Boeing Faces New Labor Unrest as Defense Workers Hold Out

Boeing (NYSE:BA) is grappling with a fresh labor strike as 3,200 defense workers in St. Louis enter their third week of protests, demanding better contracts while the company attempts to build on lessons learned from its costly 2024 machinists’ strike.

Despite these ongoing challenges, Boeing stock has shown remarkable resilience in 2025, gaining 27% year-to-date and outperforming the broader market.

Boeing finds itself once again navigating turbulent labor waters, as defense workers in the St. Louis area continue their strike into the third week, demanding improved wages and benefits.

The current labor dispute, involving the International Association of Machinists and Aerospace Workers (IAM) District 837, represents another test for the aerospace giant’s management team, which is still working to implement lessons learned from the devastating 2024 machinists’ strike that cost the company nearly $10 billion.

While production of critical military aircraft, including F-15 and F/A-18 fighters, remains halted, Boeing’s stock has demonstrated surprising strength throughout 2025, suggesting investor confidence in the company’s long-term recovery strategy under CEO Kelly Ortberg’s leadership.

Boeing Defense Workers Continue Strike Into Third Week

The ongoing strike by 3,200 Boeing defense workers in the St. Louis metropolitan area began on August 4, 2025, effectively shutting down production of crucial military aircraft, including F-15 and F/A-18 fighters, as well as the T-7A trainer and MQ-25 refueling drone.

Unlike the massive 2024 strike that involved over 33,000 workers, this dispute is more contained but strategically significant given the defense contracts at stake. The workers have rejected two contract offers from Boeing, most recently on August 3, which included a 20% general wage increase over four years, a $5,000 ratification bonus, and additional vacation time and sick leave.

Union leadership, including IAM International President Brian Bryant, has been pressing Boeing to offer terms closer to the landmark Seattle-area agreement reached in November 2024. That contract included a 38% wage increase over four years, higher retirement contributions, and a $12,000 signing bonus.

The St. Louis workers are particularly seeking faster progression to top wage scales and improvements to 401(k) benefits. Adding political pressure to the situation, Democratic Representative Wesley Bell has joined union officials on the picket lines, while the union has reached out to Missouri’s congressional delegation for intervention.

Boeing’s local executive Dan Gillian has defended the company’s offer as "strong," noting it provides "an average of 40% wage growth." However, the company’s decision to withdraw the $5,000 ratification bonus after the August 3 rejection has further inflamed tensions, with union leaders describing workers as "totally infuriated" and "disrespected" by the move.

Currently, no formal negotiations are scheduled, though both sides indicate readiness to return to the bargaining table, creating an uncertain timeline for resolution.

Boeing’s 2024 Strike: Costly Lessons and Strategic Implications

The 2024 Boeing machinists’ strike serves as a stark reminder of the financial and operational risks associated with labor disputes in the aerospace industry. Running from September 13 to November 4, 2024, the strike involved more than 33,000 workers and temporarily halted production of Boeing’s most important commercial aircraft, including the 737, 777, and 767 jets, along with military derivatives.

The strike began after an overwhelming 94.6% of workers rejected a contract offering a 25% pay raise over four years, with 96% voting to authorize the work stoppage.

The financial impact was severe and immediate, with Boeing losing an estimated $5 billion by early October and a total of at least $9.66 billion by the strike’s conclusion.

The prolonged dispute forced Boeing to announce layoffs affecting thousands of workers in October and file unfair labor practice charges against the union. Production disruptions extended beyond Boeing’s facilities, involving suppliers and customers throughout the aerospace supply chain.

The strike finally ended when workers approved a significantly improved contract with a 38% wage increase over four years, demonstrating the substantial cost of the initial underestimation of worker demands.

The 2024 experience has taught Boeing important lessons about labor relations and the actual cost of protracted disputes. The company’s current approach to the St. Louis strike suggests greater awareness of the need for competitive initial offers and more respectful negotiation processes.

However, the ongoing defense worker strike indicates that Boeing still faces challenges in applying these lessons consistently across different worker groups and business segments, particularly as the company seeks to balance competitiveness with worker satisfaction in a tight labor market.

BA Stock: Resilient Performance Amid Ongoing Challenges

Boeing stock is currently trading at approximately $232.40 as of August 22, 2025, reflecting the market’s complex assessment of the company’s recovery prospects amid ongoing operational challenges.

Despite the current defense worker strike and lingering concerns from previous crises, Boeing shares have demonstrated remarkable strength in 2025, gaining 27% year-to-date and significantly outpacing the broader market’s more modest advances. This performance represents a notable turnaround from the company’s struggles in recent years, when various safety and production issues severely impacted investor confidence.

The stock reached a 52-week high of $242.69 and maintains a 52-week low of $128.88, indicating significant volatility throughout the period. The current price represents a substantial recovery from those lows, though it remains well below the all-time high of $430.30 reached in March 2019, before the 737 MAX crisis and subsequent challenges. Analysts have set a current price target of $228.90, suggesting the stock may be fairly valued at current levels despite ongoing operational uncertainties.

The strong year-to-date performance reflects growing investor confidence in CEO Kelly Ortberg’s leadership and the company’s operational improvements, including stabilized production rates and better financial performance in recent quarters. Boeing’s second-quarter 2025 earnings showed significant progress, with revenue jumping to $22.75 billion and the company delivering 150 airplanes, the highest second-quarter delivery count since 2018.

However, the current labor dispute and ongoing challenges in both commercial and defense segments suggest that while Boeing has made substantial progress, the path to full recovery remains complex and potentially volatile for investors.

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This article was written by Shane Neagle, editor in chief of The Tokenist.