A strike sign is pictured outside a Boeing factory on September 13, 2024 in Renton, Washington. The Boeing Machinists union voted overwhelmingly to reject the airplane maker's contract offer and strike. Stephen Brashear/Getty Images
Boeing faces a massive strike, penalizing participating employees with unpaid temporary leave.
In a CNBC report, Boeing's new CEO, Kelly Ortberg, told employees that putting US staff under furlough will help preserve cash. This move will affect thousands of Boeing employees, although no exact numbers have been released yet.
Earlier this month, VCPost learned that the company already struck a temporary deal with the union to prevent a strike. Weeks later, over 30,000 machinists around Oregon and the Seattle area had overwhelming support for a new labor contract. Unfortunately for Boeing, 96% still voted to hold a strike, all walking off on Friday at midnight.
AP News reported that Boeing offered the union a 25% raise, which was initially endorsed, but eventually rejected because the raise was not attuned to the cost of living in Seattle, especially if it didn't restore pensions.
"We will not mince words - after a full day of mediation, we are frustrated," the union's spokesperson said.
Ortberg responds with an unpaid leave for one week out of every four weeks or as long as the strike persists. At the same time, they will also take pay cuts to brace for the impact of the furlough and strike. While the new CEO acknowledged that it's a difficult decision, doing so will help protect Boeing's future.
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