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WEEK IN REVIEW
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Father guilty of manslaughter in girl's death
Snohomish County budget passes, with a caveat
Soldier with ties to Marysville killed in Afgha...
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CONTACT THE HERALD
Robert Frank, City Editor
frank@heraldnet.com
 
Published: Thursday, October 9, 2008

Boeing, Machinists union agree to talks

Strike will continue as sides coordinate with mediator

EVERETT -- The Boeing Co. and its Machinists agreed Wednesday to renew contract negotiations -- a move that could eventually end the more than monthlong labor strike.

Leaders for the company and union will coordinate with a federal mediator to determine details about when they'll return to the bargaining table. In the meantime, the Machinists strike will continue.

"We are interested in exploring whether there is a path forward to resolve the strike," said Doug Kight, Boeing's lead negotiator, in a statement.

The Machinists brought Boeing's commercial jet production to a halt Sept. 6, when contract negotiations broke down. The union represents about 27,000 Machinists in the Puget Sound region, Oregon and Kansas.

On Wednesday, union leaders Tom Wroblewski and Mark Blondin met with Boeing's Kight and Scott Carson, president of commercial airplanes. The two sides agreed to resume contract discussions with the help of a federal mediator. Both Boeing and the union have been in touch with the mediator throughout the strike.

"We hope this meeting marks a major step forward. The union will continue to do everything possible to bargain a contract that addresses the concerns our members have identified," Machinists leaders said in a message to members.

The Machinists had soundly rejected Boeing's three-year contract offer in early September saying it fell short of expectations for wages, pension, health care and job security.

On different occasions this week, Boeing officials have said that while they want to see the strike end, they aren't willing to give job guarantees to do so. Boeing insists that it needs to be able to outsource to remain competitive and to gain access to market in some countries.

"We cannot, nor would it be wise to, guarantee future employment in the face of stiff competition and a dynamic marketplace," Boeing's Carson wrote in a memo to employees.

The union has pointed to Boeing's 787 Dreamliner as an example of when outsourcing hasn't worked. Before the strike, Boeing was 15 months behind schedule on its new fuel-efficient jet because of delays among its global suppliers.

Boeing's spokesman Tim Healy said that by agreeing to resume talks, Boeing hasn't changed its position on outsourcing.

"It's got to be an agreement that rewards the employees but allows the company to remain competitive," he said.

Boeing reported this week that its third-quarter jet deliveries were down because of the strike. Its stock price, driven down in part by the financial market meltdown, closed Wednesday at 52-week low of $47.70. The company begins serious negotiations with its engineers union later this month. The engineers have listed concerns similar to the Machinists.

On the picket line outside Boeing's widebody jet factory here, Machinists quietly celebrated the decision to resume contract talks.

"It's great news," said Jerry Jensen, who has worked for Boeing for 28 years.

Jensen and Dawesome Palmer, a 29-year Machinist, pointed out Boeing's significance on the economy. Both think government officials as well as company board members might have put pressure on Boeing to return to the negotiating table.

"Boeing's the country's biggest exporter," Palmer said. "The strike is not only hurting the company and the local community, it's hurting the nation."

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

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