(Bloomberg) -- Boeing Co. Chief Executive Officer Kelly Ortberg moved to patch up relations with workers after a bruising seven-week strike, saying the company would pay employees who were put on mandatory leave during the disruption at its Seattle manufacturing hub.
“As we navigated through the work stoppage, we asked many of you to take a furlough to support our cash conservation efforts,” Ortberg said in a memo to staff. “We want to acknowledge your support by returning your lost pay.”
Ortberg made the temporary cuts as cash concerns mounted in the first weeks of his tenure. The strike by Seattle-area factory workers paralyzed plane output already suppressed by a months-long crisis tied to quality issues in its planemaking operations.
The gesture of goodwill to furloughed staff signals the CEO’s attention has shifted toward mending operations as he tries to get aircraft output back on track. The walkout is now settled, with union members receiving 38% wage increases and a $12,000 signing bonus. Ortberg has raised more than $20 billion to ease the company’s cash crunch.
In the memo, Ortberg said the company will press ahead with job cuts to align with “our financial reality,” a sign that the pain is far from over. Structural changes “are important to our competitiveness,” he said. The company said last month that it would eliminate the equivalent of about 17,000 positions to help preserve funds.
Boeing has initiated a range of cost cuts as it grapples with dwindling reserves and low output, including hiring freezes and cutbacks in corporate travel. The company has said it expects to continue burning cash in the first half of next year as it works to restore output.
Ortberg has also said he plans to review non-core assets with a view to refocusing on the commercial planemaking business.
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