About 3,200 members of the International Association of Machinists and Aerospace Workers (IAM) District 837 initiated the strike after voting Sunday to reject a revised four-year labor agreement. The union stated the contract failed to meet the workers’ expectations for security and recognition of their expertise.
“IAM District 837 members build the aircraft and defense systems that keep our country safe,” said Sam Cicinelli, the union’s Midwest general vice president. “They deserve nothing less than a contract that keeps their families secure and recognizes their unmatched expertise.”
The vote came after a weeklong cooling-off period, following the rejection of an earlier contract offer that included a 20% wage increase over four years and a $5,000 ratification bonus. The latest offer removed a scheduling provision that could have reduced overtime pay but did not raise the proposed wage hike.
Boeing had anticipated the strike and issued a statement expressing disappointment over the workers’ decision. “We’re disappointed our employees rejected an offer that featured 40% average wage growth and resolved their primary issue on alternative work schedules,” said Dan Gillian, Boeing Air Dominance vice president and senior site executive in St. Louis.
The company confirmed it had activated contingency plans to minimize disruption. “We are prepared for a strike and have fully implemented our contingency plan to ensure our non-striking workforce can continue supporting our customers,” Gillian added.
Boeing’s Defense, Space & Security division, which includes the impacted sites, generates over a third of the company’s total revenue. However, Boeing CEO Kelly Ortberg downplayed the potential effect of the strike during a recent call with analysts.
“The order of magnitude of this is much, much less than what we saw last fall,” Ortberg said, referring to a previous strike by commercial jetliner workers. “So we’ll manage through this. I wouldn’t worry too much about the implications of the strike.”
