Since August 4th, approximately 3,200 Boeing employees across facilities in Missouri and Illinois have been on strike, protesting stalled negotiations over wages and retirement benefits.

The union, IAM, has rejected Boeing's revised five-year labor agreement proposal for the fourth time, citing dissatisfaction with the company's offer, especially regarding retirement contributions and wage increases.

Boeing prepared contingency plans to support ongoing operations during the strike, particularly in its Defense, Space & Security division, which accounts for over a third of its revenue.

The strike has disrupted the production of military aircraft like F-15 and F-18 fighters, the T-7 Red Hawk training system, and the MQ-25 drone, impacting Boeing's military manufacturing.

Despite the ongoing strike, Boeing is scheduled to report its third-quarter earnings on Wednesday, with the dispute potentially influencing its financial outlook.

The union highlighted that the vote to reject the latest offer was very close (51% to 49%), with few workers crossing the picket line, indicating strong solidarity among members.

Boeing's management responded by recruiting permanent replacements and expanding subcontractor roles, which could lead to job and benefit losses for the striking workers.

The union's demands include higher retirement contributions and a ratification bonus closer to $12,000, while Boeing's offer included a 45% salary increase over five years, equating to $75,000 to $109,000 in additional earnings.

The ongoing strike, smaller than last year's walkout involving 33,000 workers, continues to pose challenges for Boeing's financial recovery amid broader economic pressures.

Boeing's leadership expressed disappointment over the vote, noting many workers want to return to work if an agreement is reached, but union leadership has refused to allow a vote on the latest proposal.

The strike has caused delays in delivering military aircraft to the U.S. Air Force, including F-15EX fighters, with broader financial issues such as expected losses and a multibillion-dollar charge related to the 777X program also affecting Boeing.

The union's repeated rejections of proposed contracts, despite federal mediation efforts, reflect ongoing tensions and a disconnect between Boeing's priorities and worker expectations.