Boeing Faces Another Damaging Worker Strike

About 3,200 Boeing workers at facilities near St. Louis have rejected a contract offer, raising the potential for a damaging labor strike just days away.

Boeing stated on its website that it was disappointed by the workers’ rejection of the contract. I Photo: NAVAIR

The news comes as Boeing is set to report progress on narrowing its quarterly losses and increasing revenue, Al Root reported for Barron’s Daily on July 29, 2025.

The rejected offer—for workers building F-15 and F-18 fighter jets, among other products—included a potential 40% average wage increase over the life of the contract, according to Boeing.

The average annual wage could have risen to $102,600 from $75,000. It also included a $5,000 ratification bonus. Boeing’s defense unit employs more than 18,000 workers.

While it generated nearly $24 billion in sales in 2024, the segment posted a $5.4 billion operating loss. Money-losing fixed-price contracts have weighed on its performance.

Last September, 33,000 Boeing workers who manufacture 737 and 777 jets in the Pacific Northwest went on strike, halting production for more than seven weeks. It took three votes and four contract offers to reach an agreement.

Boeing did not respond to a request for comment, but stated on its website that it was disappointed by the workers’ rejection of the contract.

“We’ve activated our contingency plan and are focused on preparing for a strike,” the company said. “No talks are scheduled with the union.”

Investors should also monitor labor developments at other firms. Woodward, which produces components for aircraft and industrial engines, has a labor contract covering 800 employees—about 9% of its workforce—set to expire in September 2025, noted Jefferies analyst Sheila Kahyaoglu.