Union Rejects Boeing Contract; Strike Threatens Major Facilities

Workers at two Boeing factories have rejected a proposed new contract from the company, setting the stage for potential strikes. The International Association of Machinists and Aerospace Workers (IAM) announced that over 3,200 members employed at facilities in Missouri and Illinois voted against the offer. According to the IAM, the proposal did not adequately address the priorities and sacrifices of their skilled workforce.

The contract, which expired at the end of the day on Sunday, October 22, 2023, included a 20% pay increase over four years and additional vacation days. Despite these incentives, workers expressed concerns that the offer did not provide sufficient security for their futures. The IAM’s branch 837 indicated that if an agreement is not reached within the next seven days, a strike would commence.

Union’s Concerns and Company Response

The rejection of the contract could significantly impact Boeing, particularly following a previous seven-week strike by workers in Seattle that disrupted production at two major assembly plants. Dan Gillian, vice-president of Boeing Air Dominance and general manager of the St. Louis site, expressed disappointment over the union’s decision, stating that this was the richest contract offer presented to IAM 837.

“We’re disappointed our employees voted down the richest contract offer we’ve ever presented to IAM 837, which addressed all their stated priorities,” Gillian stated. He noted that no further negotiations were scheduled and that the company was preparing for a potential strike.

Boeing’s proposal came at a time when the company is attempting to recover from a challenging year, which included safety issues and labor strikes. In March 2023, President Donald Trump announced that Boeing had secured a significant contract for the US Air Force’s next-generation F-47 fighter planes, intended to replace the F-22, which has been in service for nearly two decades. This contract was seen as a positive development for Boeing amidst ongoing difficulties.

Implications for the Aerospace Industry

The IAM is one of North America’s largest unions, representing workers in aerospace, defense, transport manufacturing, and other sectors. As discussions continue, the potential for a strike raises concerns about the broader implications for Boeing’s production capabilities and the stability of the workforce.

The situation remains fluid, with both the union and the company positioned for negotiations in the coming days. The outcome will be closely watched, as it not only affects the employees but also the future of Boeing’s operations and its role in the aerospace industry.