Boeing freezes hiring after strike spurs drastic measures to save cash

Along with a working with freeze throughout Boeing at all levels, the planemaker is quiting most employee traveling, suspending non-essential capital expenditures and centers costs and planning “considerable decreases in supplier expenditures and will quit releasing most of supplier purchase orders on the 737, 767 and 777 programs.”

Reuters talked to 5 employees who were using these previous standstills as a standard for their financial planning given that they will not get their salaries throughout the strike. The union supplies $250 a week to striking members.

Boeing said it is freezing hiring and weighing short-lived furloughs in the coming weeks to handle prices as a strike by more than 30,000 Boeing employees who develop planes in factories on the West Shore extended right into its fourth day on Monday.

Jon Holden, the lead union arbitrator, claimed on Saturday that workers wanted Boeing to boost its wage offer and reinstate a defined-benefit pension that was taken away a decade ago in return for keeping airplane manufacturing in Washington State.

“I know that these actions will develop some unpredictability and concern,” Boeing CFO Brian West wrote in a letter to employees shared on Monday. “This strike jeopardizes our recuperation in a significant way and we must take necessary actions to maintain money and safeguard our common future.”

Boeing is stopping briefly working with and taking sweeping actions to conserve cash money after regarding 33,000 employees went on strike on Friday consisting of considering short-term furloughs for lots of staff members, managers and execs in the coming weeks.

The International Association of Machinists and Aerospace Workers (IAM), Boeing’s largest union, recently overwhelmingly voted down an agreement which included a 25% pay increase spread over four years, however removed a yearly performance perk.