More than 3,200 Boeing (NYSE:BA) defense workers in the St. Louis area will remain on strike after members of the International Association of Machinists and Aerospace Workers (IAM) District 837 overwhelmingly rejected the company’s latest contract offer, union officials said Sunday.
The vote marks the fourth time machinists have turned down a proposal from Boeing (NYSE:BA) since walking off the job in early August, extending a high-stakes labor dispute at the company’s key defense manufacturing hub. The striking workforce builds and maintains the F-15 and F/A-18 fighter jets as well as advanced missile and bomb systems that are core to U.S. national security programs.
In a statement, IAM International President Brian Bryant said the outcome shows Boeing (BA) has failed to address its employees’ most pressing concerns.
“Boeing claimed they listened to their employees – the result of today’s vote proves they have not,” Bryant said. “Boeing’s corporate executives continue to insult the very people who build the world’s most advanced military aircraft … It’s well past time for Boeing to stop cheaping out on the workers who make its success possible and bargain a fair deal that respects their skill and sacrifice.”
Union leaders said members are holding firm around three priorities that were outlined in a “pre-ratified” proposal the union advanced in September:
- restoring retirement security, including 401(k) contributions equal to those earned by IAM members in Boeing’s Pacific Northwest operations
- securing stronger wage increases that keep pace with inflation and reward top-skilled defense workers
- obtaining a ratification bonus comparable to those granted to non-union employees in South Carolina and union members in Washington state
IAM officials said their plan would have added roughly $50 million over four years, about half the cost of one F-15 jet.
“Instead of building on our pre-ratified offer, Boeing came back with another proposal that disrespects the people who make its success possible,” said IAM Midwest Territory General Vice President Sam Cicinelli. “Boeing can end this strike tomorrow — all it has to do is put a fair deal on the table.”
The union accused the company of prioritizing executive payouts over its defense workforce, noting that Boeing’s (BA) last two CEOs received around $100 million in compensation and severance. Meanwhile, the company’s production schedules for defense aircraft have slipped as the strike continues.
Resident General Vice President Jody Bennett added that the dispute reflects a broader fairness issue within Boeing’s (BA) operations.
“Our members have shown incredible unity and strength throughout this strike,” Bennett said. “Boeing can’t keep playing favorites between regions and expect our members to accept less.”
Boeing (BA) executives have previously said the company is prepared to make contract modifications but not expand the overall cost of the deal. The company’s defense chief, Steve Parker, told employees earlier this month that more time on the picket line “won’t result in more money,” while acknowledging that the walkout has slowed work on the F-15 and F/A-18 programs.
IAM District 837 Directing Business Representative Tom Boelling said the members remain steadfast:
“From day one, our members have stood shoulder to shoulder for fairness. They know their worth and they’ve made it clear what it will take to reach an agreement. Boeing’s refusal to meet those priorities is what keeps this strike going — not our members.”
The IAM represents roughly 600,000 active and retired workers across aerospace, defense and transportation industries in North America.