Boeing Workers Reject Contract Offer, Strike Looms

Boeing (BA, Financials) is facing labor unrest after members of the International Association of Machinists and Aerospace Workers District 837 voted against the company's proposed four-year contract. The offer included a 20% wage hike, a $5,000 ratification bonus, and expanded vacation and sick leave.

The union said the offer "fell short" of worker expectations, despite the proposal being described by Boeing as the "richest" ever made to this unit. The current contract is set to expire Sunday, followed by a mandatory seven-day cooling-off period before a strike can begin.

Dan Gillian, vice president and general manager of Boeing's Air Dominance division, said the company is activating its contingency plan and preparing for work stoppages. No further negotiations are scheduled.

The dispute comes as Boeing Defense ramps up manufacturing of the F-47 fighter jet under the U.S. Air Force's Next Generation Air Dominance program, a key replacement for the aging F-22 Raptor fleet.