Boeing to furlough thousands of workers

EVERETT — As a strike by the Boeing Machinists union entered its sixth day, temporary furloughs have begun for thousands of U.S.-based Boeing executives, managers and employees, the aerospace giant announced Wednesday.

“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,” Boeing CEO Kelly Ortberg wrote in a message to employeess.

As part of the announced furloughs, selected employees will take one week of furlough every four weeks on a rolling basis for the duration of the strike.

Ortberg said he and Boeing leadership team would take a “commensurate pay reduction” during the strike.

The CEO said the furloughs were necessary because of production halted across much of Boeing.

“Our business faces substantial challenges and it is important that we take difficult steps to preserve cash and ensure that Boeing is able to successfully recover,” Ortberg said.

The latest strike by the International Association of Machinists and Aerospace Workers District 751 began Friday at midnight after nearly 95% of its 33,000 members voted to reject a tentative contract reached on Sept. 8, and 96% voted to authorize a strike. IAM District 751 represents about 17,000 workers at the Everett plant.

Both sides resumed talks this week. Boeing said it remains committed to “resetting our relationship with our represented employees.” Workers have said they will remain out for as long as it takes to reach what they deem a fair deal.

IAM International President Brian Bryant was set to spend Wednesday and Thursday visiting striking workers in Washington and Oregon.

“Boeing must deliver a contract that reflects the hard work and sacrifices that workers have made over the past decade,” Bryant said in a statement. “The IAM and our 600,000 members have the backs of every single striking Boeing worker in this nation.”

The last strike, in 2008, lasted 57 days. Experts estimated it cost Boeing billions of dollars in sales.

Ortberg warned of the furloughs Monday. Now they are official. It’s not known how many employees in Snohomish County will be furloughed.

Ortberg’s message comes two days after Boeing Chief Financial Officer Brian West a series of other cost-cutting measures to preserve cash and ensure Boeing’s recovery.

In addition to a hiring freeze across all levels, Boeing eliminated unnecessary travel, all unnecessary capital expenditures and suspended payments to outside consultants.

Boeing is also planning significant reductions in supplier expenses, in a move that could have long-term consequences for production of its 737, 767 and 777 planes.

IAM said the existing contract has been in place since 2008, with extensions in 2011 and 2014. The contract expired Friday.

Michael Henneke: 425-339-3431; michael.henneke@heraldnet.com; X: @ihenpecked.