By David Shepardson
WASHINGTON (Reuters) – Boeing CEO Kelly Ortberg said on Thursday that workers fired by factory workers during a seven-week strike would be reimbursed by the company for lost wages, but that the company would continue with plans to cut about 10 % of global workforce to be cut.
Boeing laid off thousands of salaried workers after the strike by 33,000 union workers began in September and halted production of its best-selling 737 MAX. But the aircraft maker later canceled the unpaid furloughs after announcing plans to cut 17,000 jobs.
“Your sacrifice made a difference and helped the company reach this moment,” Ortberg told staff in an email seen by Reuters. “We would like to recognize your support by reimbursing you for your lost wages if you went on unpaid leave.”
Boeing is dealing with morale issues as it continues its job cuts, with many of its employees due to be informed about the future of their positions this month.
“We will continue with our previously announced actions to reduce our workforce to align with our financial reality and a more focused and streamlined set of priorities,” Ortberg wrote to staff. “These structural changes are important to our competitiveness and will help us deliver more value to our customers in the long term.”
A spokesperson for the Society of Professional Engineering Employees in Aerospace, which represents Boeing engineers, previously said it was notified on Nov. 15 that its members would receive a 60-day notice of job cuts on Nov. 15.
Boeing on Monday won ratification of a contract that gives its machinists a 38% pay increase over four years and a $12,000 bonus, ending the strike.
These employees must be back by November 12. Boeing has not yet said when it plans to resume production of the 737 MAX, but has indicated it will be gradual and subject to regulatory oversight.
The aircraft maker has suffered losses of nearly $8 billion this year as it continues to grapple with a quality crisis following a mid-air panel blowout in January.
“We have a lot of work ahead of us to rebuild our business and meet our customer commitments, but we are on the right track and making the right changes,” Ortberg wrote.
Boeing raised $24 billion in fresh capital last month to shore up its finances. Ortberg said last month that he is assessing Boeing's operations and long-term forecasts.
The company could end up selling some assets as it cuts its workforce to focus on the company's core civil aircraft and defense units.
Ortberg's email was previously reported by the Air Current, an aviation industry publication.
(Reporting by David Shepardson in Washington and Nilutpal Timsina in Bengaluru; Editing by Alan Barona and Jamie Freed)
