(Reuters) – Boeing 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 and its largest union have stalled.
With no signs that negotiators for Boeing and the union would return imminently to the bargaining table on Friday, the two sides took early steps to prepare for a lengthy strike.
Boeing CEO Kelly Ortberg told employees earlier 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 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 is not likely to be easily resolved given the anger among rank-and-file workers.
A protracted labor battle could cost Boeing several billion dollars, further straining finances and threatening its credit rating, analysts said.
(Reporting By David Shepardson in Washington, Joe Brock in Los Angeles, Allison Lampert in Montreal and Tim Hepher in Paris; Editing by Cynthia Osterman)
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