Boeing workers at three Midwest plants where military aircraft and weapons are developed voted Sunday to reject the company’s latest contract offer and to continue a strike that started almost three months ago.
TL;DR
- Boeing workers at three Midwest plants rejected the latest contract offer and continue strike.
- The strike involves 3,200 machinists at facilities in Illinois and Missouri.
- Union states negotiations reached impasse on pay and pension; Boeing cites cost of living.
- Boeing's Defense, Space & Security business accounts for over a third of its income.
The work stoppage involving approximately 3,200 machinists at facilities in Mascoutah, Illinois, and the Missouri municipalities of St. Louis and St. Charles is less extensive than the action taken by a walkout last year Boeing employees who build commercial aircraft. However, it poses a risk of hindering the aerospace firm's advancements in regaining its financial footing.
“Boeing claimed they listened to their employees – the result of today’s vote proves they have not,” Brian Bryant, president of the International Association of Machinists and Aerospace Workers, said in a statement.
Boeing expressed its disappointment with the outcome, pointing out that the vote was narrowly decided. The company stated in a release that it was receiving more and more feedback from employees “who want to cross the picket line” and “understand the value of our offer.”
“The union’s statement is misleading since the vote failed by the slimmest of margins, 51% to 49%,” the statement read. “We are turning our focus to executing the next phase of our contingency plan in support of our customers.”
The union representing machinists admitted the vote was tight, but informed its members that “very few” employees had disregarded the picket line.
“Our solidarity remains strong, and the company’s claim otherwise is wrong,” the union said.
Union representatives state that negotiations have reached an impasse concerning matters like pay and pension plans, whereas Boeing contends that employee requests surpass the cost of living in the Midwestern region.
Ahead of Sunday’s vote, the union told its members that it did not recommend approval of the company’s latest offer, which it said “had no meaningful improvements” to retirement benefits and wage increases for workers with more seniority.
Throughout the summer, discussions intensified in the period preceding the strike, as employees turned down a prior offer that featured a 20% pay increase across the duration of the five-year pact.
Boeing swiftly responded with an altered proposal that did not increase the suggested salary hikes but eliminated a scheduling clause impacting the workers' capacity to earn extra pay. The workers also turned down this offer and initiated a strike the following day. They had previously voted against altered terms in September.
The firm indicated it was ready for a work stoppage, having a backup strategy prepared “to ensure our non-striking workforce can continue supporting our customers.”
More than a third of Boeing’s income comes from its Defense, Space & Security business. The company is scheduled to release its third-quarter earnings this Wednesday.