Contract negotiations between Boeing and its striking union broke down Tuesday, with the company pulling back its latest contract proposal.

After two days of unproductive negotiations, both parties walked away from the bargaining table disappointed. According to Boeing, representatives from the International Association of Machinists and Aerospace Workers have refused to bargain seriously.

“Further negotiations do not make sense at this point,” Boeing Commercial Airlines Chief Stephanie Pope said in a statement to employees. “Unfortunately, the union did not seriously consider our proposals.”

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The company said it revoked its “best and final” offer from September on Tuesday. That offer included a 30% pay raise and a performance bonus. According to the union, that proposal was nonnegotiated and membership overwhelmingly rejected the proposal late last month.

The IAM rejected Boeing’s accusations, arguing that the company wouldn’t consider meeting the union’s demands.

“They refused to propose any wage increases, vacation/sick leave accrual, progression, ratification bonus or the [401(k) match],” the union said in a statement. “They would also not reinstate the defined benefit pension.”

The union is demanding a 40% pay increase for the contract duration and the reinstatement of a defined benefit pension plan, which was removed in the last contract cycle.

The communication breakdown is bad news for Boeing and the 33,000 striking workers as the walkout enters its fourth week. The company said no future negotiations are planned.

The strike has already hurt Boeing’s bottom line, with the company halting production on its popular 737, 767 and 777 jets. Some economic estimates project that the strike will cost the company $1 billion a month.

Employees are also feeling the heat. Last month, Boeing announced it would begin temporary furloughs for hundreds of nonunion employees. Additionally, striking workers lost company health care benefits after they expired on Sept. 30.