Boeing’s second largest labour union has denied a request from the company for its members to be furloughed alongside other Boeing workers amid the ongoing machinists strike.
The Society of Professional Engineering Employees in Aerospace (SPEEA), which represents some 17,000 Boeing workers, says its contracts with the company prohibit furloughs.
Boeing asked the union to wave that provision to allow SPEEA members to be caught up broader furloughs now sweeping the company.
“We rejected the request. Our contracts, with their legally enforceable prohibitions on furloughs, remain in place,” says SPEEA president John Dimas. “We don’t see any compelling reason to change the provisions of our collective bargaining agreement.”
Boeing on 18 September said it would begin furloughing tens of thousands of employees to save cash as its 737 production site in Renton and 767 and 777 assembly site in Everett are shuttered due to a strike by the International Association of Machinists (IAM).
That union’s some 33,000 members walked off the job on 13 September in a bid to secure greater pay raises in their next contract.
SPEEA says it stands with IAM, and faults Boeing’s response to the strike. Its contracts with Boeing expire in October 2026.
“Rather than conserving cash to cover the mistakes of the past… Boeing management needs to invest in something that can generate future profits – its workforce,” SPEEA says.
Boeing declines to comment.
While the company could theoretically resort to layoffs, SPEEA says US federal law requires Boeing give 60 days notice for significant layoffs, and that the company would need to pay severance to laid off workers and continue funding their health insurance.
Most observers agree Boeing needs to settle the strike much sooner than 60 days. Boeing has already halted inbound parts shipments – to the financial detriment of suppliers, some of which might soon face cash shortages.
Boeing itself could face a cash crunch if the strike lingers. The company ended June with $10.9 billion in cash and equivalents, which is about the minimum analysts think it needs to operate.
By some estimates, the strike is costing Boeing $1.5-3.0 billion monthly.
SPEEA’s Boeing work group includes design and production engineers, technical workers and technical pilots, scientists and workers specialising in aircraft certification and delivery.
