Boeing Defense, Union Reach Tentative Deal to End St. Louis Strike

After more than five weeks of picket lines, Boeing Defense and the International Association of Machinists and Aerospace Workers (IAM District 837) have reached a tentative agreement that could bring an end to the strike in the St. Louis area.

The deal, if ratified, promises a 24% general wage increase over five years, a $4,000 ratification bonus, and an average 45% rise in overall compensation. It marks a turning point in one of the largest ongoing labor disputes in the defense sector, with both sides eager to stabilize production and return to normal operations.

Background: Why the Strike Began

The strike began in early August after union members rejected Boeing’s initial contract proposal. Workers argued the offer did not reflect rising living costs, nor did it protect long-term job security.

Key issues included:

• Wages: Members demanded increases that kept pace with inflation and industry benchmarks.
• Job Security: Concerns about outsourcing and automation fueled anxiety about long-term stability.
• Healthcare & Retirement Benefits: Union workers pushed for stronger protections, especially for future retirees.

Union leaders framed the strike as not just about compensation, but about respect and fairness in the workplace.

Details of the Tentative Agreement

According to reports from both Boeing and the IAM:

• Workers will receive a 24% general wage increase over five years.
• Employees will get a $4,000 ratification bonus if the deal is approved.
• Total compensation, including benefits, is expected to rise by 45% on average.
• Boeing has agreed to maintain current healthcare contributions and pension benefits for the duration of the deal.

This package is significantly stronger than Boeing’s earlier offer, which was voted down in July.

Impact on Workers

For union members, the tentative agreement is seen as a major victory. The strike brought lost wages, but workers believe the long-term gains outweigh the short-term sacrifice.

Many employees note that the improved terms will ease financial pressures from inflation, especially on younger families and long-tenured workers nearing retirement.

Union leadership has recommended ratification, and members are scheduled to vote on the agreement later this week.

Impact on Boeing

Boeing Defense has been under pressure from:

• Production Deadlines: The strike slowed assembly of key defense projects, including fighter jets and military aircraft.
• Financial Strain: A prolonged work stoppage threatened billions in contracts with the Pentagon.
• Reputation: The strike drew national attention, with some lawmakers calling for a swift resolution.

By offering stronger terms, Boeing is aiming to restore production quickly while repairing strained relations with its workforce.

Broader Labor Market Context

The Boeing strike is part of a larger wave of union assertiveness in 2025:

• Auto workers, teachers, and healthcare professionals have also engaged in strikes or threatened walkouts.
• Tight labor markets and inflation have emboldened workers to demand higher wages and stronger protections.
• Companies, under pressure from supply chains and federal contracts, have been more willing to negotiate.

The resolution at Boeing may inspire other unions to push harder for improved deals, particularly in sectors where skilled labor is scarce.

FAQs About the Boeing Tentative Agreement

Live Example: A Machinist’s Perspective

James, a Boeing machinist in St. Louis, spent five weeks on the picket line with his colleagues. He described the strike as “the hardest financial stretch of my career,” but said the new agreement made it worthwhile.

“The $4,000 ratification bonus helps us catch up, but more importantly, the wage increases and benefits mean stability for the next five years,” he explained.

James’ experience reflects the balancing act faced by many workers—enduring short-term hardship for long-term security.