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Published: Sunday, October 12, 2008

Boeing, Machinists contract talks underway

Negotiators for the Boeing Co. and its Machinists union are meeting in an effort to end a labor strike now it its 37th day, according to the union.

Last week, the Machinists and Boeing announced that they had agreed to resume negotiations with the help of a federal mediator after more than 30 days of a stalemate. The two sides declined to say when negotiations would begin. The union today acknowledged that those discussions with Boeing have begun but said it will not provide further updates until the new round of talks has concluded.

"We remain cautiously optimistic Boeing will negotiate fairly and address members' issues. In the meantime, we need members to keep the picket lines strong, as the strike continues during these talks,” union leaders wrote in an update to members on the Machinists Web site.

Roughly 27,000 Machinists went on strike against Boeing on Sept. 6 when a new labor contract was not reached. Boeing is counting on its Machinistst to assemble the 3,700 commercial jets that airlines have ordered from the aerospace giant.

Union members overwhelmingly rejected Boeing's last contract offer. Boeing had offered an 11 percent general wage increase over three years and a minimum of $5,000 in bonuses in hte first year. The Machinists said Boeing's offer shifted more health care costs onto members, didn't provide adequate pension benefits and didn't ease their concerns about outsourcing.

Boeing officials last week emphasized the company's need to outsource as a way of staying competitive. Jim McNerney, Boeing's chief executive, said the strike was causing Boeing to be an unreliable supplier for its airline customers, which ultimately puts its competitor, Airbus, in a stronger position.

Union leaders say they understand Boeing's need to outsource in some instances to gain access to other markets. But the Machinists want the ability to bid on work typically performed by union members that the company decides to send elsewhere.

Machinists on the picket lines in Everett share their leaders cautious optimism on the new round of negotiations. On Saturday, the members had fun at the expense of Boeing executives McNerney, Scott Carson, president of Boeing Commercial Airplanes and Doug Kight, Boeing's lead negotiator. The members renamed their Everett strike locations McNerneyville, Carson Heights and Kight Acres.

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