Boeing Will Furlough Non-Union Employees As Strike Continues
ForbesSEP 12 2024
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.Boeing Chief Executive Officer 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."
Ortberg added that he and other members of the leadership team will take a "commensurate pay reduction for the duration of the strike." He also announced a hiring freeze, cutbacks on travel and reduced purchases from vendors and suppliers.Ortberg added that he and other members of the leadership team will take a "commensurate pay reduction for the duration of the strike." He also announced a hiring freeze, cutbacks on travel, and reduced purchases from vendors and suppliers.
Even with these furloughs and cost-cutting measures, if these strikes are prolonguedprolonged, they will severely strain Boeing's finances and could threaten theirits 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.