A 27,000-strong machinists' union put down tools today after Boeing failed to improve its contract offer after two days of emergency talks. A crowd of more than 100 employees gathered near the entrance of Boeing's factory in Everett, Washington, whistling, honking and waving picket signs as the strike got under way at midnight. A small police presence ensured the scene was calm. "Despite meeting late into the night and throughout the day, continued contract talks with the Boeing Company did not address our issues," said Tom Wroblewski, Seattle-area president of the International Association of Machinists and Aerospace Workers (IAM). "The strike is on."
The vast majority of the IAM members voted to reject Boeing's "best and final" offer on Wednesday, but postponed a strike for 48 hours to give negotiators more time. Boeing and IAM negotiators, along with federal mediators, met near Orlando, Florida in a last-ditch effort to hammer out an agreement. "Over the past two days, Boeing, the union and the federal mediator worked hard in pursuing... options that could lead to an agreement. Unfortunately the differences were too great to close," said Scott Carson, the head of Boeing's commercial plane unit.
No further talks are scheduled. Both sides said they were waiting for the other to make the first move. Boeing spokesman Tim Healy said the company was "open" to hearing from the IAM. Union volunteers rolled out 52-gallon oil drums ? known as "burn barrels" ? and readied coffee and soup to keep expected picketers warm at the company's Everett, Washington plant. "If this company wants to talk, they have my number, they can reach me on the picket line," the IAM's Wroblewski said in a message to union members.
Boeing said it would keep its plants open, with workers in other unions and non-union employees expected to come to work, but production lines at its massive facilities in Everett and Renton, Washington, would stop. The company plans to deliver planes that are ready, but will not do any more work on assembling aircraft. Airlines tend to be wary of planes not produced by regular skilled workers. That means there will be no further production of its 737, 747, 767 and 777 planes, and that its already delayed 787 Dreamliner will fall even further behind schedule. The plane was originally supposed to fly last summer, but has been derailed by a series of production problems.
"They took a swing with a baseball bat at a bee hive and got stung. They didn't realise how strong we were," said Dale Flinn, 53, a Boeing door mechanic. Boeing, which made a US$4.1 billion (Dh15bn) profit last year and has a record $275bn worth of commercial plane orders in its books, could survive a short work stoppage. The strike will cost Boeing about $100 million in revenue per day and knock about one cent per day off earnings per share, according to Wall Street analysts.
Boeing's "best and final" contract offer failed to meet union demands for a 13 per cent wage increase, no change to health care contributions and the rollback of provisions allowing Boeing to outsource work. "The company's contract is like Swiss cheese. It's full of holes," said Marnie Young, a landing gear mechanic on Boeing's 777, who had homemade Minnie Mouse ears on her head. * Reuters