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Boeing strike's impact spreads as delayed deliveries impact airlines

ByABC News
October 6, 2008, 2:46 AM

— -- Members of Boeing's International Association of Machinists and Aerospace Workers walked out of factories in Washington, Oregon and Kansas on Sept. 6 after contract talks broke down over job security and pay. It's the third strike by Boeing's machinists in 13 years.

No negotiations are scheduled. Boeing says it offered the union the richest contract in the industry, including pay raises for the next three years and a richer pension plan. Union leaders disagree.

Five factories have been idle for a month, and the impact is beginning to be felt. During the third quarter, Boeing delivered only 84 planes, down from 109 in the year-ago quarter. The strike is affecting assembly of Boeing's new 787 Dreamliner already a year behind schedule along with 737s, 777s, 767s, and 747s.

Last week, Irish low-fare carrier Ryanair canceled flights on 21 routes to and from Birmingham, England, scheduled for this month because deliveries of its Boeing 737s have been delayed.

And Virgin Blue, Australia's second-largest airline, pushed back the December launch of its new route between Sydney and Los Angeles because of the strike. Boeing won't be able to deliver three 777-300s on time.

The machinists union represents all of Boeing airplane factory workers. In recent years, Boeing has posted record profits and a record number of plane orders, especially for its faster, lighter 787.