(Reuters) -Unionized workers who assemble Boeing’s fighter jets in the St. Louis area rejected Boeing’s latest contract offer on Sunday and will strike at midnight on Monday, the International Association of Machinists and Aerospace Workers union said.
“IAM District 837 members … deserve a contract that reflects their skill, dedication, and the critical role they play in our nation’s defense,” the union’s Business Representative Tom Boelling said.
Boeing said it was ready for the action. “We are prepared for a strike and have fully implemented our contingency plan,” Boeing Air Dominance vice president and general manager Dan Gillian said in an email.
“We’re disappointed our employees in St. Louis rejected an offer that featured 40% average wage growth,” he added.
Last week, Boeing sent a new contract offer to the union with some minor compensation changes that would benefit senior union members, according to the company. The offer also kept current overtime policies, which Boeing had proposed modifying in the last contract offer.
The union had rejected the previous offer, saying that the offer was insufficient.
The workers assemble Boeing’s fighter jets and the MQ-25, an aerial refueling drone being developed for the U.S. Navy.
Boeing’s defense division is expanding manufacturing facilities in the St. Louis area for the new U.S. Air Force fighter, the F-47A, after it won the contract this year.
(Reporting by Angela Christy and Anusha Shah in Bengaluru Editing by Rod Nickel and Sandra Maler)
