American aviation giant Boeing has recently been facing a serious crisis. 33,000 workers in the Seattle and Oregon regions went on strike on September 13. The large-scale strike paralyzed the company’s daily operations and began to cause Boeing significant financial losses every day. The company made an important decision regarding the striking workers.
Boeing furloughs thousands of striking workers
The effects of the strike are large and likely to last a long time. CEO Kelly Ortberg said on September 20 that they were very disappointed with the lack of progress in talks with the union. According to Ortberg, the failure to reach an agreement on workers’ rights has backed the company into a corner.
During this difficult process, Boeing has started to put its employees on unpaid leave to reduce costs. Thousands of workers have been temporarily away from their jobs after this decision. The situation is not limited to this; Boeing announced that it will also stop the health insurance of these workers as of September 30. In other words, employees will not have any health insurance until they return to their jobs.
These strikes and furloughs are making Boeing’s financial situation worse, as it is already going through a tough time. The company has seen a 39.11% drop in its stock value since the beginning of 2024. As such, Boeing is also taking cost-cutting steps, freezing hiring, and trying to cut other expenses.
If the company cannot end the strike by meeting workers’ demands, it could face the risk of suffering even greater financial losses. Boeing’s future depends on how it manages this difficult process. What do you think about this? You can write your views in the comments section below.
