The Boeing Company (BA) Prepares for Strike as Workers Reject Contract Offer

The Boeing Company (NYSE:BA) is among the 10 Best Aerospace Stocks to Buy Now. On Sunday, union members at its St. Louis defense hub overwhelmingly voted to reject a contract offer, resulting in the aerospace giant preparing for an imminent strike.

The proposal included a 20% wage boost over four years, a $5,000 ratification bonus, more vacation time, and sick leaves. However, the International Association of Machinists and Aerospace Workers (IAM) voted against the contract, saying it fell short of addressing the priorities and sacrifices of the workforce.

Dan Gillian, a senior executive at The Boeing Company (NYSE:BA) expressed disappointment at employees striking down the proposal, while adding that this was the ‘richest contract’ ever presented to IAM 837 and that it addressed all their priorities.

The rejection of the contract is being followed by a seven-day cooling-off period, in which The Boeing Company (NYSE:BA)’s management has another opportunity to win over the workers by sweetening its offer. However, Gillian said that the company had activated its contingency plan and was now preparing for a strike.

Industry experts believe any labor strife would be costly for The Boeing Company (NYSE:BA)’s defense division, which is in the middle of a turnaround and expanding manufacturing in the St. Louis area, especially after winning the contract for the F-47 fighter jet earlier this year.

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