Boeing announces hiring freeze amid factory worker strike - CNBC

Investing.com -- Shares in Boeing (NYSE:BA ) edged lower on Monday after the aerospace giant reportedly announced a hiring freeze and a pause on nonessential staff travel as part of a bid to rein in costs during an ongoing strike of more than 30,000 factory workers.

Citing a staff note, CNBC said the company is also considering furloughs of employees depending on how long the strike lasts.

It is also halting purchase orders for most of its 737 Max, 767, and 777 planes, CNBC said, potentially denting the firm's suppliers.

In the staff note, Chief Financial Officer Brian West said that Boeing is continuing to work in "good faith" to reach a fresh contract agreement with the striking workers that "enables operations to resume," according to CNBC.

But West reportedly flagged that the business is going through a "difficult period," adding that the strike "jeopardizes" its recovery from recent high-profile incidents that has increased scrutiny over its safety record. West said Boeing must take "necessary actions to preserve cash and safeguard our shared future," CNBC said, although he noted that it would not be making cuts to funding for safety, quality or direct customer support work.

Over the weekend, Jon Holden, the leader of the striking union, warned that the work stoppage could drag on "for a while" as employees push Boeing to improve their pay and pensions.

Speaking in a radio interview on Saturday, Holden said the workers have the "most leverage and the most power at the most opportune time that we've ever had in our history." Members of the union, which represents workers in the US Pacific Northwest, "are expecting us" to use that influence, he added.

Holden had initially backed a tentative deal with Boeing that would have raised wages by 25% over four years, among other concessions. However, workers overwhelmingly voted against the new contract and chose to begin a strike on Friday.

Source: Investing.com