Union members at Boeing are considering a walkout as they reject the company's proposed contract deal.
The International Association of Machinists and Aerospace Workers (IAM) has rejected Boeing's latest contract offer, potentially leading to a strike at Boeing Defense facilities in St. Louis, St. Charles, MO, and Mascoutah, IL. The rejection follows a seven-week long walkout by Seattle-based workers last year, which crippled two of Boeing's major assembly plants.
The current contract between Boeing and the IAM is set to expire at 11:59 p.m. CT on July 27, 2025. A seven-day cooling-off period has begun, after which a strike may commence if no new agreement is reached. As of July 29, 2025, additional negotiations have not yet taken place, and the potential for a strike remains imminent.
The richest contract offer from Boeing addressed all the stated priorities of the IAM Union, including a 20% pay hike over four years and more vacation days. However, members working at the sites in St. Louis and Mascoutah, Illinois, felt the proposal did not meet their needs and did not guarantee a "secure future," according to the union.
The IAM Union, in a statement, said that Boeing Defense's proposed contract fell short of addressing the priorities and sacrifices of the skilled workforce. The union's rejection of the contract follows a tentative agreement on July 25, 2025, which was meant to provide wage increases, better healthcare access, and improved pensions over a four-year term, but the membership ultimately voted against ratifying it.
The potential strike could deal a serious blow to Boeing, especially considering the recent award of a major contract for the U.S. Air Force's next-generation F-47 fighter planes. The award came as a boon for Boeing after a difficult year in which it struggled with safety problems and a lengthy labor strike.
IAM is one of North America's largest unions, representing members in aerospace, defense, transport manufacturing, and other industries. The rejection occurred at two Boeing facilities located in Missouri and Illinois, involving more than 3,200 union members.
Dan Gillian, vice president of Boeing Air Dominance and general manager of the site in St. Louis, Missouri, expressed disappointment over the union's rejection of the richest contract offer ever presented to IAM 837. If no deal is reached with Boeing in the next seven days, the workers in IAM branch 837 will go on strike. The outcome of these negotiations will have significant implications for both Boeing and the IAM Union.
[1] Reuters [2] Bloomberg [3] CNN Business [4] Associated Press [5] The Wall Street Journal
- The ongoing disagreement between Boeing and the IAM Union could potentially disrupt the aerospace and defense industry, as a strike at Boeing facilities in Missouri and Illinois involves more than 3,200 union members and could impact the production of the U.S. Air Force's next-generation F-47 fighter planes.
- Financial markets are closely watching the negotiations between Boeing and the IAM Union, as the potential for a strike at Boeing Defense facilities could have significant implications for the company's future business deals and revenue.
- The ongoing contract dispute between Boeing and the IAM Union highlights the challenges faced by both parties in navigating the complex landscape of the finance, aerospace, and defense industries, with both parties seeking to balance the needs of their workers and the demands of the market.
