Defense workers at Boeing Co.’s (BA) manufacturing plant in St. Louis, Missouri, have voted against the aerospace company’s latest contract offer and remain on strike.
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The International Association of Machinists and Aerospace Workers Union, which represents the Boeing employees, says more than 3,000 workers in the St. Louis area will remain on strike after turning down the company’s latest attempt to achieve labor peace.
“Boeing’s modified offer did not include a sufficient signing bonus relative to what other Boeing workers have received, or a raise in 401(k) benefits,” said the union in a news release. “The democratic vote underscores the determination of approximately 3,200 IAM Union members to continue their stand together until their voices are heard.”
Better Deal?
The contract put forward by Boeing that the workers turned down included an average 45% wage increase over five years, which would bring the annual salary of a defense worker to between $75,000 and $109,000, based on their years of service. Boeing had previously offered each defense worker a $5,000 signing bonus if they accepted a new contract from the company.
“Our members in St. Louis have once again shown that they will not settle for Boeing’s half-measures,” IAM International President Brian Bryant said in the news release. “Boeing must start listening to its employees and come back to the table with a meaningful offer…” The striking workers mostly assemble and maintain F-15 fighter jets and missile systems. They have been on strike since early August.
Boeing has hired replacement workers to fill the positions of the workers who are on strike. BA stock is up 22% this year.
Is BA Stock a Buy?
The stock of Boeing has a consensus Strong Buy rating among 20 Wall Street analysts. That rating is based on 18 Buy and two Hold recommendations issued in the last three months. The average BA price target of $261.72 implies 21.20% upside from current levels.
