Boeing faces fresh setback as over 3,000 defence workers prepare to strike

Boeing is bracing for another major disruption as more than 3,000 workers in its defence division plan to go on strike this Monday, following a breakdown in contract negotiations.

The workers, who are represented by a local branch of the International Association of Machinists and Aerospace Workers (IAM), are based in St. Louis, Missouri, and in Illinois. They are responsible for building key military aircraft, including the F-15 fighter jet. Union members overwhelmingly rejected Boeing’s latest contract offer, citing concerns over wages, scheduling, and pension benefits.

“This offer included an average wage increase of 40%, and we’re disappointed it was turned down,” said Dan Gillian, vice president of Boeing’s Air Dominance unit. Despite the company’s offer, union leaders say it falls short of fairly compensating workers for their vital role in national defence.

“Members have spoken loud and clear,” said Tom Boelling, a senior IAM official. “They deserve a contract that reflects their skill, dedication, and the critical role they play in our nation’s defence. We stand with them in their fight for fairness and respect.”

If the walkout proceeds as planned, it will be the first strike to hit Boeing’s defence business since 1996, when a work stoppage lasted more than three months.

This labour dispute adds to Boeing’s mounting challenges. The company has faced intense scrutiny and financial strain following a series of high-profile incidents, including two fatal crashes involving its 737 Max aircraft and a dramatic mid-air panel blowout in 2024. Last year, a separate strike involving 30,000 commercial aircraft workers caused billions in losses and hampered aircraft production.

Boeing delivered only 348 aircraft in the past year, marking its lowest annual output since the COVID-19 pandemic.

IAM, one of the largest industrial trade unions in the U.S., represents approximately 600,000 workers across the aerospace, defence, manufacturing, and shipbuilding sectors.