Contract talks between Boeing and its largest union stalled on Wednesday after both sides failed to reach an agreement on key issues in presence of federal mediators.
Boeing announced that in addition to a hiring freeze, it would be furloughing thousands of employees due to the ongoing machinist strike. Transcript: Conway Gittens: Here's what we're watching on TheStreet today.
After Boeing workers went on strike Friday, new CEO Kelly Ortberg announced via email that "temporary furloughs" would be necessary to keep the company afloat.
Furloughs for employees and pay cuts for executives are coming at Boeing.
Boeing (BA) and its largest union partner are resuming contract negotiations with federal mediators present Wednesday, the International Association of Machinists and Aerospace Workers (IAM) said in a social media post.
The aerospace giant said it would temporarily lay off tens of thousands of employees to stem losses from a walkout by the machinists' union.
Boeing will furlough its executives, managers and other white-collar employees one week of every four for the duration of a strike that union employees voted to authorize last week amid negotiations over pay and pension.
Move comes after about 33,000 workers in Pacific north-west began strike on Friday
Ortberg also said he and other Boeing leaders "will take a commensurate pay reduction for the duration of the strike."
Boeing said Wednesday it would start temporary furloughs of professional and white-collar staff as it seeks to conserve cash amid a labor strike that has shuttered Seattle manufacturing plants.
Boeing CEO Kelly Ortberg said Wednesday the planemaker will temporarily furlough numerous U.S. executives and other employees after about 30,000 machinists went on strike Friday, halting production of its 737 MAX and other airplanes.
Boeing's CFO Brian West earlier this week said the company has frozen hiring and raises to cut costs, and would let "non-essential contractors" go temporarily. The cost-cutting measures come after more than 30,000 Boeing machinists turned down a contract and voted to strike.