Boeing Workers Reject Contract Offer, Strike Persists at Three Midwest Plants
Union members vote down a five-year proposal, prolonging a nearly six-week walkout by 3,200 Defense workers over pay and benefits
Boeing workers at three Midwest military manufacturing plants rejected a contract proposal Friday, extending a strike that began Aug. 4 and now approaches six weeks.
Members of the International Association of Machinists and Aerospace Workers District 837 voted 57% against the company’s latest five-year offer, the union said, sending about 3,200 employees who build fighter jets, weapons systems and the U.S. Navy’s first carrier-based unmanned aircraft back to the picket lines. The union said Boeing’s modified offer did not include a sufficient signing bonus relative to what other Boeing workers received, nor a raise in 401(k) benefits.
Boeing expressed disappointment in the rejection. "Boeing’s modified offer did not include a sufficient signing bonus relative to what other Boeing workers have received, or a raise in 401(k) benefits," the union said in a statement outlining members’ objections. In an emailed statement, Dan Gillian, Boeing Air Dominance vice president and general manager, said the company was disappointed the employees had rejected a five-year deal that the company characterized as including an average 45% wage increase over the contract term.
"We’ve made clear the overall economic framework of our offer will not change, but we have consistently adjusted the offer based on employee and union feedback to better address their concerns," Gillian said. Boeing said no further talks are scheduled and that it will "continue to execute our contingency plan, including hiring permanent replacement workers, as we maintain support for our customers."
The work stoppage is far smaller than last year’s walkout by about 33,000 Boeing employees who assemble commercial jetliners, but it affects the company’s Defense, Space & Security operations, which account for more than one-third of Boeing’s revenue. Analysts and industry observers have said disruptions in the defense assembly lines could complicate Boeing’s efforts to restore profitability after recent financial setbacks.
Boeing Co., based in Arlington, Virginia, employs more than 170,000 people in the United States and operates in more than 65 other countries. The District 837 membership includes workers at three Midwest manufacturing sites that produce military aircraft and weapons systems; the union and company have so far not released a schedule for renewed bargaining.
Union leaders framed the vote as a response to perceived gaps between the proposal and benefits other Boeing workers received in separate negotiations. The company has emphasized the overall economic framework of its proposal and highlighted adjustments made in response to employee feedback.
With the strike continuing into a sixth week, industry customers and Pentagon officials are monitoring potential impacts on delivery schedules and program timelines. Boeing said it is executing contingency plans to limit disruptions and support customers while the labor dispute remains unresolved.