Boeing Defense Workers Go on Strike After Rejection of Contract Offer

Boeing's defense unit workers have gone on strike after rejecting a contract offer that proposed a 20% wage boost over four years and other benefits. The union, IAM, rejected the proposal, saying it didn't address the workforce's priorities and sacrifices. The strike affects around 3,000 workers who maintain and assemble the F-15 fighter jet and missile systems. This is the group's first strike since 1996 and comes as a setback for Boeing's expansion plans in the St. Louis area.

Boeing's defense unit workers have gone on strike after rejecting a contract offer that proposed a 20% wage boost over four years and other benefits. The union, International Association of Machinists and Aerospace Workers (IAM) District 837, rejected the proposal, stating it did not adequately address the workforce's priorities and sacrifices. The strike affects around 3,200 workers who maintain and assemble the F-15 fighter jet and missile systems. This is the group's first strike since 1996 and comes as a setback for Boeing's expansion plans in the St. Louis area.

The strike began early Monday, August 4, 2025, after the workers turned down Boeing's latest offer. The company had proposed a 20% general wage increase, a $5,000 ratification bonus, and other improvements. The offer would have brought average IAM 837 machinist pay to more than $102,000 from $75,000, according to Jefferies [1].

Boeing's management expressed disappointment with the workers' decision and is prepared for the strike. The company has implemented contingency plans to ensure its non-striking workforce can continue supporting its customers. Boeing CEO Kelly Ortberg stated that the company will manage through the strike and that the impact will be minimal compared to last year's strike of 33,000 commercial plane unit workers [2].

The strike is the latest in a series of aviation labor unions winning higher pay as the industry faces a shortage of trained workers. Boeing's defense unit accounted for about 30% of the company's $42 billion in revenue in the first half of this year. Despite the strike, Boeing's financial performance remains stable. The company reported a loss of $176 million in the second quarter, compared to $1.09 billion in 2024, and revenue reached $22.75 billion, a 35% increase year-over-year [3].

Boeing's commercial airplane factory workers ended a seven-week strike in November 2024 after approving a contract with 38% raises over four years and other improvements. The current strike is a reminder of the ongoing labor tensions in the aerospace industry and the importance of fair compensation for skilled workers.

References:
[1] https://www.cnbc.com/2025/08/04/boeing-defense-workers-go-on-strike-after-rejecting-contract.html
[2] https://www.akm.ru/eng/news/employees-of-boeing-defense-companies-are-on-strike/
[3] https://www.cnn.com/2025/08/04/business/boeing-strike-three-defense-plants-hnk