Boeing Machinists Start Strike, Jeopardizing 787 Plan (Update1)
By Susanna Ray
Sept. 6 (
Bloomberg) -- Boeing Co.'s machinists went on strike today, seeking improved pay and job security as the planemaker benefits from record orders and tries to keep its 787 Dreamliner schedule from slipping further.
The union's 27,000 members in Washington, home to Boeing's Seattle-area manufacturing hub, Kansas and Oregon began the strike at 12:01 a.m. local time today. Machinists make parts and assemble planes for the Chicago-based company, which trails only Airbus SAS in commercial planemaking.
``We're out here for a lot of reasons,'' including built-up resentment over previous contracts and workers' hopes for job security and higher pensions and starting wages, said Don Grinde, 51, as he picketed outside Boeing's Everett, Washington, wide- body factory, where he's a crane operator. ``The first step for us is to hit the `delete button' for all the take-aways, and then we can start from there'' with a new contract.
The walkout may jeopardize Boeing's customer relations amid unprecedented demand from airlines for newer, more fuel- efficient planes and keep the 787, its most successful new aircraft, from flying this year. A monthlong strike would shave 31 cents a share off Boeing's earnings and cost $2.8 billion in lost revenue, Merrill Lynch & Co. analyst Ronald Epstein of New York estimates.
The International Association of Machinists and Aerospace Workers members rejected Boeing's three-year contract offer on Sept. 3, and leaders delayed the strike until today so the two sides could work with a federal mediator. The extended talks also failed because ``the Boeing company did not address our issues,'' the union said yesterday on its Web site.
``We worked hard with the union and mediator,'' Boeing spokesman Tim Healy said yesterday. ``In the end we were too far apart to reach an agreement. We're open for further discussion, but no talks are scheduled.'' ......(more)
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