Boeing defense workers reject latest contract, strike enters 6th week
What's the story
The labor dispute at Boeing's defense plants in the US has intensified as workers have rejected a revised contract proposal. The strike, which is now in its sixth week, involves some 3,200 members of the International Association of Machinists and Aerospace Workers (IAM) District 837. These workers are responsible for manufacturing fighter jets, weapons systems, and the US Navy's first carrier-based unmanned aircraft.
Rejection details
57% of IAM members voted against Boeing's offer
The IAM District 837 announced that 57% of its members voted against Boeing's latest offer. This has prompted the workers to return to picket lines outside three company facilities in Missouri and Illinois. The union claims that Boeing's modified five-year deal failed to meet key demands such as a signing bonus and an increase in 401(k) contributions.
Company stance
Boeing defends proposal as 'generous'
In response to the rejection, Boeing has defended its proposal as generous. Dan Gillian, the company's Air Dominance VP and GM, expressed disappointment over the rejection of a five-year offer that included a 45% average wage growth. He stressed that while the overall economic framework of their offer won't change, they have been flexible based on employee and union feedback.
Strategy implementation
Boeing to continue with contingency plan
Boeing has said it will continue with its contingency plan, which includes hiring permanent replacement workers to keep production running. This marks a major escalation in the dispute and could lead to long-term fractures in Boeing's defense workforce. The ongoing strike, although smaller than last year's massive walkout by 33,000 commercial jetliner workers, could complicate Boeing's already fragile turnaround. The company's Defense, Space & Security division accounts for over a third of its total revenue.