Workers from the International Association of Machinists and Aerospace Workers (IAM) in the St. Louis area voted against Boeing’s latest contract offer, extending a strike that has already pushed back the delivery of fighter jets and other programs for 13 weeks.
The 3,200 members of IAM District 837 said the deal left their needs unmet. “Boeing claimed they listened to employees, but the vote proves otherwise,” said IAM president Brian Bryant. “The company’s executives still insult the people who build the country’s most advanced aircraft.”
Boeing’s five‑year proposal was very similar to offers that had been rejected before. The union received a $3,000 grant of Boeing shares that vest over three years, a $1,000 retention bonus after four years, and a small bump in wage growth for top‑pay workers in the contract’s fourth year. In return, Boeing cut the attendance‑based hourly wage raises and promised only modest pay for certain shift work.
“We had to make trade‑offs to fund these increases,” Boeing Vice President Dan Gillian explained to workers. The company calls its offer “market‑leading,” but it will not raise the overall value of the contract.
Boeing expects another loss on its third‑quarter earnings, scheduled for release on Wednesday. Analysts predict the company will record a multi‑billion‑dollar hit to its 777X program, which is six years behind schedule and still waiting for regulator approval.
The union kicked off the strike on Aug. 4 after Boeing rejected a four‑year contract that its members had approved in September. The IAM claims Boeing’s current offer would cost the company about $50 million less over the contract’s lifespan, compared with the union’s preferred terms. CEO Kelly Ortberg will earn $22 million this year, while the union demands higher retirement contributions and a ratification bonus closer to the $12 000 paid to commercial airplane union members last year.
The strike has already delayed deliveries of F‑15EX fighters to the U.S. Air Force, Gen. Kenneth Wilsbach told the Senate Armed Services Committee during a hearing on Oct. 9. Boeing says its mitigation plan minimises production disruptions, but the impact on fighter jet shipments is undeniable.
Union members survive on a mix of the IAM’s $300‑a‑week strike benefits, second jobs, and tighter budgets. Boeing cut company‑provided health insurance coverage for striking workers effective Aug. 30.
The strike continues as both sides push for a deal that balances Boeing’s financial targets with fair pay for the workers that keep its aircraft in the skies.
Source: New York Post
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