TapTechNews September 16th news, according to the report of CNBC in the US, Boeing announced a comprehensive cost reduction, including freezing hiring and suspending non-essential employee travel to preserve cash to deal with the strike of more than 30,000 factory workers.
We are working sincerely to reach a new contract agreement to reflect their feedback and enable the operation to resume, Chief Financial Officer Brian West said in an employee note on Monday. However, our business is in a difficult time. This strike largely endangers our recovery, and we must take necessary actions to save cash and safeguard our common future.
According to the previous report of TapTechNews, on September 8th, Boeing and its largest union, IAM751, announced that a preliminary agreement on a new four-year contract was reached, with a 25% wage increase during the agreement period and a commitment to build Boeing's next aircraft in the Seattle area.
But then Boeing employees opposed the preliminary agreement between Boeing and the association with a voting rate of 94.6%, and 33,000 Boeing employees in the Seattle area of the US and Oregon went on strike starting at midnight local time on September 13th. Boeing and union negotiators will return to the bargaining table this week for negotiations under the supervision of the US federal mediator.