Boeing's division responsible for the Trump fighter jet project readies for labor action following union's rejection of contract proposal
In early August 2025, Boeing's defense workers in St. Louis, represented by the International Association of Machinists and Aerospace Workers (IAM) Local 837, are set to vote on a revised contract offer from Boeing on August 3. If this offer is rejected, a strike would begin at midnight on August 4.
The union previously voted down Boeing's latest contract proposal, leading to a seven-day cooling-off period and a halt in talks as of late July. This labor dispute is critical because the St. Louis Boeing defense division is central to the production of the U.S. Air Force's new F-47 fighter jet, which was awarded a Pentagon contract earlier this year and designated by former President Trump as the next-generation air superiority fighter.
The F-47 is a key part of the U.S. military’s Next Generation Air Dominance program, aimed at replacing the aging F-22 Raptor and boosting national air combat capabilities. A prolonged strike could disrupt the assembly and delivery schedules for the F-47 fighter jet, potentially impacting U.S. defense readiness and priorities tied to maintaining air dominance.
However, analysts and Boeing officials believe the impact may be more limited than the previous 2024 strike, which cost Boeing over $5.5 billion and involved far more workers and commercial airplane production lines. Boeing has also activated contingency plans and maintains that they are better prepared financially and operationally to manage the potential strike.
The union stated that the proposal from Boeing Defense fell short of addressing the priorities and sacrifices of its members. The F-47's production timelines and national defense priorities could be affected by prolonged labor disruptions.
As of now, no talks are scheduled with the union. The Department of Defense did not immediately respond to a request for comment regarding the potential labor strike. The F-47, described as the most advanced, capable, and lethal aircraft ever built, is positioned at the center of the Next Generation Air Dominance program and is seen as a key component of the U.S. military's future air combat capabilities. The stock price of The Boeing Co. (BA) decreased by 1.87% on Monday.
This ongoing situation remains fluid, and the vote outcome on August 3 will likely determine the near-term trajectory of Boeing’s defense production in St. Louis and its implications for U.S. Air Force modernization efforts.
- The rejected contract offer from Boeing by the IAM Local 837 union could lead to a strike, affecting the production of the U.S. Air Force's new F-47 fighter jet, a key component of the Next Generation Air Dominance program and the U.S. military's future air combat capabilities.
- The F-47's production timelines and national defense priorities could be impacted by a potential prolonged labor disruption, as the Boeing defense division in St. Louis plays a critical role in its assembly and delivery.
- Despite the potential for a strike, Boeing officials believe the impact may be more limited than the 2024 strike due to better financial and operational management, as well as contingency plans.
- The ongoing labor dispute between Boeing and the IAM Local 837 is significant for the economy and finance sectors, as well as general news outlets, politics, technology, and sports media, given the potential implications for U.S. defense readiness, priorities, and the U.S. Air Force modernization efforts.
