Boeing Faces Union Backlash Over Permanent Replacement Workers

Boeing's stock (NYSE:BA) dipped more than 1.5% as the aerospace giant announced plans to hire permanent replacement workers for striking employees at its St. Louis facilities. The move, described by Defense Vice President Dan Gillian as necessary to maintain customer support, has drawn sharp criticism from the International Association of Machinists and Aerospace Workers (IAM). Union President Brian Bryant condemned the decision as a continuation of Boeing's mismanagement.

The company has relied on non-union staff since the strike began on August 4, but the new hires will require government security clearances—a process taking approximately six months. Investors reacted negatively to the escalation, signaling concerns over prolonged labor disputes disrupting production timelines.