The Boeing Company (NYSE:BA)'s Defense Workers Strike After Rejecting Contract Offer

The Boeing Company (NYSE:BA) is among the 11 Best Large Cap Defense Stocks to Buy According to Analysts. The aircraft manufacturer is encountering a major labor strife, as more than 3,000 defense unit workers have gone on strike after turning down a contract offer.

Late last month, union members at the company’s St. Louis defense hub overwhelmingly voted to reject a contract offer, which proposed a 20% wage boost over four years, a $5,000 ratification bonus, more vacation time, and sick leaves. The vote was followed by a week-long cooling-off period, which ended on August 3.

The International Association of Machinists and Aerospace Workers (IAM) rejected the proposal, saying it fell short of addressing the priorities and sacrifices of the workforce. Earlier this week, CNBC quoted Tom Boelling, an IAM District 837 directing business representative, as saying the following:

“IAM District 837 members have spoken loud and clear, they deserve a contract that reflects their skill, dedication, and the critical role they play in our nation’s defense. We stand shoulder to shoulder with these working families as they fight for fairness and respect on the job.”

The workers maintain and assemble the F-15 fighter jet and missile systems. This is the group’s first strike since 1996. It comes as a setback for The Boeing Company (NYSE:BA), as it was 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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