More than 3,200 members of the International Association of Machinists and Aerospace Workers’ District 837 began a strike on Monday after rejecting Boeing’s second contract offer.
These workers assemble key defence aircraft, including the F-15, F/A-18, T-7 trainer, and MQ-25 refuelling drone at facilities in the St. Louis area and Illinois.
Boeing Defense said it was prepared for the work stoppage and would implement a contingency plan relying on non-union labour to continue production.
The company stated that the four-year offer would have raised average wages by 40%, with a 20% general wage hike and a $5,000 ratification bonus.
Additional benefits included better vacation and sick leave policies.
Dan Gillian, Boeing’s vice president and general manager for St. Louis, expressed disappointment at the rejection.
“We’re disappointed our employees in St. Louis rejected an offer that featured 40% average wage growth,” he said.
However, union head Tom Boelling argued that the proposal fell short of reflecting the “skill, dedication, and the critical role” played by workers in national defence.
The proposal was largely similar to the first one rejected last week.
The strike comes even as Boeing expands its defence manufacturing footprint in St. Louis, following its win of the US Air Force’s F-47A jet contract earlier this year.
CEO Ortberg plays down concerns
Boeing CEO Kelly Ortberg sought to play down concerns about the St. Louis strike during a call with analysts on Tuesday, held to discuss the company’s second-quarter earnings.
He pointed to Boeing’s ability to manage a far larger work stoppage last year, when 33,000 District 751 members—who build commercial aircraft in the Pacific Northwest—went on a seven-week strike.
That strike, involving around 30,000 workers, nearly halted production of the 737 MAX, a key commercial program.
In contrast, Ortberg suggested the current labour action by District 837 would be less disruptive.
“I wouldn’t worry too much about the implications of the strike. We’ll manage our way through that,” he said.
The previous strike by District 751 ended with union members approving a four-year contract that included a 38% wage increase.
Flight attendants sue Boeing over Max 9 panel blowout
In a separate development, last week, four Alaska Airlines flight attendants filed lawsuits against Boeing in Seattle’s King County Superior Court.
They are seeking damages for emotional and physical injuries suffered during a mid-air cabin panel blowout aboard a 737 MAX 9 in January last year.
According to their attorney, Tracy Brammeier, the attendants “acted courageously” during the emergency and are now dealing with the long-term aftermath of the traumatic event.
The lawsuits accuse Boeing of negligence, failure to ensure product safety, and lapses in quality control.
“Boeing knew or should have known of the quality control issues present in its production of the 737 MAX line,” the court filings state.
The incident added to Boeing’s ongoing safety and legal troubles and prompted a criminal investigation by the US Justice Department earlier this year, which determined the company had violated a 2021 deferred prosecution agreement.
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