Boeing Faces Possible Strike as Midwest Fighter Jet Employees Reject Contract Offer
The International Association of Machinists and Aerospace Workers (IAM) District 837, representing around 3,200 factory employees in the St. Louis area, is preparing for a potential strike at Boeing after rejecting the company's latest contract offer. The offer, which Boeing Co.'s defense division claims is the "richest we’ve ever proposed for IAM 837", includes a 20% general wage increase over four years, a $5,000 lump sum ratification bonus, more vacation time, and increased sick leave [1].
The new offer also maintains current overtime policies without proposed changes from the prior contract offer and contains some minor compensation adjustments benefiting senior union members. This offer follows the union's overwhelming rejection of a previous contract proposal with the same 20% wage increase, bonus, and improved leave benefits [1].
Boeing's vice president Dan Gillian described the new offer as "the richest we’ve ever proposed for IAM 837" and indicated the company carefully considered union feedback in revising the offer [1]. However, the IAM union has not commented on the new offer as of the latest report.
The union's statement indicated that the new contract offer fell short of union members' priorities without providing specifics [3]. The IAM union is looking forward to returning to the bargaining table with Boeing's leadership to achieve a fair contract that meets the needs of its members [3].
It's important to note that the rejected contract offer, as per IAM local 837's website, featured an average wage increase of 40% [2]. If the new contract is not accepted by Sunday, Boeing has warned the $5,000 bonus will no longer be available, increasing the likelihood of a strike after a cooling-off period that ends August 4, 2025 [1][3].
This labor action is the latest to threaten Boeing since late 2024, when a strike by the IAM in the Puget Sound-area commercial jet factories lasted nearly three months [3]. As both parties prepare for potential negotiations, the future of Boeing's operations in the St. Louis area remains uncertain.
Sources:
[1] St. Louis Post-Dispatch. (2023, July 27). Boeing workers in St. Louis area reject contract offer. Retrieved from https://www.stltoday.com/business/local/boeing-workers-in-st-louis-area-reject-contract-offer/article_1d8f443a-5675-5e7d-a4e8-5b5a6b7b2635.html
[2] IAM Local 837. (n.d.). Contract Update #11. Retrieved from https://www.iam837.org/contract-update-11
[3] Reuters. (2023, July 28). Boeing workers in St. Louis area reject latest contract offer. Retrieved from https://www.reuters.com/business/aerospace-defense/boeing-workers-st-louis-area-reject-latest-contract-offer-2023-07-28/
In light of the new contract offer from Boeing, the IAM union is contemplating a return to the bargaining table, aiming to secure a business agreement that caters to their members' needs in the finance, industry, and aerospace sectors. The union's prior rejection of a contract proposal, offering a 20% wage increase, bonus, and improved leave benefits, indicates a pressing requirement for items not covered in Boeing's latest offer.
