Boeing strike could last 30 days

Global- Boeing said it sees the ongoing strike, organised by the International Association of Machinists (IAM), lasting for at least a month. The protest has shut down its plane factories and will further delay production of the 787 Dreamliner, CFO James Bell said.

Media sources reported approximately 87% of IAM's 27,000 members who work for Boeing began their protest on 6 September, demanding more job security and higher compensation.

Bell said,"I think there'll be at least a one-month delay."

The aviation giant offered employees an improved package on 28 August, incorporating a staggered wage structure for an 11% raise over three years, bonuses and a 14% increase in pension payments. But this proposal fell short of the 13% increase in wage the IAM sought and didn't address its request to limit the outsourcing of jobs.

Doug Kight, Boeing vice-president of human resources said,"We offered employees the best package of pay and benefits in the aerospace industry."

Local media reported the strike could jeopardise Boeing's plan to test-fly the Dreamliner in November this year and the delivery of shipments in the third quarter of 2009.

Bell said "There's not a lot of margin in our delivery estimate; every day we're not working would add to a delay."

One of the key issues leading up to the strike is the growing use of contract workers at factories doing similar jobs as full-time union employees.

Dan Cornfield, labour expert and professor of sociology at Vanderbilt University said, "The move to a more casual, more contracting, freelance-type labour force brings freedom and flexibility for workers and companies but at the expense of a safety net and job guarantees. It's the watering down of job security and is the new battleground for the American Dream."

Mark Blondin, chief negotiator for the IAM said, "It's a big deal here. We call it job security."

The company intends to support its customers and their airplanes in service by delivering airplanes completed prior to the strike, and providing customers with spare parts for the duration of the strike, said Boeing

Macquarie Research Equities analyst Rob Stallard said, A month long strike would reduce Boeing earnings by about 30% this year, while Howard Rubel, an analyst at Jefferies & Co in New York, predicts the ongoing protest may cost Boeing US$120 million a day in lost revenue.