Boeing says it's considering temporary layoffs to save cash during the strike by machinists
Boeing says it’s considering temporary layoffs to save cash during the strike by machinists
SEATTLE — Boeing plans to freeze hiring and reduce travel and is considering temporary layoffs to save cash during a factory workers’ strike that began last week, the company told employees Monday.
The company said the moves, which include reduced spending on suppliers, were necessary because “our business is in a difficult period.”
Chief Financial Officer Brian West detailed 10 immediate cutbacks in a memo to employees. They include a freeze on hiring across all levels, pausing pay increases for managers and executives who get promoted, and stopping all travel that isn’t critical.
“We are also considering the difficult step of temporary furloughs for many employees, managers and executives in the coming weeks,” West said.
Boeing's business is in a difficult spot, he said, adding: “This strike jeopardizes our recovery in a significant way.”
About 33,000 workers represented by the International Association of Machinists and Aerospace Workers began a strike early Friday. The walkout came after workers rejected an offer of a 25% increase in pay over four years. The union originally sought a pay hike of at least 40%.
Representatives of the company and the union are scheduled to meet Tuesday with federal mediators. The union has started to survey its members to learn what they want most in a new contract.
Striking workers are picketing at several locations around Washington state, Oregon and California.
Outside Boeing's huge factory in Everett, Washington, Nancie Browning, a materials-management specialist at Boeing for more than 17 years, said last week’s offer was worse than the one that prompted a two-month strike in 2008. She
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