Boeing Defense Workers Prepare for Strike Amid Ongoing Challenges

Boeing is facing a critical moment as its defense workers prepare for a strike in response to rejected contract offers related to pay and job conditions, introducing further challenges for the struggling company.

More than 3,000 workers at Boeing’s defense division are poised to strike beginning Monday, intensifying pressures on the already beleaguered aviation manufacturer. The impending walkout follows a union vote among employees in Missouri and Illinois, who specialize in the construction of F-15 fighter jets and other military aircraft, rejecting Boeing's latest offer which the company claimed included a 40% average wage increase.

Dan Gillian, the vice president of Boeing's Air Dominance unit, expressed disappointment over the rejection, emphasizing the substantial pay increase offered. The strike is spearheaded by a local branch of the International Association of Machinists and Aerospace Workers (IAM) located in St. Louis, where Boeing's military manufacturing operations are based. Union officials contend that the workers are entitled to a contract that reflects their skills, commitment, and essential contributions to national defense.

This action marks the first strike at Boeing’s defense sector since 1996, which previously lasted over three months. IAM represents approximately 600,000 members across various sectors, including aerospace and defense, amplifying the potential impact of the strike on Boeing's operations.

Boeing has faced numerous crises lately, including safety issues from two fatal crashes and the recent mid-air malfunction of a Boeing 737 Max. Last year, a significant strike by about 30,000 employees involved in passenger jets cost the company billions, further compounding its financial woes. The company reported a steep decline in aircraft deliveries, with only 348 made in the last year—the lowest since the onset of the pandemic—raising questions about its future viability and ability to recover from ongoing troubles.