Released on October 30, 2008

A labor dispute between the Boeing Company and the International Association of Machinists and Aerospace Workers, which has begun to pinch some aerospace metalcasters, is expected to end, with a tentative new labor agreement established Oct. 27.

The conclusion of the strike, which began in early September, is still pending ratification by the union’s membership. The union’s leaders have recommended its members sign the agreement between the two parties, which would establish a new four-year contract covering 27,000 employees in Washington, Oregon and Kansas.

According to a press release issued by Boeing, the tentative agreement retains the company’s management flexibility while addressing the union’s issues on job security, pay and benefits. The proposed agreement provides yearly general wage increases and increased pension benefits. The agreement would include no changes to the cost share employees currently pay for health care plans.

“This is an outstanding offer that rewards employees for their contributions to our success while preserving our ability to compete,” said Scott Carson, president and CEO of Boeing Commercial Airplanes. “I thank both negotiating teams and the federal mediator for their hard work and commitment in reaching this agreement. We recognize the hardship a strike creates for everyone—our customers, suppliers, employees, community and our company—and we look forward to having our entire team back."

At least one of the company’s metalcasting suppliers, Precision Castparts Corp., Portland, Ore., recently reported a slowdown in aerospace investment casting sales due to the strike. The company said in a press release that while it had seen growth in the second quarter of the fiscal year, the “demand [had] been interrupted by the Boeing strike.” The company expects demand to increase when the strike is resolved.