Boeing factory workers’ strike continues for a week, but shows no sign of ending

The Boeing Co. strike showed no sign of ending Friday, with the walkout by 33,000 union machinists entering its eighth day and the company beginning rotating furloughs for non-union workers to save cash.

Federal mediators attended talks between Boeing and the International Association of Machinists and Aerospace Workers this week, but union officials reported little progress in the first two meetings.

The union said no further talks were scheduled.

A Boeing spokeswoman said Friday the company’s goal was to reach an agreement with the union as quickly as possible. She declined to comment further.

The strike began Sept. 13 when members of a regional chapter of the IAM union voted 96 percent to strike after rejecting a proposed contract that would have raised their wages by 25 percent over four years. Workers said they wanted a 40 percent wage increase and a restoration of traditional pension benefits that were eliminated about a decade ago.

Union leaders, who recommended ratifying the contract, quickly changed their minds and surveyed rank-and-file employees to find out what they wanted from a new contract.

The federal Mediation and Conciliation Service met with both parties on Tuesday and Wednesday, but mediation ultimately ended without a resolution, according to the union.

“While we are open to further discussions, either directly or through mediation, no alternative dates have been scheduled at this time,” IAM District 751 officials said.

The strike, which mainly involves workers at factories in the Puget Sound region of Washington state, will quickly hit Boeing’s balance sheet. The company makes most of its cash from delivering new planes, and the strike has halted production of the 737, 777 and 767 jets, which have been delivered at a rate of nearly one a day.

Kelly Ortberg, who took over as Boeing CEO early last month, announced this week that the company’s money-saving measures will include furloughs for managers and other non-union employees.

Terry Muriekes, a 38-year Boeing employee, protested outside the Everett, Wash., assembly plant that builds 777 and 767 airplanes and noticed the rotating furloughs.

“I’ve never seen Boeing do this before. They’re probably feeling pressure, feeling a little bitter, you know — trying to save some money after investing so much money in 10 years for four CEOs who all left with multiple golden parachutes,” said Murricks, who has lived through four previous Boeing strikes, including the last one in 2008. “The company is doing what it has to do, I guess.”

Nearby, Bill Studerus, a 39-year Boeing employee, held a “Strike” sign and an American flag.

“When you’re on strike, you don’t have income, so it’s a challenge for all of us, no matter how old you are,” Studerus said. “My heart tells me that I hope this will be over as soon as possible. I mean, we all want to go back to work, we all want to be part of the Boeing family like before.”

Under the furlough plan, tens of thousands of non-union workers will be forced to take one week of unpaid leave every four weeks. Ortberg said activities related to safety, quality and customer support will continue, as will production of the large 787 Dreamliner, which is built by non-union workers in South Carolina.

The Society of Professional Engineers for Aerospace said its board rejected a company request to include the 19,000 Boeing workers it represents in the furloughs. President John Dimas said the union, Boeing’s second-largest after IAM, saw no compelling reason to amend its contract that prohibits furloughs.

“To repair its balance sheet, Boeing needs to make an offer to the striking machinists to end the current dispute and put them back to work,” Dimas said.

Concerns about a cash crunch have prompted ratings agencies to consider downgrading Boeing’s credit rating to non-investment grade or junk status, a move that would put the company in a difficult position and increase its borrowing costs.

Boeing had $58 billion in debt and $11 billion in cash as of June 30, according to regulatory filings. Chief Financial Officer Brian West said the company burned through $4.3 billion in the second quarter. The company delivered 83 commercial airplanes in July and August, nearly as many as it delivered in the entire second quarter, but that faster pace would grind to a halt if the strike lasts long.

Manuel Valdez in Everett, Washington, contributed to this report.