Boeing Machinists Vote to Go on Strike Today
Boeing Co.’s largest labor union late Thursday rejected a proposed three-year contract and voted to walk off the job, dealing a setback for the aircraft maker flying high on a surge of orders for its commercial passenger jets.
The strike, which was slated to begin early today, involves about 18,300 members of the International Assn. of Machinists and Aerospace Workers. Most work on Boeing’s jet production lines in Seattle, Gresham, Ore., and Wichita, Kan.
The job action could not come at a worse time for Boeing, which has been ramping up production to meet rising demand for its jetliners, particularly from international carriers. Boeing has orders for 552 aircraft this year, nearly double last year’s orders for 277 jets.
With the uptick in orders in the last year, Boeing called back about 4,000 union workers who were laid off after the Sept. 11, 2001, terrorist attacks. The attacks grounded air travel and carriers curtailed aircraft purchases.
The strike vote came after Boeing made what it called its “best and final offer” to the union after three weeks of negotiations. Boeing offered machinists, who average 49 years of age, a pension of $66 a month for every year worked, up from $60, and a lump-sum payment of $6,000.
It also added a 2.5% wage increase in the third year of the contract.
The union, which maintained that it was more concerned with the company’s retirement package because of its aging rank and file, said Boeing’s pension offer fell woefully short. It was seeking an $80 a month pension for every year worked.
In addition, Boeing offered an incentive pay program that would provide five days of pay to Oregon and Washington workers if the company met financial targets and as many as 15 days’ worth if the targets were exceeded.
The company also said it would offer two health plans with the option of no premium, though premiums would increase for most healthcare plans.
Boeing shares fell $1.03 to $65.99.
Associated Press was used in compiling this report.
