Workers reject Boeing’s latest offer after nearly 3 months on strike
Striking Workers at Boeing Defense in St. Louis Reject Latest Contract Proposal
Workers at Boeing Defense in the St. Louis area have rejected the company’s latest contract proposal, leading to a strike that has now entered its 13th week. This strike has caused delays in the delivery of fighter jets and other programs.
Following the vote, union leaders stated that Boeing had not addressed the needs of the approximately 3,200 members of the International Association of Machinists and Aerospace Workers District 837.
IAM International President Brian Bryant expressed disappointment in Boeing’s response, stating, “Boeing’s corporate executives continue to insult the very people who build the world’s most advanced military aircraft.”
The five-year offer was largely unchanged from previous proposals, with Boeing reducing the ratification bonus but adding $3,000 in company shares and a $1,000 retention bonus. The company also improved wage growth for workers at the top of the pay scale in the fourth year of the contract.
“To fund the increases in this offer, we had to make trade-offs,” said Boeing Vice President Dan Gillian in a message to workers.
Union leaders have pushed for higher retirement plan contributions and a ratification bonus closer to what was offered to striking union members in the company’s commercial airplane division last year.
Boeing’s Gillian has defended the company’s offer as “market-leading” and stated that they would not increase the overall value of the terms, only shift value around.
Boeing is expected to report another unprofitable quarter, with analysts anticipating a multi-billion dollar charge on its 777X program.
In September, IAM members approved a proposed four-year contract, which Boeing management has refused to consider.
The IAM estimates that their offer would add about $50 million to the agreement’s cost over four years, compared to Boeing’s rejected offer.
Union officials have accused Boeing of bargaining in bad faith, filing an unfair labor practice charge with the National Labor Relations Board.
“It’s time for Boeing to bargain a fair deal that respects their skill and sacrifice,” said Bryant.
Union members have been relying on strike benefits, second jobs, and cost-cutting measures while Boeing has terminated their health insurance coverage.
Since the strike began, Boeing officials have claimed that their mitigation plan has minimized the impact on production, although deliveries of F-15EX fighters to the US Air Force have been delayed.
General Kenneth Wilsbach informed the Senate Armed Services Committee about these delays during his nomination hearing as the Air Force’s chief of staff.
