Boeing workers continue strike after rejecting latest offer

Boeing’s weeks-long strike doesn’t have an end in sight after workers rejected the aviation maker’s latest offer.

The striking defense workers voted against the proposed agreement on Friday, continuing a strike that started on Aug. 4, after IAM Union, which represents the workers, said Boeing’s offer didn’t include a “sufficient” signing bonus “relative to what other Boeing workers have received” nor a raise in 401K benefits.

“The democratic vote underscores the determination of approximately 3,200 IAM Union members to continue their stand together until their voices are heard,” the Union said.

“Our members in St. Louis have once again shown that they will not settle for Boeing’s half-measures,” IAM International president Brian Bryant said in a release. “Boeing must start listening to its employees and come back to the table with a meaningful offer that respects the sacrifices and skill of these workers.”

“We’ve made clear the overall economic framework of our offer will not change, but we have consistently adjusted the offer based on employee and union feedback to better address their concerns,” Dan Gillian, Boeing air dominance vice president and general manager and senior St. Louis site executive, said in a release. “In the meantime, no further talks are scheduled. We will continue to execute our contingency plan, including hiring permanent replacement workers, as we maintain support for our customers.”

About 3,200 Boeing defense workers in St. Louis and St. Charles, Missouri and Mascoutah, Illinois went on strike last month after rejecting a modified four-year labor agreement with Boeing. The defense workers make and maintain fighter jets like the F-15 and F/A-18, missiles, and other defense technology.

Gillian said in a statement Thursday — before the vote — that Boeing had “found a path forward” with the proposed contract, saying it was the “best deal we’ve ever offered to IAM 837.”

On Wednesday, the union announced it had reached a tentative agreement with Boeing, which it said included “improvements to general wage increases” as well as “restores a signing bonus.”

Workers on strike voted on the agreement on Friday at the St. Louis Music Park.

The agreement would have made changes from the previous offer workers rejected in August, including wage growth of 45% on average and a $4,000 lump sum ratification bonus — which is $1,000 less than the previous offer — plus an upgrade of the contract from four years to five years. All other terms from the earlier contract remained unchanged.

Boeing said this would have increased average wage growth from $75,000 to $109,000, adding the 45% average bump would have been realized by the end of the contract.

Also , 78% of workers would have had “the potential” for their hourly wage to increase more than 45%. Employees that reach the max rate would have earned an average of $115,000 per year by the end of the contract.

IAM Union had sent letters in mid-August to members of Missouri’s Congressional Delegation asking them to step in by pushing Boeing to keep negotiating.

Boeing’s stock was down about 1.7% at 10:10 a.m. ET while workers were voting. Its stock remained in the red at 1.37% by 1:20 p.m. ET following results from the vote.