Boeing Co.’s factory workers in St. Louis have rejected a proposed five-year labor contract that included an average wage hike of 24%, prolonging a three-month strike that has hit the aerospace giant’s key military manufacturing operations.
The International Association of Machinists and Aerospace Workers (IAM), representing 3,200 employees under District 837, confirmed the outcome on Sunday, saying the vote sends a clear message to Boeing management.
“Boeing claimed they listened to their employees – the result of today’s vote proves they have not,”
said IAM International President Brian Bryant in a statement.
Strike Impact
The workers have been on strike since August 4, affecting the production of critical military aircraft, including the F-15EX fighter jet. The disruption has drawn political attention, with Senators Bernie Sanders and Josh Hawley publicly criticizing Boeing over the prolonged labor unrest.
Analysts warn the strike is now delaying F-15 deliveries to the U.S. Air Force’s Portland National Guard base and could impact international deliveries next year, according to Jefferies analyst Sheila Kahyaoglu.
Financial and Operational Implications
Boeing’s defense and space division, which contributes roughly one-third of the company’s total revenue, is under pressure as the strike drags on. The company’s CEO Kelly Ortberg is expected to address the issue and its financial consequences during Boeing’s earnings call on October 29.
The ongoing labor strife—Boeing’s first in nearly 30 years—has been contentious. The union filed an unfair labor practice complaint against Boeing, while the manufacturer has organized job fairs and hired replacement workers to maintain limited production.
Wider Labor Concerns
The IAM union representing Boeing’s 19,000 engineers and technical staff is also monitoring the dispute closely. Their current contract expires next October, potentially setting the stage for further labor negotiations across Boeing’s U.S. operations.
Meanwhile, Boeing continues recruiting staff for the upcoming F-47 stealth fighter program in the St. Louis region, signaling long-term commitment to expanding its defense manufacturing footprint despite short-term disruptions.
In Summary
Boeing’s St. Louis workers’ decision to reject the proposed wage deal underscores deep divisions over pay and conditions within the company. With the strike showing no signs of resolution, investors and defense clients are bracing for delays, cost overruns, and further production setbacks in Boeing’s military aircraft line.
