Boeing is reducing executive pay and furloughing nonunion workers during the strike
Boeing Implements Furloughs Amid Strike #
Boeing has announced temporary furloughs for executives and nonunion workers in response to the ongoing strike by 33,000 union members. The company’s CEO informed employees of this decision in an internal communication.
The furlough plan involves affected employees taking one week off work out of every four on a rotating basis for the duration of the strike. This approach aims to minimize the impact on individual workers while still achieving cost savings. The furloughs will affect a significant number of US-based executives, managers, and employees.
Despite these measures, production of 787 Dreamliner jets at the company’s nonunion factory in South Carolina will continue uninterrupted. The company has stated that activities critical to safety, quality, customer support, and key certification programs will be prioritized and maintained.
The CEO and leadership team will also take a proportionate pay reduction during the strike period. The company expressed its commitment to improving relations with represented employees and continuing discussions with the union to reach a new agreement.
The strike, which began recently, has halted most commercial plane production at Boeing. It marks the first strike at the company in 16 years. Previous negotiations had resulted in concessions from the union, including the loss of traditional pension plans.
Negotiations between the company, union, and federal mediators have resumed, but progress has been limited. The union has expressed frustration, stating that the company was unprepared to address key issues such as wages and pensions.
The union leadership has criticized Boeing’s furlough announcement, describing it as an attempt to shift blame for the strike and furloughs onto the union. They argue that cuts to executive pay are overdue and that the company needs to recognize the value of its workers’ contributions.
Boeing has already implemented other cost-saving measures during the strike, including a hiring freeze, travel restrictions, and reduced purchases from vendors and suppliers.
The company acknowledges the difficulty of the situation and has committed to transparent communication as the situation evolves, aiming to limit hardship for its employees.