Key Takeaways
- Boeing workers reject 24% wage hike in narrow 51-49% vote
- Strike enters 84th day, disrupting military aircraft production
- 3,200 workers have missed five paychecks amid contract dispute
- F-15EX fighter jet deliveries delayed to US Air Force and international clients
Boeing factory workers in St. Louis have narrowly rejected a five-year contract offering 24% wage increases, extending their strike into the 84th day and disrupting the company’s primary military manufacturing operations.
The fourth contract proposal failed by the slimmest of margins – 51% to 49% – as 3,200 members of IAM District 837 continue their work stoppage that began August 4. Striking mechanics have now missed five paychecks while Boeing falls behind on critical fighter jet deliveries.
Union and Company Exchange Accusations
“Boeing claimed they listened to their employees – the result of today’s vote proves they have not,” International Association of Machinists and Aerospace Workers Union International President Brian Bryant said in a statement announcing the outcome.
Boeing countered that the union’s response was “misleading,” stating: “With the close result and the increased interest we’re hearing from teammates who want to cross the picket, it’s clear many understand the value of our offer.”
Military Production Impact
The strike has significantly affected F-15 deliveries to the US Air Force’s Portland National Guard base and will delay international deliveries next year, according to Jefferies analyst Sheila Kahyaoglu.
The labor dispute has drawn attention from political figures including Senators Josh Hawley and Bernie Sanders, while also being closely monitored by the union representing Boeing’s 19,000 engineers and technical workers, whose contract expires next October.
Contract Details and Financial Implications
Boeing’s rejected offer included:
- Average 24% wage increase over five years
- $3,000 lump sum signing bonus (75% increase from previous offer)
- $3,000 in restricted shares
- $1,000 bonus in contract’s fourth year
However, the company halved the regular pay bump workers receive every six months to just 25 cents per hour.
Investors await financial details when CEO Kelly Ortberg hosts an earnings call on October 29. The defense and space division, which generates nearly one-third of Boeing’s revenue, faces ongoing production challenges as the company prepares to build the F-47 stealth fighter in St. Louis.
