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Boeing workers prepare to strike as deadline nears

by : Reuters

Date : Fri, 05 Sep 2008 21:33:23 GMT

NEW YORK/EVERETT, Washington (Reuters) - Boeing Co's <BA.N>machinists prepared for a strike on Friday as the plane-maker and its largest union tried to hammer out a last-ditch deal on their latest three-year contract.



By Bill Rigby and Laura MyersNEW YORK/EVERETT, Washington (Reuters) - Boeing Co 's lt;BA.N gt;machinists prepared for a strike on Friday as the plane-maker and its largest union tried to hammer out a last-ditch deal on their latest three-year contract.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, despite the balmy 65 degree weather. "Until further notice, plan to be on strike on Saturday at 12:01 a.m. September 6th, " said the latest posting on the union 's website. "If no adequate offer is presented, your vote already cast for strike authorization stands. "The vast majority of the International Association of Machinists and Aerospace Workers ' (IAM) 27,000 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 teams, along with federal mediators, are meeting at Walt Disney Co 's lt;DIS.NCoronado Springs resort near Orlando, Florida, where the IAM is set to have its convention, held every four years, from Sunday.Representatives of both sides declined to comment on the progress of the negotiations.MICKEY MOUSEA dozen or so angry workers gathered at the gates of the Everett plant, expecting to strike at midnight. Some waved signs saying "Mickey Mouse contract " and "Hope you are having fun at Disney World. " "I can 't believe they would go to Florida, they couldn 't do it here in four months, " said Joseph Young, a 48-year old insulation installer who has worked at Boeing for 21 years. "We are not at it for the money, we are at it for the medical, which they (Boeing) are freaking crushing. "Boeing has proposed shifting more health care costs onto workers, one of the major sticking points in negotiations. "Forty-eight hours was not enough time to accomplish anything, except to upset the members, " said Brent Sanchez, 46, a 12-year veteran door mechanic. "Part of that time was spent traveling to Florida. "Workers outside the gates said colleagues inside were reporting only about 25 percent attendance by mechanics at the plant. Boeing declined to comment on activity at its factories.MIDNIGHT DEADLINEThe success of the talks should become clear by midnight Seattle time, which is when the current contract expires for most of Boeing 's IAM members, who work at plants around the Puget Sound area.By that time, Boeing will either make a new offer to the union, or the IAM will activate the strike it put off for two days. There also is a possibility that both sides will agree to another extension to negotiations.A strike would bring Boeing 's massive plants at Everett and Renton, Washington to a standstill, halting production of its 737, 747, 767, 777 and 787 planes.Boeing, which made a $4.1 billion profit last year and has a record $275 billion worth of commercial plane orders in its books, could financially survive a short strike, but it would further complicate its efforts to get the already-delayed 787 Dreamliner into the air.If a strike prevents plane deliveries, it would cost Boeing about $100 million in revenue per day and knock about 1 cent per day off earnings per share, according to Wall Street analysts.A walk-out by the IAM would be the fourth at Boeing in 20 years. The union struck for 48 days in 1989, 69 days in 1995 and 28 days in 2005. In 2002, a contract was adopted by default, as it was rejected by workers but fewer than two-thirds approved a strike.BEST AND FINALBoeing 's "best and final " contract offer this time around was delivered to union members a week ago, proposing an 11 percent wage increase over the three-year life of the contract, a one-time lump sum and ratification bonus, and other incentives that the company said would add about $34,000 to the pay of the average machinist, who now makes about $65,000 a year including overtime.That failed to meet union demands for a 13 percent wage increase, no change to health care contributions and the roll-back of provisions allowing Boeing to outsource work. "I 'd use this contract for toilet paper, but there 's too many holes in it, " said Randy Carroll, a 52-year old mechanic at Boeing 's plant in Auburn, Washington, who traveled to Everett in support of a likely strike.(Reporting by Bill Rigby in New York and Laura Myers in Everett, Washington; editing by Carol Bishopric) lt;br gt;(c) Reuters 2008. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.



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