Boeing is temporarily furloughing executives and other nonunion workers to save cash during the strike by 33,000 members of the International Association of Machinists, CEO Kelly Ortberg told employees in an email Wednesday.
The furloughed employees will keep their benefits and they will be off work for one week out of every four on a rolling basis for the duration of the strike in order to limit the impact on each individual, according to the note. But the furloughs “will impact a large number of US-based executives, managers and employees,” the memo said.
But the furloughs, which will start “over the coming days,” will not interrupt production of 787 Dreamliner jets at the company’s nonunion factory in South Carolina, which continues to operate. “All activities critical to our safety, quality, customer support and key certification programs will be prioritized and continue,” said Ortberg.
Ortberg, who started the CEO job on August 8, said he and the company’s leadership team will also take a “commensurate pay reduction for the duration of the strike.”
“We remain committed to resetting our relationship with our represented employees and continuing discussions with the union to reach a new agreement that is good for all of our teammates and our company as soon as possible,” he wrote.
The strike started early Friday morning. Most commercial plane production at the company has been halted. Negotiators for the company, the union and federal mediators resumed talks Tuesday. The union negotiating committee said it didn’t make much progress so far in the discussions.
“We will not mince words - after a full day of mediation, we are frustrated,” the union said in a note to members. “The company was not prepared and was unwilling to address the issues you’ve made clear are essential for ending this strike: Wages and Pension. The company doesn’t seem to be taking mediation seriously.”
A Boeing spokesman did not comment on details of the discussions.
The company has already announced other steps to conserve cash during the strike, including a hiring freeze, cutbacks on travel and reduced purchases from vendors and suppliers.
“While this is a tough decision that impacts everybody, it is in an effort to preserve our long-term future and help us navigate through this very difficult time,” Ortberg wrote. “We will continue to transparently communicate as this dynamic situation evolves and do all we can to limit this hardship.”
