Over 3,200 Boeing workers at three St. Louis-area plants are gearing up for a strike after rejecting a proposed contract with an overwhelming majority on Sunday, ABC News reported, citing the International Association of Machinists and Aerospace Workers.
Despite a proposed 20% wage increase over four years, the union said the offer didn’t meet key worker demands. In a statement, the union reportedly said the contract “fell short of addressing the priorities and sacrifices” of its members. However, any potential strike won’t happen immediately as a one-week “cooling off” period would delay any walkout until August 4, the report said.
‘Landmark’ Deal Falls Flat
According to the report, union leaders had recommended ratifying the contract when it was first presented last week, calling it a “landmark” deal that also promised better medical, pension and overtime benefits. However, members were unconvinced.
“Our members are standing together to demand a contract that respects their work and ensures a secure future,” the union said, per ABC News.
Boeing Says No Further Talks Planned
Meanwhile, Dan Gillian, Boeing’s general manager and senior executive in St. Louis, said the company is “focused on preparing for a strike,” adding that the rejected contract was “the richest contract offer” ever made to the St. Louis union.
Gillian, who also serves as vice president for Boeing Air Dominance, oversees production of key military aircraft including the US Navy’s Super Hornet and the Air Force’s Red Hawk training jet.
“No talks are scheduled with the union,” he added.
Boeing Set to Announce Earnings
The contract rejection comes just two days before Boeing is scheduled to announce its second-quarter earnings. Earlier this month, the aerospace giant reported 150 commercial plane deliveries and 36 military aircraft shipments in the second quarter – both up from the previous quarter. The company’s stock closed Friday at $233.06, up $1.79, per ABC News.
If no new agreement is reached, the plants could see their first strike action in years starting August 4, the report said.
