Boeing to Furlough Thousands of Staff Amid Factory Strike
The Facts
Boeing CEO Kelly Ortberg — who in August replaced David Calhoun — on Wednesday announced that the aircraft manufacturer would furlough "a large number" of employees to save cash during a strike that will halt production of a number of the company's planes.
"We are initiating temporary furloughs over the coming days that will impact a large number of US-based executives, managers and employees," Ortberg said to staff in an email. "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."
The Spin
Even with these furloughs and cost-cutting measures, if these strikes are prolongued, they will severely strain Boeing's finances and could threaten their credit rating. The company needs to get a handle on these negotiations as soon as possible.
So far, Boeing has come up way short in its offer to the union, particularly with respect to pay and pension. The company does not seem to be taking the mediation process seriously.
