Over 3,200 Boeing workers with the IAM union in St. Louis and St. Charles in Missouri, and Mascoutah, Illinois, went on strike after rejecting a modified four-year labor agreement.
Boeing (BA) has paused contract negotiations with the striking machinists union, with no plans to resume discussions until after the Labor Day holiday, Reuters News reported on Tuesday, citing union officials.
The suspension of talks came just a day after the two sides met for the first time since the strikes began on Aug. 4.
Over 3,200 Boeing workers with the IAM union in St. Louis and St. Charles in Missouri, and Mascoutah, Illinois, went on strike after rejecting a modified four-year labor agreement. The union members manufacture and assemble fighter jets, such as the F-15 and F/A-18, as well as other critical defense programs.
The strike comes at a time when Boeing is seeking to expand its manufacturing capacity in the area as it prepares to build the sixth-generation fighter jets for the U.S. military.
Retail sentiment on Stocktwits about Boeing stock was in the ‘neutral’ territory at the time of writing.
“Boeing workers are the backbone of the company, and it’s time for them to receive the strong contract that they deserve,” the Labor Caucus of Congress wrote on X after urging the planemaker to come back to the negotiating table.
As per the report, Boeing has been able to maintain production, flight testing, and other work so far using non-union workers. Earlier this month, Dan Gillian, Boeing Air Dominance vice president and general manager, had said the company was disappointed as the contract offer featured 40% average wage growth and resolved the “primary issue on alternative work schedules.”
Last year, about 33,000 workers at the planemaker’s commercial aircraft unit went on a strike that ran for 53 days and crippled the company’s production. Boeing offered a general wage increase of 38% over four years to end the strike.
Boeing stock has gained 31.7% this year, aided by a strong backlog and improvement in production. On Monday, it received an order for 103 jets from Korean Air, valued at a total of $36.2 billion.
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