Boeing furloughs U.S. executives as strike halts plane factories

Boeing (NYSE:BA) will temporarily furlough some U.S. executives and other employees after about 30,000 machinists went on strike Friday, Chief Executive Kelly Ortberg said Wednesday.

“We are initiating temporary furloughs over the coming days that will impact a large number of U.S.-based executives, managers and employees,” he said. “We are planning for selected employees to take one week of furlough every four weeks on a rolling basis for the duration of the strike.”

He and other Boeing (BA) leaders “will take a commensurate pay reduction for the duration of the strike,” he said.

About 30,000 members of the International Association of Machinists and Aerospace Workers last week voted against a proposed labor contract and went on strike. The work-stoppage halted production of Boeing’s (BA) 737 Max narrowbody jets, and of 777 and 767 widebody planes.

Boeing (BA) executives and representatives from its biggest union were set to resume negotiations on Wednesday in the presence of federal mediators.

The strike has left Boeing (BA) shareholders to speculate about how the strike will affect the company’s stock value. Several analysts said the 2008 strike by machinists that lasted eight weeks may offer some idea of what to expect.

The ultimate effect on Boeing’s (BA) finances will vary by the length of the strike, reducing cash flow by as much as $8 billion, according to analysts at financial-services firm UBS.