Boeing is once again facing turmoil as over 3,200 of its workers in Missouri and Illinois have initiated a strike, adding to the challenges confronting the beleaguered US planemaker. The strike, which commenced on August 4, 2025, involves members of the International Association of Machinists and Aerospace Workers (IAM) District 837, who assemble critical military aircraft, including F-15 fighters, F/A-18 Super Hornets, and components for the advanced F-47 fighter jet program. This is the first strike that Boeing has faced at its St. Louis defense hub since 1996.
The strike comes after union members overwhelmingly rejected a modified four-year labor agreement with Boeing, despite union leaders initially recommending approval of what they termed a "landmark" agreement. The rejected proposal included a 20 percent wage increase over four years, improved medical benefits, enhanced pension provisions, and better overtime benefits. Boeing characterized this as "the richest contract offer we've ever presented to IAM 837 which addressed all their stated priorities". However, the union members felt that the offer did not adequately reflect their skill, dedication, and the critical role they play in the nation's defense. "This is about respect and dignity, not empty promises," the union stated in a post on X.
Boeing has expressed disappointment with the strike, with Boeing Air Dominance vice president Dan Gillian stating that the offer featured 40% average wage growth and resolved their primary issue on alternative work schedules. The company has activated contingency plans to mitigate the impact of the strike and ensure that its non-striking workforce can continue supporting its customers. However, the duration of the strike and its ultimate impact on Boeing's operations remain uncertain.
This latest labor dispute adds to the myriad of challenges that Boeing has been grappling with in recent years. The company is still working to recover from the aftermath of two fatal 737 MAX crashes in 2018 and 2019, which killed 346 people and led to a 20-month grounding of the aircraft. More recently, a Boeing 787 Dreamliner crash in India killed 260 people. These incidents have severely damaged Boeing's reputation and led to increased regulatory scrutiny.
Boeing is also facing ongoing production issues and quality control concerns. The FAA has maintained a production cap of 38 planes per month on the 737 MAX, and has refused to delegate more certification tasks to Boeing until systemic issues are resolved. In February 2025, it was reported that new quality checks at Boeing's Everett factory were causing further delays for 737 MAX deliveries.
Despite these challenges, Boeing has shown some signs of financial recovery in recent quarters. In the second quarter of 2025, the company reported a 34% increase in revenue to $22.7 billion, and narrowed its losses compared to the same period last year. Boeing's Commercial Airplanes division posted the strongest growth, with revenue surging 81.7% to $10.9 billion. However, the company still faces significant financial pressures, including a large net debt position.
Looking ahead, Boeing faces a number of key priorities. The company must resolve its labor disputes, address its production issues and quality control concerns, and continue to improve its financial performance. Perhaps most importantly, Boeing must restore trust with regulators, customers, and the flying public. The current strike is a stark reminder of the challenges that Boeing continues to face as it seeks to regain its position as a leader in the aerospace industry.
