FOX Business host Stuart Varney discusses Boeing and Chipotle stocks during the opening bell.
About 2,500 Boeing employees are expected to go on strike on Aug. 1 at three factories in the St. Louis area after talks broke down between the company and the International Association of Machinists and Aerospace Workers District 837, the union announced.
“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 said in a statement on Sunday.
“We stand in solidarity across the United States and will use the might of the Fighting Machinists to bring home a contract that allows us to build and produce some of the best military aircraft and weapons in the world, and enables us to take care of our families.”
Employees work on the assembly line of the Boeing Co. F-15 Strike Eagle fighter aircraft at the Boeing Defense, Space & Security facility in St. Louis, Missouri. (Alex Flynn/Bloomberg via Getty Images / Getty Images)
The union contested that Boeing “rejected all proposals to a pension,” is refusing to “adequately compensate our members’ 401(k),” and rejected multiple wage progression rate proposals.
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Boeing offered a dollar-for-dollar match on 10% of base and incentive pay for each employee’s 401(k), according to the company.
“Boeing is disappointed with Sunday’s vote to reject a strong, highly competitive offer,” a Boeing spokesperson told Fox Business on Sunday. “We are activating our contingency plan to support continuity of operations in the event of a strike.”
The Boeing logo appears above a trading post on the floor of the New York Stock Exchange before the opening bell. ( (AP Photo/Richard Drew) / AP Newsroom)
The facilities that will go on strike are located in St. Louis, St. Charles, Missouri, and Mascoutah, Illinois. They produce various military aircraft, including the F-15, F-18 and the MQ-25 Stingray, according to the union.
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Shares of Boeing stock are down about 23.9% so far this year. The company posted a $1.2 billion net loss during the first quarter of 2022, compared to $561 million during the same period a year ago.
