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Boeing faces F-15EX delivery delays as St. Louis strike continues

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Boeing faces F-15EX delivery delays as St. Louis strike continues
Policy
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CEO Kelly Ortberg | Boeing

Boeing is experiencing delays in delivering the F-15EX fighter jet due to an ongoing strike by union workers at its St. Louis facility. The strike, which began on August 4, has lasted nearly three months and stems from disagreements over wages between Boeing and the International Association of Machinists and Aerospace Workers (IAM) District 837 Union.

The St. Louis plant manufactures several military aircraft, including the F-15, F/A-18, T-7 trainer, and MQ-25 drone. It also supports the Boeing 777X program. To address the labor shortage caused by the strike, Boeing has hired permanent replacement workers.

General Kenneth S. Wilsbach informed the Senate Armed Services Committee that the strike has delayed the F-15EX program. He said that the F-15EX remains “within projected cost, schedule, and performance criteria.” The Air Force has received six out of twelve planned aircraft so far; the second batch was originally scheduled for delivery this year.

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The IAM Union attributes these delays to Boeing’s stance in negotiations. IAM Union Resident General Vice President Jody Bennett stated, “Boeing’s refusal to even respond with an improved offer is an insult to every worker who builds this nation’s defense aircraft — and to the taxpayers footing the bill for the company’s delays.”

Contract talks have been ongoing for months. Boeing’s final offer on July 22 was rejected by union members, as was an updated proposal on July 31. Workers have been picketing for 74 days, resulting in lost wages totaling $24,000 per employee and a missed $5,000 ratification bonus. They have also missed five paychecks and lost up to $3,500 in benefits such as medical coverage and retirement contributions.

Negotiations have continued without resolution. The IAM claims that since mid-September, Boeing has rejected multiple union proposals without making counteroffers. On October 8, Dan Gillian, Air Dominance VP/GM and Senior St. Louis Site Executive at Boeing, emphasized the importance of finding a solution but said the company would not provide a ratification bonus or change its 401(k) plan formula. He stated that Boeing is willing to adjust some elements of its offer to meet worker needs.

The IAM has filed an Unfair Labor Practice charge with the National Labor Relations Board against Boeing, alleging a refusal to bargain in good faith—a legal requirement under the National Labor Relations Act. The union submitted a proposed four-year contract on September 19 that was not accepted.

Congress has taken notice of the dispute, with lawmakers urging both parties to negotiate in good faith. Talks were expected to resume with a federal mediator on September 30. The IAM estimates that their pre-ratified contract proposal would add $50 million in costs over four years; by comparison, one F-15 fighter costs about $100 million.

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