Boeing Defense Workers Approve Contract, Ending Strike

Employees will receive a $6,000 ratification bonus and return to work on Sunday.

F/A-18
The U.S. Navy’s F/A-18F Block III Super Hornet takes to the skies over St. Louis, Missouri. [Credit: Boeing]
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Key Takeaways:

  • Boeing Defense workers, represented by IAM District 837, ratified a new labor contract, ending a three-month strike that had slowed military aircraft production.
  • The new contract included a $6,000 ratification bonus, a shift from previous offers that included restricted stock and retention bonuses, to provide more immediate cash.
  • Despite the strike's resolution, Boeing had hired permanent replacement workers during the stoppage and could not guarantee jobs for all returning employees.
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Boeing Defense workers ratified a new labor contract in a vote on Thursday, ending a three-month-long strike that has slowed production of military aircraft.

In a statement, Boeing said employees represented by the International Association of Machinists and Aerospace Workers (IAM) District 837 will return to work starting with the third shift late Sunday. It will be their first time back at their job sites since August 4.

Neither Boeing nor the IAM disclosed how many union members voted for and against the new contract.

The aerospace manufacturer’s last offer to the workers included a $6,000 ratification bonus but not the restricted stock units and retention bonus that were part of previous proposals. Boeing said it removed those incentives to “move more cash up front.”

Other than this change, the contract was virtually identical to past offers rejected by the union local, according to Reuters.

The striking employees are based at plants in St. Louis and St. Charles, Missouri, and Mascoutah, Illinois. They help assemble and maintain aircraft like the F-15 and F/A-18, and support Boeing’s missile systems.

Boeing acknowledged in a statement earlier this week that it had hired permanent replacement workers at those sites, and that some areas were already fully staffed. The company said that, after Thursday, it would not be able to guarantee that striking employees would have a job to return to.

“IAM District 837 members stood strong and united for over three months,” the local union said in a statement. “We thank our bargaining committee for their tireless efforts, and we appreciate the unwavering support of our members, their families, the St. Louis community, our labor allies, and elected officials throughout this fight. We’re proud of what our members have fought for together and are ready to get back to building the world’s most advanced military aircraft.”

According to CNBC, the work stoppage was the first at Boeing Defense since 1996.

Zach Vasile

Zach Vasile is a writer and editor covering news in all aspects of aviation. He has reported for and contributed to the Manchester Journal Inquirer, the Hartford Business Journal, the Charlotte Observer, and the Washington Examiner, with his area of focus being the intersection of business and government policy.

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