04 August 2022

Boeing avoids labour strike at three US defence plants

by Marc Selinger

Boeing is developing the MQ-25 Stingray unmanned tanker for the US Navy. The company has averted a labour strike at three US factories that build military aircraft, including the MQ-25. (Boeing)

Unionised workers at three Boeing military aircraft factories in and near St Louis, Missouri, have approved a new three-year contract, averting a looming labour strike, the International Association of Machinists and Aerospace Workers (IAM) announced on 3 August.

Boeing welcomed the news. “We're pleased with the outcome of the vote and we look forward to our future here in the St Louis area,” the company said in a statement.

The IAM said that Boeing's latest contract offer contained better retirement benefits compared with the one its members rejected on 24 July. About 2,500 union members were scheduled to go on strike on 1 August, but postponed the walkout after receiving the new offer.

“The newly ratified modified offer features critical improvements to the company's previous offer for retirement plans, including a USD8,000 lump sum payment that can be deferred to an employee's 401(k), and continuing the 4% company contribution and 75% match on the first 8% of an employee's 401(k) contribution,” the union said.

The strike would have involved plants that produced F-15 and F/A-18 fighters, T-7A Red Hawk trainers, and MQ-25 Stingray unmanned tankers. In a 27 July filing with the US Securities and Exchange Commission, Boeing warned that “a prolonged strike could disrupt our St Louis-based operations and adversely impact revenues, earnings, and cash flows”.

Unionised workers at three Boeing military aircraft factories in and near St Louis, Missouri, have a...

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