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Boeing Co.‘s (NYSE:BA) defense workers at three Midwest plants have voted against the company’s latest contract offer, choosing to continue their strike, which commenced nearly three months ago.
About 3,200 machinists at Boeing facilities in Mascoutah, Illinois, and in St. Louis and St. Charles, Missouri, have gone on strike. The workforce voted on Sunday to reject Boeing's latest contract proposal, raising concerns over pay and retirement benefits.
Union leaders say negotiations have hit a stalemate, while Boeing contends the workers' demands go beyond the Midwest's cost of living. The union has urged its members to reject the company's latest proposal, arguing it offers no meaningful gains in retirement benefits or wage increases for veteran employees.
IAM Union International President Brian Bryant, stated, “It's well past time for Boeing to stop chea(t)ing out on the workers who make its success possible and bargain a fair deal that respects their skill and sacrifice."
Before Sunday's vote, the union advised members to reject Boeing's latest proposal, arguing it offered "no meaningful improvements" to retirement benefits or wage increases for long-tenured employees.
Boeing expressed disappointment with the vote’s outcome, emphasizing that it was a close call. “The union's statement is misleading since the vote failed by the slimmest of margins, 51% to 49%.”
The company also noted that it was receiving increasing interest from workers who wanted to cross the picket line and accept their offer.
Boeing’s defense operations in Missouri and Illinois have been at a standstill since the strike began. The rejected contract offer included a 20% wage increase, a $5,000 ratification bonus, and additional vacation and sick leave, which the company defended as “strong” with an average wage growth of 40%.
Boeing responded with a revised offer that kept pay raises unchanged but eliminated a scheduling rule limiting overtime earnings. Workers rejected that deal as well and initiated a strike the next day, later voting down further revised terms in September.
Union leaders say negotiations have reached an impasse over wages and retirement benefits, while Boeing maintains that worker demands surpass the Midwest's cost of living.
The strike has been ongoing for nearly three months, with the workers’ union accusing Boeing of bad-faith bargaining. The Union filed an Unfair Labor Practice charge against Boeing, alleging the aerospace giant refused to negotiate in good faith with the union members on strike in the St. Louis area since August 4.
Boeing's Defense, Space & Security division generates over one-third of the company's total revenue. Revenue for the division in Q2 rose 10% to $6.62 billion.
Despite the ongoing strike, Boeing’s stock has remained relatively stable, with the company’s shares showing resilience in the face of the labor dispute. On a year-to-date basis, Boeing stock has surged 21.42%.
Benzinga's Edge Rankings place Boeing in the 79th percentile for momentum and the 25th percentile for growth, reflecting mixed performance. Check the detailed report here.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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