Everett Faces Uncertainty Amid Boeing Strike and Furloughs

Everett Faces Uncertainty Amid Boeing Strike and Furloughs

Everett, Washington, the home to one of Boeing’s major factories, is in the midst of a challenging moment as thousands of workers have taken to the picket lines recently. The strike, which began last week, is causing ripples not just locally but across the nation, especially affecting many areas where Boeing operates, including San Antonio, where approximately 3,000 employees are on the company’s payroll.

Boeing’s Response to the Strike

In light of the ongoing strike by about 33,000 factory workers primarily in the Pacific Northwest, Boeing’s Chief Executive Officer, Kelly Ortberg, announced on Wednesday that the company will need to take significant measures to conserve cash. This includes initiating furloughs for a “large number” of employees, which will also extend to non-union workers in San Antonio.

“While this is a tough decision that impacts everybody, it is in an effort to preserve our long-term future and help us navigate through this very difficult time,” Ortberg stated in a companywide message.

Furloughs Hit Hard

Although Boeing has not disclosed the exact number of employees facing furloughs, the figures are expected to run into the tens of thousands. With a total workforce of 171,000 at the beginning of the year, it’s no surprise that these layoffs have sent shockwaves throughout the company.

The furloughs will see selected workers taking time off without pay for a week every four weeks, while still retaining benefits. This move comes as production of key models, including the popular 737 Max, is put on hold, directly impacting the company’s cash flow as it cannot deliver new planes to clients.

Financial Struggles and Temporary Layoffs

Boeing has faced financial turbulence, reporting losses exceeding $25 billion since 2019 and a staggering $4.3 billion loss just in the second quarter of 2024. Now, with a strike underway, analysts predict that Boeing may burn through about $500 million in cash every week as workers remain on strike. Consequently, this looming financial burden could lead to a downgrade in Boeing’s credit rating, which would further complicate their financial situation.

Wages and Negotiations

The heart of the matter lies in the workers’ demand for better wages. They rejected a proposed contract that offered a 25% pay raise over four years, expressing a desire for at least a 40% increase along with other improvements to their contracts. The union representing the striking workers is actively seeking input from its members to formulate a new agreement. As talks resume, frustrations have surfaced, with union leaders claiming that Boeing’s negotiators were unprepared and unwilling to address the main concerns of wages and pensions during the mediation sessions.

San Antonio’s Workforce Responding

While the striking workers in Washington are at the forefront, it’s essential to recognize that employees in San Antonio aren’t directly part of the union’s strike, yet they aren’t escaping the fallout of these decisions. Company representatives indicate that even without being unionized, furloughs and other budget cuts will impact the local workforce significantly.

The facility in San Antonio serves multiple crucial functions, including maintenance for military transport planes and upgrades to fighter jets. The importance of these operations underlines the company’s significant role in the local community and economy.

A Look Ahead

As tension remains high and negotiations continue, the outcome of this strike will not only shape the future of Boeing but also have lasting effects on their employees and the communities they operate in. With no clear end in sight, workers and their families brace themselves for what lies ahead. As one employee put it, “We just want fairness and to be heard. It’s time for Boeing to recognize our worth.”