More than 3,000 Boeing defense workers go on strike after rejecting contract

Its offer, which the workers voted down Sunday, included wage rises for employees at the top of the pay scale, and imved retirement benefits, according to their union, the International Association of Machinists and Aerospace Workers District 837

The workers are largely based in the St

Louis area.It marks the union's first strike since 1996."IAM District 837 members have spoken loud and , they deserve a contract that reflects their skill, dedication, and the critical role they play in our nation's defense," said Tom Boelling, IAM District 837 directing representative. "We stand shoulder to shoulder with these working families as they fight for fairness and respect on the job."Dan Gillian, a vice president at Boeing and senior St

Louis site executive, said the company is disappointed the offer was rejected."We are prepared for a strike and have fully implemented our contingency plan to ensure our non-striking workforce can continue supporting our customers," he said in an ed statement.The workers assemble and maintain F-15 fighter jets as well as missile systems.Read more CNBC airline newsWhy Delta and United are pulling away from the airline packSouthwest Airlines sets a date for seat assignment launch, lays out new boarding order'He's showing up.' Things are getting better at Boeing under CEO Ortberg

Can he keep it going?Boeing CEO Kelly Ortberg brushed off the effects of a then-potential strike when the company reported results last week."We'll manage through this

I wouldn't worry too much the implications of the strike

We'll manage our way through that," he said on an earnings call Tuesday.Boeing's defense unit accounted for 30% of the company's $42 billion in revenue in the first half of this year.Monday's strike s a bigger work stoppage last year, when more than 32,000 unionized machinists who build commercial aircraft walked off the job after failed contract talks.Boeing's commercial airplane factory workers a seven-week strike that hobbled the company's aircraft output in November, after apving a contract with 38% raises over four years and other imvements.Don’t miss these insights from CNBC Bank of America says these five stocks have more room to run ahead of earningsThese overbought stocks could take a dip after the market's record gainsGoldman Sachs is getting worried the economyWhat the prediction are saying the big Wall Street events ahead