It's official: Boeing CEO announces temporary layoffs for 'large number' of US workers

Renton, Wash. — 33,000 Boeing machinists are on the hook after rejecting the company's contract offer last week.

It is estimated that Boeing could lose more than $100 million for each day of the strike.

On Wednesday, Boeing announced temporary furloughs for executives, managers and other employees.

Boeing President and CEO Kelly Ortberg released a statement, saying in part, “While this is a difficult decision that affects everyone, it is in an effort to protect our long-term future and help us get through this difficult time.”

IAM Union International President Brian Bryant spent the day meeting with members on the picket line and had this to say about the furloughs.

“I see it as smoke and mirrors. Boeing is trying to think they're trying to cut costs when what they should really be doing is solving this strike and they know how to solve it,” Bryant said.

Negotiations are ongoing, now with a mediator.

“We've lost health care, we've lost our pensions and we've had our wages frozen for 10 years now, so it's time for us to try to recover some of those losses,” said Ted Bates, a Boeing machinist.

The workers are demanding a 40% pay bump and many said they were angered by Boeing's initial offer of 25% that was pushed by union leaders.

“There is 100% solidarity and support for the union's negotiating committee. We've hit almost every single picket line from Everett to Auburn, and our members are standing behind their negotiating committees,” Bryant said.

KIRO 7 is also the Society of Professional Engineering Employees in Aerospace (SPEEA), the union that represents nearly 17,000 local Boeing workers.

SPEEA said Boeing did not inform its members that they would have to take furloughs, adding they are not allowed under the union contract.

Ortberg sent the following letter to all employees Wednesday morning.

“Team,

“As you know, IAM 751 and W24 went on strike last Friday. We are committed to resetting our relationship with our represented employees and continuing to negotiate with the union as soon as possible to reach a new agreement that is good for all of our teammates and our company.

“However, with production suspended on many key programs in the Pacific Northwest, our business faces significant challenges and it is important that we take tough steps to conserve cash and enable Boeing to successfully recover.

“As part of this effort, we are initiating temporary furloughs in the coming days that will affect a large number of US-based executives, managers and employees. All benefits for affected employees will continue and to limit the impact on you, we are planning for selected employees to take one week's furlough every four weeks on a rolling basis for the duration of the strike. Your leaders will be in touch today to share more details on your team's specific approach.

“In addition to these measures, my leadership team and I will take a commensurate pay cut for the duration of the strike.

“Most importantly, we will not take any action that hinders our ability to fully recover in the future. All activities critical to our safety, quality, customer support and core certification programs will be prioritized and continue with 787 production.

“While this is a difficult decision that affects everyone, it is in an effort to protect our long-term future and help us get through this difficult time. As this dynamic situation develops, we will continue to communicate transparently and do everything we can to limit this disruption.”

restore faith,

Kelly

Boeing's first strike since 2008.

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