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Boeing Workers Remain on Strike After Union Turns Down Proposal Citing Concerns About Pay and Pensions

Boeing Workers Remain on Strike After Union Turns Down Proposal Citing Concerns About Pay and Pensions

Bitget-RWA2025/10/27 00:14
By:Bitget-RWA

- Boeing Midwest defense workers reject latest contract offer, extending 82-day strike over retirement benefits and wage hikes. - IAM union demands match 2024 Seattle deal terms, criticizing Boeing's proposal as insufficient for senior workers. - Defense production continues but strike risks disrupting military aircraft/weapon contracts, key to 1/3 of Boeing's revenue. - Workers lose $25,000 in pay/benefits; stalled negotiations raise concerns ahead of October 30 earnings report amid industry challenges.

Defense employees at Boeing Co. (BA) facilities in the Midwest have turned down the company's most recent contract proposal, prolonging a strike that has stretched close to three months and further complicating the aerospace leader's attempts to steady its finances. The International Association of Machinists and Aerospace Workers (IAM), which represents 3,200 staff members at sites in St. Louis, St. Charles (Missouri), and Mascoutah (Illinois), voted against the offer on Sunday, according to

.

The walkout, which started on August 4, came after previous proposals were rejected—those offers included a 20% pay raise over five years and a $4,000 signing bonus, as reported by

. Union representatives criticized Boeing’s latest terms for not providing significant improvements in retirement plans or salary increases for veteran workers, reported. "Boeing says they’ve heard their workforce, but today’s vote clearly shows otherwise," IAM president Brian Bryant stated, according to . The union had previously advocated for conditions similar to those agreed upon with Boeing’s Seattle-area employees in 2024, which featured better retirement benefits.

Boeing Workers Remain on Strike After Union Turns Down Proposal Citing Concerns About Pay and Pensions image 0

Boeing’s Defense, Space & Security unit, responsible for more than a third of the company’s income, continues to operate during the strike, with backup plans in place to maintain customer support, according to

. Still, the ongoing labor conflict threatens to interrupt the production of military planes and weaponry, which are vital to Boeing’s defense business. The company has maintained that the union’s demands surpass the Midwest’s cost of living and noted that a number of workers are “willing to cross the picket line.”

Over the course of the 82-day strike, employees are estimated to have missed out on $25,000 in wages and $3,900 in benefits,

reported. Boeing’s most recent proposal featured a $3,000 signing bonus, restricted stock awards, and gradual pay increases, but did not meet the union’s requirements. Earlier in the talks, the IAM suggested a four-year contract, which declined to negotiate.

With talks stalled, Boeing is preparing to release its third-quarter financial results on October 30, as analysts look for any signs that the strike is impacting the company’s finances,

reported. The company’s stock has remained relatively flat in recent months amid wider industry issues, such as delays in production and increased regulatory oversight.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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