VIRGINIA- Boeing commits to repay all workers for their lost wages during the recent 53-day factory worker strike. The strike, which involved thousands of production line workers, caused significant disruption to Boeing’s operations.
The management confirms this payback decision affects those staff members who went without pay throughout the work stoppage period.
Boeing to Repay Strike Workers
Boeing takes decisive actions following the 53-days factory worker strike resolution. The company addresses both immediate worker compensation and long-term workforce restructuring.
CEO Kelly Ortberg announces full wage reimbursement for employees placed on furlough during the production halt. This decision affected thousands of salaried workers who faced unpaid leave after 33,000 union machinists stopped 737 MAX production in September.
The IAM District 751 union members accept a new compensation package with 59% approval. The agreement delivers a 38% pay increase over four years, includes a $12,000 ratification bonus, and contributes $5,000 to workers’ 401k plans.
Employees furloughed during a seven-week strike by factory workers would be repaid by the company for lost wages, but it would proceed with plans to cut about 10% of its global workforce.
Kelly Ortberg, CEO, Boeing
Senior Biden administration officials facilitate the successful negotiation between Boeing and its workers. Their intervention follows Boeing’s initial attempt to implement a non-negotiated contract.
Despite these compensation agreements, Boeing proceeds with its workforce reduction plan. The company maintains its decision to cut off 17,000 positions, representing 10% of its global workforce.
Boeing to Cut 10% of Workforce
The aircraft manufacturer’s leadership maintains its plan to reduce its workforce. The company leadership announced in the previous month that Boeing will cut off 10% of its total positions.
This workforce reduction serves as a critical part of Boeing’s strategy to decrease operational expenses following the financial impact of the strike.
Boeing CEO Kelly Ortberg releases an internal memo addressing the aftermath of the machinists’ strike at Portland and Seattle assembly lines. The memo outlines two major company decisions affecting its workforce.
The first decision centers on compensation. Boeing commits to repay all employees who experienced unpaid furloughs during the 53-day strike period. This repayment acknowledges the financial hardships these workers faced while supporting the company’s stability.
The second decision focuses on workforce reduction. Boeing maintains its plan to cut 10% of positions across all levels – from executives to managers to other staff members. The company will issue 60-day notices to affected employees on November 15.
Ortberg explains these workforce reductions align with Boeing’s financial situation and streamlined priorities. The company views these structural changes as essential steps to enhance competitiveness and customer value delivery.
The return of machinists to work at the assembly lines does not alter these planned job cuts. Boeing leadership considers these workforce reductions necessary despite the strike’s resolution and the decision to repay furloughed workers.
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