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Boeing open to 'minor' contract changes as St. Louis strike hits 5th week

Jack Suntrup, St. Louis Post-Dispatch on

Published in Business News

ST. LOUIS — A vice president for the Boeing Co. said Wednesday he would consider "minor" changes to a contract offer that union-represented machinists in St. Louis rejected a month ago.

Dan Gillian, vice president of air dominance for Boeing, also said that, while factory output in the St. Louis region has slowed because of the strike, Boeing was still delivering missile-guiding systems and fighter jets to customers.

Gillian told reporters on Wednesday he was willing to listen to constructive proposals from the union.

"But more of everything is not a constructive proposal," he said. "I am willing to consider making minor adjustments within the framework of our offer. But the overall economics won't change."

In response, the president of the International Association of Machinists and Aerospace Workers District 837 said small changes wouldn't satisfy members.

"Our members at Boeing are standing together for more than just 'minor adjustments,'" Tom Boelling, president of District 837, said in a statement.

"We will remain strong until Boeing comes to the table with a fair agreement that addresses their needs," he said.

Members voted down the latest company proposal on Aug. 3, launching into a strike the next morning that continued through Labor Day.

The proposal called for a 20% general wage increase over four years for employees who had not reached the top of the company's pay scale.

 

Workers who had reached the top of the scale would receive two lump sum payments for two years of the contract, instead of increases to their rate of pay.

The company has said the latest proposal would lift average wages from $75,000 to $102,600.

Workers are also pressing for higher 401(k) benefits and a faster path to the top of the pay scale.

Gillian said Wednesday the offer members had rejected would allow for quicker progression and more vacation and sick time.

He also said "factory performance has slowed in areas because of the strike."

But he said contingency plans have been "working well" over the last month. Boeing products made locally include the F-15 and F-18 fighter jets, T-7A trainer and MQ-25 refueling drone.

Joint Direct Attack Munitions (JDAMs) are manufactured in St. Charles.

"Fighter jets are still flying," he said. "We're delivering jets to our customers. Out in St. Charles, our team is doing a great job delivering JDAMs at about the same rate."


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