Boeing ceases jetliner production

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Ned - 06 Sep 2008 06:42 GMT

At 12:01 PDT Saturday.

Resulting from Machinists strike - estimated to cost $1M/day in deferred
revenue.

Will impact especially the Dreamliner schedule and V-Australia's Triple
7 now on the production line at Everett.

This strike may last for some considerable time IMHO.

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David Bennetts - 07 Sep 2008 22:29 GMT

> At 12:01 PDT Saturday.
>
> Resulting from Machinists strike - estimated to cost $1M/day in deferred
> revenue.

> Will impact especially the Dreamliner schedule and V-Australia's Triple
> 7 now on the production line at Everett.
>
> This strike may last for some considerable time IMHO.

http://business.timesonline.co.uk/tol/business/industry_sectors/transport/articl
e4699041.ece

I'd say it won't last long - the workers want 13% and the company are
offering 11% over 3 years.
The company are losing $100 million a day, so there's an incentive for them
to negotiate a settlement quickly.

It's a feature of the US industrial relations system, often a temptuous
situation occurs when contracts are due for renewal, then it settles down
for a further two or three years until the next renewal.

Regards

David Bennetts

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Ned - 08 Sep 2008 12:18 GMT

>> At 12:01 PDT Saturday.
>>
[quoted text clipped - 9 lines]
>
> I'd say it won't last long

I'm not so sure - we'll see.

> - the workers want 13% and the company are
> offering 11% over 3 years.

It is not as simple as that at all.

There are other significant factors such as Boeing's right to outsource
and offshore jobs, healthcare contributions, bonuses, leave entitlements
etc.

> The company are losing $100 million a day, so there's an incentive for them
> to negotiate a settlement quickly.

By "them" I guess you mean Boeing - it takes two to tango.

> It's a feature of the US industrial relations system, often a temptuous
> situation occurs when contracts are due for renewal, then it settles down
> for a further two or three years until the next renewal.

There have been three strikes over the last 5 or 6 contracts - the
shortest was 28 days, the longest 69 days.

Cheers
Ned

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CJ320 - 10 Sep 2008 15:00 GMT

>
> Resulting from Machinists strike - estimated to cost $1M/day in deferred
> revenue.
>
> Will impact especially the Dreamliner schedule and V-Australia's Triple
> 7 now on the production line at Everett.

V Aus require three aircraft to honour their current daily schedule. The
third aircraft was always going to be the variable above any other that
could sink their schedule as it is/was due to arrive only a week prior to
the commencement of operations.

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Aviation Forum / Country Specific / Australian Group / September 2008

Boeing ceases jetliner production