Boeing Machinists Begin Strike Over Contract Dispute, Impacting Production In Defense Division

Boeing defense workers in the St. Louis area are striking for the first time in nearly 30 years after rejecting a revised contract proposal, according to Bloomberg. Around 3,200 Boeing machinists began a strike at midnight after rejecting a contract offering a 20% wage increase and higher retirement contributions. Union leader Tom Boelling stated that IAM District 837 members deserve a contract that reflects their skill, dedication, and vital role in national defense. Striking union members produce fighter jets, as well as missiles, munitions, and parts for Boeing’s 777X commercial aircraft. In March, Boeing secured a multibillion-dollar contract to develop the U.S. military’s next-generation stealth jet, the F-47, defeating Lockheed Martin. The strike will increase financial pressure on Boeing’s defense and space unit, which accounts for nearly a third of its revenue. CEO Kelly Ortberg downplayed the impact, noting the striking unit is much smaller than the Seattle-based commercial workforce that walked out last year.