Boeing workers reject 20% wage offer risking 3200-job strike at St Louis plants

Boeing Co. is bracing for a potential strike by over 3,200 union workers at three St. Louis-area facilities producing U.S. fighter jets after the workforce rejected a proposed contract. The International Machinists and Aerospace Workers (IAM) union confirmed that District 837 members overwhelmingly voted against the offer, which included a 20% wage increase over four years alongside improved medical, pension, and overtime benefits. Union leaders had urged workers to approve the deal, calling it a “landmark” agreement, but employees argued it failed to address their core concerns, including fair compensation and workplace security [1]. The current contract expired on July 27, but a mandated “cooling off” period delays the strike until August 4. Boeing has described its offer as “the richest contract” ever presented to the union, yet the rejection highlights deepening tensions between the company and its workforce.

The dispute comes as Boeing prepares to report second-quarter earnings, with recent production data showing an increase in commercial and military aircraft deliveries. However, the strike threat could disrupt critical defense programs, particularly for the F/A-18 Super Hornet, a key platform for U.S. military operations. The company’s senior vice president for Boeing Air Dominance, Dan Gillan, stated the organization is “focused on preparing for a strike” and emphasized no further negotiations are scheduled with the union. Union representatives, meanwhile, reiterated that members are demanding a contract “that respects their work and ensures a secure future.” The standoff underscores broader challenges in labor negotiations within the aerospace sector, where corporate cost-cutting pressures often clash with worker demands for better terms amid rising inflation and labor market tightness [1].

The rejection of the contract follows a separate resolution last fall, when Boeing secured a 38% wage increase over four years to end a 53-day strike involving 33,000 employees at its passenger aircraft plants. That agreement, however, did not extend to the St. Louis workers, who produce military jets and training aircraft. The IAM union has not provided specific reasons for the current rejection but stated the offer “fell short of addressing the priorities and sacrifices” of the workforce. Analysts note that the situation mirrors trends in U.S. manufacturing, where unionized employees are increasingly vocal in seeking stronger protections and compensation packages. For Boeing, the inability to reach a consensus could ripple through its supply chain, affecting both domestic and international defense contracts. The company’s stock closed at $233.06 on July 26, a $1.79 increase, but prolonged labor disruptions may weigh on its financial performance [1].

The outcome of this standoff could set a precedent for future labor negotiations, particularly in industries where operational continuity and labor costs are critical. Boeing’s reliance on unionized labor at its St. Louis facilities amplifies the stakes, as any protracted strike could delay production of the Super Hornet and other military aircraft. The IAM union faces pressure to balance worker demands with the practicalities of maintaining production schedules. Meanwhile, Boeing’s leadership appears resolved to proceed without further concessions, framing its offer as a final proposal. The situation remains a test of the company’s ability to manage labor relations amid broader financial and operational challenges, including restructuring efforts and global supply chain constraints.

Source: [1] [title: Boeing expects more than 3,200 fighter-jet workers to strike ...] [url: https://fortune.com/2025/07/27/boeing-strike-st-louis-contract-wage-hike-fighter-jet-plant-f18-super-hornet/].