Boeing reports $6 billion third-quarter loss amid ongoing worker strike

Members of the International Association of Machinists and Aerospace Workers on Wednesday voted to reject a new contract proposal from Boeing. The vote came as a union worker strike stretched past one month mark and as the airplane manufacturer reported a more than $6 billion loss during the third quarter. Boeing’s new CEO Kelly Ortberg shared the results Wednesday during his first quarterly call with analysts since taking the helm in August.

What changes is Ortberg proposing? He said Boeing was in need of a fundamental cultural shift to address the growing public criticism, debt, and performance issues it is facing. Ortberg earlier this month said the company would cut 10 percent of its total workforce to address financial challenges. The company will also end production of 767 cargo freight planes. In his statement Wednesday, Ortberg also said he would prioritize improving supply chain and project management.

What are the terms of the new union contract? The proposal includes a 35 percent wage increase over four years and guaranteed minimum payouts as part of an annual bonus program. The contract also includes higher 401(k) contributions and other incentives. More than 33,000 union members went on strike in September to demand higher pay and increased benefits.

Dig deeper: Read Christina Grube’s report for more about the start of the strike last month.