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Boeing strike to decide 787 schedule

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Bloomberg Seattle

Boeing Co, the world’s second — largest commercial aircraft maker, is betting that more than a third of its machinists will accept a combined offer of pay and bonuses, averting a strike that would stop production and further delay the 787 Dreamliner.

About 27,000 workers in Washington state, Oregon and Kansas vote today on whether to accept the contract or follow the International Association of Machinists and Aerospace Workers’ recommendation to reject it and walk off the job. A strike would begin at 12:01 am (Seattle time) tomorrow if two-thirds of Boeing’s largest union turn down the offer.

A walkout may keep the 787, Boeing’s most successful new plane, from flying this year and stymie efforts to deliver a record $275 billion in orders as energy prices spur airlines to buy more fuel-efficient jets.

 

Chicago-based Boeing offered an 11 per cent raise over three years, plus bonuses that include $2,500 if the deal is ratified today by at least half the voters. The company didn’t budge on changes the union sought on using outside vendors. “The most you can do is hope that the workers’ needs and desire for what Boeing is offering is just enough to win the union over to avoid or shorten any strike,” said Richard Aboulafia, an analyst with aviation consultancy Teal Group in Fairfax, Virginia. “There’s irony in that one great reason for Boeing to outsource is to get rid of contentious disputes about outsourcing.”

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First Published: Sep 04 2008 | 12:00 AM IST

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