Aircraft Finance & Leasing News - North America

AirGuide Business, Sept 8, 2008

Sep 8, 2008

Boeing

Boeing's 27,000 machinists were preparing for a third day of strike action on Monday, halting production at the plane maker's Seattle-area plants, in protest at Boeing's contract offer and what they see as plans to shift more jobs to non-union and foreign companies. Sep 8, 2008

Boeing

Boeing and its machinists union, some insiders say deliveries could be delayed on some 30 737s, seven 777s, one 747 and one 767. According to media reports, repercussions from the strike already are being felt throughout the supply chain. For example, Spirit AeroSystems, the Kansas-based supplier of cockpit sections for five different Boeing aircraft models, is withdrawing its financial guidance and cutting production. Sep 8, 2008

Boeing

Boeing awaits machinists' strike vote Some 27,000 Boeing machinists will cast two ballots today in a contract vote that could cost the plane maker up to $100 million a day and delay deliveries of the 787 Dreamliner. Workers will first vote whether to accept Boeing's latest offer, then cast a separate vote on the question of a strike. Although the contract can be rejected by a simple majority, a two-thirds vote is required for a strike. Sep 8, 2008

Boeing

Boeing engineers angered by outsourcing: On Wednesday, the Society of Professional Engineering Employees in Aerospace presented its first proposal to Boeing Co. executives for a new three-year contract covering 21,000 workers. The engineers' demand for reduced outsourcing may strengthen the hand of striking machinists who have focused largely on the same issue, according to one labor relations expert. Sep 8, 2008

Boeing

Boeing factory workers reported high absentee rates and possible vandalism on Thursday as angry machinists waited to begin their strike. A BusinessWeek analysis says machinists were incensed by "givebacks" that required them to assume a greater share of their own health care costs, as well as a proposal to cap pension payouts to surviving spouses at just $4,000. The workers also resent Boeing's outsourcing strategy, which reduces union jobs and may contribute to delays on important rollouts, including the 787 Dreamliner. Sep 8, 2008

Boeing

Boeing machinists agree to 48-hour delay. A reported 87% of Boeing machinists voted to strike on Wednesday, but their union agreed to delay the walkout by 48 hours pending federal mediation. News of further negotiations led angry workers to shout down union officials, but Mark Blondin, aerospace coordinator for the International Association of Machinists, promised, "They've got 48 hours to bring a deal that's acceptable to you or it's on." Boeing's chief negotiator promised to "listen to the union," while CEO Jim McNerney said in a letter to employees that the company would try its best to avoid a strike. "But," he cautioned, "we will do so ever mindful of our responsibilities to protect our long-term competitiveness, maintain our ability to best serve our customers, and to ensure fairness and equity for all employee groups. Sep 8, 2008

Boeing

Boeing will be hurt by the machinst strike that began Saturday will likely hurt global suppliers before it severely affects Boeing itself. Despite losses estimated at $100 million per day, the company enjoys a temporary cushion provided by last year's $4.1 billion profit. Analysts say suppliers for current models such as the 737 and 777 will feel cutbacks first, followed by suppliers for the new 787 Dreamliner. Sep 8, 2008

Boeing

Boeing[sup.1]s chief financial officer defended the plane maker's outsourcing policy on Wednesday, insisting that "we have a process that allows us to put the work where it can best be done, and that's what we're arguing for and that's what we're going to retain at the company level." James Bell said the strike could last at least a month as the two sides are currently in a "cooling-off period." Acknowledging the controversy over outsourcing, Bell said machinists are not shut out of such decisions. "We've always had language in the contract that gives them the opportunity to bid for work," he said. Sep 8, 2008

Boeing

International Association of Machinists can sustain a Boeing strike for up to six months, with a strike fund of $140 million. President Tom Buffenbarger said Tuesday at the union's quadrennial convention. After three weeks out of work, union members will be entitled to $150 a week in strike pay, and many are vowing to stick it out "as long as it takes." Outsourcing for the 787 Dreamliner has emerged as the most contentious issue separating the two sides. Workers say the outsourcing trend, which has reached a peak with the 787, represents a threat to their job security. Sep 8, 2008

Boeing

Boeing spokesman Tim Healy said the company was "open" to hearing from the IAM. Union volunteers rolled out 52-gallon oil drums -- known as "burn barrels" -- and readied coffee and soup to keep expected picketers warm at the company's Everett, Washington plant, despite the balmy late summer weather. The strike started officially for most of the union members at midnight Seattle time, which is when the previous three year contract expired. The bulk of Boeing's machinists work at plants around the Puget Sound area. Boeing said it would keep its plants open, with workers in other unions and non-union employees expected to come to work, but production lines at its massive facilities in Everett and Renton, Washington, would stop. Sep 6, 2008