Boeing is set to resume the production of its 737 Max aircraft now that the machinists’ strike has ended. On Thursday, Boeing Chief Executive Officer Kelly Ortberg announced that employees furloughed during the seven-week strike would be repaid for lost wages. However, Boeing still plans to cut around 10% of its global workforce.
Boeing Still Plans to Cut 10% of Its Global Workforce
Boeing furloughed thousands of employees on a rolling basis in September when 33,000 machinists participated in a strike. As a result, the planemaker was forced to stop production of its best-selling 737 Max. After cutting around 17,000 jobs, Boeing announced it had canceled unpaid leave.
In an email to employees, Ortberg said, “Your sacrifice made a difference and helped the company bridge to this moment.” He added, “We want to acknowledge your support by returning your lost pay if you went on unpaid furlough.”
With this decision, many employees are set to get notified about the future of their jobs in the company. Ortberg wrote, “We will continue forward with our previously announced actions to reduce our workforce levels to align with our financial reality, and a more focused and streamlined set of priorities.”
He added, “These structural changes are important to our competitiveness and will help us deliver more value to our customers over the long term.”
A spokesperson of the Society of Professional Engineering Employees in Aerospace which represents Boeing engineers, said earlier that its members are going to receive 60-day notices on job losses on November 15.
Ending the Strike
On Monday, the company won ratification of a contract. This awarded the striking machinists a 38% pay increase over four years and a $12,000 bonus. The workers are expected to return on November 12. However, Boeing hasn’t yet announced when it plans to resume production of the 737 Max. The planemaker indicated that the production will gradually return and will be undergoing stricter regulatory scrutiny.
