Boeing Defense workers in St. Louis have overwhelmingly rejected the company’s latest contract offer, paving the way for a potential strike. Members of the International Association of Machinists and Aerospace Workers (IAM) District 837 voted Sunday to turn down the proposal.
The rejected offer, presented to over 3,200 union members, included a 20% general wage increase over four years, a $5,000 ratification bonus, and improvements to annual holidays and sick leave.
“Boeing Defense’s proposal did not take into account the priorities and sacrifices of the qualified workforce of the IAM union,” the IAM stated in a release.
Dan Gillian, Vice-President of Boeing Air Dominance and senior executive of the St.Louis site, expressed disappointment. “We are disappointed that Boeing employees have rejected what we believe to be the most compelling contract offer we have ever presented to IAM 837 and one that addressed all of their stated priorities,” Gillian said in an emailed statement.
“We have activated our contingency plan and are focused on preparing for a strike. No further discussions are planned with the union at this time,” Gillian added.
the current contract is set to expire Sunday. A seven-day reflection period is scheduled to begin after the expiration, after which a strike could commence, according to the union.
Boeing’s defense division is currently expanding its manufacturing capabilities in the St. louis area to support the production of the new American Air Force fighter jet, the F-47, a contract it secured earlier this year.
The Next Generation Air Dominance (NGAD) combat aircraft program, envisioned as a “family of systems” with a sixth-generation fighter jet at its core, is intended to succeed the F-22 Raptor.
This article contains details related to labour negotiations and business operations. It is not intended as financial or legal advice.
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