The strike has entered its fourth week, Boeing and the machinists' union plan to resume negotiations

According to Zhitong Finance APP, Boeing (BA.US) and the leaders of the Machinists Union are scheduled to resume contract negotiations on Monday. Defense workers assembling F-15 and F/A-18 in the St. Louis area and Illinois will begin striking on August 4, 2025. Workers rejected Boeing's proposal of a 20% pay raise, a $5,000 signing bonus, more vacation and sick leave, and pathways to higher wages. Boeing Defense spokesperson Didi VanNierop stated that so far, the company has managed to maintain production, flight testing, and other work using non-union workers.

The turmoil began when workers voted down the contract terms approved by the leaders of the International Association of Machinists and Aerospace Workers, which represents about 19,000 engineers, technicians, and pilots. A few months ago, hourly workers in Boeing's Seattle area held a crippling strike, the last of which occurred in 2008.

This four-year contract is the richest proposal Boeing has offered to the union to date, but it comes with conditions: senior mechanics would receive a one-time bonus instead of annual raises, and amid high inflation, some senior employees still face years without pay increases. Issues from the 2014 contract continue to deepen dissatisfaction, as pensions were frozen and raises were long suppressed. These factors have led to long-standing grievances among workers in the St. Louis area, with slogans like "Senior employees deserve better treatment! 8%+0%+0%+4% equals nonsense" standing out on the picket line.

Beyond Boeing, unrest is spreading throughout the aerospace and aviation industry. Airbus employees in the UK are preparing to leave, strikes by Canadian airline cabin crew have stalled operations, and strikes by mechanics at Raytheon Technologies have disrupted aircraft engine deliveries. Workers at GE Aerospace even voted last week to authorize strikes at two factories. Bank of America Securities analyst Ron Epstein noted, "Labor is stirring up waves everywhere." Since the COVID-19 pandemic, union power has significantly increased due to a shortage of skilled mechanics, and the exit of the baby boomer generation has made replacements nearly impossible.

Boeing CEO Kelly Ortberg has faced a second large-scale strike since taking office a year ago, this time initiated by a union with no prior history of strikes. He has launched a "rebuilding company culture" campaign starting from the factory floor, calling for "civility, respect, and openness," frequently emphasizing "working together" in internal communications. However, these ideals are clashing head-on with workers' real demands for pay and pensions.

The long-standing tension between Boeing and the union dates back to former CEO Jim McNerney's tenure. After the Seattle strike in 2008, part of the production of the 787 Dreamliner was moved to South Carolina, which is not union-friendly. Boston College professor Thomas Kohler pointed out, "They have been reaping what they sowed ever since, which has kept the union highly vigilant towards management."

Currently, Boeing's factory in St. Louis remains open, and non-striking employees continue to support customers. However, if the strike lasts too long, it will threaten Boeing's efforts to control costs and mitigate delays in its defense business. Boeing warned in a July document that production disruptions could adversely affect "financial condition, operational performance, and cash flow." Epstein commented, "I thought they would do everything possible to mitigate the impact after the strike in Seattle, but that is not the case."