Boeing recently announced several immediate cutbacks in response to a difficult worker strike that began last week. Chief Financial Officer Brian West sent a memo to employees outlining the changes, which include a hiring freeze, a halt on pay raises for promotions, restrictions on non-essential travel, and the possibility of temporary furloughs for many employees, managers, and executives. West cited the strike, which involved around 33,000 workers represented by the International Association of Machinists and Aerospace Workers, as a significant threat to the company’s recovery. The strike was sparked by the rejection of an offer that included a 25 percent pay raise over four years, and the union is standing firm in demanding better compensation for its members.
In response to the strike, Brian Bryant, the International President of the International Association of Machinists and Aerospace Workers, stated that the rejection of Boeing’s contract offer was a victory for workers’ rights and the aerospace industry as a whole. Bryant emphasized the union’s commitment to fighting for a contract that respects the value of its members and provides them with the dignity they deserve. Boeing has faced significant financial losses, with over $25 billion lost since the beginning of 2019, including $4.3 billion in the second quarter of 2024 alone. Boeing’s commercial airplanes division leader, Stephanie Pope, urged workers to accept the last contract offer, which she described as the company’s best-ever offer and backed by the union’s local president and negotiators.
Employees who participated in the strike are demanding raises of at least 40 percent and the restoration of bonuses that Boeing plans to cut. The company is also implementing additional cost-cutting measures, including eliminating first- and business-class travel for required travel, halting expenditures on outside consultants, and making significant reductions in supplier expenditures. Most supplier purchase orders for the 737, 767, and 777 models will be halted as part of these cost-saving efforts. The company is facing significant challenges as it navigates the strike and attempts to address its financial losses, highlighting the importance of reaching a resolution with its workers while maintaining its financial stability.
