Boeing has a $275 billion backlog for plane orders.
Boeing has a $275 billion backlog for plane orders.
Washington Post
Think of it as the Toyota Prius of the sky.
Built with advanced plastics and carbon fiber from Japan instead of traditional aluminum, the Boeing 787 is much less of a gas-guzzler than other big jets.
And like the Prius, the plane is quite hot. Even though the 787 is nearly two years behind schedule, the plane is the darling of the aviation world, given high fuel prices. Boeing says it has an eye-popping 895 orders, the most successful launch for a new commercial jet.
With a list price of $150 million to $200 million, the Boeing 787, also known as the Dreamliner, is expected to boost Boeing’s profitability well into the next decade.
The plane is also at the heart of why 27,000 electricians, riveters and painters covered by the International Association of Machinists and Aerospace Workers went on strike against Boeing on Saturday.
The workers are assembling the Dreamliner near Seattle from components built elsewhere. Although Boeing has been outsourcing work on planes for years, the level of subcontracting on the 787 is making the machinists insecure.
“Our members worked very hard and took less during the lean years,” said Mark Blondin, a negotiator with the machinist union. “And when the new airplane came, they outsourced it out. All we do is final assembly. There is a deep resentment among our members.”
Much of the front section and the wings are made in Japan, for example. Parts of the tail are made in South Carolina, a right-to-work state. This outsourcing threatens their jobs, Boeing workers say, even as it has led to delays in building the new plane.
“The percentage has gotten higher and higher and higher, and our members are saying enough is enough,” Blondin said. “These are good jobs, but if you don’t get enough protections, they can go away tomorrow.”
Blondin said workers agreed to concessions on work rules and lower pay for new hires to keep Boeing healthy in the period after the Sept. 11, 2001, terrorist attacks left airline industries in disarray.
“It’s a real slap in the face,” Blondin said. “We want that work here in these factories.”
Union leaders are pressing Boeing to limit outside contractors and want to revisit changes in previous contracts that they say watered down language that allowed the union to challenge subcontracting initiatives. And they want job guarantees for the current workforce over the three-year contract.
Connie Kelliher, a spokeswoman for the union, said the demand is feasible given Boeing’s $275 billion backlog for plane orders.
“They are watching the production upturn on the plane, and they see Boeing’s future financial strength,” said aviation analyst Richard Aboulafia. “They think they have the upper hand, and they do.”
Analysts estimate that, per month, a strike could cost Boeing $2.85 billion in deferred revenue and $259 million in earnings.
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