Boeing 3,200 Workers Threaten Strike After Rejecting 20% 4-Year Pay Deal; Cooling Off Ends August 4

Generated by AI AgentCoin World
Monday, Jul 28, 2025 11:25 am ET1min read
Aime RobotAime Summary

- Boeing faces potential strike by 3,200 union workers after rejecting a 20% 4-year wage offer, with action delayed until August 4.

- The strike could disrupt military jet production (F/A-18, T-7) and worsen supply chain delays for both commercial and defense contracts.

- Union leaders claim the offer ignored worker priorities, reflecting broader U.S. manufacturing tensions over wages amid inflation.

Boeing Co. anticipates a potential strike by over 3,200 union workers at three St. Louis-area facilities producing U.S. fighter jets, following the rejection of a proposed contract that included a 20% wage increase over four years. The International Machinists and Aerospace Workers union confirmed that District 837 members voted overwhelmingly against the offer, which was labeled a “landmark” agreement by union leaders when first announced last week. The existing contract expired on July 28, but a “cooling off” period has delayed any strike action until August 4.

described the proposal as “the richest contract offer” ever presented to the union, with management stating it would enhance medical, pension, and overtime benefits alongside wage hikes [1].

The rejection comes amid heightened labor tensions. Last fall, Boeing offered a 38% wage increase over four years to resolve a 53-day strike involving 33,000 workers at its commercial aircraft plants. Union leaders attributed the recent vote to the perception that the new offer failed to address workers’ “priorities and sacrifices,” despite management’s emphasis on its generosity. Dan Gillan, Boeing’s senior executive overseeing the affected facilities, confirmed the company is preparing for a strike and noted no further negotiations with the union are planned [1].

The potential strike could disrupt Boeing’s military aircraft production, including the F/A-18 Super Hornet for the U.S. Navy and the T-7 Red Hawk trainer for the Air Force. The company reported delivering 150 commercial aircraft and 36 military aircraft in Q2 2025, up from 130 and 26 in the prior quarter. Its stock closed at $233.06 on July 25, reflecting a $1.79 increase [1]. Analysts note that a prolonged labor dispute could exacerbate supply chain pressures and delay deliveries for both commercial and defense contracts, though the full impact remains contingent on strike duration and scope.

Union leaders reiterated their commitment to securing a contract that “respects their work and ensures a secure future,” highlighting the broader challenge of aligning worker demands with corporate financial constraints. Boeing’s focus on preparing for a strike, rather than reopening negotiations, underscores the deepening divide between the company and its workforce. The situation reflects a broader trend in U.S. manufacturing, where unionized sectors continue to push for wage increases and benefits amid inflationary pressures [1].

Source: [1] [title1] [url1]

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