Boeing Defense halts negotiations with striking machinists, union reports

Boeing Defense halts negotiations with striking machinists, union reports

Boeing Defense (BA.N) has announced that it will not resume negotiations with striking machinists in the St. Louis area until after the Labor Day holiday, according to the International Association of Machinists and Aerospace Workers (IAM) union. The union stated that Boeing informed them of this decision on Tuesday, August 27 [2].

The current impasse follows a strike that began on August 4, when approximately 3,200 members of the IAM District 837 rejected Boeing's four-year contract offer. The offer included a 20% general wage increase, a $5,000 ratification bonus, and more vacation time and sick leave. Workers, however, want a contract closer to the 38% wage increase agreed upon by Boeing's Seattle-area workers last November [1].

Boeing's defense division has maintained production using non-union workers during the strike. The company's spokesperson, Didi VanNierop, stated that the offer made to the St. Louis-area workers was strong and included an average of 40% wage growth [1].

The union has expressed frustration with the current offer, with IAM International President Brian Bryant stating that the threat to withhold the $5,000 ratification bonus "disrespected" District 837 members [1]. Despite this, the union and Boeing had previously agreed to resume negotiations on Monday, August 27, but this has now been postponed [3].

Boeing's defense division is expanding manufacturing facilities in the St. Louis area to produce the new U.S. Air Force fighter jet, the F-47A, following a contract win earlier this year [1]. The company's top St. Louis executive, Dan Gillian, has defended the offer, stating that it was strong and included an average of 40% wage growth [1].

The latest development highlights the ongoing labor dispute between Boeing Defense and the IAM, which has significant implications for the company's production and financial outlook. Investors and financial professionals should closely monitor the situation as it may impact Boeing's operational efficiency and future labor agreements.

References:
[1] https://www.reuters.com/sustainability/sustainable-finance-reporting/boeing-defense-striking-machinists-say-negotiations-will-resume-monday-2025-08-22/
[2] https://www.reuters.com/sustainability/sustainable-finance-reporting/talks-stop-between-boeings-defense-division-striking-machinists-2025-08-27/
[3] https://www.marketscreener.com/news/boeing-defense-and-striking-machinists-will-resume-negotiations-monday-says-union-official-ce7c50dbd88afe2d