3 months ago
19
Boeing is suspending the jobs of tens of thousands of staff in the US in response to a strike that has shut down production of some of its airplanes.
The aerospace giant said US-based executives, managers and staff would be asked to take one week of furlough every four weeks as long as the stand-off lasts.
More than 30,000 factory workers in the northwest of the US went on strike on Friday over pay and retirement packages.
Government officials are now helping to mediate talks between the two sides.
The work stoppage threatens to cost Boeing billions of dollars, deepening the crisis at a company already facing significant challenges.
Its impacts are already being felt across the industry and wider US economy as the firm asks suppliers to halt shipments of most parts and takes other steps to save money.
Chief executive Kelly Ortberg, who started in the job just last month, said executives were trying to reach a new agreement "as soon as possible".
"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," he said in a memo to staff.
"We will continue to transparently communicate as this dynamic situation evolves and do all we can to limit this hardship.
Mr Ortberg said executives would take "commensurate" pay cuts for the time of the strike and that staff on furlough would retain "all benefits".
"We won’t take any actions that inhibit our ability to fully recover in the future," he added.
The strike is the first at Boeing since 2008.
Workers had rejected an offer that promised a 25% pay increase over four years and improvements to terms and conditions.
The deal, described by Boeing as "historic", was recommended to the workforce by union leaders, but overwhelmingly voted down by employees.
The international president of the International Association of Machinists and Aerospace Workers union, Brian Bryant, visited the picket line on Wednesday,
“Boeing must deliver a contract that reflects the hard work and sacrifices that workers have made over the past decade,” he said in a statement.
The company, which employs about 150,000 people across the US, was under pressure even before the walkout, after a piece of a new 737 Max passenger plane broke off mid-flight in January.
The incident reignited scrutiny of the firm's manufacturing and safety record and has forced it to slow its production of planes.
