RENTON, Wash. – 33,000 Boeing mechanics are on strike after rejecting the company’s contract offer last week.
It is estimated that Boeing could lose more than $100 million each day of the strike.
On Wednesday, Boeing announced a temporary furlough for executives, managers and other employees.
Boeing President and CEO Kelly Ortberg issued a statement saying, “While this is a difficult decision that affects everyone, it is an effort to secure our long-term future and help us navigate through this difficult time.”
IAM Union International President Brian Bryant spent the day visiting members on the picket lines and had this to say about the furloughs.
“I see it as smoke and mirrors. Boeing is solving this strike and they know how to solve it.
Negotiations with the mediator are now ongoing.
“We gave away health care, we lost our pensions, and our wages have been stagnant for 10 years now, so it’s time to try to make up for some of those losses,” Boeing mechanical expert Ted Bates said.
The workers are demanding a 40% pay raise and many say they are angry at Boeing’s initial offer of 25%, which was presented by union leaders.
“There is 100% solidarity and support for the union’s negotiating team here. We’ve hit almost every picket line all the way from Everett to Auburn and our members stand behind their negotiating team,” Bryant said.
KIRO 7 also reached out to the Association of Professional Engineering Employees in Aerospace (SPEEA), a union that represents 17,000 local Boeing workers.
SPEEA said Boeing did not tell its members to lay off, which they are not allowed to do under the union contract.
Ordberg sent the following letter to all employees on Wednesday morning.
“Team,
“As you know, last Friday IAM 751 and W24 went on strike. We are committed to restoring our relationship with our represented employees and continue to negotiate with the union to reach a new contract for all of our teammates and our company as soon as possible.
“However, with production suspended on several key projects in the Pacific Northwest, our business faces significant challenges, and it is important to take tough steps to protect cash and ensure a successful recovery for Boeing.
“As part of this initiative, we are initiating temporary layoffs in the coming days that will affect a large number of executives, managers and employees based in the United States. All benefits will continue for affected employees, and to limit the impact on you, we plan to take one week off every four weeks for the duration of the selected employee strike. Your leaders will be in touch today to share more details about your team’s specific approach.
“Along with these measures, my leadership team and I will undertake a commensurate wage reduction for the duration of the strike.
“Most importantly, we will not take any action that would impede our ability to fully recover in the future. All actions critical to our safety, quality, customer support and key certification programs will be prioritized and will continue, including 787 production.
“While this is a difficult decision that affects everyone, it is in an effort to protect our long-term future and help us navigate this difficult time. We will continue to communicate with transparency as this dynamic situation unfolds, and we will do everything we can to minimize this hardship.”
Restoring faith,
Kelly
This is Boeing’s first strike since 2008.
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