Boeing blames strike for furloughs while numbers show past debt
Sep 18, 2024, 6:14 PM | Updated: 6:20 pm
The Boeing strike continues. (Photo courtesy of KIRO 7)
(Photo courtesy of KIRO 7)
As the Boeing machinists strike goes into its sixth day, the company is announcing temporary furloughs.
In a message to employees, Boeing President and CEO Kelly Ortberg said the furloughs will impact executives, managers and employees.
Related news: As machinists strike continues, Boeing employees hear layoffs are imminent
Ortberg also said he and his leadership team will take a “commensurate pay reduction” for the duration of the strike. Worker furloughs and management pay cuts were some of the cost-cutting moves announced by Boeing.
The company is also blaming the strike for stopping production on some of its main money-making jet models, but striking workers are straight-faced when they hear the CEO and management team are taking temporary pay cuts.
Jason Lorenzen said regardless of how bad the financial situation is at Boeing, “I don’t think we’re asking for that much. I think we’re very reasonable. Everyone lost their pensions in the last contract.”
The company is blaming the strike and subsequent production loss for its cash troubles. But, back at the end of the second quarter, it was still in about $58 billion of debt.
Boeing said it has to take drastic action because the strike is putting its cash in jeopardy but striking workers and their families aren’t buying it.
Danielle Griffin’s husband is on strike. She saw the company announce spending cuts for catered meals, employees’ business class travel and now furloughs for white collar staff, and she said she’s confused why the company waited until now, when it’s already been billions of dollars in debt.
“I would think that some of the items that the CFO Brian put forth a few days ago would have indicated that would have been done earlier,” she told KIRO Newsradio.
Analyst: Strike costs Boeing $100 million in daily revenue
Fortune reports Boeing posted an operating loss of $1.4 billion in the second quarter.
Contributing: KIRO Newsradio staff
Sam Campbell is a reporter, editor and anchor at KIRO Newsradio. You can read more of Sam’s stories here. Follow Sam on X, or email him here.
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