Daily Archives: Dec. 5, 2008

Boeing, engineering union still far apart on contract

Boeing and its engineering union remain far apart on nailing down an acceptable contract offer, the union said.

On Thursday, the two sides discussed the contract’s duration, medical coverage and sick leave and vacation. Boeing has proposed various contract lengths, a plan the union considers a move to separate Wichita engineers from agreements forged with their peers in Seattle.  While each group works under a separate agreement, many items are the same.

“While we have seen some movement by Boeing (on Thursday), significant issues and gaps remain and must be worked out before negotiations can conclude,” SPEEA said.

Boeing and the union, the Society of Professional Engineering Employees in Aerospace, are in the midst of contract negotiations. SPEEA represents about 700 engineers at Boeing Wichita.

Negotiations have “soured,” the union said.

Boeing is risking delays to its programs in Wichita and in Puget Sound because of what its engineering union calls an “insulting” initial contract proposal.

SPEEA is planning a “work-to-rule” campaign for 21,000 represented engineers and technical workers in Wichita and in Washington, Oregon, California and Utah, it said. “Work-to-rule” means employees meticulously follow all workplace procedures, safety rules and contract terms, checking and double-checking things. It has the potential to slow things down, said SPEEA spokesman Bill Dugovich.

The union has asked represented engineers to start declining management’s requests to work voluntary overtime and cites the bargaining agreement.

SPEEA said it plans to present its response to the company today.

Analyst: Boeing deliveries lower than expected for November

Boeing said Thursday that it delivered four jetliners in November. The company is coming off of a two-month strike by its hourly workers.  That number should have been much higher, wrote Cowen and Co. analyst Cai von Rumohr in a report today.  He was expecting 15 to 20 deliveries for the month.

The strike was over Nov. 3 and workers had to return to work by Nov. 10, he said.  Even with the Thanksgiving holiday, that gave Boeing 2 1/2 weeks to start recovery from the strike. There were a lot of planes near completion going into the work stoppage.

Von Rumohr also notes that net jetliner orders for Boeing were weak in November.

More 787 Dreamliner delays

Boeing’s 787 Dreamliner will be delayed by at least  another six months, some analysts say.  Leeham Company analyst Scott Hamilton thinks the first flight won’t occur until sometime next summer.  Boeing is expected to give an update on the new jet in the next couple of weeks.

Analysts have mixed views about when the first flight will occur.  Hamilton says he’s inclined to believe that the first delivery won’t occur until mid-2010.  Hamilton’s report can be found here.