Under the strike wave, Boeing's tens of thousands of white-collar employees face "forced holidays" due to financial difficulties

Boeing CEO Kelly Ortberg announced to employees on Wednesday that due to about 30,000 mechanics going on strike last Friday, leading to the halt of production of 737 MAX and other aircraft, the company has decided to have thousands of white-collar employees, such as U.S. executives, managers, and other staff, go on furlough to save cash. The temporary leave may affect tens of thousands of Boeing employees and will continue until the strike is resolved.

Ortberg stated that during the strike, employees will take one week off every four weeks, and he and other Boeing company leaders "will take corresponding pay cuts during the strike." Boeing has around 150,000 employees in the U.S. It is currently unclear which specific employees are affected by the furlough. Ortberg explained in a memo to employees:

"With the production halt of many key projects in the Pacific Northwest region, our business faces significant challenges, and we must take difficult measures to preserve cash and ensure Boeing's successful recovery. While this is a tough decision that impacts everyone, it is to protect our long-term future and help us get through this very difficult period. We will continue to maintain transparent communication and make every effort to minimize this hardship."

Previously, over 30,000 mechanics in Seattle and Oregon rejected Boeing's new labor agreement and went on strike starting last Friday at midnight. Employee dissatisfaction with the new contract mainly focused on starting salaries and benefits. Boeing had proposed a total 25% pay increase over four years, which the union also supported in this interim agreement. However, this did not meet the union members' demands for a 40% pay increase and the expected restoration of their pension plan that they gave up in 2014.

As a result, Boeing union members rejected a contract recommended by union leaders for the first time in 16 years. Some employees stated that they rejected the contract because the pay raise was not enough to cope with the rising cost of living in the Seattle area, and the contract did not restore their pension. This week, Boeing and the union continued negotiations with the help of a mediator. Ortberg stated in a letter to employees that Boeing is committed to reaching a new agreement "as soon as possible."

Analysts point out that Boeing's decision to put a large number of employees on leave indicates that Ortberg is preparing for a long strike, as the strike is unlikely to be easily resolved given the anger of ordinary workers.

Boeing CFO Brian West stated earlier this week that to cut costs, the company will freeze hiring and pay raises, and have non-essential contractors go on temporary leave. He mentioned that the financial impact of the strike depends on its duration, adding pressure on the company's leadership as they try to steer the company out of safety and quality crises, including the plane door detachment incident in January and the $60 billion debt burden. Boeing CEO Ortberg also mentioned:

"The company will prioritize work critical to safety, quality, customer support, and key certification projects, and production of the 787 wide-body jet in South Carolina will continue."