Machinist jobs safe for now, Boeing says

This story originally appeared on AirlineGeeks.com.

Boeing’s striking machinists are not currently expected to be the target of job cuts by the company, according to an internal presentation obtained by The Seattle Times.

In the Seattle Times report, Boeing’s “Reduction In Force” presentation stated that 17,000 workers across the company will be laid off by Jan. 17, 2025. Another phase, on Feb. 21, could see more layoffs to achieve the total 10% planned reduction.

The report stated that employees at all levels and management are to be considered for layoffs, except for production and maintenance employees. Striking members of the International Association of Machinists and Aerospace Workers in the Pacific Northwest are not slated for cuts at this time.

Boyan Novakov, communications lead at Boeing Communications, told FreightWaves that the reductions in Boeing’s workforce will include several job classifications.

“As announced last Friday, over the coming months we are planning to reduce the size of our total workforce by roughly 10%,” Novakov said. “These reductions will include executives, managers and employees and will include union-represented and non-union workers.”

Layoffs draw union ire

Brian Bryant, international president of the IAM Union, released an emailed statement on Monday blasting the announcement of layoffs by Boeing.

“Boeing just turned its back on 17,000 of its own workers – the same people who carried Boeing through crisis after crisis, year after year,” Bryant said in the statement. “Their reward? A pink slip. This is corporate greed at its worst. Shame on you, Boeing executives.”

Another news release from IAM emailed Monday said striking Boeing machinists will be joined by U.S. Sen. Maria Cantwell and U.S. Rep. Pramila Jayapal during a rally at the IAM District 751 Union Hall in Seattle on Tuesday afternoon.

The rally follows Boeing’s withdrawal of its final contract offer to the union on Oct. 8 and announcement of “next steps” – which were later seen to be widespread company layoffs and production program pauses.

“It’s time for Boeing to pay back the workers who sacrificed so much over the last decade in the face of rampant mismanagement by corporate executives,” said Jon Holden, president of IAM District 751. “The goal is to achieve respect and fair pay for the hardworking employees of Boeing who are trying to keep the US Aerospace industry a great resource in their communities, in the face of some historically bad corporate decisions and many years of workers making major sacrifices.”

Boeing’s financial trouble

Reuters reported preliminary earnings figures show that Boeing expects to report $5 billion in losses for the third quarter, and The Seattle Times reported Tuesday that the company is aiming to raise as much as $25 billion in debt and equity over a three-year period.

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This money could help boost Boeing’s bargaining power with the striking IAM workers who are demanding higher wages, better health care and a reinstatement of their pension.

A report by The Air Current on Monday stated Emirates airline President Sir Tim Clark openly suggested Boeing’s financial situation has put it on a trajectory to bankruptcy protection unless it fixes its equity position.
“Unless the company is able to raise funds through a Rights Issue, I see an imminent investment downgrade with Chapter 11 looming on the horizon,” Clark said in a statement to The Air Current.

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