WASHINGTON 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, the two sides

took early steps to prepare for a lengthy strike.

Boeing ( BA ) CEO Kelly Ortberg told employees on Friday in a

message that while the company is disappointed the discussions

did not lead to more progress, the planemaker remains "very

committed to reaching an agreement as soon as possible."

Ending the strike, which has also shut production of

Boeing's ( BA ) 777 and 767 jets, "is a top priority," Ortberg said.

Ortberg told employees 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 may not be easily

resolved given the anger among rank-and-file workers who want

40% higher pay and a performance bonus restored.

"They are ready to fight this as long as they have to, to

get the contract that they deserve," said Brian Bryant, the

IAM's international president, in an interview this week.

Bryant acknowledged that Ortberg, who took over the company

in August, is in the difficult position of managing a strike

just weeks into the job.

"But we want to see if he's going to come through and

negotiate a contract with us here and get this resolved," Bryant

added.

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

dollars, further straining finances and threatening its credit

rating, analysts said.