Boeing(US:BA) Guo Ji Jin Rong Bao·2025-08-04 23:24Core Viewpoint - Boeing faces significant challenges as approximately 3,200 workers at its defense plant in St. Louis initiated a strike, marking the first such action since the mid-1990s, following the rejection of a new contract proposal [1][2] Group 1: Strike Details - The strike is organized by the International Association of Machinists and Aerospace Workers (IAM) District 837, affecting production lines for fighter jets F-15, F/A-18, and some missile products [1] - The latest contract proposal from Boeing included a 20% wage increase over four years, a one-time signing bonus of $5,000, and improved sick leave and vacation terms, but workers felt it did not adequately reflect their contributions [2] Group 2: Impact on Boeing - The strike poses a new challenge for Boeing, which had previously experienced a major strike in Seattle involving 33,000 workers that halted production for nearly two months [1][2] - Boeing's CEO attempted to downplay the strike's impact, stating it is smaller than last year's strike, but the ongoing labor dispute casts a shadow over the company's recovery efforts [2] Group 3: Industry Challenges - The strike highlights deeper structural labor issues within the U.S. defense industry, particularly at Boeing's St. Louis facility, which is crucial for producing military equipment [4] - The aerospace and defense (A&D) industry faces an aging workforce, with 29% of employees over the age of 55, and a projected shortage of up to 3.5 million skilled workers by 2026 [4][5] - There is a growing concern that the lack of qualified workers could severely impact the U.S. military's industrial base, necessitating improvements in wages, benefits, and training to attract and retain skilled labor [5]