A union representing nearly 2,500 employees at three Boeing Co (BA.N) defense locations in the St. Louis area said on Sunday the workers rejected the company's defense contract offer and will strike at the locations starting August 1, Report informs, citing Reuters.
"Boeing previously took away a pension from our members, and now the company is unwilling to adequately compensate our members' 401(k) plan," the International Association of Machinists and Aerospace Workers union said in a statement. It added that union workers will not accept a contract that is not fair and equitable.
Workers at the three plants in Missouri and Illinois build the F-15, F-18, T-7A trainer, and the MQ-25 unmanned refueler.
Boeing said Sunday it "is disappointed with Sunday’s vote to reject a strong, highly competitive offer. We are activating our contingency plan to support continuity of operations in the event of a strike."
Boeing's 401(k) offer included a company match of workers contributions up to 10% of workers' salaries along with an automatic contribution of 2% for 2023 and 2024.