- Around 3,200 machinists at three separate Boeing factories have gone on strike.
- This strike is Boeing's second in less than a year.
- The machinists at these factories work on military aircraft such as F-15s.
Around 3,200 workers at three different Boeing factories went on strike on Monday, marking the company’s second strike in less than a year.
The strike started on Monday at 12:59 a.m. EDT, after members of the International Association of Machinists voted to authorize the strike at three different defense plants, according to CNN.
This strike comes after machinists rejected a contract that was offered by Boeing last week. The workers are largely based in the St. Louis area and are part of the IAM District 837 union.
This is the union’s first strike since 1996, per CNBC.
“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, a representative of IAM District 837, according to CNBC. “We stand shoulder to shoulder with these working families as they fight for fairness and respect on the job.”
The strike has started at Boeing facilities in St. Louis; St. Charles, Missouri; and Mascoutah, Illinois.
What did the rejected contract include?
The vote to start the strike came after the machinists rejected a proposed contract from Boeing, per The Associated Press. The contract included a 20% wage increase over four years and $5,000 ratification bonuses.
On Sunday, the workers rejected Boeing’s latest offer as well, which included improved retirement benefits and wage rises for employees at the top of the pay scale, according to CNBC. This proposal also removed a scheduling provision that would have impacted the ability for workers to earn overtime pay, but it did not boost the proposed wage hike.
Over the weekend, Boeing said it anticipated a strike after the latest offer was rejected.
“We’re disappointed our employees rejected an offer that featured 40% average wage growth and resolved their primary issue on alternative work schedules,” said Dan Gillian, Boeing Air Dominance vice president and general manager, and senior St. Louis site executive, per the AP. “We are prepared for a strike and have fully implemented our contingency plan to ensure our non-striking workforce can continue supporting our customers.”
This strike is the latest in recent issues for Boeing
According to the AP, Boeing CEO Kelly Ortberg said that the impact from this strike would be a lot less than the strike that happened last year.
Toward the end of last year, over 32,000 unionized machinists working on commercial aircraft walked off the job after failed contract talks, per CNBC.
The strike ended after seven weeks after workers approved a contract that included 38% raises over four years along with other improvements.
Over the last six years, Boeing has experienced massive financial losses and setbacks in multiple areas of its business. Since the second quarter of 2019, the company has had a total of $42.2 billion in core operating losses, per CNN.
Despite these financial problems, the company is still one of the country’s largest manufacturers with contractors in all 50 states. It also has a large backlog of contracts that will keep it in business.
These workers build military aircraft
According to CNN, the workers at these three facilities build a variety of military aircraft such as F-15 and F/A-18 fighter jets, the T-7A Red Hawk trainer, and the MQ-25 Stingray unmanned refueler.
The Pentagon’s next-generation fighter plane, the F-47 stealth fighter jet, is due to begin production at one of the plants in the future, but it is unknown when exactly that will start.
There are also some nonunion plants in the area operated by Boeing.
Boeing’s Defense, Space & Security business makes up over one-third of the company’s revenue, per the AP.