Will Deal Satisfy Union?

By Michelle Dunlop, Herald Writer

EVERETT -- The Groves family doesn't know how they'll vote -- not on the presidential election, but on the Boeing Co.'s latest offer to the striking Machinists.

But family members said Tuesday they're inclined to say no.

"It pretty much looks like the same offer as the last one but spread over four years," said Rebecca Groves, a Boeing materials handler, while standing picket duty in Everett on Tuesday.

The Groves, like the other 27,000 striking Machinists, will head to the union polls Saturday to decide whether to accept Boeing's contract. Company and union negotiators agreed on a new four-year contract late Monday after five days of mediated talks and 52 days into a work stoppage. Union leaders have urged members to accept Boeing's offer.

The new contract would last for four years, rather than the normal three-year term. Machinists will vote while picking up their weekly $150 strike checks at the Evergreen Fairgrounds in Monroe. The contract needs the support of 50 percent plus one to pass.

"Our union has delivered what few Americans have -- economic certainty and quality benefits over the next four years," wrote Tom Wroblewski, district union president, in a statement Monday.

But Tuesday afternoon, after reading the union's summary of the contract, many Machinists were inclined to reject the offer. That includes Rebecca Groves, her sister-in-law Jodi and her mother Pam, all materials handlers at Boeing. While the offer protects their jobs for the next four years, Pam Groves was worried about the future.

"I'd love to be back to work next week, but I just don't know yet," she said. Full story

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Boeing, Machinists Reach Deal

By Michelle Dunlop, Herald Writer

EVERETT -- Picketing Machinists, a fixture for the last 52 days outside the factory gates of the Boeing Co., could go back to building jets soon if union members approve a tentative contract reached late Monday.

"Our union has delivered what few Americans have -- economic certainty and quality benefits over the next four years," said Tom Wroblewski, district president for the International Association of Machinists and Aerospace Workers, said in a statement.

Five days into discussions with a federal mediator, negotiators for Boeing and the Machinists hammered out a contract that gives union members the job security they crave while allowing the company the "flexibility to manage its business," Boeing officials said. The offer includes a 15 percent wage increase over four years, a minimum of $8,000 in bonuses in the first three years and freezes health care costs at 2005 levels.

The Machinists' negotiators unanimously urged union members to approve the contract when they vote in the next three to five days.

"This is an outstanding offer that rewards employees for their contributions to our success while preserving our ability to compete," Scott Carson, president and CEO of Boeing Commercial Airplanes, said in a statement. "We recognize the hardship a strike creates for everyone -- our customers, suppliers, employees, community and our company -- and we look forward to having our entire team back." Full story

Sticking Point for SPEEA? Outsourcing

With contract talks set to open on Tuesday, Boeing's engineers and technical workers and the company disagree on the effectiveness of Boeing's global-partner model.

By Michelle Dunlop, Herald Writer

EVERETT -- How angry are Boeing engineers over problems created by the outsourcing of work on the company's latest jet?

The answer to that question may determine whether Boeing engineers and technical workers hand the aerospace company its second labor strike this year. Negotiators for Boeing and the Society of Professional Engineering Employees in Aerospace begin intense contract talks Tuesday.

"People never go on strike because of an extra buck an hour or because of an extra $10 (health insurance) co-pay," said Ray Goforth, executive director of SPEEA. "People go on strike because some deep emotional trigger has been pulled."

For the roughly 20,500 SPEEA members in the Puget Sound region, that trigger is respect. The engineers and technical workers last walked out on strike, in 2000, because many felt the company didn't respect them -- not in pay, bonuses or health coverage.

While wages and health benefits will factor into the contract negotiations beginning on Tuesday, the larger issue will be over whether Boeing listens to SPEEA's concerns about outsourcing in the wake of Boeing's numerous setbacks on its 787 Dreamliner program.

"My fear is that all the emotions are going to pour out if Boeing gives us a contract with any takeaways," Goforth said. Full story

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Life on the Strike Line

By Michelle Dunlop
Herald Writer

Thirty-five days ago, the Machinists left their jobs building commercial jets for the Boeing Co. and hit the picket lines.

At nearly 100 Boeing gates around the region, union members stand watch -- in the cold hours before dawn, under a bright afternoon sun and amid rain and gray. Each of the 27,000 striking Machinists has a story to tell, along with a reason for sacrificing some paychecks.

For Boeing, the strike is about cost, control and reputation. The aerospace giant could be losing as much as $100 million daily in deferred profits. It refuses to give in on outsourcing, a strategy Boeing says keeps the company competitive. And the strike, the company said, is costing Boeing its reputation as a reliable supplier.

Late Wednesday, leaders for Boeing and the union agreed to resume contract discussions. On picket lines in Everett, union members are cautiously optimistic that the two sides can reach an agreement. Until then, the Machinists will remain at their posts.

What's it like to walk the line?

The Herald spent hours doing just that in Everett while listening to and photographing members of the Machinists union. Here are their stories. Full story

Boeing, Machinists Likely to Resume Talks this Weekend

By Michelle Dunlop
Herald Writer

EVERETT -- Tammy Adams wants to go back to work at the Boeing Co.

Outside the company's factory gate in Everett, Adams wore a blue Boeing sweatshirt but held a "Machinists Union on Strike" sign. She's one of 27,000 Machinists waiting to see whether a new round of talks between Boeing and the union will bring the now 35-day strike to an end. Inside Boeing's factory sit a few of the 3,700 jets on order with the company.

"I hope they come up with a deal -- I need to get back to work," Adams said.

The Everett resident has worked for Boeing the past 12 years. Adams recently had to pay the premium on her son's health insurance since her coverage through Boeing ran out Sept. 30 because she's on strike. Adams' son, Joshua, is on the waiting list for a liver transplant, so the family can't be without insurance.

Adams is hopeful that officials for Boeing and the Machinists union will come to an agreement on a new three-year labor deal. She wants the sides to work out their differences on wages and outsourcing. But the changes in health coverage, even the increases, Adams can handle.

"We have excellent coverage," she said. Full story

Meridian Yachts to Shut Down; Hundreds to Lose Jobs

By Mike Benbow
Herald Writer

ARLINGTON -- Meridian Yachts, one of north Snohomish County’s largest employers, will close its doors within 60 days because of a dramatic decline in boat sales, employees were told today.

The company has more than 600 hourly employees, another 230 administrative positions and some research and development workers. Nearly all will lose their jobs.

“Our hearts go out to them,” said Dan Kubera, director of corporate relations for the Brunswick Corp., which owns the plant. “It’s a decision that had to be made.”

Kubera said the company planned to cut four plants next year and hastened that decision because of plummeting sales in July and August.

“At the first of the year, sales were down 30 percent,” he said. “In the last two months, sales have dropped 40 percent.” Full story

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Boeing Strike: Shades of 1995

By Michelle Dunlop

Herald Writer

EVERETT -- Outsourcing, medical benefits and a complaint to the labor board -- those are a few of the similarities that the Boeing Machinists' strike of 1995 shares with this year's walkout.

As the union's strike enters week two, observers look at history to try to gauge how long this work stoppage might last. Although no two labor strikes are the same, the Machinists' strike of 1995 offers some perspective on the importance of job security and health insurance in negotiations between the Boeing Co. and its Machinists union.

The strike of 1995 lasted 69 days, making it the union's second-longest strike against Boeing. Last week, Boeing's chief financial officer, James Bell, predicted this year's strike will last at least a month.

"There are still significant issues between us that we're going to have to address," Bell said at the Morgan Stanley 2008 Global Industrials CEOs Unplugged conference in Dana Point, Calif.

Machinists on the picket line in Everett say they're prepared to stay out as long as it takes.

"We will continue this fight 'one day longer' than the company can afford until they meet your demands," wrote Tom Wroblewski, district president of the International Association of Machinists, in a note to members.

Union leaders made similar pledges in 1995. Full story

Boeing Engineers Union Presents its Contract Proposal

By Eric Fetters and Michelle Dunlop

Herald Writers

The union representing the Boeing Co.'s engineers presented a contract proposal Wednesday that calls for bringing back technical work outsourced to contracts, a better health-care plan and pay increases.

The proposal from the Society of Professional Engineering Employees in Aerospace is the first step toward negotiating a new pact for about 21,000 engineers and technical workers, mostly in the Puget Sound region.

SPEEA's contract with Boeing expires Dec. 1, with focused negotiations set to begin on Oct. 28.

The union proposal asks for up to 10 percent annual raises during each of the new contract's three years, better overtime pay and additional "controls on the use of all non-Boeing labor."

"They're all extremely important issues to our members right now," said union spokesman Bill Dugovich.

Boeing spokeswoman Karen Fincutter said the company hasn't had time for a detailed look at SPEEA's demands. Full story

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Impact of Machinists' strike starts to spread beyond Boeing

By Michelle Dunlop, Herald Writer

EVERETT -- The effects of grounding 27,000 Machinists started surfacing Monday just three days into a labor strike at the Boeing Co.

From Everett to Wichita, Kan., the initial effects of shutting down Boeing's aircraft factories hit suppliers and community members. Machinists continued their round-the-clock picketing, which began at 12:01 a.m. Saturday after contract negotiations between the union and Boeing failed.

No further contract talks have been scheduled, though both sides maintain they're open to discussions.

On Monday, Boeing supplier Spirit AeroSystems announced it would reduce production volumes on various Boeing parts. The Wichita, Kan.-based company supplies fuselage sections for Boeing's commercial aircraft, including producing a one-piece composite barrel for the 787 Dreamliner.

Spirit employees will see their workweeks reduced as a result of the slowed production.

"We are working closely with our customer and taking the necessary steps as we respond to an unfortunate situation," said Jeff Turner, Spirit's president, in a press statement. Full story

Boeing Machinists Stand Firm

By Michelle Dunlop, Herald Writer

SEATAC -- The rain didn't dampen the spirits of rallying Boeing Machinists on Sunday, nor did it drown out their cries of "strike, strike, strike."

Thousands of Machinists braved the downpour to show Boeing that they're serious about a strike if the aerospace giant doesn't meet their demands in a three-year labor contract. Just 10 days before 24,000 Puget Sound area Machinists will vote on Boeing's offer, union members gathered at the SeaTac hotel where round-the-clock negotiations are being held. With chants of "power, power, power to the union," the Machinists rode motorcycles or marched down the street to get an update on contract talks from their leaders.

"We're going to win this damn thing by disrupting the shop floor," said Mark Blondin, aerospace coordinator for the international union.

The local district of the International Association of Machinists and Aerospace Workers doesn't put forward the threat of a strike lightly. The men and women who build Boeing's commercial jets withheld labor for 28 days from Boeing during the 2005 contract negotiations.

A strike would come at a tough time for Boeing. The company is struggling to get its new 787 Dreamliner jet on track after a delivery delay of at least 15 months. And Boeing has a record backlog of unfilled aircraft orders it needs to deliver on. Full story

Machinists Say Boeing's Offer Won't Fly

By Michelle Dunlop, Herald Writer

The Boeing Co. dangled wage increases and a bonus as its initial offer to its Machinists union Friday in hopes of signing a new contract and avoiding a labor strike.

In its second day of round-the-clock negotiations with the Machinists, the aerospace company has offered general wage increases, a $2,500 lump sum bonus and an incentive plan.

The existing contract with the Machinists union expires on Labor Day, Sept. 4. The union has threatened to launch a strike that day over the issues of pension, early retiree medical insurance and outsourcing.

The International Association of Machinists and Aerospace Workers represents 24,000 Puget Sound-area workers who assemble Boeing commercial jets. The contract also covers Machinists in Portland, Ore., and Wichita, Kan. The union last staged a 28-day strike against the jetmaker in 2005.

Boeing withdrew its request to divide out the Wichita unit from the Puget Sound area bargaining unit. The Machinists previously identified Boeing's desire to carve Wichita out of this bargaining unit as an issue it would strike over.

Although Boeing eliminated one strike issue, it left three more in play. Full story

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