Boeing will lay off thousands of non-union executive, managers and contractors as the IAM strike that began Friday continues. CEO CEO Kelly Ortberg announced the coming layoffs in a Wednesday staff memo. Screenshot/IAM/
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Sept. 19 (UPI) -- Boeing said Wednesday it is temporarily laying off tens of thousands of managers, executives and non-union contractors as the strike by 33,000 International Association of Machinists and Aerospace Workers union members continues.
The strike has halted Boeing production, except for its non-union plant that builds the 787 Dreamliner jet in South Carolina.
"While this is a tough decision that impacts everybody, it is in an effort to preserve our long-term future and help us navigate through this very difficult time," Boeing CEO Kelly Ortberg said in a staff memo.
The layoffs will commence over the coming days.
IAM President Brian Bryant said Thursday after the second full day of federal mediation with Boeing, that the company "must deliver a contract that reflects the hard work and sacrifices that workers have made over the past decade.
"The IAM and our 600,000 members have the backs of every single striking Boeing worker in this nation," he said.
Bryant planned to join striking Boeing workers on the picket lines Thursday.
The IAM bargaining committee accused Boeing of being unprepared for the mediation session.
"We will not mince words -- after a full day of mediation, we are frustrated. The company was not prepared and was unwilling to address the issues you've made clear are essential for ending this strike: Wages and Pension," the IAM committee said in a letter to striking union members.
CEO Ortberg added in his staff memo, "We remain committed to resetting our relationship with our represented employees and continuing discussions with the union to reach a new agreement that is good for all of our teammates and our company as soon as possible."
Ortberg said Boeing executive would take "a commensurate pay reduction for the duration of the strike."
IAM workers voted 94.6% to reject a tentative labor contract agreement and voted 96% to strike due to wages failing to keep pace with inflation for years.
The strike started Friday. It shut down aircraft assembly in Seattle, Portland Oregon and California.