| HeraldNet - Snohomish County's online news source |
 SATURDAY, OCTOBER 11, 2008 10:10 pm |
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 Boeing Machinists: Welcome to McNerneyville Leaders for the Boeing Co. and the Machinists are expected to meet this weekend to try to end the labor strike, now in its 36th day. Meanwhile, union members on the picket lines are poking fun at Boeing executives. At the strike gate outside the Boeing office towers in Everett, the Machinists have put up a handwritten sign: "Welcome to McNerneyville!" The union is naming the gate after Boeing's chief executive, Jim McNerney, much like homeless advocates recently named their pink tent city Nickelsville after Seattle mayor Greg Nickels. The Machinists also named a couple other gates "Kight Acres" after Boeing lead negotiator Doug Kight. And the gate down by the morgue here in Everett bears the name "Carson Heights" after Scott Carson, president of Boeing Commercial Airplanes. I'll have photos for you later in the day. ... [Read More] E-mail | Print | Comment NEW!
What's it like on the Machinists' strike line? Well, Herald photographer Michael O'Leary and I set out a few weeks ago to find out. We started by doing a full four-hour shift (4 a.m. to 8 a.m.) here in Everett and continued checking in on all six shifts, visiting most of the gates here in town. Read our strike line story on Heraldnet.com. And look in Saturday's newspaper for additional strike line stories. Check out our audio slideshow from the strike line.[Read More] E-mail | Print | Comment NEW!
Machinists, Boeing to talk -- what do you think? Boeing and the Machinists union have agreed to resume contract discussions with a federal mediator. However, the strike, in its 33rd day, continues. No word yet on when leaders for the two sides will begin negotiations. From the Machinists: Boeing returned to the bargaining table because you stayed united on the picket lines. It is important as we move forward that we continue to stay strong on the picket lines. That’s how we’re going to secure a contract that will settle this strike. From Boeing spokesman Tim Healy: "We agreed to pursue talks with a federal mediator. ... It's got to be an agreement that rewards the employees but allows the company to remain competitive." Will these talks be successful? If so, what will either side give up? ... [Read More] E-mail | Print | Comment NEW! Airline workers to support Boeing Machinists on picket line The striking Boeing Machinists will get some support on the picket lines tomorrow from airline workers. Employees from Alaska and Horizon Air will join the Machinists from 10 a.m. to 2 p.m., Thursday in Seattle. The unionized employees of Alaska Air Group are taking the Machinists’ side in the ongoing labor dispute with the Boeing Co. The Alaska employees know a bit about contract disputes – Alaska’s pilots have been in contract negotiations for 21 months. “As the largest labor group in the state of Washington, working for our state’s largest private employer, their fight is our fight,” said Alaska Airlines Capt. Bill Shivers, chairman of the Alaska Master Executive Council of the Air Line Pilots Association, in a press statement. “It is the fight against outsourcing and corporate greed. If they succeed, it makes it harder for other employers to justify taking the job security, wages and benefits we have earned from us.” ... [Read More] E-mail | Print | Comment NEW! American Airlines says no to porn There will be no more porn on American Airlines flights. The carrier launched an in-flight Internet service on its Boeing Co. 767 jets earlier this year. Although American Airlines says it hasn’t received reports of airline passengers viewing pornographic sites, it will begin filtering out porn in flight. Just thought you should know. ... [Read More] E-mail | Print | Comment NEW!
Boeing’s Carson: ‘job stability cannot be protected by words on paper’ Anyone not get the message yet? Boeing does not intend to give guarantees for union jobs. The company’s chief executive Jim McNerney addressed the topic in a memo to employees yesterday. And Scott Carson, president of commercial airplanes, likewise hit home the same point in his own message to workers. “We have asked the union to work with us in finding ways to stabilize employment, but we cannot, nor would it be wise to, guarantee future employment in the face of stiff competition and a dynamic marketplace,” Carson wrote. And if that didn’t clear things up, Fred Kiga, Boeing’s vice president of government and community relations, reiterated the point at the governor’s aerospace conference today. Here’s the Machinists’ latest response, from the union’s Web page: The fact is our members have bent over backwards for this Company to make them profitable. We have participated in every lean program, new initiative and offered alternative ideas - all to make them successful. We continue to bail them - when suppliers have problems and executives make bad decisions - such as ethical issues on the tanker, fixing outsourced parts that come in wrong, and working round-the-clock to fixed the flawed 787 production model (which has sent our members around the world to help correct these mistakes). 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. No one wants a strike, but we have faced a Company determined to carry out the corporate greed that is rampant throughout corporate America. It is that same corporate mentality that is wreaking havoc on our financial markets. Who steps up to bail out these bad executive decisions on Wall Street? Again it is you - the workers. The same is true in our battle for a fair contract. We have stepped up every time and delivered for Boeing. It is time they deliver for us. …. Boeing refuses to explore proposals on job security. The IAM is interested in written contract language that ensures that jobs historically performed by Machinist Union members in our factories will continue to be worked by IAM members. We are not interested in outside contractors performing our work in Boeing facilities, and we seek to compete for work Boeing finds necessary to outsource. The Union acknowledges that some offset agreements are necessary for sales of the products. We also know that there is a vast amount of outsourced work not related to offsets that could be done more efficiently and less costly in house by the IAM if the IAM were given the opportunity to compete for that work when ALL factors - such as skills and ability of work force, labor costs, material costs, transportation costs, process improvements, delivery (cycle time) costs, rework costs, etc. are taken into consideration. The Union currently has the ability to compete for a very narrow scope of outsourced work, and we seek to broaden that scope. ... [Read More] E-mail | Print | Comment NEW!
Second Boeing strike looming? SPEEA gears up for negotiations -- updated Based on Boeing engineers’ comments in SPEEA’s latest monthly magazine, you might get the feeling that Boeing has a second strike brewing. The Society of Professional Engineering Employees in Aerospace is getting ready to head into serious negotiations with the Boeing Co. later this month. The union has been surveying members on SPEEA’s proposal, submitted in early September. Last week, Boeing and SPEEA reviewed salary information, as Boeing’s negotiator, Doug Kight, wrote about in this memo. SPEEA officials have been frustrated by what they call a lack of information sharing on salary and benefits. The comments from (unidentified) SPEEA members sound fairly similar to those of Machinists before the IAM started intense contract talks with Boeing earlier this fall. From SPEEA members: “No more offshore-outsourcing. The company is getting killed financially with the outsourcing.” “I bet Doug Kight popped like a gerbil in a microwave when he read this proposal. I will not accept additional costs and risks snuck in the back door.’” “I am very disillusioned by the tactics Boeing is taking .This management is destroying the best of Boeing.” “At this time, I personally find no reason to work a significant amount of overtime because of how little we earn for being away from our families.” “Looks like it’s time to get the walking boots out again.” UPDATE -- 5:35 p.m. Boeing has added some interesting video on its SPEEA negotiation page about the design and build of the next new aircraft. In one video, Boeing's Mike Denton responds to the question of whether it would be best for Boeing to retain some production of the fuselage or wings on the next new aircraft. Denton's answer: yes, but Boeing hasn't determined which section, or how much of it, that will be. ... [Read More] E-mail | Print | Comment NEW!
Boeing strike indicator? Temporary Machinist jobs on Craigslist It’s day 27 of the Boeing Machinists strike. And, according to a Craigslist advertisement, the strike may last another one to two months. One striking union member recently answered a Craigslist advertisement for a temporary HVAC Journey-level technician. Turns out it was for essentially his own job at Boeing. The posting, from a Tacoma-based contractor, promised “BIG TIME OVERTIME!!! 7 day a week 12hrs a day!! For the next 1-2 months …” Boeing’s spokesman Tim Healy told me that Boeing has brought on temporary workers to fill facilities and janitorial positions. “One of our priorities is to provide a safe workplace,” Healy said. And the facilities positions allow Boeing to do that. The company employed temporary workers to fill similar jobs in previous strikes, he said. Is the one- to two- month length of job an indicator of how long Boeing thinks the strike will last? “I don’t know where they got that,” Healy said. In addition to the facilities positions, Healy said, Boeing has about a dozen non-union machinists (through contractors) working to help the company reach a “critical milestone for a defense program” (AEW&C). Machinists’ spokeswoman Connie Kelliher didn’t think the Craigslist advertisement necessarily indicates that Boeing expects the strike to last one to two months. And she wasn’t surprised the company had to bring in temporary facilities staff. But, Kelliher noted, the members will be angry to find out that Boeing has brought in temporary workers on the defense program. “They could have the best, most qualified and most experienced workers doing the job – that’s our members,” Kelliher said. Reader questions: Does the Craigslist ad suggest the Boeing Machinists strike will last another one to two months? What are your thoughts on Boeing bringing in temporary workers? ... [Read More] E-mail | Print | Comment NEW!
Court thwarts Boeing’s tanker maintenance contract A federal court has set aside Boeing’s win of the U.S. Air Force’s KC-135 tanker maintenance contract after Alabama Aircraft Industries challenged the award. The Air Force had given Boeing the $1.1 billion contract to provide maintenance services on its KC-135 tanker fleet. Boeing originally supplied the Air Force with the KC-135 tankers. Boeing has been trying to win a $35 billion contract to replace the KC-135 fleet with new tankers. But that prolonged tanker competition recently was delayed until next year. Alabama Aircraft (formerly Pemco) protested Boeing’s win of the maintenance contract, initially to the GAO, and then in federal court, claiming the Air Force’s award was “significantly flawed.” The court agreed. “We could not be more pleased that the Court has given this matter a thorough and fair hearing, as we have requested from the beginning. The deficiencies in the award obviously have been recognized and finally addressed, with the potential to restore integrity to the procurement process for the KC-135 PDM,” said Ron Aramini, president of Alabama Aircraft, in a statement. “We look forward to working with the United States Air Force and participating in the new KC-135 competition.” The GAO initially sided with Alabama Aircraft on its first protest of the contract but not on the aerospace company’s second protest. That’s when Alabama Aircraft filed its lawsuit to get the Air Force to rebid the maintenance competition. ... [Read More] E-mail | Print | Comment NEW! Should Boeing Machinists’ leaders receive pay during strike? It’s day 26 of the strike, and the union leaders are still receiving a paycheck. Each morning when I’ve written about the Boeing Machinists, and sometimes when I have not, I get the same voice message on my phone. The same reader calls each time with the same complaint: he’s not getting a paycheck during the strike and thinks that union leaders should give up their pay. And he's not the only Machinist who thinks that way. I asked Machinists’ spokeswoman Connie Kelliher about this last week. She pointed out that Machinists’ leaders negotiate dozens of contracts, meaning they’re at risk of seeing more than the one strike every three years that most members face. Union officials also are still working full time while the 27,000 Boeing Machinists are out on strike. As frequently as I’ve called Kelliher in the last three weeks, I can tell you that much is true. On Monday, district president Tom Wroblewski posted this update to the Machinists’ Web site: Union leaders also are talking daily with the federal mediator, should negotiations with Boeing resume. And they keep strike operations going, coordinating with BECU on ways to aid strikers, cutting strike checks, visiting the picket lines. But Machinists members, obviously, aren't getting paid during the strike. Machinists, what do you think? Should union leaders receive pay during the strike? Post your comments below or send me an e-mail. ... [Read More] E-mail | Print | Comment NEW!
Airbus adds to its Alabama workforce EADS’ plan to open a manufacturing plant in Alabama may be on hold, but the company still is increasing its presence in the state. Airbus announced that it has hit the 100-employee mark at its Mobile, Ala., engineering center. "Without question the Mobile Engineering Center is a source of pride within Airbus. … The engineering center is an excellent example of what a Gulf Coast aerospace corridor can offer in terms of jobs, skills, knowledge and expertise,” said Allan McArtor, chairman-Airbus Americas, in a statement. EADS, the parent company of Airbus, together with Northrop Grumman, had planned to assemble its A330-based tanker for the U.S. Air Force in Alabama. In early September, the Pentagon called off the tanker competition until the next administration takes office. EADS also had planned to move some A330 Freighter work to the Alabama location. McArtor told Mobile’s Press-Register that Airbus will add another 50 engineers to the facility and that it is still studying A330F assembly in Alabama. "The business case just isn't there yet," he told the newspaper. "We'll see what happens. One reason we're so committed to Mobile is that we like Brookley a lot. Our people like the community and are happy there. We expect to do more in Mobile and be a positive force for development.” Alabama isn’t the only place that Airbus is growing. Airbus recently opened its first assembly line in China. For more on that, read this Bloomberg piece. ... [Read More] E-mail | Print | Comment NEW!
Welcome to the next age in air travel. Today, Yves Rossy, a Swiss adventurer, crossed the English Channel using a homemade jetpack. Back in May, Rossy made his first public flight which lasted five minutes. The inventor upped the stakes today, making a 10-minute flight from Calais, France, to Dover, England, a 22-mile stretch. Rossy’s device contains four small jet engines strapped to a wing. The 49-year-old, also known as “Fusion Man” had to cancel the trip twice earlier this week. Here’s the Spiegel story. ... [Read More] E-mail | Print | Comment NEW!
Tanker news: Defense bill ensures subsidies review Update: Rep. Norm Dicks, D-Wash., says new language in the defense authorization bill approved today ensures that the Department of Defense will review subsidies when awarding the Air Force tanker contest. “While political pressure from Senator John McCain eliminated all concerns over illegal subsidies from the prior tanker competition, it will be much harder to argue that case if the WTO ruling contains the acknowledgement – which we expect — that Airbus launch subsidies are not compliant with WTO agreements on large civil aircraft,” Dicks said, in a statement. You can read more about the subsidies language here. __________________________________ The Pentagon may have scrapped the lucrative tanker contract earlier this month, but that doesn’t mean the tanker waters in Washington are calm. Alabama Sen. Richard Shelby wrote this editorial published Monday (yes, I’m a little behind on tanker news). In it, Shelby essentially says the contest was slanted in Boeing’s favor and against Northrop-EADS, who would have built their tanker in Shelby’s state. From Shelby's op-ed: Politics just cancelled a competitively awarded contract, solely because Boeing was not the winner. Defense acquisition policy has been stated: If it is not a Boeing plane, DoD is not going to buy it. … Terminating the tanker competition sent a clear message - that competition is fine, as long as Boeing wins. The secretary of defense made the wrong decision, and he made it for the wrong reason. Yesterday, DoD Buzz posted this story about Sen. Maria Cantwell, D-Wash., and the tanker. Back in June, Cantwell told Boeing Machinists in Everett that she would block the nomination of acting Air Force Secretary Michael Donley if the Pentagon didn’t rebid the tanker contract after government auditors recommended doing so. "We're not going to allow another secretary of the Air Force" to be confirmed, "unless they say they'll rebid," Cantwell said in June. "We have to go back now and hold their feet to the fire." In August, Cantwell showed she meant business by officially putting a hold on Donley’s nomination. Even though the contract will be rebid under a new administration, Cantwell intends to continue to block Donley’s nomination until the Pentagon hands over some classified documents she requested on the tanker competition, according to the Tuesday report. ... [Read More] E-mail | Print | Comment NEW!
UPDATE: Boeing's chief executive Jim McNerney told reporters in Boston on Wednesday that the company remains at a "standstill" with its Machinists. Here's the story from Reuters. And here's the story from Bloomberg. ___________________________________ The Boeing Machinists strike is taking its toll on airlines. Today, both Qantas and Air Canada said their jets on order with Boeing will be delayed by the labor stoppage. Ryanair, JAL and Continental also have weighed in already on the strike's impact on their operations. Air Canada will receive its 777s late, reports Reuters. The airline’s chief executive Montie Brewer spoke at an investor conference in Montreal. “They'll come late," Brewer said. "(Boeing has) given some initial indication day to day, but obviously they don't really know until the strike ends and they can understand how the supply chains and the whole process can begin back up again." Air Canada is also a customer of Boeing’s 787 Dreamliner, which was already running a minimum of 15 months late before the Machinists strike. The 787s ordered by Qantas will be delayed even further by the strike, according to this story. The airline has 65 Dreamliner jets on order. Despite the delay, Qantas is still pushing for the 787-10 model, reports Flight International. Boeing has never committed officially to the stretched version of its mostly composite jet. The first model to be introduced, its 787-8, is expected to enter service in the third quarter of next year (the strike likely means that will be delayed). Boeing halted work on its short-rangel 787-3 earlier this year to focus on the -8. It had planned to put the 787-9 into service in early 2012. ... [Read More] E-mail | Print | Comment NEW!
Bold predictions for the Boeing Machinists’ strike Prediction: Its seventh strike against the Boeing Co. won’t be the Machinists union’s shortest. OK, that’s not a very bold prediction. Today is day 18 of the strike and the shortest strike was 19 days long back in 1965. Given the comments released by the Machinists and Boeing yesterday, it seems safe to predict this strike will be longer than the union’s last (28 days in 2005). From the Machinists’ leaders: The Company has not been willing to address your issues. Bringing close to the same offer you rejected by 80% is not movement. The Company knows they must move in the areas of Pension, Wages, Healthcare and Job Security in order to resolve this labor dispute. We will continue to push to get Boeing back to the table to address your issues. From Boeing’s lead negotiator, Doug Kight: It can be confusing to read in the media that both sides are ready and available to talk, yet no talks are scheduled. If there was a basis for getting back to the table then we would be there. I can tell you that the union’s list of issues, economic and non-economic, remains long and the gaps in our positions are wide. Translation: Each party is willing to talk if the other side is willing to cave. The strategy in a strike is to hurt the other party enough that, indeed, it is willing to cave. But the reality, in looking at past strikes, is that each party hurts and then each side gives a little. What is each party willing to give up to get workers back in and jets going out of Boeing’s factories? Would the Machinists go back to work for a 13 percent raise, lower overall costs on health care and preservation of survivor benefits on pension? That means no improvements on job security. Would Boeing make guarantees on outsourcing if it got its way on health care, pension and wages? What's your prediction for the strike of 2008? ... [Read More] E-mail | Print | Comment NEW!
Day 17 of Boeing Machinists’ strike – who will blink first? How is it possible that BOTH sides are WILLING to talk and no one is talking? A reader e-mailed me the above question last week about Boeing and its striking Machinists. It’s the question on the minds of most Herald readers these days. Two and a half weeks into a work stoppage and still no negotiations are scheduled between Boeing and the union. So what will get these two back to the table and who will make the first move? Well, the Machinists union is busy this week encouraging members to get their prescriptions filled and last minute doctor appointments made because their health coverage runs out at the end of the month. Machinists, however, do get their first $150 weekly check on Saturday. By most accounts, Boeing most likely will have to push back the 787’s first flight yet again and continues to fall behind on commitments to customers for all its jets. Continental and Ryanair already have been affected by the strike. And the aerospace company heads into intense contract negotiations next month with its engineers union, which is itching to strike. While you ponder the question of the day, you might want to read this opinion piece by the Evergreen Freedom Foundation. And don’t forget to take our ongoing poll below on how long the strike will last. ... [Read More] E-mail | Print | Comment NEW!
Tanker stories for thought … After halting the multi-billion Air Force tanker competition, the Defense Department has been more talkative on the controversial contract. Here are some tanker-related stories to catch up on in case you missed them. On Monday, Air Force Chief of Staff Norman Schwartz told reporters the new competition could take up to four years depending on what the new administration wants to do. Here’s the Reuters story. The Washington Post interviewed John Young, undersecretary for acquisition, who said Boeing wanted $3 billion more than Northrop-EADS did for the initial 68 aircraft. Northrop Grumman is entitled to some compensation for the canceled contract, reported Bloomberg today. Yesterday, Secretary of Defense Robert Gates sent a letter to Rep. Ike Skelton, chairman on the House committee on Armed Services. In it, Gates essentially ruled out the possibility of a split buy in the next go-round of the tanker contract. Gates said he would “strongly oppose such an approach and recommend a veto to the President” should such strategy be put into legislation. Read Gates’ letter in the related materials section to the right. Finally, last week, Defense News had this item, speculating that Northrop might try for a direct sale of 20 tankers as commercial A330-200 Freighters to the Air Force, bypassing the lengthy request for proposal process. Where do you see the tanker saga headed next? ... [Read More] E-mail | Print | Comment NEW!
Boeing's shares down over ILFC The bailout of AIG has put the market in a tizzy with the Dow down more than 350 points. Boeing's stock is down nearly $5 or 8 percent over concerns about AIG's aircraft leasing unit, ILFC. Here's a MarketWatch story on it. Boeing also looks to be moving back deliveries of its delayed 787 Dreamliner, with its Machinists in day 12 of a labor strike. The company reportedly will deliver Japan Airlines first 787 Dreamliner in October 2009, not August 2009 as previously scheduled. ... [Read More] E-mail | Print | Comment NEW!
Boeing to deliver SPEEA contract proposal Wednesday While Boeing watches its Machinists’ union continue to strike, the company will hand over its initial contract proposal to its engineers union tomorrow. The Society of Professional Engineering Employees in Aerospace gave Boeing its list of contract demands last week. Tomorrow, it will be Boeing’s turn to present its case for the new three-year labor deal. It’ll be interesting to see whether Boeing continues to push sticking points the Machinists shunned (change in pension plans for new workers) and how the company handles the question of outsourcing. The aerospace company posted this message on its negotiations Web site. The memo is from Mike Denton, Commercial Airplanes vice president of Engineering, and Conrad Ball, chief engineer for IDS Puget Sound, to all managers and Human Resources employees in Washington and Oregon “While the last few years have seen strong success for Boeing in the marketplace, we must negotiate this contract with the long-term stability and competitiveness of the company in mind. Our proposals to the union will reflect our commitment to these long-term goals.” The Machinists strike will enter day 12 tomorrow. Here’s the IAM’s latest video: ... [Read More] E-mail | Print | Comment NEW!
Obama addresses Machinists, blames McCain for outsourcing Democratic presidential candidate Barack Obama addressed via satellite the Machinists at their national convention in Florida today. The senator from Illinois received the union’s endorsement on Monday. Obama made mention of the Boeing Machinists on strike here in the Puget Sound (and in Oregon and Kansas). And Obama took the opportunity to talk about a subject important to Machinists: outsourcing. The presidential candidate threw in a few jabs at his opponent Republican nominee John McCain, regarding the Air Force tanker bid. From Obama's speech: John McCain just doesn’t get it. Just ask your brothers and sisters at Boeing. Because while it was right for the Pentagon to cancel competition yesterday for the next generation of tankers, it was wrong for John McCain to reward two of the Washington lobbyists who worked against Boeing with jobs on his campaign. … Just ask the workers across this country who have seen their jobs outsourced. The very companies that shipped their jobs overseas have been rewarded with billions of dollars in tax breaks that John McCain supports and plans to continue. So when American workers hear John McCain talk about putting country first, it’s fair to ask – which country? Read Obama’s full speech here. The International Association of Machinists and Aerospace Workers initially endorsed Sen. Hillary Clinton. Earlier this week, the union made Clinton an honorary member of the IAM. Clinton is only the third honorary member named by the Machinists in past 60 years. “We found a partner who never gave up, never gave in, never quit until the last vote was counted," said Tom Buffenbarger, Machinists president. "We found a partner who fought like hell, was knocked down and refused to stay down. We found a Democratic leader who would fight for blue - collar families." Machinists, will Obama get your vote? ... [Read More] E-mail | Print | Comment NEW! |
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