Boeing faces a new challenge this morning as approximately 3,200 machinists employed by the manufacturer’s defence division in Saint Louis, Missouri, have initiated a strike, marking the first such action by the International Association of Machinists and Aerospace Workers (IAM) District 837 in nearly three decades.
The walkout, which began at midnight on 4 August 2025, follows the union’s rejection of Boeing’s latest contract offer, which proposed a 20pc general wage increase over four years, a $5,000 ratification bonus, and enhanced vacation and sick leave benefits. According to industry analysts, the offer would have raised the average machinist’s pay to over $102,000 from $75,000, yet it failed to meet the expectations of workers who sought greater improvements in wages and retirement contributions.
The strike affects Boeing’s facilities in the St. Louis area, where workers assemble critical military aircraft, including the F-15 fighter jet and the T-7 training jet, as well as components for the 777X commercial jet. Boeing’s defence, space, and security division, which accounts for roughly 30pc of the company’s $42bn revenue in the first half of 2025, now faces potential disruptions at a time when the company is already grappling with financial and reputational challenges. Last week, Boeing reported a quarterly loss of $612m, despite achieving its highest quarterly revenue in six years at $22.7bn. The company has been under intense scrutiny following a series of high-profile incidents, including a mid-air door plug blowout on a 737 Max in January 2024 and two fatal 737 Max crashes in 2018 and 2019.
The IAM District 837, led by directing business representative Tom Boelling, has emphasised that the strike reflects the workers’ demand for a contract that acknowledges their critical role in national defence. Boeing, in response, has expressed disappointment over the rejection of what it described as its most generous offer to date. Dan Gillian, vice president of Boeing’s Air Dominance division, stated that the company has implemented a contingency plan to ensure continued support for its customers, relying on non-striking workers to maintain operations. However, the strike’s impact could ripple through Boeing’s supply chain, which is already strained from a previous seven-week strike by 33,000 West Coast machinists that ended in November 2024 after workers secured a 38pc wage increase and a $12,000 ratification bonus.
The current dispute in St. Louis adds to Boeing’s ongoing challenges under the leadership of chief executive Kelly Ortberg, who has pledged to foster a cultural shift within the company to address quality control and safety concerns. Ortberg downplayed the potential impact of the strike during a recent earnings call, asserting that Boeing would manage through the disruption. Nevertheless, the work stoppage poses a risk to the company’s financial recovery, particularly as it seeks to stabilise production and deliver on a backlog of over 6,000 aircraft orders. The aerospace giant has also faced pressure from suppliers and airlines, with delays in aircraft deliveries exacerbating tensions across the industry.
Negotiations between Boeing and IAM District 837 remain at an impasse, with no immediate resolution in sight. The union’s decision to strike follows a one-week cooling-off period after the contract’s expiration on 27 July 2025, during which talks failed to yield an agreement. As the strike progresses, its economic implications could extend beyond Boeing, affecting suppliers and communities in Missouri and beyond. The aerospace industry, already navigating post-pandemic supply chain fragility, watches closely as Boeing confronts this latest labour challenge while striving to restore its standing as a global leader in aviation.
