Workers at Boeing‘s [BA] C-17 final assembly facility went on strike yesterday after their union rejected the company’s offer of a new four-year contract that includes higher monthly pension payment, maintains the same employee contributions to health care plans at the same percentage, and increases annual wages.
The strike was authorized by 80 percent of the 1,700 workers at the facility in Long Beach, Calif., last week.
The strike halts production of C-17 airlifters Boeing is supplying to the Air Force. So far, the company has delivered 197 of a planned buy of 223 C-17s. The company still has seven firm international orders for the plane that it has yet to begin production on. Qatar also has an option to purchase two more of the transport planes and India may buy 10 of the aircraft, although there is no contract yet for Boeing to supply these.
Boeing on April 30 issued its best and final offer of a new contract to Local 148 of the United Aerospace Workers union. The previous contract expired on May 2.
Media reports in Long Beach say that with C-17 production nearing its end sometime in the next few years or so, workers are trying to lock in better retirement benefits.