Thu Sep 19 06:19:18 UTC 2024: ## Boeing Furloughs White-Collar Employees Amid Strike
**SEATTLE, WA** – Boeing has announced temporary furloughs for a large number of its US-based white-collar employees, a move that comes in response to a strike by approximately 30,000 unionized workers. The strike, which began Friday after a new pay contract was rejected, has halted production of key aircraft like the 737 MAX, putting pressure on the company’s finances.
In an email to employees, Boeing CEO Kelly Ortberg explained the furloughs, stating they are “initiating temporary furloughs over the coming days that will impact a large number of US-based executives, managers, and employees.” Selected employees will take one week of furlough every four weeks on a rolling basis, with details of specific team impacts to be released on the same day. The memo did not specify the number of employees affected.
Ortberg also announced that he and his leadership team will be taking a commensurate pay reduction for the duration of the strike. The size of this pay cut was not disclosed.
The strike, which represents the first full contract vote in 16 years, saw a resounding rejection of the proposed agreement by nearly 95% of workers. This is a major setback for Boeing, which is already grappling with safety concerns and reputation damage after a series of setbacks this year.
The furloughs are part of Boeing’s efforts to preserve cash, a critical concern given the high cost of the strike. The company’s previous strike in 2008 lasted nearly two months and resulted in a loss of $4.3 billion in revenue. In addition to furloughs, Boeing has implemented a hiring freeze, barred employees and executives from flying business class, and paused pay increases for managers.
This latest development adds another layer of difficulty for Boeing, which is facing pressure from investors and stakeholders. The company’s response to the strike and its impact on production remain to be seen.
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