists union in hopes of ending a walkout that is costing the cash-strapped jet maker hundreds of millions of dollars a week. The proposal comes 11 days after Boeing’s biggest union rejected a tentative contract and overwhelmingly voted to go on strike.

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.