Boeing proposes revised contract to 3,200 defense workers to avoid strike

Boeing has presented a new contract proposal to 3,200 workers who produce US fighter jets at the St. Louis defense factory, the consequences of which will affect the likelihood of a strike occurring shortly. 

In a statement released on July 31, 2025, the 3,200 members of IAM Union District 837 at Boeing in St. Louis announced they will vote on a modified offer from the company on August 3, 2025. 

The union declared that, should the revised offer be turned down, a strike will start at midnight on August 4, 2025. 

Boeing’s revised offer includes several important changes. The company has retracted its suggestion for an Alternative Workweek Schedule (AWS), which means that the current overtime rules will stay the same.  

Furthermore, pay increases now include a 50% per hour raise for employees who have reached the top of the pay scale, on an annual basis. 

For those eligible for pensions, the retirement benefit has been modified to provide a full $10 pension multiplier increase in the first year, rather than splitting it into two separate increases of $5 in the second and third years. However, employees must retire after January 1, 2026, to be eligible for the full $10 multiplier. 

The updated offer retains the previously suggested 20% wage increases and a $5,000 ratification bonus, plus current vacation, sick leave and healthcare benefits. 

The new contract proposal follows the overwhelming rejection of Boeing’s earlier offer by defense workers on July 27, 2025. The union said the previous offer “fell short of addressing the priorities and sacrifices of the skilled IAM union workforce”.  

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