1,100 Unemployed As A Result; Union Battles Continue

It's a done deal -- but certainly not everyone is happy about it. While some 7,000 commercial aviation manufacturing workers in Kansas and Oklahoma made the transition Thursday from Boeing to Onex as the two companies completed the sale of three plants, another 1,100 -- mostly union machinists -- have been told to take a hike.

The new company will be known as Mid-Western Aircraft Systems.

The deal, worth an estimated $1.2 billion, involves plants in Wichita, KS, Tulsa and McAlester, OK. But it's been marked with rancorous relations between the new, Toronto-based owner and unions representing engineers ans machinists.

Onex, an investment firm, but a bright face on the troubled transition Thursday.

"We're excited to enter the aerospace industry with a work force and facilities that are deeply rooted in the aviation business," said Nigel Wright, managing director at Onex, a Canadian investment firm. "The new company, Mid-Western Aircraft Systems, is now the world's largest independent supplier of structures for commercial aircraft."

The turmoil was sparked by Onex plans to immediately cut wages by approximately 10-percent. IAMA machinists turned down the contract. SPEEA engineers have yet to announce their decision. Only union electricians have signed a deal with the new owners.

The machinists' refusal to sign a pay-cut deal with Onex was met with a defiant announcement from the Canadian company that the cuts would be instituted anyway -- those machinists who want can make their own deals with the company.

You'll Be Hearing From My Lawyer

The bad taste left in the mouths of union workers is already translating into grievances and promises of lawsuits. One law firm, Shores, Williamson & Ohaebosim, has written both Boeing and Onex, promising a class action suit alleging age discrimination. The firm claims the Onex job offers "targeted and led to the illegal displacement of individuals above the age of 40" in laying off about 1,100 workers during the transition from Boeing. The letter was quoted by the Seattle Times.

SPEEA claims the layoffs were made without regard to the union's contract with Boeing. It's filed two grievances with Boeing.

(Special thanks to contributor Derrick Vogt for his efforts in following this story --ed.)

FMI: www.midwesternaircraft.com