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.