Article

2024-09-19 Economy

Boeing to temporarily furlough large number of US executives

[YahooFinance] Boeing said on Wednesday it will temporarily furlough tens of thousands of employees after about 30,000 machinists went on strike on Friday, halting production of its best-selling 737 MAX and other airplanes.

"We are initiating temporary furloughs over the coming days that will impact a large number of US-based executives, managers and employees," CEO Kelly Ortberg said in an email to employees. "We are planning for selected employees to take one week of furlough every four weeks on a rolling basis for the duration of the strike."

The strike, Boeing's first since 2008, adds to a tumultuous year for the planemaker which began when a door panel blew off a new 737 MAX jet in mid-air in January.

Ortberg also said he and other Boeing leaders "will take a commensurate pay reduction for the duration of the strike."

Boeing and the International Association of Machinists and Aerospace Workers held two days of discussions in the presence of federal mediators. The union, which said on Tuesday it was frustrated with the first day of mediation, said late on Wednesday it had concluded another day of talks with "no meaningful progress."

"While we remain open to further discussions, whether directly or through mediation, currently, there are no additional dates scheduled," the union said. "We are fully committed to fighting for the contract our members deserve."

Boeing did not immediately respond to a request for comment on the IAM statement.

The extensive furloughs show Ortberg is preparing the company to weather a prolonged strike that is not likely to be easily resolved given the anger among rank-and-file workers.

A protracted labor battle could cost Boeing several billion dollars, further straining finances and threatening its credit rating, analysts said.

"It's unlikely that the cuts will fully offset the costs of a prolonged strike," said Ben Tsocanos, aerospace director at S&P Global Ratings.

The union has been pushing for a 40% raise over four years in its first full contract negotiations with Boeing in 16 years, well above the planemaker's offer of 25%, which was resoundingly rejected.

Posted by Skidmark 2024-09-19 00:00|| || Front Page|| [11125 views ] Top

#1 "Furloughed" is so much more dignified and executive than "laid off".

The workers are on strike so they are not making bad planes. The executives are being furloughed so they are not making bad decisions. All in all, this should have a net positive effect on Boeing's stock price.

Posted by SteveS 2024-09-19 09:14|| 2024-09-19 09:14|| Front Page Top

#2 s'ok__ I hear Aldi's is hiring...

Posted by Mercutio 2024-09-19 09:37|| 2024-09-19 09:37|| Front Page Top

#3 Maybe it will give them a chance to learn to code.

These might be the people who hard pushed the DIE hires to make up a significantly large percent of the work force, who are now all on strike.

Keep them away from your grocery store and essentials businesses.

Posted by swksvolFF 2024-09-19 10:24|| 2024-09-19 10:24|| Front Page Top

#4 Maybe it will give them a chance to learn to code.

Industry experts issue grave warning against AI after well-paying jobs begin to dissipate

Posted by Skidmark 2024-09-19 12:25|| 2024-09-19 12:25|| Front Page Top

#5 Is the human teaching the AI proper generational perimeters, or is the AI teaching the human predictable thought processing?

Either way, when Mark Cuban's...face...shows up shilling for AI, I hate it.

Posted by swksvolFF 2024-09-19 13:02|| 2024-09-19 13:02|| Front Page Top

#6 Bernoulli's principle of flight is meeting Woke Business Administration 101. Poor management and stupid leadership choices has given control the executive suite to MBA's and lawyers instead of engineers and aviators- you lose profit, public confidence, quality control, consumer demand, reputation, labor relations, and you meet the unrecoverable stall moment, and a once great company meets mediocrity.

Posted by NoMoreBS 2024-09-19 14:50|| 2024-09-19 14:50|| Front Page Top

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