Union members representing Boeing [BA] defense plants in and around St. Louis, Mo., on Wednesday ratified a modified contract offer from the aerospace and defense giant that improves retirement plans, increases pay and provides other benefits, ending the threat of a strike where the company builds fighter jets, unmanned aircraft and a military trainer.
The International Association of Machinists and Aerospace Workers (IAM) District 837, which represents nearly 2,500 Boeing employees in the St. Louis area, on July 24 rejected the company’s contract offer, voting to strike on Aug. 1. Boeing made a revised offer that the union in late July agreed to take up on Aug. 3, leading to the acceptance of the new contract.
Had the IAM members rejected the modified contract offer, they would have gone on strike on Aug. 4.
The new contract includes an $8,000 lump sum payment that can be deferred to an employee’s retirement plan, continuing Boeing’s 4 percent contribution and 75 percent match on the first 8 percent of an employee’s 401 (k) contribution, an average of a 14 percent general wage increase over three years, in addition to cost-of-living increases, no changes to existing health insurance plans, elimination of the two-tier wage system, and other benefits.
Boeing applauded the result.
“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.
Boeing machinists in St. Louis, St. Charles, Mo., and Mascoutah, Ill., build the Navy’s F/A-18 fighter and MQ-25 unmanned aerial refueling aircraft, and the Air Force’s F-15 fighter and T-7A trainer.
“The hard work and unwavering solidarity of the IAM District 837 bargaining committee and the membership is what made this improved contract happen,” Steve Galloway, general vice president of the IAM Midwest Territory, said in a statement. “I couldn’t be more proud of their efforts to secure this strong contract. These improvements will go a long way toward ensuring retirement security and more equitable wages for our members and their families. At the end of the day, that is what the impending strike was about.”