3,200 union members walk out after rejecting contract offer
Thousands of workers at three Boeing defense facilities went on strike Monday after rejecting a revised four-year labor deal. The strike affects key plants in St. Louis and St. Charles, Missouri, and Mascoutah, Illinois, where Boeing develops military aircraft and weapons systems. The walkout was confirmed by the International Association of Machinists and Aerospace Workers (IAM), which represents around 3,200 employees at the sites.
The union cited insufficient wage growth and concerns over scheduling provisions that could have limited overtime pay. While Boeing proposed a 20% wage increase and $5,000 in ratification bonuses, workers voted against the offer, prompting the company to implement a contingency plan to minimize disruption.
Union demands recognition for critical defense work
IAM District 837 leadership emphasized the vital national security role played by the striking workers, demanding a contract that acknowledges their expertise and provides financial stability. Boeing’s revised offer, which removed a controversial shift scheduling clause, failed to sway the union’s rank and file, leading to the current standoff after a weeklong cooling-off period.
Boeing expressed disappointment, noting that its offer would have provided 40% average wage growth. Dan Gillian, the company’s Air Dominance executive, assured stakeholders that operations would continue through a prepared contingency workforce, though some disruption is expected.
Limited financial impact expected for now
While the strike targets Boeing’s defense operations—which account for over a third of company revenue—CEO Kelly Ortberg downplayed the potential financial impact. He stated the scope is far smaller than the 2024 strike by commercial jet workers, which halted aircraft production in Washington state for more than seven weeks.
Ortberg acknowledged that the company would monitor the situation but emphasized confidence in Boeing’s ability to weather the labor action without significant long-term damage. The defense division remains critical as it produces advanced fighter jets and the Navy’s first unmanned carrier aircraft.
Broader context: Boeing still recovering from setbacks
Boeing continues to rebuild its reputation and finances following a series of crises, including federal investigations into manufacturing practices after a door plug incident on a 737 Max earlier this year. The Federal Aviation Administration has capped 737 Max production at 38 units per month until further notice, citing safety concerns.
Despite ongoing challenges, Boeing reported progress in its second-quarter results last week, with losses narrowing to $611 million from $1.44 billion a year earlier. Investors appeared cautiously optimistic, with Boeing shares falling less than 1% in early trading on Monday.
