Boeing (NYSE:BA) was hit by a strike Monday as approximately 3,200 machinists from IAM District 837 began walkouts after rejecting the company’s second contract proposal.
According to Jefferies, the strike—which started at midnight CT on August 4—impacts about 2% of Boeing’s total workforce. The affected employees manufacture fighter jets, including the F-15 and F/A-18, as well as other defense products.
The union’s rejection follows a seven-day cooling-off period that began July 27, after members turned down Boeing’s initial offer.
Union leader Tom Boelling stated, “Our members have spoken loud and clear—they deserve a contract that reflects their skill, dedication, and the critical role they play in our nation’s defense.”
Jefferies detailed that Boeing’s latest offer included a 20% wage increase spread over four years—8% in the first year and 4% annually thereafter. The deal also proposed a $5,000 ratification bonus, increased time off, pension improvements, and a $0.50 per hour attendance bonus, while eliminating contentious alternative workweek schedules.
If accepted, the agreement would raise average annual pay from $75,000 to approximately $102,600, with an estimated cost to Boeing of $70 million including bonuses.
This strike marks Boeing’s second labor disruption in under a year, following a September 2024 walkout by Local 751 machinists. That dispute concluded in November with a fourth contract offer featuring a 38% wage increase and a $12,000 bonus.
Boeing shares slipped about 1.3% Monday amid investor concerns over the strike’s potential impact on defense production.
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