Widespread Strike at Boeing

According to Reuters, Boeing said following the strike by its fighter jet production workers that it had been prepared in advance for a work stoppage. The company announced it would implement an emergency plan that involves using “non-union” personnel to keep operations running.

Boeing stated that under the rejected four-year contract, the average wage for workers in Local 837 was set to increase by nearly 40%. This package included a 20% general wage increase, a $5,000 bonus, periodic pay raises, increased vacation time, and more paid sick leave.

Dan Gillian, Boeing vice president and head of its St. Louis operations, said: “We are very disappointed that our employees have rejected a proposal that included a 40% increase in average wages.”

Reuters noted that just last week, a similar proposed contract was overwhelmingly rejected by the majority of workers.

Tom Bowling, president of the International Association of Machinists and Aerospace Workers, said in response: “Members of this local deserve a contract that reflects their skill, dedication, and critical role in defending our nation.”

Boeing CEO Kelly Ortberg, speaking to analysts last week about the company’s second-quarter earnings, downplayed the impact of such strikes, noting that last year the company also endured a two-month strike at Local 751, which involved 33,000 Boeing employees. That strike ultimately ended with the approval of a four-year contract that included a 38% wage increase.

Ortberg added: “I’m not overly concerned about the impact of these kinds of actions (strikes). We will manage through it.”

Workers at Local 837 assemble Boeing’s F-15 and F/A-18 fighter jets, the T-7 trainer aircraft, and the MQ-25 refueling drone.