Boeing (NYSE: BA) faces fresh turbulence as 3,200 unionised defence-plant workers walked off the job at midnight Monday, its first defence-side strike since the mid-1990s and the company’s second work stoppage in under a year.
The International Association of Machinists and Aerospace Workers District 837 rejected Boeing’s revised four-year contract that promised an average 40% wage lift, a 20% general increase, and a US$5,000 ratification bonus, saying the proposal fell short on scheduling and pension concerns.
“Our members deserve a contract that reflects their skill, dedication and the critical role they play in our nation’s defence,” District 837 Directing Business Representative Tom Boelling said after Sunday’s vote.
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Boeing’s Air Dominance chief Dan Gillian called the rejection “disappointing,” noting the offer “resolved their primary issue on alternative work schedules” and stressing that contingency plans are in place to keep production running with non-striking staff.
The striking machinists assemble and maintain flagship programmes—including the F-15 and F/A-18 fighters, the T-7A Red Hawk trainer and the MQ-25 Stingray refuelling drone—work seen as vital to US and allied defence readiness.
CEO Kelly Ortberg downplayed the disruption, saying the walkout is “much, much less” severe than last year’s seven-week strike by 33,000 commercial-jet workers.
Even so, the stoppage piles onto a six-year run of setbacks: Boeing has posted US$42 billion in core operating losses since mid-2019, while its defence unit alone racked up nearly US$11 billion in charges through 2024. Those financial wounds follow two fatal 737 MAX crashes, a 20-month grounding and high-profile mid-air incidents that continue to erode confidence.
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