Commercial Aviation
Negotiations Resume As Boeing St. Louis Strike Enters Week 4
Boeing will resume contract negotiations with its workers in St. Louis, St. Charles, and Mascoutah after they rejected the manufacturer’s previous offers and decided to take industrial action. The 
The workers have been on strike for nearly four weeks, seeking a contract that reflects their demands and needs, despite Boeing proposing what it called “the richest deal ever offered to IAM 837” members. This marked the first day that the two parties met since union members went on strike on August 4.
Going Back To The Bargaining Table
The contract negotiations between Boeing and the IAM have been going on for months. The planemaker extended a final offer to its workers on July 22, featuring wage increases, a faster path to max pay, more vacation and sick leave days, and pension benefits. Boeing expected the workers to accept, but it was overwhelmingly rejected during a vote held on July 27.
The manufacturer then extended a new contract on July 31, but it was also rejected, forcing the workers to begin industrial action on August 4. Boeing said that it was disappointed that the employees rejected the offers and implemented contingency plans to ensure non-striking workers would continue supporting its customers. After nearly four weeks, the company has decided to return to the bargaining table to try and reach a consensus.
Boeing said in an update:
“We look forward to further conversations with the union on Aug. 25 and finding a path forward to end the strike and bring our team back to work.”
Meeting The Demands Of Workers
During the strike, Boeing held informal discussions with the union. IAM District 837 represents over 3,200 Boeing workers who assemble and maintain advanced aircraft and weapons, including the F-15, F/A-18, and cutting-edge missile and defense technologies. The workers were disappointed with Boeing’s proposals, saying the compensation package offered by the employer was inadequate, considering the high inflation and rising demand for skilled aerospace workers.
Throughout the negotiations, the IAM presented Boeing with several viable solutions to meet the demands and needs of the workers. Boeing said its offer was the richest deal ever offered to IAM 837, encouraging its employees to analyze it and see “how it would grow their pay.” The “Last, Best and Final Offer” remains on the table, except for a bonus that was conditional on an August 3 ratification. Some of the terms of the last two offers were as follows:
|
First Offer |
Second Offer |
|
|---|---|---|
|
AWS |
Potential for alternative workweek schedules (AWS) |
AWS proposal withdrawn; current contractual overtime policies remain the same |
|
Wage Increases |
20% General Wage Increase |
No change |
|
Ratification Bonus |
$5,000 lump sum, which can also be deferred in full or in part to their Boeing 401(k) |
$5,000 lump sum if the contract was ratified by 11:59 p.m. August 3. It was withdrawn after the deadline. |
|
Vacation and Sick Leave |
More vacation and sick leave |
No change |
|
Retirement |
Maintain top-ranked Boeing 401(k) plan, plus increase pension multiplier by $5 in Year 2 and another $5 in Year 3. |
Full $10 pension multiplier increase in Year 1 instead of $5 in Years 2 and 3. |
After one week of the strikes, IAM International President Brian Bryant sent letters urging members of Missouri’s Congressional delegation to support the over 3,200 striking workers. He urged lawmakers to help protect the future of the machinists by pressing Boeing to resume negotiations with the union. The IAM also asked members of Congress to join union members on the picket line.
Work Continues On The Boeing Floor
Boeing’s St. Louis-area sites remain open, with its non-striking employees continuing to work. The strikes add to Boeing Defense’s woes, but according to the manufacturer, production continues on joint Direct Attack Munitions (JDAMs). The company is also continuing MQ-25 ground testing and T-7 flight tests, as well as flight ramp operations for products ready, or almost ready for delivery. It also continues to deliver completed flight controls for the Boeing 777X.
The strikes will potentially end when Boeing and the union members reach an agreement, but there is no clear timeline in sight. The company cannot predict the duration of a strike, but has implemented contingency measures. Striking workers will not have access to Boeing facilities during the industrial action, and were required to return their company-issued keys and tools before August 4.
- Stock Code
-
BA
- Business Type
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Planemaker
- Date Founded
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July 15, 1916
- CEO
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Kelly Ortberg
Boeing’s Defense, Space & Security division is already battling several challenges with some of its programs, including the T-7 trainer, MQ-25 drone, and the VC-25B Air Force One jets. Meanwhile, Boeing CEO Kelly Ortberg continues to call for company employees to continue working together, as he aims to rebuild the company culture from the factory floor upwards.