Boeing reaches tentative deal with defense worker union to end strike action

Boeing Defense has reached a tentative labor deal with the union representing more than 3, 200 workers at its factories in Missouri and Illinois, to end strike action that has continued for more than a month.  

In a statement, the International Association of Machinists and Aerospace Workers (IAM) union District 837 members, whose negotiators have not met with Boeing since August 25, 2025, said the five-year tentative agreement includes “improvements to general wage increases and restores a signing bonus.”  

Boeing’s new strike settlement offer, presented by the company on its official website on September 10, 2025, includes a five-year contract with an average 45% wage increase, up from the 40% included in the company’s previous four-year proposal, raising average annual pay from $75,000 to $109,000. 

“Employees in progression, which is 78% of our team, have the potential to see their hourly wages grow even higher than 45% by leveraging the new pay enhancements,” the company said. 

The agreement also includes a $4,000 ratification bonus, along with retirement and healthcare benefits as well as more vacation and sick leave days. This includes automatic increases of $0.75 per hour every six months and bonuses for second-shift work, which were already included in the previous offer. 

IAM District 837 members can vote on the tentative agreement on September 12, 2025, which could bring an end to the month-long walkout. 

The announcement comes after Boeing said it will begin hiring permanent replacement workers at its defense factories in Missouri and Illinois. District 837 President Tom Boelling called out the move, saying it would create division among workers instead of resolving the conflict. 

Boeing defense workers will be required to return to work on September 15, 2025, if the contract is approved. 

The ongoing strike continues to put a key business line at risk for Boeing. The company’s defense division generated about $23 billion in revenue in 2024, approximately one-third of the company’s total sales. 

Boeing defense workers are responsible for assembling and maintaining advanced aircraft and weapon systems, including the F-15, F/A-18, as well as missile and defense technologies. 

“Their work plays a vital role in safeguarding national security and supporting US and allied defense operations,” the union said. The post Boeing reaches tentative deal with defense worker union to end strike action appeared first on AeroTime.

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