Boeing Faces Potential Strike as Union Rejects Offer

The International Association of Machinists and Aerospace Workers (IAM) Local 837 members voted to strike beginning Sunday midnight after rejecting Boeing’s offer, which included a 20% wage increase and improvements to retirement contributions.

Union President Tom Boelling stated that the workers, who play a critical role in national defense, deserve a contract that reflects their skills and loyalty. The potential strike could add financial pressure to Boeing’s defense and space division, which accounts for roughly 30% of the company’s total revenue. The St. Louis plant produces parts for the F-15 fighter jet, T-7 training jet, missiles, munitions, and the 777X passenger aircraft.

Boeing executive Dan Gillian said the company is prepared for a strike and will continue production with non-striking personnel.

CEO Kelly Ortberg downplayed the potential impact, stating that this strike is not comparable to the large strike in Seattle last year. Boeing had offered a more generous agreement after the union rejected the initial proposal, which would have increased the average annual salary from $75,000 to $102,600.

A controversial shift plan was also removed, and the company’s contribution to the pension plan was to be given immediately instead of spread over three years. However, the company announced that a $5,000 signing bonus would be withdrawn if the contract was not approved by 11:59 PM. Increased union activity has been observed in the aviation sector recently.