Boeing, which announced that it would tighten its belt to reduce costs and expenses after the machinists went on strike, announced that it would put tens of thousands of its employees on temporary unpaid leave when an agreement could not be reached.
Unpaid leave and salary cuts
According to Bloomberg, Boeing CEO Kelly Ortberg sent a message to employees saying, “We are initiating temporary unpaid leave in the coming days that will affect a large number of US-based executives, managers and employees. We plan to provide employees with one week of unpaid leave every four weeks during the strike.”
Ortberg also stated that they would cut payments for the duration of the strike, while the union announced that they would continue to fight for a new contract.
‘Strike endangers recovery’
Boeing Chief Financial Officer (CFO) Brian West stated that they were working in good faith to sign a new contract with the striking workers, and that they were going through a difficult period and that the strike was endangering the recovery, and therefore announced the belt warming.
Program purchases will stop
West said they also plan to make significant cuts in supplier spending and will halt most purchase orders for the 737, 767 and 777 programs.
More than 30,000 workers rejected Boeing’s offer of a 25 percent wage increase over four years in a strike they launched on September 13.
Source: www.dunya.com
