[Source – apnews]
Boeing has announced temporary furloughs for executives and other nonunion workers in response to the ongoing Boeing strike 2024 involving 33,000 members of the International Association of Machinists. The decision was made to conserve cash during the labor dispute, according to CEO Kelly Ortberg.
The furloughed employees will retain their benefits and will be off work for one week out of every four on a rotating basis. While the company aims to minimize the impact on individuals, the furloughs will affect a significant number of US-based executives, managers, and employees.
Federal mediators resumed talks
Despite the furloughs, which will begin in the coming days, production of 787 Dreamliner jets at the nonunion factory in South Carolina will continue uninterrupted. Safety, quality, customer support, and key certification programs will remain prioritized.
Boeing’s CEO, Kelly Ortberg, has announced that he and the company’s leadership team will also take a pay cut during the strike. The company remains committed to resolving the labor dispute and reaching a new agreement that benefits both employees and the company.
The strike, which began on Friday, has halted most commercial plane production at Boeing. It is the first strike at the company in 16 years. Negotiators from Boeing, the union, and federal mediators resumed talks on Tuesday, but little progress has been made so far.
Boeing and Union Clash as Strike Continues
The ongoing Boeing strike 2024 has escalated tensions between the company and its union. After a day of mediation, the union expressed frustration with the company’s lack of preparedness and unwillingness to address key issues such as wages and pensions.
The union’s president, Brian Bryant, criticized Boeing’s statement as “smoke and mirrors” and accused the company of attempting to shift blame for the strike and furloughs. He emphasized the need for cuts in executive pay and urged Boeing to recognize the value of its employees’ contributions.
Boeing has already implemented several measures to conserve cash during the strike, including a hiring freeze, travel cuts, and reduced vendor purchases. Despite these efforts, the company has announced plans to temporarily furlough thousands of executives, managers, and other staff.
The strike, which began last week after workers overwhelmingly rejected a new labor contract, has significantly impacted Boeing’s operations. Negotiations between the company and the union continue, but progress has been limited. The union has cited insufficient wage increases and the loss of pensions as reasons for rejecting the proposed contract.
