Written by David Shepardson
WASHINGTON (Reuters) – Boeing CEO Kelly Ortberg said on Thursday that workers laid off during a seven-week factory strike would be compensated by the company for lost wages, but that it would continue with plans to cut about 10% of its global workforce.
Boeing has furloughed thousands of wage workers after a strike by 33,000 union workers began in September and halted production of its best-selling 737 MAX. But the plane maker later canceled the unpaid leave after announcing plans to cut 17,000 jobs.
“Your dedication has made a difference and helped bridge the company to this point,” Ortberg told employees in an email seen by Reuters. “We want to thank you for your support by returning your salary that you lost when you went to work without a salary.”
Boeing is facing morale issues as it moves ahead with job cuts, with most workers due to be informed of their future roles this month.
“We will continue our previously announced actions to reduce our operating levels to align with our financial reality and a more focused and streamlined set of priorities,” Ortberg wrote to employees. “These structural changes are critical to our competitiveness and will help us deliver more value to our customers over time.”
A spokesperson for the Society of Professional Engineering Employees in Aerospace, which represents Boeing engineers, said they had previously been informed that 60-day notices of job losses would be given to its members on Nov. 15.
Boeing on Monday won approval of a contract giving its machinists a 38% wage increase over four years and a $12,000 bonus, ending the strike.
Those workers will return on November 12. Boeing has not yet said whether it plans to restart production of the 737 MAX, but has indicated it will be gradual and subject to formal testing.
The plane maker has racked up losses of nearly $8 billion this year as it continues to battle a quality problem since a panel exploded in mid-air in January.
“We have a difficult task ahead of us to restore our company and meet our customer obligations, but we are on the right track and making the right changes,” Ortberg wrote.
Boeing raised $24 billion in new capital last month for a financial stake. Ortberg said last month he was reviewing Boeing's business and long-term forecasts.
The company may end up selling off some assets, as it downsizes its workforce to focus on the design of public planets and the company's core defense units.
Ortberg's email was previously reported by Air Current, an aviation industry publication.
(Reporting by David Shepardson in Washington and Nilutpal Timsina in Bengaluru; Editing by Alan Barona and Jamie Freed)
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