Boeing, faced with a massive strike by its employees, has just announced a freeze on hiring and is preparing to implement reductions in working hours. This decision comes as negotiations with the workers, who overwhelmingly rejected the new work agreement, are at a standstill. Additionally, salary increases and non-essential travel are suspended, marking a period of great uncertainty for the aircraft manufacturer.
In response to the recent strike actions affecting its factories near Seattle, Boeing has announced a series of drastic measures. The company is considering an immediate freeze on all hiring, affecting both vacant positions and internal promotion requests. As a result, employees, managers, and executives will directly feel the impact of this decision. Source.
In addition to the hiring freeze, Boeing has decided to suspend all so-called “non-essential” travel. This measure aims to reduce the company’s overall expenses during this tense period. Brian West, CFO of Boeing, specified that negotiations are currently underway to find a viable solution. Source.
Reductions in Working Hours and Technical Unemployment
Faced with this crisis, the company is also considering measures for technical unemployment. By reducing working hours, Boeing hopes to minimize mass layoffs while maintaining production at an acceptable level. These measures concern all levels of the company, from workers to senior executives. This strategy aims to protect jobs in the long term by immediately adjusting working hours to the decrease in production workload. Source.
Negotiations and Future Impacts
Despite Boeing‘s efforts to find common ground, negotiations with union representatives remain tense. The initial proposal, rejected by 94.6% of employees, included a 25% salary increase and a one-time bonus. This massive rejection illustrates the extent of employee dissatisfaction and complicates the negotiators’ task. Source.
As these negotiations continue, the hiring freeze and reduction in working hours represent temporary solutions. It is crucial for Boeing to resolve this conflict as soon as possible to restore production and regain its employees’ trust. In the current context, every day of strike is costly for the company, both in financial terms and in terms of credibility. Source.
