Acting U.S. labor secretary meeting with both sides in Boeing machinists strike

(The Center Square) – Acting U.S. Labor Secretary Julie Su flew to Seattle on Monday in hopes of getting striking Boeing machinists and company officials back to the bargaining table, as the strike enters a fifth week for 33,000 members out on the picket line.

It is Su’s first in-person intervention, according to Reuters which confirmed the visit with the Labor Department.

In the meantime, Boeing employees expect to learn more this week about the coming layoffs, announced by the company Friday.

A letter from Boeing President and CEO Kelly Ortberg indicated a 10% workforce reduction in the coming months, with executives and managers among those who will lose their jobs.

The layoffs are expected to impact about 17,000 employees and Boeing said the next phase of planned furloughs has been suspended in lieu of the announcement.

Ortberg did not specifically blame the month-long machinists strike for the decision but wrote, “It is hard to overstate the challenges we face together. Beyond navigating our current environment, restoring our company requires tough decisions and we will have to make structural changes to ensure we can stay competitive and deliver for our customers over the long term.”

The union that represents striking machinists, International Association of Machinists and Aerospace Workers District 751, posted on its website, “Machinists did not cause this by going on strike."

The site linked to an article published Friday that highlights how layoffs have become the corporate response in strike situations, noting that Boeing spent an estimated $68 billion on share repurchases and dividends between 2010 and 2019. 

In addition to the layoffs, Boeing said challenges faced in the development of the 777X program, including a flight test pause and the ongoing work stoppage, means the program timeline will be delayed until 2026 for first deliveries.

Boeing also said after delivering the remaining 767 Freighters ordered by customers the company will conclude production of the commercial program in 2027.

In response to the layoff announcement Friday, the Society of Professional Engineering Employees in Aerospace, the union that represents engineering workers at Boeing posted the following from SPEEA Executive Director Ray Goforth: “Rather than resolve the IAM strike and focus the company’s resources on rebuilding the trust of regulators and customers, Boeing leadership has decided to harm every aspect of the company. This doesn’t inspire confidence that there’s an actual plan to save Boeing from its self-inflicted wounds.”

In a Monday email, SPEEA Senior Communications Specialist Bryan Corliss said Boeing doesn't have a plan yet for layoffs. 

"I can say that this does not appear to be a well-thought-out process," he said. "Instead, it appears to be a quick-and-dirty attempt by the new CEO to show Wall Street that he's doing 'something' to cut the massive losses across the enterprise."

Corliss said members would be updated as soon as the company provides details. 

Jon Holden, IAM District 751 president, told The Center Square Boeing can afford to meet union demands for a 40% pay increase over four years, a return to a pension program and other concessions.

“They can’t afford to continue attacking our membership, which is the only thing that has brought revenue and profit to this company,” Holden said. “Our requests are reasonable and affordable, and it’s time the company realizes that."

Ortberg’s letter expressed an understanding of the stress on employees.

“We know these decisions will cause difficulty for you, your families and our team, and I sincerely wish we could avoid taking them," Ortberg said. "However, the state of our business and our future recovery require tough actions."

Any employee being laid off will, by federal law, receive 60-day notices.