Douglas Chief Hopes Vote Will Ease Labor Problems

Douglas Aircraft President William T. Gross acknowledged that labor problems at the company’s Long Beach plant have resulted in late delivery of nine commercial airliners this year and that the company remains behind schedule on four aircraft.

“We don’t have a disaster but we have something that, if not cured, could impair the long-term health of the company,” Gross said in an interview this week.

However, Gross said he hoped a contract ratification vote scheduled today will help resolve the long-standing labor troubles at the firm, a subsidiary of McDonnell Douglas.

Work Slowdowns

Although workers have remained on the job, they have engaged in work slowdowns and absenteeism that have disrupted manufacturing operations and resulted in shortages of key aircraft parts, Gross said.

The International Assn. of Machinists, representing workers at the Douglas plant in Torrance, has agreed to a tentative settlement there that will be put to a vote of the membership today. However, workers at Douglas’ main plant in Long Beach, who are represented by the United Auto Workers, do not have a new contract.

None of the company’s firm orders have been affected and commercial production capacity is sold out for at least two years, Gross said. He added that airlines have let a small number of purchase options lapse, but for reasons other than the late deliveries.