Boeing reaches deal that may end strike

Boeing union and management representatives say that the US planemaker has reached an indefinite deal to end an eight week strike by assembly workers. ┬á Approximately 27,000 Boeing workers walked off the job on September 6th protesting pay, outsourcing, and other issues. The strike closed factories for the second largest planemaker, and further delayed the new 787 Dreamliner which was already 15 months behind schedule and set to fly for the first time in November. ┬á The strike had been costing the airline manufacturer up to $100 million a day in lost revenue. The company usually gets paid upon delivery, and the strike has halted operations, causing delivery of finished planes to drop by more than 40 percent. ┬á Boeing Co. machinists will vote within the next five days on a four-year contract agreement. The four-year settlement, as opposed to the original three years proposed in September, is believed to address the concerns of the International Association of Machinists and Aerospace Workers (IAM) over compensation, outsourcing, and job security, while also keeping BoeingÔÇÖs ability to manage its business. ┬á The settlement would give workers a 15 percent raise over four years, up from the original 11 percent increase that was proposed in the original three-year deal that was rejected by 80 percent of voting members on September 3rd. ┬á The deal also includes bonuses totaling at least $8,000 over the first three years, and stops health care costs to employees at the 2005 level, rather than giving them more of the expense. ┬á The agreement addresses key areas of outsourcing identified by the union, including access to the shop floor for subcontractors and procedures for the union to bid for work before it is outsourced, part-delivery by suppliers within factories, and job security for maintenance workers. ┬á Scott Carson, top executive for BoeingÔÇÖs commercial airplanes division said in a statement, ÔÇ£This is an outstanding offer that rewards employees for their contributions to our success while preserving our ability to compete.ÔÇØ