Boeing machinists authorize strike if talks fail

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By Chris Stetkiewicz

SEATTLE, July 9 (Reuters) - Boeing Co.'s (BA) 25,000 unionized machinists on
Tuesday voted overwhelmingly to authorize a strike if current contract talks
fail to produce a new deal by the Sept. 1 deadline.

Union officials and Boeing's Seattle-based commercial jet unit said the vote
was largely a formality and pledged to strive for a deal without disrupting
work at plants in the Seattle area, Wichita, Kansas, and Portland, Oregon.

The International Association of Machinists and Aerospace Workers did not
release vote totals, but said 98 percent of the votes favored granting
strike authorization to negotiators in their talks with the Chicago-based
manufacturer.



"Your collective vote today is going to send a strong and emphatic message
to them folks in Chicago that just kind of hate it when we do it this way,"
Seattle area IAM President Mark Blondin told thousands of machinists at a
raucous rally.

The machinists want stronger job security and better pension benefits while
Boeing is in the midst of laying off 30,000 employees in response to an
airline industry slump exacerbated by the Sept. 11 attacks on the United
States.

So far, 7,000 Seattle area machinists have lost their jobs since the
attacks, swelling the rolls of local unemployed machinists to 12,000 of
32,000 active members, said local IAM President Mark Blondin.

Boeing had expected strong support for strike authorization and spokesman
Chuck Cadena called it a "procedural" move that did not suggest a strike was
more or less likely.

Union officials voiced tepid confidence that the talks could avert a strike,
but they attacked Boeing, saying it had "sacrificed" jobs to boost executive
bonuses and bought faulty airplane parts from overseas contractors to
increase profits.

"Our concern is safety. You have parts made around the world. How safe are
they," said Dick Schneider, the IAM's national aerospace coordinator. Parts
supplied by contractors often had to be "re-worked" at Boeing jet plants, he
said.

Schneider also noted Boeing's European rival Airbus SAS (EAD) (EAD) had not
fired any workers since Sept. 11, choosing to cut worker hours. Boeing
machinists are working overtime until production rates slow down to match
staffing.

"I visited Airbus three weeks ago. They said 'We haven't laid off a worker'.
We thought that was awful profound," Schneider told reporters.

In conversations with Airbus Chief Executive Noel Forgeard, Schneider urged
him to end a "senseless race to the bottom," in which each manufacturer
offers foreign governments jobs to secure aircraft sales.

Forgeard replied, according to Schneider: "If Boeing stops, they'll stop."

And in an unprecedented move, IAM officials will visit Wall Street later
this week to try to convince analysts that moving thousands of well-paid
manufacturing jobs overseas hurts Boeing and the U.S. economy, even if it
boosts the stock price.

The average machinist makes about $45,000 before overtime, Blondin said.

But pensions may be the most contentious issue for the machinists--46 years
old on average. The pension fund has a $3 billion surplus and the union says
better benefits would coax thousands to retire, saving jobs for younger
workers.

"By God, we will obtain a significant and substantial increase to the
pension plan," Blondin shouted to the crowd, which roared back with a
thunderous standing ovation.

Boeing buys about 64 percent of its airplane parts, as measured by dollar
value, from contractors, including engine and landing gear makers. Boeing
workers then assemble the jetliners in the Seattle suburbs of Everett and
Renton and in Long Beach, California.

Boeing workers in Wichita produce much of its in-house sub-assemblies,
including 75 percent of the components in its most popular jet model, the
narrow-body 737.


©2002 Reuters Limited.

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