Boeing strikes: Plans to furlough staff, markedly reduce 737, 767 and 777 costs
Boeing has advised staff of a series of steps it will take to “preserve cash” and “safeguard” the planemaker’s future in response to an ongoing strike.
On September 13, 2024, 33,000 union members downed tools after overwhelmingly rejecting a new contract that included a general wage increase and a commitment from Boeing to build its next new jet in Washington.
On September 16, 2024, Boeing CFO Brian West, issued a memo to staff setting out money-saving initiatives being implemented while union members of the International Association of Machinists and Aerospace Workers (IAM) District 751 in the Pacific Northwest strike.
“We are working in good faith to reach a new contract agreement that reflects their feedback and enables operations to resume. However, our business is in a difficult period. This strike jeopardizes our recovery in a significant way and we must take necessary actions to preserve cash and safeguard our shared future. Importantly, we will protect all funding for safety, quality and direct customer support work,” West wrote.
The measures include a hiring freeze, eliminating all first and business air travel, suspending outside consultant spending and pausing charitable and advertising expenditure.
Day 4 – Strike UpdateSeptember 16, 2024Day or night, we hold the line!Tomorrow, your Negotiating Committee will enter mediation with the company. It’s important to note that in mediation with the Federal Mediation and Conciliation Service (FMCS), the mediator does not have… pic.twitter.com/b3K4JqMHR1— IAM Union District 751 (@IAM751) September 17, 2024 Also listed were a reduction in airshow and trade events attendance, stopping catered meals and food services at Boeing facilities and cancelling team offsite meetings.
West also added that Boeing plans to make “significant reductions in supplier expenditure” and will “stop issuing the majority of supplier purchase orders on the 737, 767 and 777 programs”.
In a hark back to the COVID-19 pandemic, Boeing advised that temporarily furloughing staff at all levels of the business was also under consideration.
“I know these actions will create some uncertainty and concern, as well as many questions. We’ll be sharing additional information in the coming days as we have detailed guidance on implementation of the measures,” West wrote before signing off his memo to staff.
The rejection of the new contract and subsequent strike is a major headache for staff as the company still tries to grapple with the aftermath of the Alaska Airlines Boeing 737 MAX 9 door plug blowout on January 5, 2024.
The incident put the manufacturer under intense scrutiny in the following months as safety and quality were found to be wanting at the company.
Production of aircraft has been slowed, airline bosses are frustrated and public trust in Boeing is at its lowest since the 737 tragedies in 2018 and 2019.
Away from aviation NASA also recently left two of its astronauts on the International Space Station (ISS), instead of bringing them back on a Boeing CST-100 Starliner which had developed several safety issues.
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Boeing has advised staff of a series of steps it will take to “preserve cash” and “safeguard” the…
The post Boeing strikes: Plans to furlough staff, markedly reduce 737, 767 and 777 costs appeared first on AeroTime.
