As workers at U.S. aircraft manufacturer Boeing’s plant have launched their first strike in 16 years, the company has decided to take large unpaid temporary leave for workers to cut costs.
Boeing CEO Kelly Autoburg informed employees that the company has decided to take unpaid temporary leave for “a large number” of employees to maintain the company’s cash reserves during the strike.
Otberg said employees in sectors affected by the strike will take one week of unpaid leave every four weeks.
The company has not said how many people are eligible for unpaid leave, but tens of thousands are expected.
As of the beginning of this year, Boeing had 171,000 employees, with an estimated 33,000 factory workers in the Seattle neighborhood now on strike.
The strike, which began on the 13th, halted Boeing’s plane production, taking a toll on the company’s cash flow.
This is because the plane receives more than half of the purchase amount at the time it is finally delivered to the buyer.
Prolonged strikes could downgrade Boeing’s credit rating to investment ineligible or speculative, further borrowing costs, U.S. media said.
The union said in a statement that it had tried to negotiate all day under the arbitration of the Federal Coordination and Reconciliation Agency but was “frustrated” and criticized the company, saying “the company is not prepared and is not willing to address the issues of wages and pensions that we have made clear are essential to ending this strike.”
JENNIFER KIM
US ASIA JOURNAL
