Boeing workers reject contract offer as strike drags into sixth week

Union says proposal fell short on bonuses and retirement benefits; Boeing warns of permanent replacements

The labour standoff at Boeing’s defence plants in the Midwest deepened on Friday after workers voted down a revised contract proposal. The strike, now in its sixth week, involves 3,200 members of the International Association of Machinists and Aerospace Workers (IAM) District 837, who build fighter jets, weapons systems, and the US Navy’s first carrier-based unmanned aircraft.

According to the union, 57 percent of workers rejected Boeing’s latest offer, forcing them back to the picket lines outside the company’s three facilities in Missouri and Illinois.

What the union says

The IAM District 837 said Boeing’s modified five-year deal failed to meet key demands.

Signing bonus: Workers argued the bonus was insufficient compared with packages offered to other Boeing employees.

Retirement benefits: The proposal also lacked an increase in 401(k) contributions, a sticking point that had been a point of contention since negotiations began.

“Boeing's modified offer did not include a sufficient signing bonus relative to what other Boeing workers have received, or a raise in 401(k) benefits,” the union said in a statement as reported by Associated Press.

Boeing’s counterpoint

Boeing, however, painted the proposal as generous. Dan Gillian, Boeing’s Air Dominance vice president and general manager, said in an emailed statement:

“We're disappointed our employees have rejected a 5-year offer, including 45 percent average wage growth. We've made clear the overall economic framework of our offer will not change, but we have consistently adjusted the offer based on employee and union feedback.”
The company added that no further talks are currently scheduled.

Contingency plans and replacement workers

Boeing said it will continue to execute its contingency plan, which includes hiring permanent replacement workers to maintain production.

“We will continue to execute our contingency plan, including hiring permanent replacement workers, as we maintain support for our customers,” Gillian said as per AP report.

This marks a sharp escalation in the dispute and raises the risk of long-term fractures in Boeing’s defence workforce.

Why this matters for Boeing

Although smaller in scale than last year’s massive strike by 33,000 commercial jetliner workers, this work stoppage could complicate Boeing’s fragile turnaround. The company’s Defense, Space & Security division generates more than one-third of total revenue, a critical pillar as Boeing works to stabilise finances after years of production and safety crises.

Boeing employs more than 170,000 workers worldwide, including teams across 65 countries. A prolonged strike in its defence arm threatens delivery schedules for high-stakes military contracts at a time when the US is ramping up defence spending.