Home BUSSINESS Thousands Of Boeing Employees Reject Contract & Walk Off The Job

Thousands Of Boeing Employees Reject Contract & Walk Off The Job

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Thousands Of Boeing Employees Reject Contract & Walk Off The Job
Thousands Of Boeing Employees Reject Contract & Walk Off The Job

Thousands Of Boeing Employees Reject Contract & Walk Off The Job

Early on Monday, August 4, more than 3,200 Boeing employees went on strike across three of the company’s major defense manufacturing sites: St. Louis and St. Charles, Missouri, as well as Mascoutah, Illinois. The strike followed a Sunday vote by members of the International Association of Machinists and Aerospace Workers (IAM) District 837, who rejected a revised four-year labor agreement.

The US manufacturer described the proposal as its most competitive offer to date. The affected sites are responsible for assembling high-profile military aircraft and systems, including the F-15 and F/A-18 jets. The strike also adds pressure to Boeing’s defense operations at a time when the company is contending with broader challenges.

“3,200 highly-skilled IAM Union members at Boeing went on strike at midnight because enough is enough,” the union posted on X shortly after the walkout began. Workers at the three defense hubs said the company’s latest proposal “fell short of addressing the priorities and sacrifices of the skilled IAM Union workforce.”

The rejected contract included a 40% average wage increase over four years and removed a scheduling provision that would have impacted overtime pay, but did not increase the proposed wage hike. The initial agreement, which was put to a vote last week, offered a 20% wage increase and a $5,000 ratification bonus, but retained the alternate workweek structure.

Both proposals failed to gain traction with the union’s rank and file. “IAM District 837 members build the aircraft and defense systems that keep our country safe,” said IAM Midwest Territory General Vice President Sam Cicinelli. “They deserve nothing less than a contract that keeps their families secure and recognizes their unmatched expertise.”

The IAM negotiating committee encouraged members to approve the revised deal put forward last week, calling it “a contract that meets the moment” with stronger pensions, real wage growth, and improved work-life balance. Despite this endorsement, less than 5% of IAM Local 837 members voted in favor of the proposal. The union did not release the exact vote count.

Boeing said that the revised agreement was the most competitive contract package it had ever offered to its St. Louis workforce. “We’re disappointed our employees rejected an offer that featured 40% average wage growth and resolved their primary issue on alternative work schedules,” said Dan Gillian, Boeing’s Senior Site Executive in St. Louis. “We are prepared for a strike and have fully implemented our contingency plan to ensure our non-striking workforce can continue supporting our customers.”

This is the second major labor disruption Boeing has faced in less than two years. In 2024, approximately 33,000 unionized workers at its commercial aircraft plants in Washington State walked off the job for seven weeks before agreeing to a deal that included a 38% wage increase over four years. The strike halted production of the Boeing 737 MAX, 767, and 777 aircraft, and further strained Boeing’s finances at a time of regulatory scrutiny and slowed production.

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