Heraldnet.com
WEDNESDAY, DECEMBER 9, 2009 3:24 am
LocalNorthwestNation & WorldPoliticsSpecial ReportsPhotosColumnistsMultimedia 
Blog
Amy Rolph
Survey: Small business optimism down
Blog
Michelle Dunlop
Boeing's McNerney visits S.C. factory
Mike Benbow
Business editor Mike Benbow's insights into all things business.
•Latest: Gift cards can show a personal touch
Steve Tytler
Steve Tytler answers your questions about real estate.
•Latest: Here’s how home foreclosure sales really work
 
WEEK IN REVIEW
Tuesday


Arlington brothers’ fight led to death, p...
Burn ban issued in Snohomish County
Woman found dead at Bothell house fire
Monday


Pearl Harbor's voices of the past
Taxes needed to close state's growing deficit?
Grant could help county's residents all be heal...
Sunday


Swine flu lingers, making traditional flu seaso...
Two vie to serve as Snohomish County prosecutor
Families get an early gift: free Christmas trees
Saturday


Gift charity draws Snohomish County families in...
Fears over commercial air service at Paine Fiel...
Donated safe gives Marysville museum a mystery
Friday


From behind bars, pal tells Colton Harris-Moore...
Commercial airlines would cause few problems at...
Fund set up to benefit children of couple kille...
Thursday


5 die of swine flu in Snohomish County
Red Cross honors acts of heroism, many by ordin...
Barista clothing rules delayed by County Council
Wednesday


Father gets 13 years in 6-year-old's fatal shoo...
‘One bad choice' blamed in death of 4 fri...
Reps. Larsen, Inslee split on Obama's plans for...
 

ADVERTISEMENT

Business   Print This Article  Email This Page  Subscribe Now! facebook digg reddit del.icio.us fark stumble

Kevin Nortz / The Herald  (click to enlarge)
Arnold Ligtenberg sits along the BNSF railway in Mukilteo early Monday morning while picketing with a group of Boeing workers on the third day of their strike.
 
ADVERTISEMENT

 
 
CONTACT THE HERALD
Mike Benbow, Business Editor
benbow@heraldnet.com
 
Published: Tuesday, September 9, 2008

Impact of Machinists' strike starts to spread beyond Boeing

EVERETT -- The effects of grounding 27,000 Machinists started surfacing Monday just three days into a labor strike at the Boeing Co.

From Everett to Wichita, Kan., the initial effects of shutting down Boeing's aircraft factories hit suppliers and community members. Machinists continued their round-the-clock picketing, which began at 12:01 a.m. Saturday after contract negotiations between the union and Boeing failed.

No further contract talks have been scheduled, though both sides maintain they're open to discussions.

On Monday, Boeing supplier Spirit AeroSystems announced it would reduce production volumes on various Boeing parts. The Wichita, Kan.-based company supplies fuselage sections for Boeing's commercial aircraft, including producing a one-piece composite barrel for the 787 Dreamliner.

Spirit employees will see their workweeks reduced as a result of the slowed production.

"We are working closely with our customer and taking the necessary steps as we respond to an unfortunate situation," said Jeff Turner, Spirit's president, in a press statement.

Spirit withdrew the 2008 financial outlook it had provided on July 31. The company will give a new estimate for both 2008 and 2009 after the strike has ended. Spirit implemented the shortened workweek when Machinists went on strike against Boeing in 2005 rather than halt production and lay off employees.

Boeing spokesman Tim Healy indicated last week when the strike was called that Boeing would work with individual suppliers to determine whether production of parts should continue.

In Snohomish County, Goodrich operates a landing gear production factory as well as an engine cover plant that Goodrich built for 787 Dreamliner product. Goodrich is still shipping parts to Boeing, said Laurie Tardiff, a spokeswoman for the company.

"We're watching the situation closely and hoping it's resolved quickly," she said.

About 36,000 people work in the aerospace industry in Snohomish County -- including Boeing Machinists and engineers and workers at other aerospace companies such as Goodrich.

Analysts estimate the labor strike costs Boeing as much as $100 million daily in lost production. Boeing's backlog of unfilled jet orders is so full that most of its airplane lines are sold out through the three years the Machinists' contract would cover. And the company is under pressure to get its delayed 787 Dreamliner jet on track.

Boeing officials have said the company offered the Machinists an "outstanding" offer that included an 11 percent wage hike over three years, bonuses and lump sum payments of at least $5,000 per Machinist. The union maintains that Boeing shifted money around by boosting health insurance maximums and cutting survivorship benefits on pension plans. Machinists also said the company's offer fell short on job security guarantees.

On the picket lines in Everett, Machinists say they're prepared for the long haul.

"We will continue this fight 'one day longer' than the company can afford until they meet your demands," said Tom Wroblewski, district president of the International Association of Machinists, in a note to members.

In the near term, the strike could cost some non-Boeing workers inside the factory.

Coffee-brewer Tully's said on Monday it will keep an eye on the Machinists' strike. Tully's operates several coffee shops on Boeing property in Everett, including shops inside the factory, in the main office complex and at the jet delivery center. The coffee roaster's "Main Street" location in the aircraft factory has been among Tully's highest sales locations anywhere in the country.

"Tully's hasn't made a decision to close its stores," a spokesman for the company said Monday.

Gary Zinter of Mill Creek said Monday that he already received his two-day layoff notification from the food services company that provides meals in Boeing's cafeterias. A Boeing retiree, Zinter took the position with Eurest Thompson to supplement his pension and Social Security payments.

"Instead of them -- the IAM -- getting back at Boeing, it's affecting the rest of us," Zinter said. "It's affecting the community."

The 66-year-old Zinter said he needs enough income to pay his wife's health insurance costs through Boeing. On Monday, he appealed not only to Boeing and the union but also to the governor's office to put an end to the strike.

"They need to stop playing games and reach an agreement," Zinter said.



Reporter Michelle Dunlop: 425-339-3454 or mdunlop@heraldnet.com.

READER COMMENTS
Be the first to comment.
You must be a registered user and verify your e-mail address to post comments to blogs or articles on HeraldNet.

To register, click here. To read other terms and conditions, click hereLog out

1. Arlington brothers’ fight led to death, police say
2. Detectives consider slaps to father lethal
3. Woman found dead at Bothell house fire
4. Two teens hurt in collision near Granite Falls
5. Lottery win helps Lake Stevens convenience store owner pay bonuses
6. Everett man shot in groin; two men, one woman are arrested
7. I-5 car chase was result of driver's medical condition
8. CBS cancels ‘As the World Turns’
9. Jail inmates’ meal complaint omits a crucial fact
10. Locker dips toe in NFL pool
Enterprise Newspaper Snohomish County Business Journal
Zambian woman thanks students for their help
Food banks see rise in use
‘Making Spirits Bright’ in Edmonds
Wolfpack takes aim at state
Seahawks help students smile
95 and still volunteering
Sno-King joined by local TV king
Veterans back for Wildcats
Lynnwood seeks to plug $2 million budget gap
The Enterprise Online Newspaper


Always Free
Transmission Diagnostic

Buy 1 Get 1 FREE
Lube Oil Filter

$95 Dryer Vent Cleaning!
$99 Whole House Duct Cleaning!

FREE 6 lb. Pad w/
40yd Carpet Purchase

Holiday Getaway
$99 dbl Occupancy

Oil - Snohomish County
Low Prices - Fill Now!

20% Off Re-Upholstery
or Custom Furniture!

$2 OFF
at Box Office

25% off Bath & Groom
New Customers

Nutcracker
Family Packs Available

Buy 1 Dinner Entree
Get 2nd 50% Off

20% Off Dinner
Up to $75 Value!

$2.99 Chili Dog
$3.99 Fish Burger

75% OFF
Many Items. Hurry!

Over 1 Million Lights
Lights of Christmas

Special Rebate Offers!
Plus Additional 30% OFF!

$5 Off
Stylecut

15% Off
All Repairs!

Holiday Specials
up to 25% off!

15% Off
All Repairs!
AAMCO Trasmissions
TODAY'S TOP JOBS
 View All Top Jobs 
Top Cars
Top Homes

ADVERTISEMENT