Boeing Strike Continues as Union Rejects Offer Over Retirement and Wage Demands

Boeing Co. (BA) defense workers in the Midwest have rejected the company's latest contract offer, extending a strike that has now lasted nearly three months and complicating the aerospace giant's efforts to stabilize its financial performance. The International Association of Machinists and Aerospace Workers (IAM) union, representing 3,200 employees at plants in St. Louis, St. Charles (Missouri), and Mascoutah (Illinois), voted Sunday against the proposal, according to an AP News report.

The strike, which began on August 4, follows the rejection of earlier offers that included a 20% wage increase over five years and a $4,000 ratification bonus, according to a Reuters report. Union leaders criticized Boeing's latest proposal for lacking meaningful improvements to retirement benefits and wage hikes for senior workers, ABC News reported. "Boeing claimed they listened to their employees—the result of today's vote proves they have not," said Brian Bryant, IAM president, according to U.S. News. The union had previously pushed for terms similar to a 2024 agreement with Boeing's Seattle-area workers, which included enhanced retirement contributions.

Boeing's Defense, Space & Security division, which accounts for over one-third of the company's revenue, remains operational despite the strike, with contingency plans in place to support customers, according to a MarketBeat article. However, the ongoing labor dispute risks disrupting production of military aircraft and weapons, critical to Boeing's defense contracts. The company has argued that worker demands exceed the cost of living in the Midwest and emphasized that many employees "want to cross the picket line."

Workers have lost an estimated $25,000 in pay and $3,900 in benefits during the 82-day strike, Yahoo News reported. Boeing's latest offer included a $3,000 ratification bonus, restricted stock units, and incremental wage increases, but fell short of union expectations. The IAM had also proposed a four-year contract earlier in the negotiations, which Boeing refused to consider.

With negotiations at an impasse, Boeing is set to report third-quarter earnings on October 30, with analysts watching for signs of financial strain from the strike, MarketWatch reported. The company's shares have traded sideways in recent months amid broader industry challenges, including production delays and regulatory scrutiny.