Boeing’s struggle to regain stability has hit another roadblock. Roughly 3,200 unionised defence workers across three Midwest plants have voted to reject the company’s latest contract offer and continue their strike, which began nearly three months ago.
The walkout involves machinists at Boeing’s facilities in St. Louis and St. Charles, Missouri, and Mascoutah, Illinois, where the company builds military aircraft, weapons, and defense systems, according to a report by Associated Press.
While smaller in scale than last year’s high-profile commercial jetliner strike, the ongoing standoff is complicating Boeing’s broader recovery efforts at a time when its defense unit contributes more than a third of total revenue.
Union accuses Boeing of ignoring worker demands
“Boeing claimed they listened to their employees, the result of today’s vote proves they have not,” said Brian Bryant, president of the International Association of Machinists and Aerospace Workers (IAM), which represents the striking employees.
Union leaders, according to the AP report, said negotiations have stalled over pay and retirement benefits, and accused Boeing of offering 'no meaningful improvements' for veteran workers.
Ahead of the vote, IAM urged members to reject the offer, saying wage hikes and retirement provisions still fell short of expectations.
Boeing defends offer, says union demands ‘exceed cost of living’
Boeing, meanwhile, maintains that it has made a fair proposal given Midwestern cost-of-living levels. The company said it had 'prepared for a strike,' activating a contingency plan to keep defense operations running with non-striking staff.
Its Defense, Space & Security division, which produces aircraft such as the F-15 fighter jets and T-7A Red Hawk trainers, is considered a key growth pillar for Boeing as it navigates production challenges in its commercial aviation arm.
Breakdown of talks and rejected offers
The latest rejection marks the second failed offer in as many months.
The first proposal, put to a vote earlier this summer, included a 20 percent wage hike over five years, but workers turned it down, citing inadequate pension provisions.
Boeing then removed a scheduling rule that limited overtime pay in a revised offer, but kept wage terms unchanged. That offer, too, was rejected, triggering the current strike.
The IAM says Boeing must address long-term retirement security and fairer pay for senior employees before any deal can move forward.
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