Boeing strike threatens aero industry

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New York, September 8:: But production lines at its massive facilities in Everett and Renton, Washington, would stop.

The company plans to deliver planes that had already come off production lines, but will not do any more work on assembling aircraft. Airlines tend to be wary of planes not produced by regular skilled workers.

Boeing spokesman Healy said a protracted strike could mean Boeing would miss its target of making the first 787 test flight in the fourth quarter. The plane was originally supposed to fly last summer, but has been derailed by production problems.

"They took a swing with a baseball bat at a bee hive and got stung. They didn't realize how strong we were," said Dale Flinn, 53, a Boeing door mechanic.

In Asia, Singapore Airlines, which has 20 of the 787s on order for delivery starting in 2011, said it was in talks with Boeing over how the walkout might affect deliveries.

"We're in discussion with Boeing about the impact this strike will have on the programme," spokesman Stephen Forshaw said in an e-mail message on Sunday.

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 work stoppage. The strike will cost it about $100 million in revenue per day and knock about 1 cent per day off earnings per share, according to Wall Street analysts.

The walkout by the IAM is 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 of them approved a strike.

BEST AND FINAL

Boeing's "best and final" contract offer this time around was delivered to union members a week ago, proposing an 11-per cent 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-per cent wage increase, no change to health care contributions and the rollback of provisions allowing Boeing to outsource work.