Daijiworld Media Network – St Louis
St Louis, Aug 4: Boeing Co. is gearing up for its first strike in nearly three decades as around 3,200 unionized workers at its St. Louis-area defense plants prepare to walk off the job after rejecting a revised contract offer on Sunday.
The International Association of Machinists and Aerospace Workers (IAM) District 837 turned down Boeing’s proposal, which included a 20% wage hike and enhanced retirement contributions, triggering a potential work stoppage starting midnight.
“IAM District 837 members have spoken loud and clear. They deserve a contract that reflects their skill, dedication, and the critical role they play in our nation’s defense,” said Tom Boelling, the union’s local leader.
Boeing said it had contingency plans in place to keep operations running. “We are prepared for a strike and have fully implemented our contingency plan to ensure our non-striking workforce can continue supporting our customers,” stated Dan Gillian, Boeing vice president and St. Louis site executive.
The striking workers are responsible for building fighter aircraft like the F-15, T-7 training jets, missiles, munitions, and components for Boeing’s 777X commercial jets. The defense and space segment currently accounts for about 30% of Boeing’s revenue.
The last time IAM 837 went on strike was in 1996, a 99-day standoff. This time, the company had revised its offer to address previous concerns, including eliminating a controversial scheduling clause and enhancing 401(k) contributions.
The rejected contract would have raised average salaries from $75,000 to $102,600 and offered a $5,000 signing bonus — which Boeing now says will be withdrawn after the Sunday deadline.
CEO Kelly Ortberg, speaking during the company’s July 29 earnings call, downplayed the potential fallout. “The order of magnitude of this is much, much less than what we saw last fall,” Ortberg said, referring to the two-month strike at Boeing’s commercial jet factories. “We’ll manage our way through that.”
The strike marks another chapter in a rising wave of labor activism in the aerospace industry, as unions capitalize on a shortage of skilled mechanics to demand better terms.