More than 3,000 Boeing defense workers went on strike Monday morning after rejecting the company’s latest contract proposal. The workers, mostly based in the St. Louis area, are responsible for assembling and maintaining F-15 fighter jets and missile systems.
Boeing’s defense unit generated about 30% of the company’s $42 billion in revenue during the first half of this year.
The company said it doesn’t expect significant disruptions due to the strike.
“We are prepared for a strike and have fully implemented our contingency plan to ensure our non-striking workforce can continue supporting our customers,” Dan Gillian, a Boeing vice president and senior executive at the St. Louis site, said in a statement shared with CNBC. He added that the company is “disappointed that the offer was rejected.”
The proposal includes a 20% wage increase, a $5,000 ratification bonus and other enhancements. According to the International Association of Machinists and Aerospace Workers District 837, the deal also featured wage hikes for top-tier employees and improved retirement benefits.
Monday’s walkout follows a larger strike last year, when more than 32,000 unionized Boeing machinists building commercial aircraft walked off the job after contract talks broke down.