LyrArc Article Gist
Cost estimates to Boeing of the strike by the International Association of Machinists and Aerospace Workers, representing 27,000 workers at plants in Kansas, Oregon and Washington, is about $100 million a day in deferred revenue and postponement of the long awaited 787 Dreamliner. The walkout started September 6, it concludes November 2, 2008, a little sort of 2 months, which suggests a loss in deferred revenue of about $5-6 billion. The union members include electricians, painters, mechanics and other production workers. So what did the union get out of this? The union says the new contract protects 5,000 factory jobs, prevents the outsourcing of certain jobs and preserves health care benefits. It also promises pay increases in 4 years instead of three, as outlined in previous offers.

LyrArc Article Gist
Boeing reaches a tentative agreement with the International Association of Machinists & Aerospace Workers in Nov. 2011. Under the agreement Boeing will build the 737 MAX, a retooled version, at a union plant in Renton, Washington. In exchange the union will not oppose Boeing's use of a new nonunion plant in South Carolina for assembling some 787 Dreamliners. The agreement when approved by union vote would extend the contract for 4 years till 2016. Advantages to Boeing lie in labor peace during a period when Boeing plans to increase production by about one third, over 2012-2014, to meet aircraft orders of $332 billion. Existing 737 production has been moved up to 35 a month, going up to 42 a month, accelerating the pace significantly, making it important for both sides to avoid labor discord. The Max first delivery is planned for 2017. In the current unemployment crisis there was considerable incentive on both sides to resolve the issue quickly, after the union had raised the issue with the National Labor Relations Board. It provides Boeing with flexibility in assembling some of the 787's in S. Carolina along with assurance for union commitment to productivity, and gives the union assurances that Boeing will continue to maintain significant maufacturing presence in the Washington area, a win-win for both sides. The NLRB appeal will be dropped by the union....