Boeing has another strike on its hands
Thousands of Boeing workers are going on strike after rejecting the company’s modified labor agreement
Neeta Satam/Bloomberg via Getty Images
More than 3,000 Boeing $BA workers are going on strike, again.
The 3,200 defense workers across facilities in St. Louis; St. Charles, Missouri; and Mascoutah, Illinois began their strike at midnight on Monday after voting to reject a modified four-year labor agreement with Boeing on Sunday, a release from the union said.
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Boeing’s proposal kept overtime policies the same while making adjustments to additional pay and retirement.
“We’re disappointed our employees rejected an offer that featured 40% average wage growth and resolved their primary issue on alternative work schedules,” Dan Gillian, Boeing Air Dominance vice president and general manager, and senior St. Louis site executive, said in an emailed statement. “We are prepared for a strike and have fully implemented our contingency plan to ensure our non-striking workforce can continue supporting our customers.”
A week before, the workers had rejected an earlier version of a contract from Boeing. The striking workers make and maintain fighter jets like the F-15 and F/A-18, missiles, and other defense technology.
“IAM District 837 members have spoken loud and clear, they deserve a contract that reflects their skill, dedication, and the critical role they play in our nation’s defense,” said union representative Tom Boelling.
Boeing has been struggling. Just last fall, the firm had to stop production of its 737s because its machinists went on strike. The strike lasted nearly two months and ended with the workers gaining a 38% raise after their initial demand of a 40% wage increase. Shortly after the strike ended, Boeing made plans to lay off about 10% of its workforce globally.
Last week, four flight attendants filed to sue Boeing over the mid-air panel blowout on an Alaska Airlines flight in January 2024.
Still, the aerospace manufacturer reported second-quarter earnings last week that showed it might finally be turning its business around. But this latest strike could threaten the progress the company made last quarter.
Boeing's stock dropped more than 1.5% Monday.