Boeing defense workers go on strike after rejecting contract

Introduction to the Boeing Defense Unit Strike

Workers picket outside the Boeing Defense, Space & Security facility in Berkeley, Missouri, US, on Monday, Aug. 4, 2025. Some 3,200 Boeing defense unit workers went on strike for the first time in almost three decades early Monday after turning down a contract offer with the company.

The Contract Offer and Rejection

Boeing had offered a 20% general wage increase, a $5,000 ratification bonus, and other improvements. Its latest offer, which the workers voted down Sunday, included wage rises for employees at the top of the pay scale and improved retirement benefits, according to their union, the International Association of Machinists and Aerospace Workers District 837. The workers are largely based in the St. Louis area. Boeing said the increases could average about 40% taking into account other improvements. The increases would bring average IAM 837 machinist pay to more than $102,000 from $75,000.

Reaction from the Union and Boeing

"IAM District 837 members have spoken loud and clear, they deserve a contract that reflects their skill, dedication, and the critical role they play in our nation’s defense," said Tom Boelling, IAM District 837 directing business representative. "We stand shoulder to shoulder with these working families as they fight for fairness and respect on the job." Dan Gillian, a vice president at Boeing and senior St. Louis site executive, said the company is disappointed the offer was rejected. Boeing CEO Kelly Ortberg brushed off the effects of a then-potential strike when the company reported results last week.

Impact of the Strike

The workers assemble and maintain F-15 fighter jets as well as missile systems. Boeing’s defense unit accounted for about 30% of the company’s $42 billion in revenue in the first half of this year. Monday’s strike follows a bigger work stoppage at the company last year, when more than 32,000 unionized machinists who build commercial aircraft walked off the job after failed contract talks. Boeing’s commercial airplane factory workers ended a seven-week strike that hobbled the company’s aircraft output in November, after approving a contract with 38% raises over four years and other improvements.

Conclusion

The strike by Boeing’s defense unit workers is a significant development in the aviation industry, particularly given the current labor shortage. The union’s rejection of the contract offer and the subsequent strike highlight the ongoing tensions between labor and management in the sector. As the industry continues to face challenges in attracting and retaining skilled workers, companies like Boeing will need to navigate these complexities to ensure their continued operations and success.

FAQs

Q: How many Boeing defense unit workers are on strike?
A: Approximately 3,200 workers are on strike.
Q: What was the main reason for the strike?
A: The workers rejected the contract offer from Boeing, which included a 20% general wage increase and other improvements.
Q: How long has it been since the last strike by these workers?
A: The last strike by these workers was in 1996, almost three decades ago.
Q: What is the average salary of the IAM 837 machinists?
A: The average salary of the IAM 837 machinists is currently $75,000, which would increase to over $102,000 with the proposed contract.
Q: How much of Boeing’s revenue comes from its defense unit?
A: Boeing’s defense unit accounted for about 30% of the company’s $42 billion in revenue in the first half of this year.