'40% raise not enough': Boeing faces first defense strike in decades as 3,200 workers walk out over contract dispute

Boeing hit by defense strike as workers reject contract offer

In a major setback to its defense business, more than 3,200 Boeing workers in Missouri and Illinois are set to go on strike starting midnight on August 4, after rejecting the company’s latest four-year contract offer.

The planned walkout, led by IAM District 837, affects facilities that build critical military aircraft like the F-15 Eagle, F/A-18 Hornet, and missile systems. It marks the first strike in Boeing’s defense division since 1996, adding to the company’s mounting challenges.

“Members have spoken loud and clear,” said Tom Boelling, the IAM District 837 representative, as cited by BBC. “They deserve a contract that reflects their skill, dedication, and the critical role they play in our nation’s defense.”

Union says 40 percent wage growth is not enough

The International Association of Machinists and Aerospace Workers (IAM), one of the largest industrial unions in the US, announced that its members had overwhelmingly rejected Boeing’s revised contract. The sticking points: wages, pension terms, and work schedules.

Boeing, however, expressed disappointment, noting that the deal included average wage growth of 40 percent. Dan Gillian, vice president of Boeing’s Air Dominance unit, said in a statement that the company had made a competitive offer.

Union leaders disagreed.

“IAM District 837 members build the aircraft and defense systems that keep our country safe,” said Sam Cicinelli, IAM Midwest Territory vice president. “They deserve nothing less than a contract that keeps their families secure and recognises their unmatched expertise.”

Strike adds to Boeing’s long list of woes

The defense strike comes at a time when Boeing is still reeling from a string of public and safety crises. From the two fatal 737 Max crashes in 2018 and 2019, to last year’s seven-week passenger jet worker strike, the aerospace giant has been in damage control mode for several years.

In 2024, a door plug blew out mid-flight on an Alaska Airlines 737 Max, prompting a lawsuit by flight attendants. And just this June, a Boeing 787 Dreamliner operated by Air India crashed, killing hundreds.

Production numbers have suffered too. Boeing delivered just 348 aircraft last year, its lowest tally since the pandemic.

Defense hub in St. Louis now at a standstill

The strike is centred in St. Louis, the hub of Boeing’s military aircraft operations. The plant is expected to be a key site for building the next-generation F-47 fighter jet.

Workers there say the previous contract expired on July 27, and talks failed to produce an acceptable deal before the seven-day cooling-off period ended. With no agreement in place, the strike is now in motion.

Boeing says it’s ‘prepared’ but downplays impact

In a statement, Boeing said it was prepared for the strike, with contingency plans in place to continue operations using non-union staff. CEO Kelly Ortberg, during an earnings call last week, attempted to minimise the scale of disruption.

“I wouldn’t worry too much about the implications of the strike,” Ortberg said. “We’ll manage our way through that.”

Still, industry watchers say the optics are bad. Boeing’s defense business is typically seen as more stable than its commercial division, and a strike of this nature highlights deeper dissatisfaction among its workforce.

This marks the second major strike at Boeing in less than a year. Last fall, 30,000 commercial aircraft workers walked out for seven weeks, costing the company billions.