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Over 3,200 union workers at Boeing’s military aircraft facilities in the St. Louis area have rejected a proposed labor agreement, setting the stage for a potential strike that could begin August 4, 2025, if no resolution is reached.
Union Members Vote Against 20% Pay Raise Deal
Despite Boeing’s proposal offering a 20% wage increase over four years, members of the International Association of Machinists and Aerospace Workers (IAM) District 837 voted overwhelmingly to turn it down.
The contract also included enhanced benefits for healthcare, pensions, and overtime. However, workers stated that the deal did not meet their core priorities or reflect their recent sacrifices.
The current contract was set to expire July 28, 2025, but a one-week cooling-off period has delayed strike action until August 4, giving both sides time to reconsider.
Company Calls It the Richest Offer Yet
Dan Gillian, vice president of Boeing’s Air Dominance division and general manager of the St. Louis operations, said the company is now actively preparing for a strike.
He emphasized that this was “the richest contract offer” Boeing has ever extended to the St. Louis union workforce, which builds vital defense products such as the U.S. Navy’s Super Hornet and the U.S. Air Force’s Red Hawk trainer jet.
Union Seeks Greater Recognition
Union leaders had earlier recommended accepting the deal, calling it a “landmark” offer, but the membership disagreed. In a statement, the IAM said the proposed agreement “fell short of addressing the priorities and sacrifices of our members.”
The union added, “Our members are united in demanding a fair contract that values their skills and secures their future.”
No Further Negotiations Scheduled
As of now, no additional talks have been scheduled between Boeing and the union. The strike threat comes just days before Boeing is set to release its second-quarter earnings.
The aerospace giant recently announced the delivery of 150 commercial planes and 36 military aircraft in Q2, up from 130 and 26, respectively, in the previous quarter. Boeing stock closed at $233.06 last Friday.
Past Labor Disputes at Boeing
This is not the first time Boeing has faced labor tensions. Last fall, the company ended a 53-day strike at another plant by agreeing to a 38% wage increase for 33,000 commercial aircraft workers.
The rejection of Boeing’s latest contract proposal by its St. Louis-based defense workers signals heightened labor tensions in the aerospace industry.
While Boeing claims the offer was generous, the union insists on a contract that better reflects its members’ dedication and future security.
With a potential strike looming on August 4, both sides now face increased pressure to find a compromise.