As Strike Continues Over "$102,000 Salary Is Not Enough," This Company Takes Drastic Action

Wage Gap and Discrimination Spark Controversy
Union Voices Strong Opposition

Boeing, the American aircraft manufacturer, has begun recruiting permanent replacement workers for its defense plants in the St. Louis area, where union members are currently on strike. By opting to hire new personnel rather than continue negotiations, the company is escalating the labor dispute.

IAM union members participating in a strike holding placards in front of the Boeing factory in Berkeley, Missouri, USA. Photo by Reuters Yonhap News

According to reports from Reuters, CNBC, and other foreign media outlets on September 4 (local time), Boeing Defense informed employees via a message that it had "initiated the process of permanently replacing manufacturing staff" and would "secure appropriate personnel to support customers." The company added, "We have posted job openings and plan to hold a hiring fair on September 16 to select new manufacturing workers."

This move is a response to the strike triggered on August 4, when 3,200 members of the International Association of Machinists and Aerospace Workers (IAM) Local 837 rejected the company’s collective bargaining proposal. At that time, 67% of union members voted against the four-year contract, resulting in its rejection.

Since the strike began, Boeing has continued production by deploying non-union staff, but some programs are reportedly experiencing delays. The company maintains that "minor adjustments to the existing offer are possible, but there will be no major concessions."

Wage Gap and Discrimination Controversy... Strong Union Opposition

IAM union members are holding pickets and protesting during the strike over collective bargaining negotiations. Photo by Reuters and Yonhap News Agency

In response, the union is expressing strong opposition. IAM International President Brian Bryant criticized, "Boeing’s decision to hire replacement workers instead of negotiating with skilled, multi-generational employees is a stubborn management failure." He urged, "Boeing must return to the negotiating table and resolve the issue."

Boeing’s proposal included a 20% wage increase, a shorter wage progression period, expanded vacation and sick leave, and a $5,000 contract bonus. However, after union members rejected the offer, the company withdrew the bonus. According to a report from investment bank Jefferies, if the proposed increase were implemented, annual salaries for IAM Local 837 workers would rise from $75,000 (100 million won) to over $102,000 (140 million won).

In contrast, other IAM locals in Washington and Oregon secured a 38% wage increase and a $12,000 signing bonus after a seven-week strike. Boeing also provided the same bonus to non-union employees in South Carolina, fueling discontent among St. Louis union members over what they see as "discriminatory treatment."

Meanwhile, Boeing Vice President Dan Gillian emphasized that newly hired personnel would receive the same training and certification as existing staff. This process includes security clearance procedures required for certain roles, such as F/A-18 fighter jet assembly.

Tom Boehlings, chairman of IAM Local 837, stated that obtaining security clearance typically takes about six months. However, Boeing has refrained from specifying whether security clearance roles will be filled or how long the approval process will take.