Boeing St. Louis Fighter Jet Workers Reject Contract, Set to Strike

Union members who build Boeing (NYSE: BA) fighter jets in the St. Louis area have rejected the aerospace giant’s latest contract proposal and will begin a strike at midnight Monday, the International Association of Machinists and Aerospace Workers (IAM) announced. The move impacts 3,200 employees who assemble military aircraft, including the MQ-25 refueling drone for the U.S. Navy.

IAM District 837 Business Representative Tom Boelling said members deserve a contract that reflects their skill, dedication, and importance to national defense. Boeing, however, expressed disappointment, noting the offer included a 40% average wage growth. “We are prepared for a strike and have fully implemented our contingency plan,” Boeing Air Dominance Vice President Dan Gillian said.

Boeing’s initial offer featured a 20% general wage increase over four years, a $5,000 ratification bonus, additional vacation, and more sick leave. The union rejected it as insufficient. The revised proposal, sent last week, made minor compensation adjustments for senior members and maintained current overtime rules after an earlier proposal to change them.

The strike comes as Boeing expands St. Louis manufacturing for the new U.S. Air Force F-47A fighter jet, following a contract win earlier this year. While significant, this labor action is smaller than last fall’s nearly two-month strike involving 33,000 machinists in Boeing’s commercial aircraft division, which ended with a 38% pay increase.

The outcome could influence Boeing’s defense production schedule at a time when the company is aiming to ramp up output of advanced military aircraft. Labor tensions may also impact Boeing’s ability to meet U.S. defense contract deadlines, making this dispute closely watched by industry analysts and investors.