St. Louis, Missouri - Thousands of members of a union representing Boeing defense industry workers in Missouri and Illinois will go on strike early Monday after rejecting a revised proposal for a new contract.

"Approximately 3,200 highly-skilled IAM Union members at Boeing facilities... voted on Sunday, Aug. 3, 2025 to reject a modified four-year labor agreement with Boeing," the International Association of Machinists & Aerospace Workers said in a statement.

"A strike will begin at midnight on Monday, Aug. 4."

Members of the union's local chapter "have spoken loud and clear, they deserve a contract that reflects their skill, dedication, and the critical role they play in our nation's defense," said IAM District 837 representative Tom Boelling.

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The American aerospace giant's initial proposal, which included a 20% wage increase over four years and more vacation time, was rejected a week earlier.

The new offer doubled the wage increase, according to Boeing.

"We're disappointed our employees rejected an offer that featured 40% average wage growth and resolved their primary issue on alternative work schedules," Dan Gillian, Boeing Air Dominance vice president and senior St. Louis, Missouri site executive, said in a statement.

"We are prepared for a strike and have fully implemented our contingency plan to ensure our non-striking workforce can continue supporting our customers."

The company has been in crisis since last year due to production quality issues and a seven-week strike that crippled two of Boeing's major assembly plants.

IAM is one of North America's largest unions, representing some 600,000 members in aerospace, defense, shipbuilding, transportation, health care, manufacturing, and other industries.