Boeing CEO Kelly Ortberg traveled to Seattle while 33,000 Boeing employees stood on the picket line. (Photos by Derrick Louis, Clarity Northwest Photography, and Laura Halliday, Realogix Sotheby's International Realty and KCPQ)
Boeing is launching a series of layoffs in response to a strike by the company's largest labor union, it said in a statement to employees on Wednesday.
The strike involves more than 33,000 Seattle-area workers and began Friday after the union overwhelmingly rejected tentative contract negotiations offered by the company.
Kelly Ortberg, who took over as CEO last month, sent a “furloughed” email to all employees this morning.
Boeing CEO buys $4.1M Seattle mansion amid factory worker strike: 'They should be able to pay us'
“…we plan to begin temporary furloughs over the next few days, which will affect a large number of U.S.-based executives, managers and employees,” Ortberg wrote. “All benefits will continue for affected employees, but to minimize the impact to you, we are planning to allow select employees to take one week of furlough for every four weeks on an ongoing basis for the duration of the strike.”
Ortberg also said he would take a pay cut for himself and his “leadership team” for the duration of the strike, but did not provide details on the amount of the cuts.
Strike signs are displayed outside a Boeing factory in Renton, Washington, on Sept. 13, 2024. The Boeing Machinists union voted overwhelmingly to reject the aircraft maker's contract proposal and strike. (Stephen Brasher/Getty Images)
The CEO made clear in a written statement that the plan to help the troubled aerospace company weather the strike was to “not take any action that would impede our ability to fully recover in the future.”
Ortberg also clarified that production of the Boeing 787 would continue during the strike, describing it as a “priority”.
Boeing workers vote to strike after union refusal to negotiate contract
Last week, Ortberg closed on a $4.1 million home in a gated Seattle community to be closer to Boeing's flagship factory.
Boeing's new CEO's lavish purchases have been criticized by employees as proof the company can afford to pay its workers more.
Union members react as Aerospace Machinists District 751 President John Holden (out of frame) announces that members have rejected Boeing's contract proposal and will go on strike following the results of a vote at the union hall in Seattle, Washington. (Jason Redmond / AFP via Getty Images / Getty Images)
“I know they have the money, and if they can pay the CEO, they can pay us,” Boeing employee Ethel Dominick told FOX 13 Seattle on Friday.
“You know, we're not asking for much, and we're happy that he can buy a nice new house. Some of us can't. Some of us run out of money before payday,” Dominique added.
Workers picket outside a Boeing factory during a strike in Everett, Washington, Monday, September 16, 2024. Boeing factory workers walked off the job for the first time in 16 years, halting production across the aircraft maker's Seattle facility. (M. Scott Brauer/Bloomberg via Getty Images)
The main demand of the striking workers from the International Association of Machinists and Aerospace Workers (IAM) union is a 40 percent wage increase.
Chief Executive Officer Kelly Ortberg ended her email to employees on a solemn note Wednesday, writing that “this is a tough decision that affects everyone,” and calling the strike an “extremely challenging time” for Boeing.
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“We will continue to communicate transparently as this dynamic situation evolves and will do all we can to minimize this difficulty,” Ortberg concluded.
