The Boeing Co. (NYSE:BA) faces another labor disruption as approximately 3,200 defense workers in Missouri and Illinois will begin striking Monday after rejecting the aerospace giant’s latest four-year contract proposal.
Union Rejects Latest Contract Terms
The machinists’ union representing workers in Boeing’s St. Louis-area defense operations voted Sunday to reject the company’s contract offer, scheduling the work stoppage to begin at midnight Monday, according to the International Association of Machinists and Aerospace Workers union.
Workers had operated without a contract for the past week as negotiations stalled over work schedules and benefits.
“Members have spoken loud and clear” for a “contract that reflects their skill, dedication, and the critical role they play in our nation’s defense,” union representative Tom Boelling said in a statement.
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Strike Impact on Defense Operations
The work stoppage affects Boeing’s military business, which produces advanced fighter jets, including the F-15 and F/A-18, as well as critical components of the munitions supply chain. Boeing reported stable second-quarter performance in its defense segment amid surging Pentagon demand for missiles and weaponry from allied countries.
Boeing did not immediately respond to Benzinga's request for comment.
Smaller Scale Than 2024 Pacific Northwest Strike
The Missouri-Illinois strike remains significantly smaller than Boeing’s massive 2024 Pacific Northwest labor dispute, which pulled over 33,000 employees from 737 MAX production lines. That nearly eight-week showdown disrupted the company’s profit powerhouse before workers secured a 38% raise over a four-year period.
Financial Context Amid Recovery Efforts
Boeing’s defense, space and security division has shown improvement this year following program overruns and crises, including Starliner spacecraft issues that stranded NASA astronauts. The division’s outlook brightened with new Pentagon satellite contracts and agreements for the Air Force’s next-generation fighter program.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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