Boeing reaches tentative labor deal with striking defense workers – CNBC

The union representing Boeing defense workers announced on Sept. 10, 2025, that it has reached a tentative five-year agreement with the company, subject to a membership ratification vote on Friday morning, Sept. 12. The International Association of Machinists and Aerospace Workers (IAMAW) said the deal improves wages and restores a signing bonus for employees largely based in St. Louis, Missouri. More than 3,000 IAMAW members have been on strike since early August, primarily at facilities that assemble and maintain F-15 fighters and missile systems. Boeing and the union characterized the tentative accord as a step toward ending the first defense-sector walkout at the company in nearly 30 years.

Key Takeaways

  • The IAMAW announced a tentative five-year contract on Sept. 10, 2025; members will vote on ratification on Sept. 12, 2025.
  • More than 3,000 Boeing defense workers have been on strike since early August 2025, chiefly in the St. Louis, Missouri area.
  • The tentative deal reportedly improves wages and restores a signing bonus; specific monetary terms were not disclosed by the union at announcement.
  • An earlier company offer that workers rejected included a 20% general wage increase and a $5,000 signing bonus.
  • Boeing had hired an undisclosed number of replacement workers in August 2025 to maintain defense production during the strike.
  • The defense walkout follows a 2024 strike in Boeing’s commercial machinists ranks that involved more than 32,000 workers and lasted seven weeks.

Background

The IAMAW represents technicians and assembly workers in Boeing’s Defense, Space & Security units, many of whom work on F-15 fighter jets and missile systems at sites around St. Louis County. Labor tensions at Boeing have been high since 2024, when 32,000 unionized machinists in the commercial side staged a seven-week strike after contract talks broke down. That dispute raised stakes for subsequent bargaining across the company.

Negotiations this year centered on pay, bonuses and staffing levels as Boeing sought to meet defense and commercial production targets. Boeing’s management has publicly downplayed the operational consequences of potential walkouts; CEO Kelly Ortberg said in late July 2025 that the company would manage through a strike. Meanwhile, the union has emphasized workplace conditions and pay parity compared with broader aerospace labor gains.

Main Event

On Sept. 10, 2025, the IAMAW announced that negotiators had reached a tentative agreement with Boeing covering a five-year term. The union statement said the accord restores a signing bonus and increases wages, but it did not provide a full schedule of raises or lump-sum amounts at the time of the announcement. The membership was scheduled to vote the following Friday morning.

Members who walked off the job in early August primarily perform assembly and maintenance work on F-15 jets and various missile systems at Boeing’s defense facility in Berkeley, Missouri, and nearby sites. The strike halted or slowed some production lines and prompted Boeing to hire additional workers to sustain deliveries and contractual obligations to government customers.

Before the walkout began, Boeing had made a contract offer that included a 20% general wage increase and a $5,000 signing bonus; IAMAW members rejected that proposal and proceeded to strike. The current tentative pact, according to the union, improves on aspects of the prior offer but the union withheld full financial specifics pending ratification discussions with members.

Boeing spokeswoman and IAMAW officials did not release a full breakdown of the deal publicly at the announcement; both parties indicated remaining administrative steps before any detailed provisions would be published.

Analysis & Implications

A tentative settlement would end a disruptive work stoppage that began in early August 2025 and involved more than 3,000 workers—small in scale relative to some past aerospace strikes but concentrated in defense manufacturing lines with time-sensitive commitments. If ratified, the five-year term should provide near-term stability for Boeing’s defense output and for supply-chain partners who supply parts for F-15s and missile systems.

For Boeing, the deal avoids an extended production interruption while allowing leadership to resume longer-term planning amid heavy commercial and defense workloads. The company’s earlier decision to hire replacement or temporary staff mitigated some immediate risks, but those measures carry costs and potential quality-control and training implications that will need management attention.

For labor relations across the aerospace sector, the accord may set bargaining benchmarks. The previously proposed 20% wage increase and $5,000 signing bonus had signaled rising wage pressures in the industry; the IAMAW’s framing that the tentative pact improves wages suggests unions are securing stronger compensation outcomes than in recent years, which could influence future contracts at other firms.

Geopolitically and fiscally, uninterrupted defense production matters to government customers. Extended strikes can delay delivery schedules for aircraft and missile components tied to U.S. and allied defense plans; a quick resolution would reduce near-term risk to those timelines but not erase supply-chain backlogs accumulated during the strike.

Comparison & Data

Item 2024 Commercial Strike 2025 Defense Strike
Workers involved ~32,000 >3,000
Duration Seven weeks (2024) Ongoing since early August 2025; tentative deal Sept. 10, 2025
Recent company offer 20% general wage increase, $5,000 signing bonus (rejected)
Tentative deal term Five years (reported)

The table shows the scale difference between last year’s commercial machinists strike and the 2025 defense-unit action: the latter is smaller numerically but concentrated on time-sensitive defense production. The 20% wage figure and $5,000 signing bonus are from an earlier rejected company offer; the union says the tentative pact improves on pay and restores a signing bonus, though it has not published a line-by-line financial schedule.

Reactions & Quotes

Union leaders framed the tentative agreement as a meaningful step for members while urging a careful review before ratification.

We have reached a tentative agreement that secures pay improvements and restores a signing bonus, and members will decide at the ratification vote.

IAMAW (union statement)

Boeing leadership played down long-term damage from the strike before the tentative pact, saying the company could manage operations through labor disruptions.

We’ll manage through this. I wouldn’t worry too much about the implications of the strike. We’ll manage our way through that.

Kelly Ortberg, Boeing CEO (July 2025 earnings call)

Industry analysts cautioned that while a tentative deal reduces near-term risk, implementation details will matter for production schedules and labor costs.

A settlement should stabilize output, but the specifics—pay schedules, hiring and training plans—will determine how quickly production normalizes and what the cost impact is for Boeing.

Defense industry analyst (independent analyst)

Unconfirmed

  • The precise wage increases and payment schedule in the tentative five-year agreement were not released at announcement; detailed financial terms remain unconfirmed until the union publishes them for members.
  • The exact number of replacement or temporary workers Boeing hired in August 2025 was not disclosed publicly by the company at the time of the union announcement.

Bottom Line

The tentative five-year agreement announced Sept. 10, 2025, if ratified on Sept. 12, would end a strike by more than 3,000 IAMAW members that began in early August and affected production of F-15 jets and missile systems. The union says the deal improves wages and restores a signing bonus, but it has withheld full monetary details pending member review.

For Boeing, a ratified settlement reduces the near-term risk to defense deliveries and the company’s supply chain, though it may raise labor costs compared with pre-strike forecasts. Observers should watch the ratification vote outcome and the publication of the contract’s full terms to assess production timelines, cost implications and potential ripple effects across the aerospace labor market.

Sources

  • CNBC (news)
  • IAMAW (union – official site)
  • Boeing (company – official)

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