Boeing CEO announces temporary layoffs for ‘large number’ of US workers – KIRO 7 News

RENTON, Wash. — 33,000 Boeing machinists are holding strong after rejecting the company’s contract offer last week.

It’s estimated Boeing could lose more than $100 million for each day of the strike.

Wednesday, Boeing announced temporary furloughs for executives, managers and other employees.

Boeing President & CEO Kelly Ortberg released a statement, saying in part, “While this is a tough decision that impacts everybody, it is in an effort to preserve our long-term future and help us navigate through this very difficult time.”

IAM Union International President Brian Bryant spent the day visiting members on the picket lines and had this to say about the furloughs.

“I see that as smoke and mirrors. Boeing is trying to look like they’re trying to cut costs when they really should be doing is resolving this strike and they know how to resolve it,” said Bryant.

Negotiations continue, now with a mediator.

“We gave on healthcare, we lost our pensions and we stagnated our wages going on 10 years now, so it’s time for us to try to recoup some of those losses,” said Ted Bates, a Boeing machinist.

Workers are demanding a 40% pay bump and many said they were angry with Boeing’s initial offer of 25% that was pushed by union leaders.

“There’s 100% solidarity and support for the union’s negotiating committee here. We’ve hit almost every single picket line from Everett all the way down here to Auburn and our members are standing behind their negotiating committee,” said Bryant.

KIRO 7 also reached out to the Society of Professional Engineering Employees in Aerospace (SPEEA), the union that represents about 17,000 local Boeing workers.

SPEEA said Boeing has not told them about their members having to take furloughs, adding they are not allowed under the union contract.

Ortberg sent the following letter to all employees Wednesday morning.

“Team,

“As you know, the IAM 751 and W24 went on strike last Friday. We remain committed to resetting our relationship with our represented employees and continuing discussions with the union to reach a new agreement that is good for all of our teammates and our company as soon as possible.

“However, with production paused across many key programs in the Pacific Northwest, our business faces substantial challenges and it is important that we take difficult steps to preserve cash and ensure that Boeing is able to successfully recover.

“As part of this effort, we are initiating temporary furloughs over the coming days that will impact a large number of US-based executives, managers and employees. All benefits will continue for affected employees, and to limit the impact to you, we are planning for selected employees to take one week of furlough every four weeks on a rolling basis for the duration of the strike. Your leaders will be in touch today to share more detail on your team’s specific approach.

“Along with these steps, my leadership team and I will take a commensurate pay reduction for the duration of the strike.

“Most important, we won’t take any actions that inhibit our ability to fully recover in the future. All activities critical to our safety, quality, customer support and key certification programs will be prioritized and continue, including 787 production.

“While this is a tough decision that impacts everybody, it is in an effort to preserve our long-term future and help us navigate through this very difficult time. We will continue to transparently communicate as this dynamic situation evolves and do all we can to limit this hardship.”

Restoring trust,

Kelly

The strike is Boeing’s first since 2008.