Boeing said Wednesday it would start furloughs of professional and white-collar staff as it seeks to conserve cash amid a labour strike that shuttered Seattle manufacturing plants -- while talks with a union stalled.
The furloughs, which pertain to executives, managers and employees, will be initiated in the coming days and affect tens of thousands of Boeing employees, company officials said.
Boeing plans for "selected employees to take one week of furlough every four weeks on a rolling basis for the duration of the strike," said a message to employees from CEO Kelly Ortberg.
The new Boeing boss added that he and the rest of the leadership team "will take a commensurate pay reduction for the duration of the strike."
Boeing had said that furloughs were on the table earlier in the week when it announced a hiring freeze, travel budget austerity measures and a reduction of supplier expenditures.
About 33,000 Seattle area Boeing workers with the International Association of Machinists and Aerospace Workers (IAM) District 751 walked off the job Friday after overwhelmingly rejecting a contract renewal.
Members of IAM District 751 had been picketing after the walkout, shuttering factories in Renton and Everett that assemble the 737 MAX and 777 aircraft.
The two sides resumed talks Tuesday with the assistance of mediators from the Federal Mediation and Conciliation Service, with talks continuing on Wednesday.
But the IAM said late Wednesday that the talks had ended without result.
"Unfortunately, mediation concluded today without reaching any resolution," it said in a statement. "While we remain open to further discussions, whether directly or through mediation, currently, there are no additional dates scheduled."
"We are fully committed to fighting for the contract our members deserve," the statement said.
Late Tuesday, the IAM blasted Boeing in a bargaining update.
"We are frustrated," the IAM said. "The company was not prepared and was unwilling to address the issues you've made clear are essential for ending this strike: Wages and Pension. The company doesn't seem to be taking mediation seriously."
Ortberg's message to employees reiterated his commitment to "resetting our relationship with our represented employees and continuing discussions with the union to reach a new agreement that is good for all of our teammates and our company as soon as possible."
