Workers were seen picketing outside Boeing’s manufacturing facility in Everett, Washington, as a strike commenced on Friday, Sept. 13, 2024. Boeing announced plans to temporarily furlough thousands of U.S. executives, managers, and other staff due to the machinist strike, aiming to preserve cash. The furloughs, impacting tens of thousands of employees, will involve affected staff taking one week off every four weeks for the strike’s duration. CEO Kelly Ortberg, who has been in his role for just six weeks, and his team will take corresponding pay cuts.
This decision follows Boeing’s 30,000 machinists in Seattle and Oregon rejecting a new labor contract, with 96% voting to strike over insufficient raises to cover Seattle’s rising cost of living and the non-restoration of pensions. Despite Boeing’s offer of a 25% raise, workers expressed dissatisfaction.
Negotiations continue, mediated, with Boeing prioritizing critical operations like safety, quality, customer support, and key certifications, including 787 Dreamliner production in South Carolina. Boeing’s CFO, Brian West, announced additional cost-cutting measures, including a hiring and raise freeze and the temporary dismissal of non-essential contractors.
The strike’s financial impact remains uncertain and compounds the pressure on Boeing’s leadership amidst ongoing safety, quality crises, and a substantial $60 billion debt.
Original Story https://www.cnbc.com/2024/09/18/boeing-furlough-strike.html
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