Union workers have moved closer to a strike at Boeing plants in St. Louis, St. Charles and Mascoutah.
Members of the International Association of Machinists and Aerospace Workers rejected Boeing's latest contract proposal on Sunday, hours before their current contract expired at midnight.
Union representatives said they'll observe a seven-day "cooling-off period" before potentially calling a strike. The IAM's District 837 chapter includes more than 3,200 members, who voted "overwhelmingly" to reject the proposal, according to a union statement. The latest contract negotiations began in June.
Boeing leaders said in a statement that no further talks are scheduled and that the company would begin preparing for a strike.
"We're disappointed our employees voted down the richest contract offer we've ever presented to IAM 837 which addressed all their stated priorities," said Dan Gillian, Boeing general manager and senior St. Louis site executive, in the statement. A Boeing representative declined on Monday to make further comments.
The rejected proposal include a 20% wage increase over four years and more vacation time and sick leave, according to a Reuters report.
In March, Boeing won a lucrative defense contract estimated by observers to total approximately $20 billion to build F-47s, the latest generation of U.S. fighter jets.
The F-47 fighter jets will be manufactured by Boeing's defense branch, based at the site where $1.8 billion was invested in an expansion project next to St. Louis Lambert International Airport.
St. Louis County approved $155 million in tax breaks in exchange for Boeing's promise to create 500 high-paying jobs. The aerospace giant employs more than 16,000 people at locations in north St. Louis County and St. Charles County and St. Clair County in the Metro East.
Boeing announced layoffs of 692 employees who worked at plants in St. Louis, Hazelwood and St. Charles in October. The job cuts were due to take effect in January.
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