9/7/08

Others pay price for IAM strike v. Boeing

Related video: "IAM bigs prep Boeing clash"

Supply-chain workers unlikely to recover losses from strike

Spirit AeroSystems plans to shorten the work-week of many of its employees during the Boeing machinists' strike. President and CEO Jeff Turner says Spirit worked on the contingency plans for several months before the strike. The shortened work-week is similar to a plan the company implemented during a strike in 2005.

Turner says the shortened week will apply to hourly, salaried, management and executive employees. In a statement, Turner says employees who work with new customers and future projects will not be impacted.

Reduced work-weeks begin next week. Turner says each Spirit unit and support organization will determine its own schedule.

Boeing machinists hit the picket lines at 12:01 Saturday morning. More than 27,000 workers in Kansas, Washington and Oregon are on strike after the machinists union and the company failed to come to terms on a new contract. About 750 Boeing machinists work in Wichita.

Boeing's says its most recent contract offer was for three-years. It included bonuses totaling at least $5,000 and averaging $6,400, raises averaging 11 percent, pension increases and a 3 percent cost-of-living adjustment -- $34,000 in average pay and benefit gains per employee.

Analysts say a strike could cost Boeing about $100 million per day in deferred revenue. During the last strike - a 24-day walkout in 2005 that was one of the shortest in company history - Boeing was unable to deliver more than two dozen airplanes on schedule.

The strike could put the 787 Dreamliner even further behind schedule. The plane is more than 18 months behind schedule.

Spirit makes parts for most Boeing planes, including the the 737 and 787.

(kansascw.com)

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