Boeing begins layoffs amid labor union strike, controversy over CEO's home purchase: 'Very tough times'

Boeing begins layoffs amid labor union strike, controversy over CEO's home purchase: 'Very tough times'

Boeing is beginning a series of furloughs in response to its largest labor union going on strike, according to a statement issued to workers on Wednesday.

The strike involves more than 33,000 workers in the Seattle area and began Friday when unions overwhelmingly rejected tentative contract negotiations offered by the company.

CEO Kelly Ortberg, who took over the role of chief executive last month, emailed all employees on “temporary leave” Wednesday morning.

Boeing CEO closes on $4.1 million Seattle home amid factory workers' strike: 'They might as well pay us'

“…We are beginning temporary furloughs in the coming days that will affect a large number of US-based executives, managers and employees,” Ortberg wrote. “All benefits for affected employees will continue and to limit the impact on you, we plan to take one week off every four weeks on a rolling basis for the duration of the strike for selected employees.”

Additionally, Ortberg promised that both he and his “leadership team” would take a pay cut during the strike, but did not detail how much.

A strike sign is displayed outside a Boeing factory in Renton, Washington on Friday (Stephen Brashear/Getty Images)

The CEO has established in writing that his plan to steer the troubled aerospace company through the strike is to avoid “any action that would impede our ability to fully recover in the future.”

Ortberg also clarified that production of the Boeing 787 would continue throughout the strike, which he called a “priority.”

Boeing workers vote to strike after contract negotiations rejected by members

This past week, Ortberg closed on a $4.1 million home in a gated community in Seattle to be close to Boeing's flagship factory.

The rich buyout from their new CEO has been criticized by Boeing employees as the company could pay their workers more.

Boeing begins layoffs amid labor union strike, controversy over CEO's home purchase: 'Very tough times'

Aerospace Machinists District 751 President John Holden (outside frame) reacts as union members reject a proposed Boeing contract and will go on strike after the vote results at their union hall in Seattle on Friday. (Jason Redmond/AFP via Getty Images/Getty Images)

“We know they got the money. If they can pay the CEO, they can pay us,” Boeing worker Ethel Dominick told Fox 13 Seattle on Friday.

“You know, we're not asking for much. And we're happy that she can afford a nice new mansion, some of us can't. Some of us are paycheck to paycheck,” Dominic added.

Boeing workers on strike

Workers picket outside a Boeing Co. facility during a strike in Everett, Washington on Monday. (Bloomberg via M. Scott Brauer/Getty Images)

The main demand of the striking workers of the International Association of Machinists and Aerospace Workers Union (IAM) is a 40% pay rise.

Ortberg ended his email to employees on a somber note Wednesday, writing that “this is a difficult decision that affects everyone” and calling the strike a “very difficult time” for Boeing.

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“As this dynamic situation evolves, we will continue to communicate transparently and do everything we can to limit this suffering,” he concluded.

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