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Boeing workers strike after rejecting contract offer
More than 3,200 union workers responsible for assembling Boeing fighter jets in the St. Louis area and Illinois initiated a strike on Monday after rejecting a revised contract proposal. This marks the second rejection in just over a week.
Boeing's response and contingency measures
Boeing Defense stated it was prepared for the work stoppage, implementing a contingency plan that utilizes non-union labor to maintain production. The company expressed disappointment over the rejection, highlighting the proposed four-year contract’s terms, which included a 40% average wage increase, a 20% general wage hike, a $5,000 ratification bonus, expanded vacation, and increased sick leave.
“We’re disappointed our employees in St. Louis rejected an offer that featured 40 percent average wage growth,” said Dan Gillian, vice president and general manager of Boeing’s St. Louis facilities.
The proposal was similar to the initial contract offer, which was overwhelmingly rejected by members of the International Association of Machinists and Aerospace Workers (IAMAW) District 837 last week.
Union demands and leadership stance
IAMAW District 837 President Tom Boelling emphasized that the workers deserve a contract reflecting their expertise and dedication to national defense. “Our members play a critical role in our nation’s defense and deserve a contract that acknowledges that,” Boelling stated.
The striking workers are responsible for assembling Boeing’s F-15 and F/A-18 fighter jets, the T-7 trainer aircraft, and the MQ-25 aerial refueling drone for the US Navy. Boeing is also expanding its St. Louis-area facilities to accommodate production of the F-47A, a new fighter jet recently contracted by the US Air Force.
Previous strikes and company outlook
Boeing CEO Kelly Ortberg downplayed the potential impact of the strike during a discussion of second-quarter earnings. Ortberg referenced the company’s resilience during a seven-week strike last year by District 751 workers in Washington state, who assemble commercial jets.
“I wouldn’t worry too much about the implications of the strike. We’ll manage our way through that,” Ortberg remarked.
Last year’s District 751 strike concluded with the approval of a four-year contract that included a 38% wage increase for union members.