Boeing puts tens of thousands of workers on furlough after strike

Boeing is suspending the jobs of tens of thousands of staff in the US in response to a strike that has shut down production of some of its airplanes.

The aerospace giant said US-based executives, managers and staff would be asked to take one week of furlough every four weeks as long as the stand-off lasts.

More than 30,000 factory workers in the northwest of the US went on strike on Friday over pay and retirement packages.

Government officials are now helping to mediate talks between the two sides.

The work stoppage threatens to cost Boeing billions of dollars, deepening the crisis at a company already facing significant challenges.

Its impacts are already being felt across the industry and wider US economy as the firm asks suppliers to halt shipments of most parts and takes other steps to save money.

Chief executive Kelly Ortberg, who started in the job just last month, said executives were trying to reach a new agreement “as soon as possible”.

“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,” he said in a memo to staff.

“We will continue to transparently communicate as this dynamic situation evolves and do all we can to limit this hardship.

Mr Ortberg said executives would take “commensurate” pay cuts for the time of the strike and that staff on furlough would retain “all benefits”.

“We won’t take any actions that inhibit our ability to fully recover in the future,” he added.

The strike is the first at Boeing since 2008.

Workers had rejected an offer that promised a 25% pay increase over four years and improvements to terms and conditions.

The deal, described by Boeing as “historic”, was recommended to the workforce by union leaders, but overwhelmingly voted down by employees.

At the picket line outside a plant in Auburn, Washington on Wednesday, Brian Bryant, the international president of the International Association of Machinists and Aerospace Workers union, said he saw Boeing’s actions as “smoke and mirrors” meant to distract from the real issue.

“They’re using that as a leverage tool for public opinion,” he told the BBC.

He said workers remained angry about wages that have not kept up with the cost of living, and the loss of benefits, such as pensions, in previous negotiations.

Boeing employs about 150,000 people across the US and was under pressure even before the walkout, after a piece of a new 737 Max passenger plane broke off mid-flight in January.

The incident reignited scrutiny of the firm’s manufacturing and safety record and has forced it to slow its production of planes.

Many of the strikers who the BBC spoke to on Wednesday cited the loss of their bonuses and pensions, as well as inflation and increased cost of living, as their reasons for joining the picket line.

Clayton Olander, 43, brought his three kids to the strike for an “economics lesson”.

Mr Olander, a machinist who has worked at Boeing for 11 years, said he is striking because of Boeing’s refusal “to increase our wages along with the economy around us”.

Boeing’s executives “didn’t consider the cost of living” during negotiations, he added.

A mechanic who did not want to be identified due to concerns about retaliation said if the strike continues for much longer she will be forced to seek a part-time job.

The 32-year-old said she’s striking for her pension and “a more secure retirement”. She feared that a 401k could be “taken away”, unlike a guaranteed pension.

“I want more security for when I’m old,” she said.

Rich Anderson, 54, joined Boeing in 1989 and has worked there through five separate strike actions.

He said he was “more prepared than in the earlier stages of my career” for this strike.

He added he’s sick of the “all the sacrifices” he has had to make.

“People used to step on glass barefooted just to get a job here,” he said. “Now they’re begging people out of high school to come work here because its changed so much.”