3,000+ Boeing Defense Workers Go on Strike

Some 3,200 Boeing defense unit workers went on strike for the first time in almost three decades early Monday after turning down a contract offer with the company.

Boeing had offered a 20% general wage increase, a $5,000 ratification bonus and other improvements. Its latest offer, which the workers voted down Sunday, included wage rises for employees at the top of the pay scale and improved retirement benefits, according to their union, the International Association of Machinists and Aerospace Workers District 837. The workers are largely based in the St. Louis area.

Boeing said the increases could average about 40% taking into account other improvements. The increases would bring average IAM 837 machinist pay to more than $102,000 from $75,000, according to Jefferies.

The strike is the work group’s first since 1996.

“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 Tom Boelling, IAM District 837 directing business representative. “We stand shoulder to shoulder with these working families as they fight for fairness and respect on the job.”

Dan Gillian, a vice president at Boeing and senior St. Louis site executive, said the company is disappointed the offer was rejected.

“We are prepared for a strike and have fully implemented our contingency plan to ensure our non-striking workforce can continue supporting our customers,” he said in an emailed statement.

The workers assemble and maintain F-15 fighter jets as well as missile systems.

Boeing CEO Kelly Ortberg brushed off the effects of a then-potential strike when the company reported results last week.

“We’ll manage through this. I wouldn’t worry too much about the implications of the strike. We’ll manage our way through that,” he said on an earnings call Tuesday.

It’s the latest in a series of aviation labor unions winning higher pay as the industry faces a shortfall of trained workers.

Boeing’s defense unit accounted for about 30% of the company’s $42 billion in revenue in the first half of this year.

Monday’s strike follows a bigger work stoppage at the company last year, when more than 32,000 unionized machinists who build commercial aircraft walked off the job after failed contract talks.

Boeing’s commercial airplane factory workers ended a seven-week strike that hobbled the company’s aircraft output in November, after approving a contract with 38% raises over four years and other improvements.