Boeing announced Wednesday that it will begin temporary layoffs of professional and clerical staff as it seeks to save cash amid a workers’ strike that has shut down manufacturing plants in Seattle.
The furloughs, which cover executives, managers and employees, will begin in the coming days and affect tens of thousands of Boeing employees, company officials said.
Boeing plans “selected employees to take one week off every four weeks on a rolling basis during the strike,” a message to workers from CEO Kelly Ortberg said.
The new Boeing boss added that he and the rest of the leadership team “will take a proportionate reduction in pay for the duration of the strike”.
Boeing had said furloughs were on the table earlier in the week when it announced a hiring freeze, austerity measures in the travel budget and reduced supplier spending.
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About 33,000 Boeing workers in the Seattle area with the International Union of Machinists and Aerospace Workers Area 751 walked off the job Friday after overwhelmingly rejecting a contract renewal.
The two sides resumed talks on Tuesday with the help of mediators from the Federal Mediation and Conciliation Service.
The IAM downgraded Boeing in a trading update released late Tuesday.
“We are disappointed,” the IAM said. “The company was unprepared and unwilling to address the issues that you have made clear are necessary to end this strike: Wages and pensions. The company does not appear to take mediation seriously.”
Ortberg’s message to employees reiterated his commitment to “restore our relationship with our represented employees and continue discussions with the union to reach a new agreement that is good for all of our teammates and our company as soon as possible.” ยป.
Source: AFP