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Boeing furloughs begin on Friday for thousands in Pacific Northwest
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Boeing furloughs begin on Friday for thousands in Pacific Northwest
Sep 21, 2024 7:59 PM

Sept 20 (Reuters) - Boeing ( BA ) said furloughs began

on Friday for thousands of employees in Washington State and

Oregon, after more than 32,000 workers went on strike last

week, halting production of the U.S. planemaker's best-selling

737 MAX and other jets.

Striking workers with the International Association of

Machinists and Aerospace Workers received their last paycheck

this week, sources said, as talks between Boeing ( BA ) and its largest

union have stalled.

With no signs that negotiators for Boeing ( BA ) and the union

would return imminently to the bargaining table on Friday, the

two sides took early steps to prepare for a lengthy strike.

Boeing ( BA ) CEO Kelly Ortberg told employees earlier this week

that the company would initiate temporary furloughs for a large

number of U.S.-based employees who are not part of the strike.

Boeing ( BA ) has planned for workers to take one week of furlough

every four weeks on a rolling basis for the duration of the

strike.

The extensive furloughs show Ortberg is preparing the

company to weather a prolonged strike that is not likely to be

easily resolved given the anger among rank-and-file workers.

A protracted labor battle could cost Boeing ( BA ) several billion

dollars, further straining finances and threatening its credit

rating, analysts said.

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