Last month, more than 3,200 union workers at three Boeing plants in the St. Louis area went on strike. The employees, who make U.S. fighter jets and advanced weapons systems, rejected a "landmark" contract.
The deal reportedly gave workers a 40% bump over the next four years as well as better medical benefits, pensions, overtime and work-life balance. But the union's members rejected that proposal.
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Well, it's been a month, and since Boeing's best aren't willing to budge, the company is looking for a Plan B. Yesterday, the New York Times reported that the new plan includes hiring permanent replacement workers.
Boeing Vice President Dan Gillian said talks with the International Association of Machinists and Aerospace Workers District 837 have made little progress—not only are they not getting closer to terms, but rather, they are drifting further apart. As the union issues demands for "more of everything," Gillian says they also aren't specific about what it will take to end the strike after rejecting a proposal that was a "landmark agreement."
So, Boeing is moving forward with its "contingency plan," which includes adding permanent replacement staff for manufacturing roles. Bloomberg reports that the plane maker is scheduled to hold a job fair later this month.
The plants are still operational at a limited capacity as the company has shifted some positions around. While some products are still making it out the door, Boeing needs to find a swift resolution as its defense unit accounted for more than a third of the company's total revenue, some $23 billion, last year.
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