Solomon Hammond, 33, left, and John Olson, 45, right, both toolmakers at Boeing's Renton factory, hold picket signs after union members voted overwhelmingly to reject a contract offer and go on strike Friday, Sept. 13, 2024, outside the company's factory in Renton, Wash. Boeing's CEO said Wednesday that the company will begin furloughing "a large number" of employees to conserve cash during theafter rejecting a proposal to raise pay by 25% over four years.
The furloughs are expected to affect tens of thousands of Boeing employees. Ortberg said employees will be furloughed for one week every four weeks, and he and other senior executives will take pay cuts during the duration of the strike.of several Boeing models, including its best-selling plane, the 737 Max. The company gets more than half of the purchase price when new planes are delivered to buyers, so the strike will quickly hurt Boeing’s cash flow.
Ortberg said in a memo to employees that the company is talking to the International Association of Machinists and Aerospace Workers about a new contract agreement that could be ratified. “However, with production paused across many key programs in the Pacific Northwest, our business faces substantial challenges and it is important that we take difficult steps to preserve cash and ensure that Boeing is able to successfully recover,” he said.most of its commercial airplane business located in the Pacific Northwest
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