Boeing faces looming strike by 2,500 workers after contract offer rejected

July 25 (UPI) -- Thousands of Boeing workers have voted to go on strike at three manufacturing plants in the St. Louis area after members rejected the terms of a new contract that the company says was fair.

The picket by nearly 2,500 members of the International Association of Machinists and Aerospace Workers District 837 will begin a minute after midnight on Aug. 1.

Boeing said it offered employees a highly competitive raise and a lucrative 401(k) plan that the company matched dollar-for-dollar up to 10%, and also sweetened the deal by adding another 2% from the company over the next two years.

But union workers voted overwhelmingly to reject the contract and support the strike in two separate votes on Sunday.

"Our members have spoken loudly and with one voice," the union leadership said according to the St. Louis Business Journal. "We reject Boeing's current contract offer."

The statement went further, noting that Boeing had already rescinded pensions from union members, which put "hard-earned retirements in jeopardy."

"We cannot accept a contract that is not fair and equitable, as this company continues to make billions of dollars each year off the backs of our hardworking members," the union's statement continued.

The F-15 Eagle fighter jet is one of a number of defense products that are manufactured at the affected Boeing facilities. File Photo by Sr. Airman Mitch Fuqua/U.S. Air Force/UPI

The affected facilities -- located in Charles County, St. Louis County and Mascoutah -- are responsible for producing weapons and aircraft for the Defense Department, including the F-15 Eagle and F/A-18 Hornet fighter jets.

The impending strike is the first by Boeing machinists in more than 20 years.

"It is the bravest decision a union member makes to go on strike, putting their family and loved ones at risk," the union said in its statement.

"We do not make this decision lightly or in haste, but do so in order to stand up for working people around the globe and fight for the contract we deserve."

Boeing planned a tiered system of pay raises that decrease over the next several years, according to a fact sheet released by the company. In the first year, workers would receive a 7% raise plus $1,000 in cash. But in the second year, raises would fall to 4% -- and to 3% by the third.

The decision to strike also nullified a $3,000 cash bonus that workers would have received if they'd accepted Boeing's offer.

"Boeing is disappointed with Sunday's vote to reject a strong, highly competitive offer," the company said according to the St. Louis Post-Dispatch. "We are activating our contingency plan to support continuity of operations in the event of a strike."