Boeing To Pay Lost Wages To Furloughed Workers, But Layoffs Still On The Cards

Ortberg informed on Thursday that employees that were furloughed during the strike, that lasted seven weeks, will be repaid by the firm for the wages they lost during the period

Multiple employees are due to be notified about what is bound to happen to their positions in the month.

Source : Boeing

Boeing CEO Kelly Ortberg announced in the week that employees discharged from duty during the strike by factory workers will receive compensation by the company for the lost wages. However, the executive said that the manufacturer will continue ahead with its plans to slash nearly 10 per cent of its global workforce.

Ortberg informed on Thursday that employees that were furloughed during the strike, that lasted seven weeks, will be repaid by the firm for the wages they lost during the period, reported Reuters. Notably, the manufacturer discharged thousands of workers on a rolling basis after the strike began in September.

The strike involved 33,000 union machinists and impacted the production of the manufacturer’s famous aircraft such as the 737 MAX. Notably, the manufacturer initially furloughed several employees, but later cancelled the unpaid leave after stating that it plans to slash 17,000 jobs.

The media agency cited an email shared by Ortberg to staff and said, “Your sacrifice made a difference and helped the company bridge to this moment. We want to acknowledge your support by returning your lost pay if you went on unpaid furlough.”

Informing the staff about the changes, the executive said, “We will continue forward with our previously announced actions to reduce our workforce levels to align with our financial reality and a more focused and streamlined set of priorities. These structural changes are important to our competitiveness and will help us deliver more value to our customers over the long term.”

Notably, the manufacturer has been facing morale issues due to job cuts. Multiple employees are due to be notified about what is bound to happen to their positions in the month.

A spokesperson for the Society of Professional Engineering Employees In Aerospace said that earlier the company said that the 60-day notices of job loss would be provided to the members on November 15.