Boeing Co is bracing itself for a potential strike by over 3,200 union workers at its St Louis-area plants, which produce US fighter jets. The International Machinists and Aerospace Workers union rejected a proposed contract that included a 20% wage increase over four years.
The union had initially welcomed the offer, calling it a “landmark” agreement, but its members ultimately voted against it. The exact reasons for the rejection are unclear, with the union saying only that the proposal “fell short of addressing the priorities and sacrifices” of its workers.
The strike is not expected to take place immediately, as the union has asked for a one-week cooling off period until August 4. Boeing had initially recommended approving the offer, but ultimately accepted the outcome.
The company’s stock price surged on Friday following a strong quarter, with Boeing delivering 150 commercial airliners and 36 military aircraft and helicopters. However, the proposed contract’s rejection may put pressure on the company’s finances and operations in the coming weeks.
Boeing is “focused on preparing for a strike”, according to general manager Dan Gillan, who described the rejected proposal as the “richest contract offer” ever presented to the St Louis union. Talks with the union are currently scheduled, but it remains to be seen whether they will lead to a successful resolution or further industrial action.
Source: https://www.theguardian.com/business/2025/jul/28/boeing-workers-strike-reject-contract-offer