November 4, 2008 in Business

Boeing planes likely delayed

 

An eight-week strike that idled Boeing Co.’s commercial airplane plants during a period of peak production may have delayed the delivery of as many as 80 planes, analysts said Monday.

The walkout, which ended Saturday after union workers ratified a deal with the company, also may mean that the inaugural flight of its long-awaited 787 jetliner – initially expected by the end of the year – will not happen until February or March.

The Machinists union, representing about 27,000 workers in Washington, Oregon and Kansas, voted 3-to-1 to end the strike that began Sept. 6.

The walkout by electricians, painters, mechanics and other production workers paralyzed Boeing’s commercial plane business.

SILVERTON, Idaho

Galena lays off 45, cuts contractors

U.S. Silver Corp. laid off 45 employees at its Galena Mine complex last week, citing the need to cut costs.

Four companies that did contract work at the underground silver mine also were let go. In addition, the company will combine two milling operations, and it has suspended capital projects, with the exception of work on the Galena Shaft.

U.S. Silver’s interim CEO Tom Parker said in a press release that the company is looking for ways to reduce costs in light of lower silver prices and the challenging outlook for equity markets.

Silver was trading under $10 an ounce Monday, after briefly topping $20 an ounce this spring.

U.S. Silver is debt free and has $8 million in working capital, Parker said in the press release.

The company purchased the Galena Mine in mid-2006. As of June, the mine complex employed 210 workers and 65 contract workers.

RICHMOND, Va.

Circuit City to close 155 stores

Circuit City Stores Inc. said Monday it is closing about 20 percent of its U.S. stores – cutting thousands of jobs – in an effort to return to profitability as it finds consumers reluctant to spend and its vendors less eager to give it credit.

The nation’s No. 2 consumer electronics retailer said it will shut 155 of its more than 700 stores and leave at least a dozen markets entirely, including Phoenix and Atlanta, by Dec. 31. It will lay off about 17 percent of its domestic work force, which could affect up to 7,300 people.

No stores in the Inland Northwest are scheduled to close, but the Federal Way, Wash., store will be shuttered.

Circuit City also said it plans to work with landlords to renegotiate leases, lower rent or terminate agreements while it deals with tightening credit from its vendors.

From staff and wire reports


Thoughts and opinions on this story? Click here to comment >>

Get stories like this in a free daily email