Boeing hit with first strike in 15 years, thousands of employees to be furloughed

Boeing announced on Wednesday it will temporarily furlough tens of thousands of employees following a strike by around 30,000 machinists, which began on Friday, halting production of the 737 MAX and other airplanes.

In an email to staff, Boeing’s CEO, Kelly Ortberg, explained that the company will begin rolling furloughs in response to the strike.

“We are initiating temporary furloughs over the coming days that will impact a large number of US-based executives, managers, and employees,” Ortberg said.

“Selected employees will take one week of furlough every four weeks for the duration of the strike.”

This strike, Boeing’s first since 2008, comes during a difficult year for the company, which experienced issues earlier in January when a door panel blew off a new 737 MAX jet mid-flight.

Ortberg also revealed that he, along with other Boeing leaders, would take pay cuts to match the duration of the strike.

Boeing and the International Association of Machinists and Aerospace Workers (IAM) have engaged in two days of talks with federal mediators.

However, on Wednesday, the union expressed frustration, stating that discussions had made “no meaningful progress.”

“While we remain open to further discussions, whether directly or through mediation, currently, there are no additional dates scheduled,” the union said, adding that they are fully committed to securing a fair contract for their members.

Reuters reports that the extensive furlough plan signals that Boeing is preparing for a potentially prolonged strike, which may take time to resolve due to the discontent among workers.