A Month Into the Strike, Boeing Defense Holds Firm on Its Last Contract Offer

Boeing Defense said Wednesday it remains committed to its last contract proposal for roughly 3,200 striking union members in the St. Louis area, where it manufactures fighter jets and munitions, though it may consider only “minor adjustments.”

Dan Gillian, one of Boeing Defense’s top executives in St. Louis, told reporters on a conference call: “The economics of our deal will remain the same.”

Members of the International Association of Machinists and Aerospace Workers (IAM) District 837 rejected the offer on August 3 and went on strike the following day. While both sides say they are open to further discussions, no new talks have been scheduled.

District 837 President Tom Boelling told Reuters: “Our members remain strong, holding out for a contract that meets their needs.”

Boeing has continued production under contingency plans, though Gillian acknowledged some areas have slowed. He noted that output of the Joint Direct Attack Munition (JDAM) has not been affected.

Beyond JDAM, Boeing’s St. Louis facilities produce F-15 and F/A-18 fighter jets, T-7 trainer aircraft, and wing sections for the commercial 777X. The company has invested billions to expand local capacity for the new U.S. Air Force fighter, the F-47A, and is competing for the Navy’s next-generation F/A-XX program.

Boeing is also launching an apprenticeship program to strengthen its workforce.

The rejected contract included a 20% general wage increase, accelerated pay progression, a $5,000 ratification bonus, and more vacation and sick leave. Boeing withdrew the bonus after the rejection. Gillian said average pay would rise 40% over the contract term, with some workers seeing increases of up to 60% over four years.

He added the deal should not be compared with IAM District 751’s contract in Washington and Oregon, which ended a seven-week strike last fall, noting significant differences in cost of living and bargaining history.

Some workers have requested individualized compensation breakdowns—though only about 10% of members have done so—and a few have crossed the picket line, Gillian said, declining to provide exact numbers.