3,200 Boeing Machinists Strike in St. Louis Area Over Wage Dispute and Working Conditions

Boeing faces a second industrial action within a year, as 3,200 machinists affiliated with the International Association of Machinists (IAM) commenced a strike at three defense plants in the St. Louis area from midnight ET on Monday.

The union members cast their vote to authorize a walkout at these facilities, following the rejection of a tentative agreement last week that would have provided significant wage increases over the four-year contract period. Despite a revised proposal addressing scheduling concerns, rank-and-file members still voted against it on Sunday.

“Boeing’s highly skilled IAM Union members went on strike at midnight because enough is enough,” the union announced following the commencement of the walkout.

IAM Midwest Territory General Vice President Sam Cicinelli emphasized that the striking employees, who produce aircraft and defense systems critical to national security, deserve a contract that ensures their families’ financial security and recognizes their exceptional skills.

The strike marks another setback for Boeing, which has experienced significant financial losses and challenges across various business sectors in recent years. The company has reported core operating losses of $42.2 billion since Q2 2019, following the fatal crashes of two 737 Max commercial planes and their subsequent 20-month grounding.

Beyond its commercial plane unit, Boeing Defense, Space and Security (DS&S) also faced nearly $11 billion in losses from late 2021 through the end of last year. This was largely due to Pentagon contracts holding the company accountable for cost overruns, including two new Air Force One jets. However, DS&S has remained profitable so far this year.

The striking workers are based in St. Louis and St. Charles, Missouri, and Mascoutah, Illinois. They manufacture military aircraft such as F-15 and F/A-18 fighter jets, the T-7A Red Hawk trainer, and the MQ-25 Stingray unmanned refueler. The next-generation stealth fighter jet is scheduled to be built at a Boeing plant in the St. Louis area, although the company has yet to specify which facility or provide a production start date. In addition, Boeing maintains nonunion plants in the region.

Boeing expressed disappointment over the union members’ decision to reject an offer that included average wage growth of 40%. Dan Gillian, Boeing general manager and senior St. Louis site executive, indicated that contingency plans were already in place to ensure business continuity for non-striking employees.

Earlier this week, Boeing stated that a $5,000 signing bonus offered as part of its deal with the union would be withdrawn if members did not ratify the agreement before the strike deadline. The IAM negotiating committee had earlier recommended approval of the deal presented last week, citing stronger pensions, real wage growth, and improved work-life balance.

However, less than 5% of IAM Local 837’s defense workers voted in favor of the tentative agreement. Precise vote results were not disclosed on Sunday. Despite years of financial difficulties, Boeing remains one of the country’s largest manufacturers with operations across all 50 states and a substantial backlog of contracts for both commercial and military aircraft that ensures its continued business.

Boeing CEO David Calhoun stated during the company’s earnings call last week that he is confident the company can manage the costs associated with the strike, which he suggested would be significantly less than those incurred during last year’s walkout by 33,000 commercial plane unit workers.