Workers at Boeing’s military manufacturing hub voted Monday to reject the company’s latest offer and continue an almost three-month-long strike. The walkout, involving more than 3,200 employees at three Midwest plants, threatens to further complicate Boeing’s efforts to recover from a series of costly scandals.
The machinists, who work at plants in Mascoutah, Illinois, and St. Louis and St. Charles in Missouri rejected the latest contract offer from the company, which would have boosted wages by 24% on average over five years. “Boeing claimed they listened to their employees,” said Brian Bryant, president of the International Association of Machinists and Aerospace Workers (IAM). “The result of today’s vote proves they have not.”
Boeing said it was disappointed by the results, and the vote had failed by “the slimmest of margins” of 51% to 49%. “We are turning our focus to executing the next phase of our contingency plan in support of our customers,” Boeing said.
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The financial implications of the strike are likely to soon be revealed, with Boeing reporting its third-quarter earnings on Wednesday. While the striking mechanics have now missed five paychecks, Boeing has also fallen behind on deliveries of some fighter jets. The company’s Defense, Space & Security business segment makes up more than one-third of its revenue.
Boeing recently revealed it delivered 55 jets in September, up from 33 from last year. While this has been Boeing’s strongest September since 2018, it still lags behind its rival Airbus, which delivered 73 aircraft last month. For the first nine months of the year, Boeing delivered 440 airplanes to Airbus’ 507 jets.
The union told members ahead of the vote that the company’s latest offer “had no meaningful improvements” to retirement benefits and wages for more senior workers.
IAM International President Brian Bryant said in a statement, “Boeing’s corporate executives continue to insult the very people who build the world’s most advanced military aircraft – the same planes and military systems that keep our servicemembers and nation safe.”
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The five-year offer was largely the same as those previously rejected by union members. Boeing leadership has said repeatedly during the strike that the company will not significantly improve its offer.
IAM members in September approved the union’s proposed four-year contract. However, Boeing management has refused to consider the offer. The union estimates that its offer would add about $50 million to the agreement’s cost over its four-year duration, compared with the company offer that was rejected. Boeing CEO Kelly Ortberg is set to earn $22 million this year.
“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,” Bryant said. Boeing officials have said that since the strike began, the company’s mitigation plan helped limit the effects of the work stoppage.
1 Comment
Your article is incorrect. It’s not 32000 employees affected. It’s 3200 machinists your article is including text and misleading. Please update make an apology.