Boeing Employees Opened the Contract for Discussion

Boeing employees rejected the company's latest contract offer for three Midwest facilities where military aircraft and weapons are developed and decided to continue the strike that has lasted nearly three months.

The strike at the facilities in St. Louis and St. Charles, Missouri, and Mascoutah, Illinois, which involve approximately 3,200 machinists, is smaller in scale than last year's strike by 33,000 Boeing employees who walked off the job to assemble commercial jets, but it has the potential to complicate the aerospace company's efforts to restore its financial balance.

International Association of Machinists President Brian Bryant stated, "Boeing claims to have listened to its employees – today's vote result shows that this is not true."

While union leaders noted that negotiations stalled over issues such as pay and retirement benefits, Boeing argued that the employees' demands exceed the cost of living in the Midwest.

Prior to Sunday’s vote, the union did not recommend that its members approve the company’s latest proposal. The union expressed that this proposal did not offer "meaningful improvements" in retirement benefits and salary increases for senior employees.

During the days leading to the strike, negotiations had intensified over the summer, with workers rejecting a previous agreement that included a 20 percent wage increase over the five-year contract.

Boeing quickly responded with a modified agreement that removed a scheduling clause affecting workers' ability to do overtime without increasing the proposed wage raises. Workers also rejected this offer and went on strike the next morning.

The company stated it is prepared for the strike and has an emergency plan in place to ensure that the non-striking workforce continues to support its customers.

Boeing's Defense, Space & Security division accounts for more than a third of the company’s revenue. Boeing is set to announce its third-quarter earnings on Wednesday.