Because of a strike by 33,000 unionized employees, Boeing
is temporarily furloughing staff to save money. According to a report from CNN, staff will be off for one week out of every four during the strike.

Rolling furloughs

Most of the work on Boeing’s commercial product lines has stopped. Last Friday, 33,000 union members began to walk off the job after voting to strike. The ongoing strike is the first at Boeing since 2008 and is heavily affecting the manufacturer’s facilities in Washington.

Due to the severity of the strike, CEO Kelly Ortberg emailed employees earlier today to discuss the furlough. The furlough affects executives and nonunion workers. Those furloughed will keep their benefits but will be off one week out of every four on a rolling basis during the strike.

Aircraft being built inside the Boeing 737 Factory.

Photo: Jake Hardiman | Simple Flying

The memo stated that the furloughs are designed to minimize the impact on any one individual. Ortberg, who took over as CEO last month, will take a pay cut during the strike, and other executives will do the same. The number of furloughed staff members was not shared, but reports suggest this is expected to reach the tens of thousands.

Beyond the furloughs, Boeing had previously announced other measures to save money. This includes a hiring freeze, reduction on travel, and a reduction on purchases from vendors and suppliers.

“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. We will continue to transparently communicate as this dynamic situation evolves and do all we can to limit this hardship.” – Kelly Ortberg, Chief Executive Officer, Boeing

According to a previous report from Simple Flying, the strike was estimated to cost Boeing $1.5 billion. Had the deal been approved by union members, the impact would have been $900 million annually. If the strike does not end soon, Boeing’s credit rating could be downgraded, which would make borrowing more costly.

Dominic Gates, an aerospace reporter for The Seattle Times shared on X that Boeing had laid off dozens of staff and that the layoffs were to work unaffected by the strike.

Yesterday, the union and federal mediators resumed negotiations, but that did not result in much. The union sent a note to its members and said,

“We will not mince words – after a full day of mediation, we are frustrated. The company was not prepared and was unwilling to address the issues you’ve made clear are essential for ending this strike: Wages and Pension. The company doesn’t seem to be taking mediation seriously.”

Boeing 787 not affected

In the memo, Ortberg highlighted that work on the Boeing 787 Dreamliners has not been affected. Additionally, work related to customer support and certification of new planes (like the 737 MAX 7 and 10 and 777X (-8, -9, and -F)) will continue.

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