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Boeing strike slows fighter jet production in St. Louis, general says

Jack Suntrup, St. Louis Post-Dispatch on

Published in Business News

ST. LOUIS — Boeing's fighter jet production has taken a hit as a two-month strike by the company's St. Louis-area workers drags on — and U.S. Air Force officials are taking notice.

Gen. Kenneth S. Wilsbach told the U.S. Senate Armed Services Committee in written testimony that deliveries of F-15EX fighter jets had been anticipated this year but "are delayed due to the ongoing Boeing strikes."

Wilsbach said delivery of the first lot of F-15EX fighters is complete, but that only six of 12 jets in a second group of fighters had been delivered. The EX is a modernized version of Boeing's legacy fighter, the F-15.

Wilsbach, who is seeking Senate confirmation to become Air Force chief of staff, told the committee the delays would impact the Air National Guard Base in Portland, Oregon, and next year's overseas deliveries.

"While later than initially planned, aircraft deliveries and program milestone dates remain within the program’s acquisition baseline," Wilsbach said.

It's the first time the effects of the 11-week strike at the Boeing Co.'s St. Louis-area assembly sites have been discussed publicly. Boeing declined comment on Monday.

Aerospace workers represented by the International Association of Machinists and Aerospace Workers District 837 began picketing Aug. 4 after rejecting two Boeing contract offers.

Dan Gillian, Boeing's top St. Louis executive, said Sept. 3 that while factory output in the St. Louis region had slowed because of the strike, Boeing was still delivering missile-guiding systems and fighter jets to customers.

Gillian, in a note to employees on Oct. 2, said Boeing was "meeting our customer needs."

He said the company had built up to pre-strike levels the production rates of Joint Direct Attack Munitions, which convert bombs to GPS-guided weapons, and would deliver 4,000 to customers.

He also said Boeing had completed F/A-18 and F-15EX deliveries, but didn't offer specific figures.

Gillian earlier this month went on to say the company would ramp up efforts to hire replacement workers, and would assess what work could be done "more efficiently" by third parties.

 

The union representing about 3,200 local Boeing workers has blasted the efforts to hire replacements.

Boeing's latest offer to workers includes a 24% general wage increase over five years, with a $4,000 ratification bonus.

The company said under its plan that average wages would rise from $75,000 to $109,000.

Unionized workers have approved a contract that includes a 20% general wage increase over five years and a $10,000 ratification bonus. It would also give senior employees pay raises instead of lump sum payments the company has offered.

But Boeing hasn't accepted the proposal.

In a note to workers Thursday, Steve Parker, president and CEO of the company's defense division, vowed not to budge.

"Some may convince you that holding the line will result in more money. It won’t," he said.

The union responded urging members to stay strong and united.

"Without our skills and dedication, Boeing doesn’t move forward," the note said.

The strike had lasted 71 days as of Monday. A representative for Boeing said no negotiations were scheduled.


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