Workers Reject Boeing Offer, Approve Strike Walkout Wins Overwhelming Support

Boeing Co. production workers voted overwhelmingly Thursday night to reject what their leaders called an insulting contract offer and to strike.

Night-shift workers in Wichita, Kan., left their jobs at one minute past midnight and pickets went up at the airplane plant there, the union said. No talks were planned and picketing was set to begin at midnight PDT in Washington state.

The union said 19,905 members voted to reject the offer while 20,553 voted to authorize a strike. That means 76 percent of those voting rejected the offer and 78 percent voted to authorize a strike, the union said.

A total of 26,304 ballots were cast nationwide, more than 80 percent of the union’s membership.

The difference in vote totals came from union members who voted to accept the proposal, but also voted to authorize a strike to show solidarity with those who were prepared to walk from the start, said Bob Gregory, the union’s chief negotiator.

The vote was announced after union leaders, led by District Lodge 751 President Bill Johnson, emerged from the vote count with fist-pumping cheers of “Strike, strike!”

The strike affects 293 machinists at Boeing Spokane, where air ducts and wing panels for Boeing jets are produced. The strike is the first by machinists since the Spokane plant opened in 1990.

About 150 shop stewards greeted the news with raucous cheers and shouting. They immediately started stapling picket signs for the first round of picketing at 84 locations in the Puget Sound area.

“I only wish the Boeing executives could see you,” Gregory told the crowd. “Our job has just begun. The fight is just starting.”

Gregory said he would notify federal mediator Ben Youtsey, who participated in the negotiations earlier.

“Now we’re going to go out and get you a good contract,” Johnson said. “I can assure you that we got the message across to the Boeing Company.”

Boeing spokesman Paul Binder said before the vote there would be no immediate move to the table nor any new proposal.

“We still believe that we have put forth a fair and reasonable offer,” Binder said. “Our proposal would still be on the table at that time” when talks do resume.

Workers interviewed this week said they were particularly angry over a demand that they begin paying for health insurance, while company executives reap millions of dollars from incentive stock options.

More than 32,000 Boeing workers are represented by Boeing’s largest union, the International Association of Machinists and Aerospace Workers, including 23,500 in the Puget Sound area; 7,200 in Wichita, Kan.; 1,200 in Gresham, Ore.; and about a dozen others at other locations.

The contract offer needed a simple majority to pass; the strike vote required a two-thirds majority.

Company spokesman Russ Young said Boeing managers and any workers who crossed picket lines would be used to maintain as many operations as possible.

Business analysts said a strike might actually help the company.

A strike would hurt Boeing earnings in the fourth quarter by delaying plane deliveries, said Bill Whitlow of Pacific Crest Securities in Seattle. But in the long run, all the planes would get delivered and Boeing could remain competitive internationally by keeping its labor costs down, he said.

“The investment community would rather see Boeing be firm with labor at this point than make concessions that would have a negative impact on company costs over the next few years,” Whitlow said.

Boeing workers cited several reasons for being unhappy with the three-year contract offer. But the biggest objection seemed to be over the company’s proposal that the employees help pay premiums for health insurance for the first time.

Machinists also want Boeing to halt subcontracting-out of work without the union’s approval, and stronger assurances that subcontracting will not displace workers. Boeing has proposed meeting twice a year with the union to talk about subcontracting.