By Scott Hamilton
July 20, 2022, © Leeham News: While Boeing is basking in an upbeat Farnborough Air Show with sizable orders for the 737 MAX, it faces the prospect of losing a key contract vote on July 24 with the International Association of Machinists Local 837.
Local 837 represents Boeing workers in St. Louis (MO), where the Defense unit is headquartered. Union leadership recommended rejecting the contract, opening the door to a potential strike. Nearly 2,500 union members are eligible to vote on the contract offer from Boeing. The current contract expires at 12:01 AM St. Louis time on July 25.
“A seven-day waiting period stipulated in the current contract means IAM members would begin picketing on Monday, Aug. 1, if they vote to reject the contract and go on strike. The membership overwhelmingly passed the strike sanction vote on June 25 by 99%,” the union said in a statement posted on its website.
“The IAM bargaining committee cannot, in good conscience, recommend a contract that is not fair and equitable as the company continues to make billions of dollars each year off the backs of hard-working members on the shop floor,” IAM 837 said. Boeing lost billions of dollars since the 737 MAX was grounded, the COVID pandemic, and 787 deliveries were suspended nearly two years ago.
“We are disappointed that the union would reject an offer that would give our employees highly competitive wage increases, as well as cash and stock immediately, in addition to one of the most lucrative 401k plans in the nation. We remain hopeful that our employees will see the value in this offer and vote yes,” Boeing said in a statement.