Thousands of Boeing workers are set to receive layoff notices within weeks, as a senior United States official flew to Seattle to try to defuse a strike and a major airline issued a warning about deepening plane unrest, industry sources said.
US Deputy Labor Secretary Julie Sue’s first personal intervention comes days after Boeing BA N unveiled plans to cut 17,000 jobs and take a $5 billion write-off, continuing a year of turmoil for the company.
In a statement issued on Monday, a Labor Ministry spokesman said: “Deputy Minister Su is meeting with both parties today to assess the situation and encourage both parties to move forward with the negotiation process.”
While Sue has previously spoken with Boeing and the striking union at the West Coast plant, this is her first time in Seattle meeting both sides in person.
The International Union of Mechanical and Aerospace Workers (IAM) said its chief negotiator, John Holden, briefed Suh on the ongoing talks, “emphasizing the union’s commitment to a negotiated contract that values the skills and dedication of our members.” .
Boeing and a White House spokesman declined to comment on Su’s visit.
Some 33,000 workers have been on strike since September 13, demanding a 40% pay rise over four years.
Boeing next month will send 60-day notices to thousands of workers, including many in its commercial aviation division, meaning those staff will leave the company in mid-January, a source familiar with the matter said.
A second phase of announcements, if needed, could be released in December, the source said.
A spokesman for the Society of Professional Engineering Employees in Aerospace, which represents Boeing engineers, said the company notified the union on Monday that 60-day notices would be issued to its members on Nov. 15.
A Boeing spokesman said the company shared information with management, including plans for 10 percent reductions in its commercial unit, involving both union and non-union workers.
The spokesman added that the striking IAM employees are not currently affected.
Brian Bryant, the IAM’s international president, called the job-cutting plan “corporate greed at its worst”.
“Boeing has just turned its back on 17,000 of its workers — the same people who have carried Boeing through crisis after crisis, year after year,” he said in a statement.
Boeing will refrain from asking for voluntary departures to limit layoff cash and avoid a skills exodus, the sources said, adding that the company will rely solely on involuntary layoffs. Rivals are scooping up scarce labor to ease pressure on aerospace supply chains.
“The trick will be not to lose the 10% of people you want to keep, which is even more important than usual in the post-pandemic skills shortage environment,” said Agency Partners analyst Nick Cunningham.
Boeing is hiring workers to prepare for higher production rates that have not materialized as production was curtailed by regulators after a door plug exploded on an Alaska Airlines plane in January.
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