Striking members of Boeing's defense union in Missouri on Friday voted to reject the company's latest contract offer, just days after the aerospace giant and union management struck a tentative agreement. A Dow Jones component, Boeing stock fell Friday as Chief Executive Kelly Ortberg warned that certification for its 777X plane is falling behind schedule.
The IAM Union District 837 members on Friday on Friday rejected Boeing's latest five-year contract offer and chose to remain on strike, representatives announced. The vote comes after union reps and Boeing on Wednesday reached a tentative contract.
That offer included 45% wage growth over the course of the contract, up from its previous July offer for an average of 40% growth over four years. It also included a $4,000 lump sum ratification bonus, down from the $5,000 lump sum bonus in July.
The new deal did not include any changes to Boeing's July proposals on pay progression, retirement, health care, vacation and sick leave. Overall, the deal increased average wages to $109,000 from $75,000 according to Boeing.
Union Criticizes 'Half-Measures'
However, the union told local news outlet KMOV-TV that the signing bonus wasn't as high as other workers had received, and lacked boosts to 401(k) benefits.
"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 the 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."
The roughly 3,200 IAM District 837 members have been striking since Aug. 4. The union represents workers at Boeing's St. Louis facilities that support defense operations. That includes assembling the F-15 and F/A-18 fighter jets, as well as advanced missiles and defense technologies.
The two parties temporarily iced talks back around Labor Day after failing to reach a deal. Negotiations began back in late July regarding wages and benefits. The strike marked Boeing's first such job action from its defense sector union since 1996.
Boeing Stock Falls On News
Boeing in November agreed to a new contract and ended a seven-week strike for separate districts of its Machinists union. That deal included a 38% general wage increase over four years. That compounds to 43.65% over the lifetime of the agreement. The workers secured a $12,000 ratification bonus, which was up from $7,000 in a prior offer.
The deal also increased Boeing's 401(k) contribution to its union members' retirement plans. It also reinstated an incentive plan and improved its disability plans and overtime rules, among other benefits.
Boeing stock fell 1.7% Friday. On Thursday, shares slumped 3.3%, falling decisively below their 50-day moving average after just undercutting that key level on Wednesday.
Boeing stock is trading near the bottom of a flat base with a 242.69 buy point.
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