Boeing’s CEO announced on Wednesday that the company is planning to start putting “a large number” of employees on temporary furlough in an effort to save cash amid the recent strike by union machinists. The strike, which commenced last week, has prompted this decision to conserve resources during the ongoing labor dispute.
Kelly Ortberg, Chief Executive of Boeing, stated that the furloughs will be temporary and will impact various levels of employees including executives and managers within the company.
The strike was initiated by about 33,000 Boeing factory workers in the Pacific Northwest after they turned down a proposal for a pay increase of 25% over four years. The workers are pushing for higher raises of at least 40% along with other enhancements to the deal that they voted against.
These furloughs are anticipated to affect tens of thousands of Boeing employees. Ortberg mentioned that employees will be furloughed for one week every four weeks and that he, along with other senior executives, will receive pay cuts for the duration of the strike period.