Boeing Sheffield staff offered redundancy to 'protect future of the business'

Boeing staff are being offered redundancy to protect the future of the business during the pandemic
By David Walsh
Published 3rd Apr 2020, 14:55 BST
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The aerospace giant has launched a voluntary lay-off plan with pay and perks for those who want to leave, to reduce the need for ‘other workforce actions’.

The world’s biggest plane company has shut many of its operations - including its factory in Sheffield - to protect staff, its ‘first priority’.

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But, Boeing president and CEO Dave Calhoun said it would take time for the industry to recover from the crisis and it was important to adjust to the new reality now.

Boeing Sheffield on Sheffield Business Park.Boeing Sheffield on Sheffield Business Park.
Boeing Sheffield on Sheffield Business Park.

He added: ‘When the world emerges from the pandemic, the size of the commercial market and the types of products and services our customers want and need will likely be different. We will need to balance the supply and demand accordingly as the industry goes through the recovery process for years to come.’

But he also warned the lay-off scheme might not be enough.

He added: ‘We're in uncharted waters. We're taking actions — including offering this voluntary lay-off plan — based on what we know today. They will bridge us to recovery as long as we're not confronted with more unexpected challenges. I can't predict with certainty what the next few months will bring, but I can commit to being honest about what’s happening and doing everything we can to protect our people and our business through this crisis.’

The £40m Boeing Sheffield factory employs more than 75 and about 20 are apprentices. The factory makes components on the trailing edge of wings for the 737 and 767 aeroplanes.

Boeing Sheffield opening day in October 2018: Sir Michael Arthur, President, Boeing Europe and Managing Director, Boeing UK and Ireland, James Needham, Boeing Sheffield, Senior Operations Leader and Jenette Ramos, Senior Vice President, Boeing Manufacturing, Supply Chain and Operations Picture: Marie Caley.Boeing Sheffield opening day in October 2018: Sir Michael Arthur, President, Boeing Europe and Managing Director, Boeing UK and Ireland, James Needham, Boeing Sheffield, Senior Operations Leader and Jenette Ramos, Senior Vice President, Boeing Manufacturing, Supply Chain and Operations Picture: Marie Caley.
Boeing Sheffield opening day in October 2018: Sir Michael Arthur, President, Boeing Europe and Managing Director, Boeing UK and Ireland, James Needham, Boeing Sheffield, Senior Operations Leader and Jenette Ramos, Senior Vice President, Boeing Manufacturing, Supply Chain and Operations Picture: Marie Caley.
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Mr Calhoun said they were working to meet commitments to defense and space customers, maintaining the stability of supply chains and trying to keep the team intact so they were ready to ramp up when the pandemic was over.

He signed off: ‘I will continue to be supremely confident that Boeing will not just emerge from the crisis but thrive again as the leader of our industry….thank you for your dedication, resilience and courage during these challenging days and weeks.’

In the UK, Boeing’s defence and commercial divisions operate across 65 sites and employ 2,500 people.