Boeing may face strike in St. Louis

ST. LOUIS — Health care costs, outsourcing and job security were the big issues Monday as contract talks began in earnest between Boeing Co. and one of its largest unions.

The International Association of Machinists and Aerospace Workers’ District 837 represents about 2,800 of Boeing’s 15,000 workers in St. Louis, the headquarters of the company’s defense business. Earlier this month, the union local gave 98 percent approval to a strike vote if contract talks snag after the current three-year deal expires May 23.

The IAM workers make fighter jets, missiles, smart bombs and other weapons.

David Heath, Boeing’s senior manager for union relations, expects a "best and final offer" from the company by May 18.

Heath said Boeing spends about $1.9 billion annually on health care costs, a cost that has risen 49 percent over the past three years.

But District 837 president Rick Smith said workers and retirees are bearing too much of the burden.

Outsourcing and job security are tied together, Smith said. The union is concerned about the growing use of lower-wage contracted workers for duties that could be performed by some of the 1,500 District 837 workers laid off by Boeing.

"To make it plain and simple, we want to do the work in St. Louis," Smith said.

Company negotiator Bill Schnettgoecke said outsourcing is a component in keeping costs down.

"We will do what we have to to remain competitive," he said.

Each IAM local handles its own negotiations. Dick Schneider, chief negotiator for the union, said the contract with District 837 is among 11 Boeing-IAM contracts being negotiated this year.