The company has been struggling to revive itself after the 737 Max crashes in 2018 and 2019. The current move is to reduce costs
Aircraft giant Boeing has stopped hiring as the company is going through challenging times amidst the ongoing protests by nearly 30,000 of the company’s workers. Additionally, the aircraft maker has suspended non-essential capital expenditures including termination of employees' travel, according to Reuters. The measure by the company comes as it is struggling to manage costs.
“Strike jeopardises our recovery in a significant way, and we must take necessary actions to preserve cash and safeguard our shared future,” said Boeing chief financial officer, Brian West. Moreover, the company will stop issuing purchase orders on the 737, 767 and 777 programs, added West.
The aircraft giant has been struggling to revive itself after the 737 Max crashes in 2018 and 2019, that took lives of 346 people.
Apart from that, the ongoing protest by around 30,000 company workers has disrupted production.
Why are Boeing workers protesting?
On Thursday last week, the workers of the aircraft maker, dissatisfied with their current pay, launched a strike. According to the International Association of Machinists and Aerospace Workers (IAM), nearly 96 per cent of the aircraft giant’s workers supported the protest. The company has a workforce of around 150,000 workers in the US.
The workers have been demanding a pay hike by 40 per cent, restoration of a defined-benefit pension plant axed in 2014, and a guarantee that future production would not move out of the Seattle region. However, the management in a contract offered a wage increase of 25 per cent. Unhappy with the company’s offer, the workers rejected it. According to IAM, nearly 94.6 per cent of its members voted against the contract.
“Working together, I know that we can get back on track, but a strike would put our shared recovery in jeopardy, further eroding trust with our customers and hurting our ability to determine our future together,” said Boeing’s CEO Kelly Ortberg while addressing the dissatisfied workers on September 11.