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<< Previous   of   Next >>   ADVERTISEMENT   CONTACT THE HERALD Mike Benbow, Business Editor benbow@heraldnet.com   Published: Thursday, November 6, 2008 Boeing's stock battered Another 787 delay and contract negotiations with its engineering and technical workers union combine to push the company's share down nearly 7 percent. Michelle Dunlop Herald Writer EVERETT -- The Boeing Co.'s stock fell sharply Wednesday, a day after the company disclosed a new problem with its 787 Dreamliner. Boeing shares dropped $3.66, or 6.88 percent, to close at $49.55. The decline coincided with an almost 500-point drop in the Dow Jones Industrial Average. The company also continued discussions Wednesday with its engineers union. Boeing plans to present a final contract offer to the union next week. On Tuesday, Boeing disclosed that nearly 3 percent of the fasteners on its new 787 Dreamliner had been installed improperly. The company will need to replace the fasteners before the 787 can fly. Boeing also confirmed Tuesday that the Dreamliner will not make its first flight later this year as planned. The aerospace company blamed the 57-day work stoppage of its Machinists union, not the new fastener issue, for the latest setback. But Boeing's Dreamliner could face even more delays if the company can't avoid another labor strike, this time by its engineers and technical workers union. The Society of Professional Engineering Employees in Aerospace said it had "respectful dialogue" in meetings with Boeing on Wednesday. But union negotiators spent time devising counter proposals for contract issues previously discussed with Boeing. This week, SPEEA and Boeing leaders have discussed developing plans to deal with outsourcing, contract labor and swings in employment. "Our members want the ability to provide their engineering and technical expertise so that the resulting decisions regarding outsourcing are sound," said Dave Patzwald, a SPEEA negotiator, after Tuesday's session with Boeing. SPEEA represents about 20,500 engineers and technical workers at Boeing. The union's contract with Boeing expires Dec. 1. Boeing Machinists returned to work earlier this week after nearly two months on strike. The strike halted production of its commercial jets. The Dreamliner has seen a string of delays including an initial shortage of fasteners, supplier troubles and production hiccups. Originally, Boeing was expected to deliver the first 787 Dreamliner in May of this year. The company was at least 15 months behind before the Machinists went on strike. The company hasn't announced a new schedule for the Dreamliner. Boeing handed off some of the 787 design work to its global partners, earning the company the ire of its engineers union. The company had to pull back pieces of that outsourced work, relying on SPEEA members to fix problems created by its 787 partners. As result of the 787's problems, Boeing has kept its engineers working on the Dreamliner when they were scheduled to start work on its revamped 747-8. To keep the 747-8 on track, Boeing brought in contractors. The company's vice president of engineering, Mike Denton, has said that Boeing uses contractors in situations, like with the 747, to avoid large fluctuations in employment. "Our Boeing-direct engineering and technical teams are the foundation of our current and future competitiveness," said Doug Kight, Boeing's lead negotiator, in a statement Tuesday. Boeing is expected to counter SPEEA's proposal on compensation Thursday. The two sides also plan to discuss medical plans and retirement issues today. 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

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