Boeing (BA.US) and machinist union leaders are scheduled to resume contract negotiations on Monday. Defense workers assembling F-15 and F/A-18 aircraft in the St. Louis region and Illinois have been on strike since August 4, 2025. The workers rejected Boeing's proposal offering a 20% pay increase, $5,000 signing bonus, additional vacation and sick leave, and pathways to higher wages.

Boeing Defense spokesperson Didi VanNierop stated that the company has managed to maintain production, flight testing, and other operations using non-union workers thus far. The disruption began when workers voted down contract terms that had been endorsed by International Association of Machinists and Aerospace Workers leadership, which represents approximately 19,000 engineers, technicians, and pilots.

This labor action follows a crippling work stoppage by Boeing's Seattle-area hourly workers just months earlier – their first strike since 2008. The four-year contract represented Boeing's most generous offer to the union to date, but came with conditions: senior machinists would receive only one-time bonuses rather than annual raises, and amid high inflation, some veteran employees still face years without pay increases.

Lingering issues from the 2014 contract continue to fuel discontent, when pensions were frozen and wage increases were kept low for extended periods. These factors have created long-standing grievances among St. Louis-area workers, with picket line signs reading "Senior employees deserve better! 8%+0%+0%+4% equals nonsense" being particularly prominent.

Beyond Boeing, turbulence is spreading throughout the aerospace and aviation industry. Airbus employees in the UK are preparing to leave, Air Canada flight attendants' strike has brought operations to a standstill, and Raytheon Technologies' machinist strike has disrupted aircraft engine deliveries. GE Aerospace workers even voted last week to authorize strikes at two facilities.

Bank of America Securities analyst Ron Epstein noted: "Labor is making waves everywhere." Since the COVID pandemic, union strength has significantly increased due to shortages of skilled machinists, with the departure of baby boomers making replacement nearly impossible.

Boeing CEO Kelly Ortberg, who took office a year ago, is now facing his second major strike – this time from a union with no previous strike history. He has launched a "rebuilding company culture" campaign starting from the factory floor, calling for "civility, respect, and openness," frequently emphasizing "working together" in internal communications. However, these ideals are clashing head-on with workers' real demands for compensation and pension benefits.

Boeing's long-term tensions with unions trace back to former CEO Jim McNerney's tenure. After the 2008 Seattle strike, part of 787 Dreamliner production was moved to South Carolina, a state less welcoming to unions. Boston College professor Thomas Kohler observed: "They've been reaping what they sowed ever since, keeping unions highly vigilant toward management."

Currently, Boeing's St. Louis facilities remain open, with non-striking employees continuing to support customers. However, if the work stoppage continues too long, it will threaten Boeing's efforts to control costs and reduce delays in its defense business. Boeing warned in July filings that production disruptions could have "adverse effects on financial condition, operating performance, and cash flow."

Epstein commented: "I thought after the Seattle strike, they would do everything possible to mitigate impact, but that hasn't been the case."