Boeing is temporarily furloughing executives and nonunion workers in response to the strike by 33,000 members of the International Association of Machinists, CEO Kelly Ortberg announced in an email to employees on Wednesday.
The furloughs, set to begin in the coming days, will last one week out of every four for the affected employees.
While they are on furlough, they will still retain their benefits.
Ortberg’s note emphasized that the move will impact a large number of U.S.-based executives, managers, and employees but aims to minimize the overall effect on each individual.
Despite the furloughs, production of the 787 Dreamliner at Boeing’s nonunion facility in South Carolina will continue.
“All activities critical to our safety, quality, customer support, and key certification programs will be prioritized,” Ortberg said.
Ortberg, who took over as CEO on August 8, also stated that the company’s leadership team, including himself, will take a pay cut for the duration of the strike.
The strike, which began last Friday, has halted most commercial plane production.
Boeing, the union, and federal mediators resumed talks on Tuesday, but little progress has been made.
The union has expressed frustration with Boeing’s unwillingness to address key concerns, such as wages and pensions.
“The company doesn’t seem to be taking mediation seriously,” the union said.
In addition to the furloughs, Boeing has already implemented cost-saving measures, including a hiring freeze, reduced travel, and cuts in purchasing from suppliers.
“This is a tough decision that affects everyone, but it’s necessary to ensure our long-term future,” Ortberg wrote.
He assured employees that the company would continue to communicate openly as the situation unfolds.
The negotiations are ongoing, and both sides hope to reach a resolution soon.
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