Business

<< Previous   of   Next >> (click to enlarge) Fred Kiga   ADVERTISEMENT   CONTACT THE HERALD Mike Benbow, Business Editor benbow@heraldnet.com   Published: Wednesday, October 8, 2008 Boeing can't afford to be 'strike zone,' exec says By Michelle Dunlop Herald Writer EVERETT -- Grounded: that's how the Boeing Co. described its position, due to the Machinists' strike, at the governor's aerospace summit in Everett Tuesday. "We can't afford to be known as the strike zone," Fred Kiga, Boeing's vice president of government and community relations, told members of Washington's aerospace community. Kiga reiterated the point made Monday by Boeing's chief executive, Jim McNerney, in a memo to employees: Boeing isn't willing to bargain on outsourcing. The Machinists put job security as top priority for reaching a new labor contract with the aerospace company. But 33 days into a labor strike, neither side seems willing to bend on outsourcing. "We believe this track record of work stoppages is earning us a reputation as an unreliable supplier," Kiga said. But the Machinists point to a multitude of mishaps by Boeing's global partners as reason the company has fallen at least 15 months behind schedule on its new 787 Dreamliner jet. The union seeks guarantees that jobs typically done by union members will continue to be performed by the Machinists. "We continue to bail them (out) -- when suppliers have problems and executives make bad decisions ... fixing outsourced parts that come in wrong, and working round-the-clock to fix the flawed 787 production model," union leaders wrote in an update on the Machinists' Web site Tuesday. "It is our members who step up and get the job done for Boeing every time. We will continue to do that, but not at the price of our jobs." On Monday, Scott Carson, Boeing's president of commercial airplanes, also addressed outsourcing concerns in a message to workers. He wrote that job security in a global economy is achieved by maintaining flexibility and satisfying customers -- something the company says it isn't doing during a work stoppage. The recent turmoil in the market demonstrates that "future success and job stability cannot be protected by words on paper," Carson wrote. Boeing and its Machinists union failed to reach a new three-year labor contract last month, sending the Machinists out on strike Sept. 6. The union said Boeing's offer fell short in wages, pension, health care and job security. The International Association of Machinists and Aerospace Workers went on strike against Boeing in 2005 for 28 days. The remarks by Kiga came after the Aerospace Futures Alliance, which hosted Tuesday's event, laid out the state's top priorities for retaining and growing the aerospace industry in Washington. "Washington is a high-cost state for doing business," said Linda Lanham, executive director of the alliance. The group is seeking to reduce unemployment insurance and workers compensation costs for aerospace companies. It also wants to see a statewide program started to provide training for potential aerospace workers. "We can not be complacent here," Lanham said. Gov. Chris Gregoire noted the importance of the industry in the state with about 87,000 aerospace workers making an average of $90,000 annually. She agreed that state needs training programs and pointed to recent apprenticeship initiative. As for the Machinists' strike, Gregoire said, "I truly hope that the respective parties ... can come back to the table." Because, she said, "that's good for Washington." 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 here. Log out

1. Teen dies after Granite Falls crash 2. Bikini coffee stands to be regulated as adult entertainment 3. Sultan brothers plead guilty in death of rival gang member 4. Body found after house catches fire north of Bothell 5. Gregoire unveils budget with deep cuts, will press for tax hikes 6. Grief and gratitude expressed for four slain officers 7. Two teenagers hurt in crash near Granite Falls 8. Friends and family honor Clearview couple who loved always 9. Roe appointed interim county prosecutor 10. Arlington's budget is ‘bare bones' 2 - Top 10 Stories Most Talked about 3 - Top 10 Stories Most Emailed

• 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 • Boeing will build, flight test and deliver 787s in South Carolina to spe ... • Snohomish County EDC promoting job growth in key industry clusters • $4 million grant to advance brain tumor research has Everett links • Providence medical center construction tops off its 12-story steel frame ... • Tulalip affordable housing project to be financed by KeyBank, Raymond Ja ... • Arlington's Lak of Ink has a growing following for Luke Kooyman's creati ... • Bank of the Northwest formed • Cascade Bank earns $1.6 million