(Bloomberg) — Boeing Co. faces the chance of a strike at its St. Louis protection hub after union staff rejected a contract supply that will increase their wages by 20% over 4 years.
The Worldwide Affiliation of Machinists and Aerospace Employees Native 837, which represents 3,200 Boeing protection staff in Missouri and Illinois, voted overwhelmingly towards the brand new phrases Sunday.
The Boeing proposal “fell wanting addressing the priorities and sacrifices” of the corporate’s expert workforce, the union stated in an announcement. “Our members are standing collectively to demand a contract that respects their work and ensures a safe future.”
Whereas the current contract expires at 11:59 p.m. Central Time on Sunday, administration nonetheless has an opportunity to win over rank-and-file members by sweetening its supply throughout a seven-day “cooling off” interval. If that’s unsuccessful, IAM Native 837 staff will stroll off the job and shut down manufacturing in Boeing’s army plane hub.
The aerospace producer is searching for to keep away from one other labor standoff after a strike by a Seattle-based Machinists union crippled manufacturing at its business jet factories for greater than two months final 12 months.
Boeing couldn’t be instantly reached for remark.
Any labor strife could be pricey for Boeing’s protection division, which hasn’t earned an annual revenue since 2022 and is in the midst of a turnaround. A strike would shut down meeting traces for Boeing’s F-15 and F/A-18 fighter jets, T-7A coach, MQ-25 drone refueler and different weapons methods.
The labor uncertainty will be a magnet for analysts when Boeing reviews quarterly earnings on Tuesday. It’s additionally a bellwether as GE Aerospace launches contract negotiations with a separate IAM native on Sunday.
St. Louis staff final went on strike in 1996 and don’t have a historical past of activism, in contrast to Boeing’s unions within the Pacific Northwest, in keeping with Scott Mikus, an analyst with Melius Analysis.
Union members initially rejected administration’s supply over the past negotiation with Boeing in 2022, earlier than accepting a three-year take care of a 14% basic wage improve and cost-of-living changes.
Whereas Puget Sound labor leaders endorsed Boeing’s preliminary supply final 12 months, they have been rebuffed by rank-and-file members embittered by an earlier 10-year contract that stripped away pensions and locked in low wage will increase whereas inflation soared.
The prolonged strike squeezed the corporate’s working capital and spurred Boeing to promote fairness price virtually $24 billion.
–With help from Invoice Haubert.
(Updates with feedback from labor union in third paragraph, try to succeed in Boeing in fifth paragraph.)
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