Boeing Machinists Could Return To Work This Week

Boeing could resume building aircraft as early as Thursday if the 18,000-plus striking machinists ratify a deal their union and management reached late last week in an attempt to end the four-week walkout.

The effect of the strike that began Sept. 2 should crystallize by the end of this week, when Boeing releases its September delivery statistics. The company delivered 22 planes in September 2004, and CFO James Bell said recently that 25-30 planes were slated for delivery in September. "That obviously won't be met," Bell said this month during a conference hosted by Morgan Stanley.

A Boeing spokesman said if machinists, represented by the International Association of Machinists (IAM), ratify the agreement, workers would return to work in time for the third shift on Thursday.

Boeing said that total costs of the deal its executives struck with IAM are similar to the previous contract offer and "meet our definition of a reasonable settlement." During his comments at the Morgan Stanley conference, Bell said the difference between what Boeing had "put on the table" at that time and what the union was asking for was about $1 billion in aggregate over the three-year contract.

Details of the agreement include basically unchanged health coverage from the 2002 contract, which will save the union's members $2,000-$4,000 per year in out-of-pocket expenses, IAM said. Pension benefits were increased from $66 to $70 a month per year of service.