Boeing has begun the hiring process to replace workers on strike at its fighter jet and weapon systems plants in St. Louis and St. Charles, Missouri, and Mascoutah, Illinois.
It’s been a month since more than 3,200 Boeing workers, represented by the International Association of Machinists and Aerospace Workers District 837, went on strike at the planemaker’s defense facilities after they voted to reject the company’s second contract offer.
Boeing’s “last, best and final offer” withdrew alternative workweek schedules, added a reward for good attendance at $0.50 per hour, and a $5,000 bonus, contingent upon the contract being ratified by the end of the day of Aug. 3. Since the union voted to reject the offer, Boeing said it withdrew the $5,000 ratification bonus.
“Here’s some free advice for Boeing executives: Don’t go backwards on a proposal that two-thirds of your workforce rejected,” Tom Boelling, IAM District 837 president, said in an emailed statement. “On the strike line, I consistently heard from our members that they were offended by Boeing taking a $5,000 signing bonus off the table.
The IAM District 837’s negotiating team and Boeing have met a handful of times since Aug. 4. However, the company continues to stand by the proposed offer and is ready to be voted on, said Dan Gillian, Boeing Air Dominance VP, general manager and senior St. Louis site executive, in an email statement.
“Unfortunately, the union continues to demand more of everything while also saying it has no control over what it will take to end the strike, driving the parties further apart,” Gillian said in a prepared statement. “As a result, we’re taking the next step in our contingency plan and hiring permanent replacement workers for manufacturing roles to ensure we’re properly staffed to keep supporting our customers.”
Though Gillian said in a press briefing on Wednesday that Boeing was considering making “minor adjustments.” He added that IAM workers are encouraged to reach out to the company and request their own wage statement. As of Sept. 4, less than 10% of machinists have requested “a customized statement to see how they would personally benefit.” Local news station KSDK reported that Gillian was concerned that union members did not comprehend or did not do extensive research on Boeing’s offer.
“With 40% average wage growth, a faster path to the top of the pay scale, and more vacation and sick leave. It’s unfortunate that almost 30% of union members didn’t vote on the last offer,” Gillian said in a prepared statement.
The facilities in St. Louis and St. Charles, Missouri, and Mascoutah, Illinois, assemble fighter jets such as the F-15 and F/A-18, the T-7A Red Hawk trainer, and the MQ-25 Stingray unmanned refueler under Boeing’s defense segment. The company has contracts with the U.S. Navy and Air Force to build the fighter aircraft for the military branches, according to a securities filing.
“Instead of going back to the negotiating table, Boeing decided to instead hold a media event to say they are doing nothing to end a nearly five-week strike that they admitted is now having an effect on production for our military,” Boelling said in a statement. “Now, Boeing is doubling down on its mismanagement by saying it plans to hire replacement workers to build military aircraft and equipment, instead of negotiating with their dedicated, generational and skilled workforce.”
Both parties have cited IAM District 751 and W24’s contract, which was signed in November 2024, for the stalled negotiations, according to media reports. About 33,000 union-represented workers walked off the job, which led to a 53-day strike at Boeing’s commercial airplane facilities on the West Coast, with the majority of the production in the Seattle area. The commercial plane strike significantly hurt Boeing’s finances, contributing to an $11.8 billion loss in 2024.
The Machinists’ deal on the West Coast included a 38% wage increase and a $12,000 ratification bonus. The ratification bonus was a combination of the previous $7,000 bonus offer and the $5,000 lump sum into workers’ 401(k)s, the union said on its website. IAM Districts 751 and W24’s victory led to a 9% standard wage increase and a $12,000 retention bonus at Boeing’s 787 Dreamliner plant in South Carolina, which is not union-represented. The company announced plans in December 2024 to spend $1 billion to expand the Dreamliner facility.
“It’s a slap in the face to not offer the same to our hard-working, dedicated IAM District 837 membership in the St. Louis area,” Boelling said in an emailed statement.
Gillian said in Wednesday’s press briefing that he understands the comparison. Though he noted that it has been 10 years since the West Coast facilities’ last contract, whereas the St. Louis-area plants’ last contract was three years ago.
“The cost of living is quite different,” Gillian said. “It makes sense for the deals to be different.”
Boelling said in an emailed statement that its union members want a fair contract that reflects their skillsets and production at Boeing’s defense facilities.
“Our members at Boeing are standing together for more than just ‘minor adjustments,’” Boelling said. “They want fair pay increases, faster wage progression and an increased ratification bonus. They’re fighting for work-life balance. They’re fighting for dignity. And they’re fighting for all working people in St. Louis and beyond.”
“We will remain strong until Boeing comes to the table with a fair agreement that addresses their needs,” Boelling added.
Revenue for the first six months of 2025 under Boeing’s defense, space and security segment was flat year over year at $12.9 billion, according to the company’s second-quarter earnings release. The segment’s backlog grew to $74 billion.
