Boeing Faces Prolonged Strike As St. Louis Workers Reject Third Contract Proposal: Report

Boeing’s (BA) St. Louis-area defense workers will reportedly continue their strike after union members rejected a third contract proposal from the airline maker’s management.

“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,” the union representing the employees said in a statement, according to Bloomberg News.

Retail sentiment on Boeing jumped to ‘extremely bullish’ from ‘neutral’ territory a day ago, with message volumes at ‘high’ levels, according to data from Stocktwits. Shares of Boeing were down 1.5% during midday trading on Friday.

The retail user message count on Boeing increased by over 200% in the last 24 hours on Stocktwits after Boeing CEO Kelly Ortberg said on Thursday that the company was still behind schedule in the certification process of the newest model of its long-haul 777 family.

The Bloomberg report noted that Boeing was facing its third strike in 50 years by the International Association of Machinists and Aerospace Workers Local 837, the union representing roughly 3,200 employees across its Missouri and Illinois defense plants.

The report added that some St. Louis workers noted that the company's offer and an earlier 2022 agreement don’t go far enough toward reversing their losses from a 2014 contract. Many remain frustrated over provisions that froze pensions and imposed minimal wage increases during a period of soaring inflation, according to Bloomberg.

“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 a statement, according to Bloomberg.

Shares of Boeing have gained over 22% this year and have jumped 38% in the last 12 months.

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