Boeing has told its employees that furloughed employees will receive pay for the period when they were temporarily laid off, with the manufacturer continuing with its plan to reduce its workforce. Paying its furloughed employees In a message that Kelly Ortberg, the president and chief executive officer (CEO) of Boeing, sent to the company’s employees on November 7, the executive outlined that employees who had been furloughed during the strike would receive salaries for the time they were temporarily removed from work. Boeing began furloughing employees on a rolling basis in September.
This was one of the measures that the plane maker enacted to save cash during the strike by over 33,000 unionized members in California, Oregon, and Washington, represented by the International Association of Machinists and Aerospace Workers (IAM) District Lodge 751 and District W24. Other measures included a hiring freeze, pausing any pay increases, stopping non-critical travel, suspending non-essential capital expenditures, and, most significantly, making “significant reductions” in supplier expenditures and halting issuing the majority of supplier purchase orders on the 737 , 767 , and 777 aircraft programs. The latter measure had reverberated throughout the supply chain, including Spirit AeroSystems .
In a United States Securities and Exchange Committee (SEC) filing, the company warned that without additional liquidity, the continuous losses have cast doubt on its ability to continue .
