Boeing Co. is preparing for its first strike at its St. Louis-area defense plants in nearly 30 years, after 3,200 union machinists voted to reject the company’s latest contract offer, setting the stage for a walkout at midnight.
As reported by Bloomberg, the rejected deal included a 20% wage increase and enhanced retirement contributions, with Boeing positioning it as the most generous offer ever extended to members of International Association of Machinists and Aerospace Workers (IAM) Local 837. Workers, however, say it still falls short of addressing concerns around compensation and long-term benefits.
“IAM District 837 members have spoken loud and clear,” said Tom Boelling, the union’s local president. “They deserve a contract that reflects their skill, dedication, and the critical role they play in our nation’s defense.”
The looming work stoppage comes at a delicate time for Boeing, whose defense and space division contributes roughly 30% of its total revenue. The strike would disrupt the production of key military assets, including F-15 fighter jets, T-7A trainer aircraft, missiles, and components for the 777X commercial aircraft.
Boeing Vice President Dan Gillian, who oversees the St. Louis site, confirmed the company has activated a contingency plan to minimize disruption. “We are prepared for a strike and have fully implemented our plan to ensure our non-striking workforce can continue supporting our customers,” he said in a statement.
The tension reflects a broader surge in labor activism across the aerospace industry, with skilled labor shortages giving unions more bargaining power. Earlier this year, Pratt & Whitney workers staged a three-week strike, exacerbating engine shortages for Airbus SE, while Boeing’s commercial operations were paralyzed by a separate two-month strike in late 2024.
On a July 29 earnings call, Boeing CEO Kelly Ortberg sought to reassure investors, downplaying the potential impact. “The order of magnitude of this is much, much less than what we saw last fall,” he said, noting that the St. Louis union is about one-tenth the size of the Seattle-based IAM group that struck previously.
Boeing’s revised proposal — rejected on Sunday — would have raised average annual pay from $75,000 to $102,600 and provided workers with an immediate 401(k) contribution increase. It also eliminated a previously controversial scheduling provision. However, the company warned it would withdraw a $5,000 signing bonus if the deal wasn’t ratified by 11:59 p.m. Sunday, a move seen by many union members as coercive.
With the deadline passed and the contract rejected, Boeing now faces renewed labor unrest that could impact defense supply chains and program schedules. As Bloomberg noted, the strike marks a pivotal moment for labor relations at the aerospace giant, as workers demand a larger share of record-breaking defense revenues.
