More than 3,200 Boeing (NYSE: BA) workers at the company’s St. Louis-area defense factories went on strike Monday after the International Association of Machinists and Aerospace Workers (the IAM Union) rejected a modified contract offer from the company.
The IAM Union members help build and maintain military aircraft and defense systems, including the F-15EX fighter jet and the MQ-25 Stingray autonomous aerial refueler. According to a report in The New York Times, the last time this local IAM chapter went on strike was in 1996. That walkout lasted 99 days.
Boeing stock is up 25% this year, as investors are seeing signs of progress in the company’s turnaround plan. However, it’s reasonable to wonder if a prolonged work stoppage in Boeing’s defense operations would pose a significant setback to the company’s recovery efforts.