Boeing Machinist Strike Is Causing Rippling Effect Among Struggling Airlines and Suppliers as Well as State and Local Tax Collections

The machinist union strike against Boeing is starting to delay aircraft deliveries and the company's suppliers are starting to feel a financial pinch.  According to an article in USA Today, the strike is affecting 737s, 747s, 767s, 777s and the new 787 Dreamliner production.

Boeing deliveries in the third quarter of 2008 were 84 airplanes compared to 109 during the same period in 2007.  With high fuel costs, struggling airlines are anxious because of the delivery delays.  So are the company's suppliers, many of whom are in Washington State.

State and local elected officials are getting a little nervous as well.  With state revenues under projections for 2008 and lawmakers preparing for the 2009 budget session, the $3.2 billion revenue shortfall may go higher by the end of the year if the strike persists.

Union members went on strike on Sept. 6, which is the third strike against Boeing in 13 years, and no negotiations are scheduled.  The stumbling block is outsourcing. 

Hopefully, the strike will end soon.

Don C. Brunell, President (DonB@awb.org)