Boeing Strike in St. Louis Heads to Union Vote

Background of the Strike and Contract Negotiations

The International Association of Machinists and Aerospace Workers (IAM) has been in a prolonged standoff with Boeing, as union workers in St. Louis and surrounding areas have been on strike since August 4. These more than 3,000 workers, represented by IAM 837, have rejected three different contract offers from Boeing, with the latest rejection occurring on September 12. Now, the union is set to vote on a new settlement offer this Friday, which could potentially end the ongoing strike.

This proposed settlement includes several key components that appear to be central to the negotiations. The most notable are annual general wage increases of 8%, 4%, 4%, and 4% over time. For employees at the top of the pay scale, the increases would be structured as 8%, $1.50, $1.50, and 4%, respectively. Additionally, the offer features a 100% company match on the first 8% of employee 401(k) contributions, maintaining the existing 4% contribution from Boeing. A $10,000 ratification bonus is also included, which can be deferred into either a 401(k) or Health Savings Account.

These elements represent an improvement over previous proposals, which had included a 45% raise over five years and a $4,000 ratification bonus that could be received as a lump sum or deferred. The three and a half "enhanced" aspects of the current offer seem to be the main points of contention between the union and Boeing.

Additional Terms and Conditions

Beyond the wage and retirement benefits, the proposal also includes consistent terms that have remained unchanged in previous contracts. For example, healthcare benefits will continue to offer no cost-share percentage increase for the same market-leading medical, dental, and vision plans. Union members will also retain access to a free primary care clinic in the St. Louis area.

In terms of retirement, the plan maintains the top-ranked Boeing 401(k) and includes a full $10 pension multiplier increase in Year 1. Regarding vacation and sick time, the offer promises more time for union members, although specific details about the current amount of time and the proposed increase remain unclear.

Union Statements and Perspectives

IAM’s Midwest Territory General Vice President Sam Cicinelli highlighted the importance of the union's solidarity during the negotiations. In a statement, he emphasized that the workforce is the backbone of Boeing’s defense operations and that the community stands behind these workers until they achieve a fair contract.

Jody Bennett, IAM’s Resident General Vice President, added that union members have played a critical role in Boeing’s success. He pointed to the recent commitment to build the F-47 fighter jet in St. Louis as evidence of the workers’ value. “They build world-class military aircraft, they’ve helped deliver Boeing billions in defense contracts, and they’ve earned a contract that reflects that value,” he said.

Boeing’s Response and Concerns

Despite the union’s efforts, Boeing has stated it will not support the upcoming settlement agreement. Dan Gillian, Boeing's Air Dominance vice president and general manager, expressed concerns about the proposal in a public statement. He described the union’s actions as a publicity stunt and warned that the offer includes terms the company has explicitly refused to accept.

Gillian emphasized his goal of bringing all workers back to work within the economic framework of the deal the union has twice endorsed. He argued that the union’s approach creates false expectations and will only prolong the strike, which has already cost workers an average of $15,000 in lost income.

Boeing remains open to further discussions but reiterated that the overall economics of its offer will not improve. The company continues to maintain its stance while the union pushes for a resolution that reflects the value of its workforce.

The Broader Implications

The F-47 fighter jet project, which is assembled in St. Louis, is a significant contract for Boeing, selected by the U.S. government earlier this year. This development underscores the importance of the St. Louis workforce in the company’s defense operations. As the union prepares for the upcoming vote, the outcome of this negotiation could have lasting effects on both the workers and the broader aerospace industry.