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Boeing Defense Workers Begin Striking For First Time Since 1996 After Rejecting Contract Offer
Forbesยท 2025-08-04 07:40
Core Points - Boeing's St. Louis defense factories faced a strike initiated by approximately 3,200 workers after rejecting a contract offer that included a 20% wage increase [1][2] - The strike marks the first walkout at Boeing's St. Louis defense hub since 1996, highlighting significant labor unrest within the company [1][4] - The union representing the workers, the International Association of Machinists and Aerospace Workers, indicated that the previous contract proposal did not adequately address the workforce's priorities and sacrifices [2][3] Company Background - The last strike at Boeing's St. Louis facilities occurred in 1996, involving over 6,000 workers and lasting 99 days [4] - Boeing experienced a larger machinist strike in 2022, with around 33,000 workers in Washington factories walking off the job for 53 days, resulting in a contract that secured a 38% raise over four years [4] Current Challenges - Boeing is currently under regulatory pressure due to safety concerns, particularly following an incident involving a 737 MAX 9 aircraft [5] - The company reported $22.7 billion in earnings for the second quarter of 2025, marking its highest earnings since 2019, and delivered 150 commercial airplanes, a significant increase from 92 in the same period of 2024 [6] - Boeing's losses for the quarter were halved to $612 million compared to $1.2 billion in the same quarter the previous year, indicating a notable improvement in financial performance [6]