Employer contributions to its 401k plan is the reason behind a looming strike at aerospace giant Boeing after negotiations failed to produce an agreement on Sunday.
“The company is unwilling to adequately compensate our members’ 401k plan.”
More specifically, nearly 2,500 members of the International Association of Machinists and Aerospace Workers (IAM) District 837 voted to strike Boeing’s facilities in St. Louis, Mo., claiming it failed to “adequately compensate our members’ 401(k) plan.”
“Our members have spoken loudly and with one voice. We reject Boeing’s current contract offer and will strike at all three St. Louis area locations, starting at 12:01 a.m. on Monday, Aug. 1, 2022,” a union statement read.
Claiming they cannot accept a contract they believe is not fair and equitable, the statement said the company continues to make billions of dollars each year “off the backs of our hardworking members” and added that Boeing previously took away member pensions.
“The company is unwilling to adequately compensate our members’ 401k plan. We will not allow this company to put our members’ hard-earned retirements in jeopardy. We stand in solidarity across the United States and will use the might of the Fighting Machinists to bring home a contract that allows us to build and produce some of the best military aircraft and weapons in the world and enables us to take care of our families.”
Being response
Commenting to Defense News, Boeing said it planned to keep its factories operating despite the strike.
“We are disappointed with Sunday’s vote to reject a strong, highly competitive offer,” the company said in an email. “We are activating our contingency plan to support continuity of operations in the event of a strike.”
IAM members at District Lodge 837 build and produce weapons and military aircraft, including the F-15, F-18, T-7A trainer, and the MQ-25 unmanned refueler. The plants on strike include St. Louis, St. Charles, Mo., and Mascoutah, Ill. Boeing locations.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
