Following a rejected contract proposal, Boeing’s leadership now faces a strike from machinists at its defense operations situated in the St. Louis area.
On Sunday, the union representing about 3,200 workers in Missouri and Illinois rejected Boeing’s latest four-year contract offer, pushing the company into a challenging situation. As a result, the workers began striking at midnight.
These machinists had been operating without a contract for a week, with both Boeing and union representatives negotiating over various terms, such as work schedules and benefits.
Compared to last year’s significant strike involving over 33,000 workers in the Pacific Northwest concerning the 737 MAX passenger jet, this current stoppage is much smaller in scope. The previous strike, which lasted nearly eight weeks, severely impacted Boeing’s profits, but ended in the workers securing a 38% wage increase over the four years of their new contract.
Boeing’s military division is responsible for manufacturing advanced jet fighters like the F-15 and F/A-18, contributing to key defense supplies. Recently, this sector reported stable results in the second quarter, benefiting from a surge in missile and weaponry demands from the Pentagon and allied nations.
Despite past setbacks with program delays and crises—including challenges surrounding the Starliner spacecraft, which resulted in two NASA astronauts being stranded for months—the defense, space, and security segment’s outlook has improved significantly this year. The recent win of a Pentagon satellite contract and a major deal to construct the Air Force’s next-generation fighter have contributed to this positive shift.
In a statement, union representative Tom Boelling emphasized that, “Members have spoken loud and clear” about needing a “contract that recognizes their skills, commitment, and the vital role they play in our nation’s defense.”
In response, Dan Gillian, a vice president at Boeing, noted that the company had put in place their contingency plan to ensure that non-striking staff can still meet customer needs.
For further correspondence, reach out to Drew FitzGerald at andrew.fitzgerald@wsj.com.
