Boeing Workers Reject 20% Wage Deal Strike Looms Aug. 4

Boeing Co. said Monday that thousands of union workers at three St. Louis-area plants producing U.S. military aircraft will likely strike after rejecting a proposed contract offering a 20% wage increase over four years. The International Machinists and Aerospace Workers Union, representing over 3,200 employees at the facilities, reported an “overwhelming” vote against the deal, which had been labeled a “landmark” agreement by union leaders prior to the rejection. The existing contract expired at 11:59 p.m. Central time Sunday, but a “cooling off” period will delay the strike until Aug. 4 [1].

The rejected proposal included enhancements to medical benefits, pension plans, and overtime pay, in addition to the wage hike. Boeing’s St. Louis-based executive Dan Gillan described the offer as “the richest contract offer” ever presented to the union, while the union criticized it for “falling short of addressing the priorities and sacrifices” of workers [1]. Despite a recommendation from union leaders to approve the deal, members opted to hold out for a more favorable agreement, emphasizing the need for “a contract that respects their work and ensures a secure future” [1].

The labor dispute occurs as Boeing prepares to report second-quarter earnings, following a recent production uptick of 150 commercial airliners and 36 military aircraft, compared to 130 and 26 in the first quarter. Its stock closed Friday at $233.06 per share, up $1.79. The rejected contract comes after Boeing previously settled a 53-day strike in November with a 38% wage increase over four years for 33,000 workers producing passenger aircraft [1].

Gillan, who oversees Boeing Air Dominance—a division responsible for military jets like the Super Hornet and Red Hawk—stated the company is preparing for a strike and has no plans to resume negotiations. The union’s decision to reject the offer highlights ongoing tensions between Boeing and its workforce, particularly in facilities critical to national defense contracts.

Source: [1] [Boeing says thousands of union workers will likely go on strike after rejecting ‘the richest contract offer’ that would have upped wages by 20%] [https://fortune.com/2025/07/28/boeing-union-workers-strike-st-louis-plants-international-machinists-aerospace-workers-district-837-dan-gillan/]