Lockheed Machinists Vote to Strike at Texas Plant

About 2,300 machinists voted overwhelmingly Sunday to go on strike after rejecting a new contract with defense contractor Lockheed Martin Corp.

Machinists at the company’s Fort Worth plant were set to walk out at 12:01 a.m. today, when their three-year contract was set to expire.

Local 776 of the International Assn. of Machinists voted 993 to 743 to reject the offer and 1,422 to 257 to strike. The votes came after an 11th-hour bargaining session from Friday to Sunday afternoon.

A Lockheed spokesman said the union had not told the company of a walkout as of Sunday evening.

“We’re disappointed the union membership did not accept our contract offer and voted to strike,” the company said in a statement. “Our plant will be open as usual Monday morning, and all employees are expected to report to work.”

The potential strike is the latest in a string of woes for Lockheed, whose stock has fallen 40% in the last year as it reshaped its management to restore profitability and cut costs. Last week, the U.S. government accused Lockheed of illegally providing information on satellites to China.

The Fort Worth plant makes the F-16 fighter, part of the fuselage for the F-22 fighter and parts for the Japanese F-2 fighter. It employs about 10,500 people.

Union officials previously had said health-care benefits were a major issue for workers. Local President Pat Lane has said the company was asking workers to pay higher premiums for fewer benefits.

The last strike by union workers at the Fort Worth Lockheed plant was a two-week walkout in 1984.

Three years ago, machinists threatened a strike but settled when the company improved pension benefits. Bethesda, Md.-based Lockheed narrowly avoided strikes last year at plants in California and Georgia.

On Friday, Lockheed shares closed at $21.06, down 13 cents, on the New York Stock Exchange.