"Unfortunately, the union did not seriously consider our proposals," Boeing Commercial Airplanes head Stephanie Pope said in a note to the employees, calling the union's demands "non-negotiable".
"Further negotiations do not make sense at this point and our offer has been withdrawn."
The union is seeking a 40% pay rise over four years and the restoration of a defined-benefit pension that was taken away in the contract a decade ago.
Boeing made an improved offer last month that it described as its "best and final", which would give workers a 30% raise and restore a performance bonus, but the union said a survey of its members found that was not enough.
The International Association of Machinists and Aerospace Workers union said in a statement that Boeing was "hell-bent on standing on the non-negotiated offer" proposed last month.
"They refused to propose any wage increases, vacation/sick leave accrual, progression, ratification bonus, or the 401k Match/SCRC Contribution. They also would not reinstate the defined benefit pension," it said.
