Boeing Defense Workers Strike Over Contract Dispute
Over 3,200 Boeing defense workers began striking on August 4, 2025, after rejecting the company’s latest contract offer, halting production at key facilities in St. Louis and St. Charles, Missouri, and Mascoutah, Illinois. Represented by IAM District 837, the striking workers are responsible for producing critical military aircraft, including the F-15 and F/A-18 fighter jets, T-7 trainer jets, and the MQ-25 refueling drone.
Boeing’s proposed four-year deal included a 20% general wage increase, a $5,000 signing bonus, and an average 40% boost in overall compensation. However, union leaders argued the offer fell short in addressing job security and work-life balance, saying it did not fairly reflect the workers’ contributions and skill.
Boeing stated it is activating contingency plans, including using non-union labor to reduce disruption. While the defense division is smaller than the company’s commercial aircraft segment, it remains vital to national security and accounted for around $42 billion in revenue during the first half of 2025.
This strike comes amid ongoing challenges for Boeing, which has faced commercial aircraft quality concerns and a machinists’ strike in 2024. Analysts noted Boeing’s stock dipped just over 1% following the strike announcement, though shares are still up more than 25% year-to-date.
With a defense backlog of over 550 aircraft and key contracts like the F-47A underway, a prolonged strike could delay deliveries and disrupt U.S. military procurement schedules. The labor action highlights growing tensions between Boeing and its workforce during a critical phase of the company’s recovery.
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Sources: AirGuide Business airguide.info, bing.com, barrons.com