In a notable escalation, more than 3,200 Boeing defence workers commenced a strike on Monday. This decision marks another setback for the aviation leader, as union members in Missouri and Illinois rejected Boeing's recent offer concerning pay, work hours, and pension benefits. Employees at these operations are responsible for building F-15 fighter jets and various military aircraft.
"We're disappointed our employees rejected an offer that featured 40% average wage growth," stated Dan Gillian, Vice President of Boeing's Air Dominance unit. This strike follows a challenging period for the company, marred by safety concerns and a prolonged eight-week staff walkout last year targeting passenger plane production.
Led by the International Association of Machinists and Aerospace Workers (IAM) local branch in St Louis—Boeing's defence manufacturing core—the union expressed strong sentiments towards workers' rights. "3,200 highly-skilled IAM Union members at Boeing went on strike at midnight because enough is enough. This is about respect and dignity, not empty promises," the union conveyed via social media platform X.
One of America's largest unions, IAM encompasses roughly 600,000 members in aerospace, defence, shipbuilding, and manufacturing sectors. This strike is significant, being the first occurrence at Boeing's defence division since 1996, when a previous work stoppage lasted over three months.
Boeing's Chief Executive Kelly Ortberg, however, downplayed the impact of the current strike, suggesting its scale is minor compared to last year's major strike involving 30,000 workers that financially strained the company. "I wouldn't worry too much about the implications of the strike. We'll manage our way through that," Ortberg asserted.
Boeing continues to navigate through numerous crises, including two tragic incidents involving aircraft crashes and a mid-air emergency related to a Boeing 737 Max's emergency exit. Last year, the company managed to deliver only 348 aircraft, the weakest production rate since the onset of the pandemic. The question now looms: will Boeing recover from its current state of turmoil?