In an unprecedented move, Boeing Co.’s defence workers in St. Louis have initiated their first strike in nearly 30 years after rejecting the company’s revised contract proposal.Approximately 3,200 machinists ceased work at midnight following their rejection of an offer featuring a 20% wage increase and enhanced retirement benefits. The last strike action occurred in 1996, lasting 99 days.“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,” Tom Boelling, the union local’s top official, said in a statement ahead of the deadline, as quoted by Bloomberg.The strike poses additional financial challenges for Boeing’s defence and space division, which accounts for roughly one-third of company revenue. However, this strike affects a significantly smaller operation compared to the civil aircraft division’s walkout last year, which halted Seattle-area production and led to Boeing’s nearly £24 billion equity sale.“We are prepared for a strike and have fully implemented our contingency plan to ensure our non-striking workforce can continue supporting our customers,” Dan Gillian, a Boeing vice president and senior St. Louis site executive, said in a statement, quoted by Bloomberg.The striking workers produce F-15 fighters, T-7 training jets, missiles, munitions and 777X commercial jet components. Boeing secured a contract in March to develop the US’s next-generation stealth fighter, the F-47, outbidding Lockheed Martin Corp.Boeing’s defence segment reported profits for two consecutive quarters, avoiding previous charges. The division improved its performance on fixed-price development programmes that had caused earlier cost overruns.Aerospace manufacturers have experienced increased union activity, with skilled mechanics gaining bargaining power amid labour shortages.Earlier this year, Pratt & Whitney faced a three-week machinists’ strike, affecting Airbus SE engine supplies. Boeing’s commercial operations experienced a two-month worker stoppage in late 2024.During the July 29 earnings call, Boeing CEO Kelly Ortberg minimised the strike’s potential impact, noting the St. Louis union’s smaller size compared to Seattle’s.On July 31, Gillian told reporters that Boeing had modified its offer to address Local 837 members’ concerns following their initial proposal rejection.The revised offer would increase average wages from £75,000 to £102,600 for IAM 837 members. Boeing removed a disputed scheduling proposal and modified 401(k) terms for immediate full contribution increases. The company stated it would withdraw its £5,000 signing bonus if workers didn’t ratify the contract on Sunday.
