Boeing is preparing for a potential labor strike from its defense division as early as Aug. 4, after union members who build military aircraft in St. Louis, Missouri, “overwhelmingly” rejected the company’s latest contract offer on Sunday.
The International Machinists and Aerospace Workers (IAM), representing 3,200 employees across three St. Louis-area facilities, turned down a proposal that included a 20% general wage increase over four years, a $5,000 ratification bonus and expanded vacation time and sick leave benefits, according to Reuters.
IAM did not specify which parts of the offer led to the rejection, stating only that it “fell short of addressing the priorities and sacrifices” of its members.
“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,” the union said in a statement on Sunday. “Our members are standing together to demand a contract that respects their work and ensures a secure future.”
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The existing contract was set to expire on Sunday, but the union announced a one-week “cooling off” period that would delay any strike action until Aug. 4.
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Dan Gillian, Boeing Air Dominance vice president, general manager and senior St. Louis Site executive, said in a statement to FOX Business Monday that the company was “disappointed” that its employees voted down “the richest contract offer we’ve ever presented to IAM 837 which addressed all their stated priorities.”
“We’ve activated our contingency plan and are focused on preparing for a strike,” Gillian added. “No talks are scheduled with the union.”
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Boeing’s defense division has been expanding operations in the St. Louis region to support the production of the U.S. Air Force’s new F-47 fighter jet, after securing the Pentagon contract earlier this year.
In March, President Donald Trump formally designated the F-47 as the U.S. Air Force’s next-generation air superiority fighter, positioning it at the center of the Next Generation Air Dominance program that is expected to replace the aging F-22 Raptor, according to the Congressional Research Service, a nonpartisan agency that supports Congress.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BA | THE BOEING CO. | 236.38 | +3.31 | +1.42% |
The F-47 is seen as a key component of the U.S. military’s future air combat capabilities, raising questions about how prolonged labor disruptions could affect production timelines and national defense priorities.
The Department of Defense did not immediately respond to a request for comment from FOX Business on Monday.
Reuters contributed to this report.
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