{"id":55902,"date":"2022-07-25T15:53:07","date_gmt":"2022-07-25T15:53:07","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2022\/07\/25\/machinists-union-votes-to-reject-boeing-contract-over-401k-dispute-strike-starting-aug-1\/"},"modified":"2026-08-08T00:09:53","modified_gmt":"2026-08-08T00:09:53","slug":"machinists-union-votes-to-reject-boeing-contract-over-401k-dispute-strike-starting-aug-1","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/air\/2022\/07\/25\/machinists-union-votes-to-reject-boeing-contract-over-401k-dispute-strike-starting-aug-1\/","title":{"rendered":"Machinists union votes to reject Boeing contract over 401(k) dispute, strike starting Aug. 1"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">WASHINGTON \u2014 The union representing almost 2,500 machinists at three <a href=\"https:\/\/www.defensenews.com\/air\/2021\/12\/17\/the-t-7-takes-shape-inside-the-factory-where-the-air-forces-next-trainer-is-being-built\/\" target=\"_blank\">Boeing Defense factories<\/a> has voted to reject the company\u2019s latest contract offer and strike beginning Aug. 1.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The International Association of Machinists and Aerospace Workers District 837 said in a release issued Sunday talks broke down over what it saw as an inadequate 401(k) plan.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWe 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,\u201d the union said in the release. \u201cBoeing previously took away a pension from our members, and now the company is unwilling to adequately compensate our members\u2019 401(k) plans.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In an email to Defense News, Boeing said it planned to keep its factories operating if the strike takes place next week.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWe are disappointed with Sunday\u2019s vote to reject a strong, highly competitive offer,\u201d the company said in an email. \u201cWe are activating our contingency plan to support continuity of operations in the event of a strike.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The union and Boeing have a pre-existing agreement to allow a seven-day cooling off period before the strike officially begins, during which negotiations could continue, union spokesman DeLane Adams told Defense News.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Jody Bennett, chief of staff for the union\u2019s aerospace department, told Defense News the union is not satisfied with Boeing\u2019s proposal to phase out its automatic contributions to machinists\u2019 401(k)s, which take place without employees needing to contribute.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Bennett said the 401(k) that replaced the defined benefit pension in 2014 first had the company making its own automatic contributions of<b> <\/b>9% of a worker\u2019s salary,<b> <\/b>which was then gradually reduced over the next few years until reaching its current level of 4%.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Boeing offered to increase the matching contribution \u2014 which is now 75% for the first 8% employees contribute from their own salaries \u2014 to a 100% match of a 10% contribution, Bennett said. But while that makes the matching contribution more generous, he<b> <\/b>said, Boeing\u2019s proposal would drop the 4% automatic contribution in 2023 in favor of 2% lump sums at the end of the year for employees on the payroll on the last days of 2023 and 2024. After that, Bennett said, those lump sums go away entirely.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Bennett said the union wants Boeing to keep the 4% automatic contribution, as well larger increases to employees\u2019 salaries along the pay scale. He<b> <\/b>said the union and Boeing are currently not talking.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The strike would cover Boeing\u2019s locations in St. Louis and St. Charles, Missouri, and Mascoutah, Illinois. The St. Louis facility is where aircraft such as the <a href=\"https:\/\/www.defensenews.com\/air\/2022\/04\/29\/t-7-red-hawk-trainer-makes-its-debut\/\" target=\"_blank\">T-7A Red Hawk trainer<\/a>, F-15 and F\/A-18 fighters and the <a href=\"https:\/\/www.defensenews.com\/naval\/2021\/06\/07\/us-navy-boeing-conduct-first-ever-aerial-refueling-with-unmanned-tanker\/\" target=\"_blank\">MQ-25 Stingray unmanned refueling aircraft<\/a> are built, and the St. Charles facility produces weapons such as precision-guided Joint Direct Attack Munition kits. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>The union said the 401(k) offered in Boeing&#8217;s contract was inadequate: &#8220;We will not allow this company to put our members\u2019 hard-earned retirements in jeopardy.\u201d<\/p>\n","protected":false},"author":7,"featured_media":43499,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":7,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[7,160,36],"tags":[],"coauthors":[3412],"class_list":["post-55902","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-air","category-daily-news-roundup","category-newsletters"],"acf":{"subheadline":"","legacy_arc_id":"4ID34SV5XBFEVJ35WEX4U5XZXE","arc_canonical_url":"\/air\/2022\/07\/25\/machinists-union-votes-to-reject-boeing-contract-over-401k-dispute-strike-starting-aug-1\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented By:"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.0 (Yoast SEO v28.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Machinists union votes to reject Boeing contract over 401(k) dispute, strike starting Aug. 1 - Defense News<\/title>\n<meta name=\"description\" content=\"The union said the 401(k) offered in Boeing&#039;s contract was inadequate: &quot;We will not allow this company to put our members\u2019 hard-earned retirements in jeopardy.\u201d\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Machinists union votes to reject Boeing contract over 401(k) dispute, strike starting Aug. 1\" \/>\n<meta property=\"og:description\" content=\"The union said the 401(k) offered in Boeing&#039;s contract was inadequate: &quot;We will not allow this company to put our members\u2019 hard-earned retirements in jeopardy.\u201d\" \/>\n<meta property=\"og:url\" content=\"https:\/\/one.sightlinemg.com\/defensenews\/air\/2022\/07\/25\/machinists-union-votes-to-reject-boeing-contract-over-401k-dispute-strike-starting-aug-1\/\" \/>\n<meta property=\"og:site_name\" content=\"Defense News\" \/>\n<meta property=\"article:published_time\" content=\"2022-07-25T15:53:07+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-08-08T00:09:53+00:00\" \/>\n<meta name=\"author\" content=\"Stephen Losey\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Stephen Losey\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\n\t    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