Boeing workers reject new proposal for 35 percent wage increase

• Boeing workers just rejected a proposal that would give them a 35% wage increase over four years.
• The strike shut down most Boeing production for more than five weeks.
• Boeing's earnings missed analysts' expectations by more than 18% amid the ongoing strike.

Boeing machinists have rejected a new proposal that would have called for a 35% wage increase over four years, the International Association of Machinists and Aerospace Workers Local 751 said Wednesday.

The strike has been going on for five weeks and has brought much of the plane maker's production to a standstill.

Along with the wage increase, the new proposal increased a signing bonus from $3,000 to $7,000. According to the IAM, it was rejected by 64% of union members.

“After 10 years of sacrifice, we still have some catching up to do. We hope to be able to resume negotiations in a timely manner,” the IAM said in a statement on X on Wednesday.

Boeing reported third-quarter results on Wednesday with a net loss of more than $6 billion. This brings the company's total losses in 2024 to almost $8 billion.

CEO Kelly Ortberg, who joined in August, addressed the disruption on Wednesday's conference call.

“Today everyone's main concern is ending the IAM strike. “We worked feverishly to find a solution that worked for the company and met the needs of our employees,” said Ortberg.

The strike, which began on September 13, began after workers rejected a wage increase proposal by 25% over four yearsdemand 40%. The company's second offer of 30% was withdrawn after talks failed.

Average pay for Boeing machinists has risen about 15% to $75,000 over the past decade, according to the union and company. According to government inflation data, the cost of living in the U.S. rose 33% over the same period.

Analysts at Anderson Economic Group appreciated that the first month of strike by 33,000 Boeing workers cost the company and workers $5 billion. The last strike in 2008 resulted in eight weeks of factory closures and an estimated $100 million per day drop in sales.

Boeing did not immediately respond to a request for comment sent outside normal business hours.