Boeing Defense Union Strikes After Nearly 30 Years

Workers at Boeing Co.’s St. Louis-area defense factories are striking for the first time in nearly three decades after union members rejected the company’s modified contract offer, Julie Johnsson and Se Young Lee reported for Bloomberg News.

Boeing Defense said it was prepared for the work stoppage and would implement a contingency plan using non-union labor. (Photo: Boeing)

About 3,200 machinists walked off the job around midnight after members voted down a deal that would have raised wages by 20% and boosted retirement contributions.

The union last went on strike in 1996, with that stoppage lasting 99 days. “IAM District 837 members have spoken loud and clear—they deserve a contract that reflects their skill, dedication, and the critical role they play in our nation’s defense,” said Tom Boelling, the union local’s top official, ahead of the deadline.

Boeing is struggling to recover from a series of setbacks, including safety issues and a damaging, nearly eight-week walkout by commercial aircraft workers last year, Osmond Chia also reported for BBC News.

Boeing Defense said it was prepared for the work stoppage and would implement a contingency plan using non-union labor, Dan Catchpole reported for Reuters.

The rejected four-year contract would have raised the average wage by roughly 40%, included a 20% general wage increase, and offered a $5,000 ratification bonus. It also promised increased periodic raises, more vacation time, and additional sick leave.

The labor action will increase financial pressure on Boeing’s defense and space division, which generates almost a third of the company’s revenue.

However, the operation affected by the strike is significantly smaller than the civil aircraft division, which was severely impacted last year by a walkout that halted manufacturing in the Seattle area for weeks and contributed to Boeing selling equity worth almost $24 billion.