Dreamliner: A Step Closer To Being Just A Dream?

Already in the throes of a strike by the International Association of Machinists, Boeing faces another looming labor action... this time by the Society of Professional Engineering Employees in Aerospace.

After meeting with Boeing's negotiating team on Wednesday, Executive Director Ray Goforth of SPEEA said, "Things are looking worse. These negotiations will end up in the same train wreck as they did with the machinists if they don't change how they're approaching us."

As ANN reported, production of the 787 Dreamliner has already been slowed by the IAM strike, and analysts are predicting substantially greater setbacks should negotiations with SPEEA fail. Although originally slated to enter service in May 2008, Peter Arment of American Technology Research opined the 787 may not reach certification and deliveries until sometime in 2010.

Continental Airlines, scheduled to receive its first 787 in Spring 2010, has been advised by Boeing to expect an 18-month delay. "We'll just wait and see when we get our first 787," Senior VP Gerald Laderman said.

Bloomberg reports a main point of disagreement is Boeing's strategy of outsourcing work to outside vendors, supposedly to help control costs. "They were completely unsympathetic to our concerns," Goforth said. Like the IAM, SPEEA is demanding the return of some of the work given to suppliers, but Boeing remains immovable on the subject. Wednesday, Boeing spokeswoman Karen Fincutter said, "We won't give up the flexibility we have, but we're willing to talk about other ways to increase productivity or other initiatives like that."

Boeing plans to offer a "substantial increase" in pension payments, to give new employees a new 401(k)-style plan, and to seek a new contract longer than the usual three-year norm to increase stability. Goforth, unimpressed, said, "What they proposed today was full of take-aways, so even if we were to accept such a terrible contract, why would we lock that in for longer?"

In view of record orders for aircraft and increased profits, unions are pushing for contract improvements and no cutbacks in benefits. Next month, after a salary survey becomes available, the next round of discussion between SPEEA and Boeing turns to wages and benefits. Hot topics likely to be on the table include raises, vacation days, overtime rates, medical benefits, health care, and limits to Boeing's contract labor use.

Despite the apparent impasse, Fincutter remained optimistic. "We're hopeful we can have effective negotiations with the union and come to terms that both reward our employees for success and enable Boeing to compete in the future."

FMI: www.boeing.com; www.speea.org