By Linda Chiem

Law360 (March 23, 2020, 4:53 PM EDT) -- Boeing said Monday it will shut down its facilities in the Seattle area for two weeks to slow the spread of COVID-19, an unprecedented move that idles much of the company's commercial jet manufacturing amid the growing pandemic.

Production will start winding down Monday and operations will ultimately be suspended for 14 days beginning Wednesday at Boeing's sites across the Puget Sound area in Washington state, the American aerospace giant said.

The Boeing Co. is the largest private employer in the state and nearly half of the more than 150,000 employees in its global workforce are located in the Puget Sound. The shutdown comes a day after a Boeing employee at the Everett, Washington, factory died after contracting the novel coronavirus, or COVID-19, and more than two dozen employees have tested positive for the virus.

"This necessary step protects our employees and the communities where they work and live," Boeing President and CEO Dave Calhoun said in a statement Monday. "We continue to work closely with public health officials, and we're in contact with our customers, suppliers and other stakeholders who are affected by this temporary suspension.

"We regret the difficulty this will cause them, as well as our employees, but it's vital to maintain health and safety for all those who support our products and services, and to assist in the national effort to combat the spread of COVID-19."

During the 14-day shutdown, Boeing said it will provide paid leave for the initial 10 working days of the suspension to employees whose jobs cannot be done remotely. Puget Sound area-based employees who can work from home will continue to do so, the company said. The affected sites will also be deep-cleaned.

The International Association of Machinists and Aerospace Workers District 751 union, which represents Boeing's factory workers in the region, said in a statement on its website Monday that it supported Boeing's actions. The union confirmed that "a union brother and union steward in Everett has sadly passed away and family members have publicly stated it is from the COVID-19 virus."

"Our hearts and prayers go out to his family. This devastating fact adds to an already deteriorating situation," the IAM District 751 said. "During this COVID-19 pandemic impacting our members, the citizens of Washington state and the world, we support this action and hope this will reduce the rate of infection within our membership at work and in the community at large."

The union added that it will continue to work with the Washington State Employment Security Department and the governor's office to provide unemployment insurance benefits to members in high-risk categories based on their age or underlying health conditions.

The temporary shutdown is another major hit to Boeing's commercial airplanes division, which is based in Seattle and has already been rocked by the ongoing crisis surrounding the 737 Max airplanes, which have been grounded for more than a year following two fatal crashes that killed 346 people.

Boeing is also one of the world's largest defense contractors and the U.S. Department of Defense is its biggest customer. Boeing said Monday that it will "minimize" the impact the temporary shutdown may have on its defense and space programs, which are based out of Arlington, Virginia.

"Boeing will work closely with those customers in the coming days to develop plans that ensure customers are supported throughout this period," the company said. "Critical distribution operations in support of airline, government, and maintenance, repair and overhaul customers will continue."

Meanwhile, Washington Gov. Jay Inslee and other government officials praised Boeing's decision Monday.

"I applaud Boeing's decision to implement an orderly shutdown and continue to pay its workers during this difficult time," Inslee said in a statement. "Now is a time for bold actions like these, and we will continue to look at what can be done statewide."

Everett Mayor Cassie Franklin also applauded Boeing for taking such steps to help keep residents and workers healthy and safe.

"In light of the state of emergency, I am grateful to Boeing for making what I know was not an easy decision to temporarily suspend operations at its Puget Sound area facilities," Franklin said in a statement Monday. "Throughout the past few weeks they've made considerable efforts to ensure the safety and hygiene of their production facilities. Closing the production facility, however, will further reduce the potential to spread COVID-19."

The news comes as Congress continues to negotiate a sprawling relief package aimed at propping up a U.S. economy hammered by the pandemic. Boeing, which has asked U.S. lawmakers for approximately $60 billion in aid, said Friday that both its chief executive, Calhoun, and board chairman Larry Kellner will forgo all pay until the end of the year. Boeing will also suspend its dividend and pause any share buybacks until further notice.

--Editing by Marygrace Murphy.

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