Business

<< Previous   of   Next >>   ADVERTISEMENT   Strike, day 39 $3.9 billion: Cost of the strike for Boeing by day's end $6,500: Wages and overtime lost by the average Machinist 140 days: Longest Machinist strike, in 1948   CONTACT THE HERALD Mike Benbow, Business Editor benbow@heraldnet.com   Published: Tuesday, October 14, 2008 Boeing, union call off talks, no further negotiations set Outsourcing still a sticking point. By Michelle Dunlop Herald Writer EVERETT -- The Boeing Co. and its Machinists union have called off a brief second round of contract talks that could have ended a labor strike, now in its 39th day. "We worked very hard to find solutions, and we are extremely disappointed that the talks broke off," said Doug Kight, Boeing's lead negotiator, in a press statement on Monday. Boeing and its Machinists returned to the negotiating table over the weekend with the aid of a federal mediator. Although the union notes concern over wages, health care and pensions, its major point of contention with Boeing revolves around outsourcing. The Machinists said Monday that Boeing wants to eliminate 2,000 union jobs and replace those positions with outside workers. "It is a systematic attack on the employees who have generated unprecedented success for Boeing," said Tom Wroblewski, the Machinists' district president. "If Boeing succeeds in their plan, it is our members' concern this will expand to other jobs in the factory." About 27,000 Machinists in Washington, Oregon and Kansas went on strike Sept. 6. No further negotiations are scheduled. Boeing is set to begin contract talks with the Society of Professional Engineering Employees in Aerospace later this month. SPEEA has expressed concerns with Boeing similar to those of the Machinists. The Machinists' Wroblewski said Boeing is trying to "bargain away" about 2,000 long-standing union jobs -- mainly materials handlers and inventory distributors. Boeing already depends on outside vendors to perform such jobs for its 787 Dreamliner. But Machinists continue to do those jobs on Boeing's other jet lines here in Everett -- its 747, 767 and 777. Last week, Boeing officials stressed the company's need to be able to outsource in order to remain competitive. Boeing's chief executive, Jim McNerney, told employees that the aerospace giant won't allow itself to be "fatally wounded" like U.S. auto companies, which promised their unions "unsustainable wage and benefit levels" and job guarantees. The company had offered the Machinists an 11 percent wage hike over three years and a minimum of $5,000 in bonuses in the first year of the contract, though the Machinists say those gains were offset by takeaways in health care. "The ongoing turmoil in the financial markets provides a timely reminder of why it would be gravely unwise for Boeing to agree to terms in any contract that would fundamentally restrict our ability to manage our business," McNerney wrote in his memo to Boeing workers. The Machinists have said they understand Boeing's need to place some work in other countries in order to encourage new orders from global airlines. But the union wants the ability to bid on work traditionally performed by Machinists that Boeing decides to outsource. Boeing officials, like negotiator Kight, maintain that job guarantees reduce Boeing's flexibility and ultimately its competitiveness. "We want to resolve this strike so employees can return to work, but we cannot sacrifice our ability to continuously improve productivity and our long-term competitiveness for an agreement," Kight said. The past two years, Boeing has won the battle for jet orders over its lead rival Airbus, due in large part to its new, mostly composite 787 Dreamliner. Boeing had fallen more than 15 months behind schedule on its fast-selling 787 Dreamliner jet before the strike began. The company suffered supplier and production setbacks on the heavily outsourced 787, which was due to make its maiden flight later this year. The Machinists' Wroblewski said union members have made continuous improvements in productivity and have fixed vendor mistakes. "The fact is our members have bent over backwards for this company to make them profitable. ... It is our members who consistently step up and get the job done for Boeing. We will continue to do that, but not at the price of our jobs," Wroblewski said. Boeing's stock got a bounce with the rest of Wall Street on Monday, rising $5.28 to close at $47.08. The aerospace company's shares have declined roughly $50 from last year. Boeing has a backlog of roughly 3,700 unfilled orders for commercial jets. It shut down assembly on those aircraft when the Machinists walked off the job 39 days ago. Share your thoughts on the latest strike developments on the Aerospace blog at www.heraldnet.com/blogs. Reporter Michelle Dunlop: 425-339-3454 or mdunlop@heraldnet.com. READER COMMENTS Log in or register to post new comment | Log out Lots of people crossing the lines over the last few days Lots of workers have crossed the lines over the last few days. This is getting fun to watch the laziest sit and roast marshmallows for days. Jonbo Nic | Oct 15, 2008 12:56 pm | 0 replies | View all | Post reply | Request removal To MsSmith posted by mssmith- The original contract that was offered by Boeing that was reported by the media was a gift! Any employee in Snohomish County (union or otherwise) will never see the thousands of dollars in bonuses, 11% wage increases or benefits Boeing offered the union, especially during this economy. How could 87% of the union turn down an offer most of us will never get? The striking union members need to remember they are not only members of their union but also members of this community. They are leaving their fellow community members (like me and my family) in the dumps as the local economy takes a dive. Why do you think we are out here? It's to ensure that we can support the schools, the communities, the services we utilize every day. But you need to understand that what was "advertised" heavily in the media on that contract was only half the story and if you were to actually read the stories of the workers, look through the PI soundoffs, you would see that those wage increases will be eaten up in our additional costs to medical and the loss of some of our pension benefits, as well as the disparity of how they figure our COLAs and increases. Workers have been working in the hole for the last 2 contracts because the company was in bad shape after 9/11. We were denied at least 2 COLAs during this contract based on the way the company calculates them, yet gasoline rose over $2 during that time, our utilities, rents, taxes, everything else went up, but our wages didn't reflect that. We're not the greedy ones...please tell me why the company continues to add managers, executives, administrators, analysts, while they claim they need to cheapen labor on the production floor? Can we still support our communities on $9 an hour? I make less than $30,000 at the company and my job is one of those that would be outsourced. You can't get much cheaper and the company knows that they have made many mistakes already w/ their outsourcing, so why continue down the same path? Who do they owe favors to? CC At the Big B | Oct 14, 2008 10:31 pm | 0 replies | View all | Post reply | Request removal Boeing Outsourcing WOW...big shocker, the talks broke off. The company wants nothing more than to remain management heavy with its multi level management system while they offload the work that we have traditionally done. Its un-American and it makes me sick to my stomach. I hope the top executives get whats coming to them...the shareholders holding torches!! I know of many managers who manage a crew of 5 or less...how necessary is that!!!! Boeing86 | Oct 14, 2008 8:28 am | 1 replies | View all | Post reply | Request removal Boeing Srike At the risk of posting an unpopular opinion, this is how I see it. I completely disagree with the strike. I do not work for Boeing, nor have I ever been in a union. I am a tax paying person who lives in Snohomish County who is grateful to have a job during this economic turmoil. I have to have a stronger work ethic than the next guy just to keep my job. One poster says it is un-American to outsource labor. If any company gets the same product for less price it makes business sense to conduct operations there. You as consumers do the same thing when you shop. You’ll argue that the union is skilled labor and have a quality product, but at what price? I say it is un-American to not work hard every day, be grateful you have a job to provide for your families, and remain as competitive as the market will allow. If the union can’t compete with outsourced labor, the union isn’t providing for its members or your families. The original contract that was offered by Boeing that was reported by the media was a gift! Any employee in Snohomish County (union or otherwise) will never see the thousands of dollars in bonuses, 11% wage increases or benefits Boeing offered the union, especially during this economy. How could 87% of the union turn down an offer most of us will never get? The striking union members need to remember they are not only members of their union but also members of this community. They are leaving their fellow community members (like me and my family) in the dumps as the local economy takes a dive. msmith | Oct 14, 2008 10:55 am | 1 replies | View all | Post reply | Request removal Long Term Long Term Boeing has no loyalty to the Machinist nor to America. They care only about profit, short sighted profits. This same vision has left every American with a bankrupt government and children enslaved to debt from birth. Boeing has said from many years they only want to be a large systems integrator. Meaning they want to dump as many jobs as possible. If we look back we can see the Machinists and Washington State are still down 20,000 hourly IAM jobs from the 90's. That's even counting the newly hired employees at Boeing. Remember they shook down Washington State for nearly 7 Billion in 2003. How are we getting those tax dollars back, family wage jobs. The jobs they want to eliminate. When will the tax payer and average American say enough is enough? No more dumping of family wage jobs. Big business have crushed America. The Machinists are on the front lines taking bullets for all of us. This strike is now leaving deep scars in the minds of Boeings finest. This is not the company I grew up with. It is cold and calculating and no sense of community. One last *****, they make billions on the bombs and bullets that fly through the air all around the globe, yet they have no loyalty to America. Cut and run is their motto, just like they did during 9/11, they fired 10's of thousands and kick them to the street. Nice job Boeing. Boeing's values are not my values. 751RANKNFILE.BLOGSPOT.COM Don Grinde | Oct 14, 2008 10:38 am | 0 replies | View all | Post reply | Request removal (No heading) It appears as though Boeing is making an attempt to break the union. Divide the work among many states and countries that do not have unions or strict labor laws and then squeeze the remaining union members out with a less than favorable contract until they quit. Its a text book move by their new negotiating team and was expected. Everyone knows that cheep labor does not mean quality labor, but it appears as though Boeing is willing to pursue out sourcing to the max. Pursuing the out sourcing with a strike may not lead to much as the union does not appear to have the required leverage on this issue. The union needs to focus on other bargaining areas. If the wages were adjusted across the board maybe the lower payed employees could have paid for the large medical insurance increases. If Boeing would have settled the contract within 30 days maybe the initial bonus they offered could have covered the loss in wages. As it now stands, the loss in profit from Boeing refusing to deliver a better contract for their valued employees would have payed for anything the twenty seven thousand union employees were asking for many times over for many years to come. It now boils down to how long the company will hold out with their customers. The Wall Street speculators do not have too many good things to say about delays as can be seen by the massive stock price drop within this last year. Since Boeing is no longer paying a wage for the new employee training then Boeing really does not loose anything except for the experience an employee takes with them. They will just continue to let the Washington State tax payers pay for the new hire training. What a deal! L. Haggen | Oct 14, 2008 9:35 am | 0 replies | View all | Post reply | Request removal (No heading) So they will remain top heavy in administration and management while cheapening labor on the production side? Typical! Gee, where are our esteemed leaders, who purport to support the American workers and union rank and file? They are unsettlingly quiet on this front. CC At the Big B | Oct 14, 2008 5:58 am | 2 replies | View all | Post reply | Request removal

1. SPEEA to vote today on Boeing contract 2. Man sold Lowe's gift cards from stolen goods, police allege 3. County budget cuts hit courts, will affect cities 4. Crops attract snow geese; hunts control field-damaging flocks 5. Barry Manilow to play Everett 6. Camano Island pair arrested with list of stolen credit card numbers 7. Gambling's growth prompts casino dealer school in Everett 8. Sultan financial errors detailed 9. Reardon can take days without pay 10. Silvertips take one (or two, or three, or more ...) for the team 2 - Top 10 Stories Most Talked about 3 - Top 10 Stories Most Emailed

• Colleges brace for massive cuts • Was burglary suspect burglarized? • Food banks facing hard times • Council member resigns, heading to D.C. • Edmonds closes aid car loophole • Wildcats head to state semifinals • Thanksgiving served with an outpouring of generosity • King's takes third at 1A state tournament • School closures recommended • Stillaguamish Tribe’s Angel of the Winds Casino opens new addition Dec. ... • Building energy independence from the ground up