Striking Boeing workers just turned down a 24% pay hike
What's the story
Boeing's factory workers in St. Louis, US have rejected the company's latest five-year contract proposal, which offered an average wage increase of 24%. The rejection has extended a nearly three-month-long strike at Boeing's major military manufacturing facility. The union members turned down the fourth contract offer from the company with a narrow margin of 51% to 49%. The ongoing strike, which is now in its 84th day, has affected Boeing's operations significantly.
Operational impact
Impact on operations and fighter jet deliveries
Striking workers have missed five paychecks during this period. The strike has also led to delays in some fighter jet deliveries. The union members are represented by the International Association of Machinists and Aerospace Workers (IAM), District 837, with a membership of about 3,200 people.
Union's stance
Union accuses Boeing of not listening to employees
IAM International President Brian Bryant criticized Boeing's response to the vote outcome, saying it shows that the company hasn't listened to its employees. He accused Boeing executives of insulting those who build advanced military aircraft. In response, Boeing described the union's statement as "misleading" and said many employees understand the value of their offer after hearing from them in person.
Production disruption
Delay in military aircraft production and delivery
The strike has affected the production of Boeing military aircraft such as the F-15EX fighter jet. It has drawn criticism from Senators Josh Hawley and Bernie Sanders. The work stoppage has delayed the F-15 deliveries to the US Air Force's Portland National Guard base, and will push international deliveries into next year, Jefferies analyst Sheila Kahyaoglu said in a report to clients.
Contingency measures
Boeing's response to the strike
In light of the strike, Boeing said it is focusing on executing the next phase of its contingency plan. The company has held job fairs and hired replacement workers amid the labor dispute, which is the first of its kind in about three decades. The IAM has filed an unfair labor complaint against Boeing, accusing the company of bargaining in bad faith.