A wood sculpture featuring the word 'strike' stands outside as Boeing Machinist union members cast their votes on the company's latest contract offer at District Lodge 751 in Seattle, Washington, on November 4, 2024. — AFP File
Boeing announced on Wednesday that it will begin issuing layoff notices this week to workers affected by a broader plan to reduce its workforce by 17,000 jobs, equivalent to 10% of its global staff. US employees receiving these notices will remain on Boeing's payroll until January to comply with federal regulations requiring a 60-day notice before termination. The news that Boeing would send out the Worker Adjustment and Retraining Notification in mid-November was anticipated.
"As previously stated, we are adjusting our workforce levels to align with our financial situation and a more focused set of priorities," Boeing said in a statement. "We are dedicated to providing our employees with support during this difficult period."
On Tuesday, Boeing reported that it delivered 14 aircraft in October, but production is expected to take several weeks to return to normal after a worker strike disrupted operations at two major assembly plants. In the first ten months of the year, Boeing delivered 305 aircraft, a decrease from 405 during the same period last year. The company also secured 63 gross orders in October.
Approximately 33,000 workers in the US Pacific Northwest went on strike on September 13 after overwhelmingly rejecting an initial contract offer, leading to the most costly strike in the United States this century. After a more than seven-week stoppage—costing the aviation giant billions—the International Association of Machinists and Aerospace Workers (IAM) District 751 approved a new contract proposal.
Boeing employees could return to work as early as November 6 and must be back on the job by November 12, according to the IAM. Production of the company's best-selling 737 MAX and the 777 jet was halted by the strike, while the 787 Dreamliner continued production at a plant on the east coast of the United States.
Boeing stated on Tuesday that it would take several weeks to fully restart airplane production, given the multi-stage process involved in resuming a manufacturing line. The company also noted that it is working on safely restarting operations in Washington and Oregon.
Boeing's gross orders for October included 40 737 MAX 8 aircraft for Avia Solutions Group, in a transaction valued at approximately $4.9 billion. Avia's first firm order with the aviation giant includes an option to add another 40 jets later, according to a joint statement by Boeing and Avia on Tuesday.
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