Boeing faces possible strike after St. Louis union rejects new labor contract

The current contract expired on July 27 at 23:59. A seven-day cooling-off period is now in effect before any strike action can begin. In a statement released by the IAM Union:

“IAM Union members delivered a clear message: the proposal from Boeing Defense fell short of addressing the priorities and sacrifices of the skilled IAM Union workforce. Our members are standing together to demand a contract that respects their work and ensures a secure future.”

IAM District 837 workers play key roles in supporting production lines for several major defense products including the F-15, F/A-18, T-7 trainer jets, 777X aircraft, and weapons systems.

Dan Gillian, General Manager and Senior Boeing Executive in St. Louis, told the Associated Press that after workers rejected what he described as “the richest contract offer” ever made to this union local, “the company is focused on preparing for a strike.” He also noted that no further talks were scheduled with union representatives.

Union leaders had previously recommended approval of what they called a “landmark” agreement when it was announced last week. Under its terms, general wage increases would total 20%, while combined enhancements could lead to an average wage growth of up to 40%. Average annual wages would rise from $75,000 to $102,600 if all proposed changes were implemented.

The proposed deal also allowed first- and third-shift employees to reach top pay six years sooner; second-shift employees could do so nine years faster than under previous contracts. Other benefits included improved work-life balance through more vacation days and sick leave; a ratification bonus of $5,000; enhanced retirement plans; and stable costs for medical coverage without increased employee cost-sharing percentages.

A strike at these locations could impact Boeing’s Defense, Space & Security division significantly. This division has already faced challenges such as delays and budget overruns with projects like the VC-25B Air Force One program—a program which has struggled due to shortages of qualified mechanics amid hiring difficulties.

Boeing continues efforts to address operational issues while expanding its presence in St Louis through a $1.8 billion investment adding over one million square feet for new production capacity following an award earlier this year for F-47 fighter jet manufacturing.