From correspondents in Los Angeles | September 06, 2008
Article from:
Agence France-Presse
NEARLY 27,000 members of Boeing's largest labour union will on strike after last-ditch contract talks failed today, the US aviation giant said.
A statement from Boeing said mediated talks between the firm and the International Association of Machinists and Aerospace Workers ended without agreement.The IAM has vowed to strike from 12.01am (5pm AEST Saturday).
"Over the past two days, Boeing, the union and the federal mediator worked hard in pursuing good-faith explorations of options that could lead to an agreement," Boeing Commercial Airplanes president Scott Carson said.
"Unfortunately the differences were too great to close," he added.
Boeing said non-IAM members were expected to report for work as normal. Customers and their aircraft in service would continue to receive support during the stoppage.
The company would also deliver aircraft completed prior to the strike but does not intend to assemble more during the strike.
Boeing made a contract offer on August 28 providing employees with about $US34,000 ($42,000) on average in additional annual wages and incentive payments over a three year period, including an overall 11 per cent wage increase.
The current contract expired on Wednesday.
However the IAM said Boeing must fix "takeaways" in its proposal and address the issues its members have identified: job security, medical coverage, wages and pension benefits.
A strike could cost Boeing an estimated $US120 million ($148 million) a day in revenues at the company's current level of production, analysts at Jefferies investment bank said.
It also could seriously clip the wings of Boeing in its fight with Europe's Airbus for dominance of the commercial aircraft skies.
Both aviation giants are betting on new aircraft as key weapons in their battle for supremacy: Boeing with its 787 Dreamliner and Airbus's super-jumbo A380.
Airbus, a subsidiary of the European Aeronautic Defence and Space Company (EADS), delivered its first A380 jet to Singapore Airlines a year and a half late, in October 2007, after it was delayed by problems including electrical wiring glitches.
Already delayed by nearly two years, Boeing now plans the Dreamliner's first delivery in the third quarter of 2009, after pushing it back three times because of technical and supply problems.
The 787 is a revolutionary aircraft built with lightweight plastic composites instead of aluminum to reduce weight, increase range and cut fuel consumption.
About 900 Dreamliners have been ordered since the plane was offered for sale in late 2003.
