Michelle covers the aerospace industry in Snohomish County.
September 6
The Herald/Mark Mulligan
Machinists’ strike, Day 1 Posted at 11:36 am by Michelle Dunlop Machinists are stationed outside each of Boeing’s gates here in Everett, picket signs in tow, less than 12 hours into a strike.
I checked in with Boeing this morning. No meetings between the company and union negotiators have been scheduled.
Boeing has added an extensive Q and A section on their negotiations Web site, addressing many of the concerns striking Machinists may have.
A few things to note: Striking Machinists, in general, are not allowed to log in to their work e-mail accounts from home. However, striking union members can still send their children to day care and still use the company’s fitness centers.
The Union also has information for members on strike at its Web site.
Check out our photo gallery of union members hitting the picket lines early yesterday.
Share your photos from the picket lines. We’ll put together a readers’ photo gallery, and I’ll post some of your photos on the blog. E-mail your photos/info to Justin Best, The Herald’s photo editor.
I’ll post some reader comments later this afternoon. Continue to send me your thoughts on the strike or post comments below.
Also, I’ve updated the reader poll that we posted yesterday. Many of you wrote to suggest that I add a category for a longer strike. Vote away.
Boeing and the union called off talks despite having at least 8 hours remaining before the extended contract would expire.
The union's Tom Wroblewski said Boeing failed to meet the members' demands.
Machinists will strike at 12:01 a.m. Saturday.
We want to hear what readers think of the strike. Post your comments below or send me an e-mail. Please let me know if you want the contents of your email shared with readers.
Also, be sure to take our new online poll about the length of the Machinists' strike.
Machinists’ union leaders may not have sanctioned a strike last night, but many of their members hit the picket lines regardless of a 48 hour stay.
“We’re supposed to be on strike,” said Mark Meidinger, a 20-year Boeing employee. “We rejected the contract.”
For several members of the International Association of Machinists and Aerospace workers, their vote last night said everything: 87 percent voted to strike the Boeing Co; 80 percent rejected Boeing’s contract.
This morning, many of them hit the picket line even after union leaders asked for two more days to try to reach an agreement with Boeing. Many of the picketing Machinists in Everett say they’re mad both at Boeing and at their own leaders.
“We’re being played by the union, and we’re being played by the company,” said Dwight Noren, who has worked for Boeing 21 years.
Noren is stationed outside Boeing’s factory get in Everett, just across from the Machinists’ union hall. At 10 a.m. Thursday, he held a sign that read “87 percent vote to strike. No contract, no work.”
Noren said Machinists’ leaders Tom Wroblewski and Mark Blondin had no right to give Boeing additional negotiating time when union members told them to strike.
“Their existence as leaders may be short-lived,” he said.
Wroblewski posted a note on the Machinists' Web site early this morning urging members to go to work as normal today.
"We will not sell you out," Wroblewski wrote. "If Boeing does not produce the offer you expect, the strike is still on."
UPDATE
The Machinists union just posted a contract talks update. Union leaders warn their members to remain ready to strike the Boeing Co. at 12:01 a.m. Saturday.
Machinists' latest video
Boeing's update
Boeing also posted an update this evening. Lead negotiator Doug Kight noted that the company is not bound to reaching an agreement with the union by the end of Friday. But "a swift resolution is in everyone's best interest," Kight wrote. ... [Read More] E-mail | Print | CommentNEW! What will 48 hours bring for Boeing, Machinists? Posted at 8:15 am by Michelle Dunlop Boeing and Machinists leaders presumably are back at the negotiating table this morning.
Many union members who thought they’d to be on strike today are back at work – and they’re there without the contract they wanted.
Machinists leaders Tom Wroblewski and Mark Blondin pleaded with union members for two more days to reach a deal with Boeing. They thought it was a positive sign that Boeing was ready to return to the table so quickly.
Boeing’s lead negotiator, Doug Kight, made no promises in his press conference last night. He said the company would listen for the union to narrow it down to a few critical issues. He called the issues “tough” and “emotional.” After hearing the issues, Boeing then would decide if it will make changes to its “best and final” offer.
“The key for us will be to continue to listen,” Kight said.
Machinists leaders previously had said that Boeing knew the issues that needed to be resolved. Boeing’s Kight seems to imply this isn’t the case.
After all these months of bargaining, how could either side not know where the other stands? Is there any hope for a contract? Or will 48 hours simply brew more animosity?
Something was amiss from the moment Machinists’ aerospace coordinator Mark Blondin stepped up to the microphone around 9:30 Wednesday night.
He didn’t yell the word the crowd had waited to hear: Strike.
Machinists standing in the back of the Seattle union hall were getting restless. “Give us the numbers” and “get on with the show” were just a few of the statements hollered as Blondin talked about the long road of negotiations between the union and the Boeing Co.
Then came the numbers: 80 percent of Machinists rejected Boeing’s three-year labor contract and 87 percent voted to strike, exceeding the 66.7 percent needed to sanction a work stoppage.
Story over?
Not quite.
Blondin dropped the bombshell: Machinists leaders will give Boeing another 48 hours at the bargaining table. Union members will not go on strike just yet.
I’m amazed that Blondin and district president Tom Wroblewski made it out of the union hall unscathed. The Machinists on hand were ready to walk out on Boeing. They wanted to “put the tools down” (as Blondin had suggested previously) and pick up their picket signs.
Boeing has two days to meet Machinists’ needs or the union lifts the strike pause button they pressed Wednesday night.
But Boeing’s Doug Kight wasn’t guaranteeing any concessions during a press conference even later Wednesday night. Kight said the company would listen to the union’s concerns. But he emphasized that Machinists leaders need to boil it down to a few “critical issues.”
Depending on those critical points, Boeing may modify what the company had described as its final offer.
From Machinists’ reactions Wednesday, it would seem Boeing would need to move on several issues.
The union says it’s imposing a media blackout during these last-minute talks.
We’ll continue talking to Machinists (and reading/posting emails from union members) to see how they’re feeling about this latest, unexpected twist in the Boeing-Machinists contract saga. ... [Read More] E-mail | Print | CommentNEW!
September 3
Boeing Machinists await contract vote results Posted at 7:42 pm by Michelle Dunlop The polls have closed for the Machinists to vote on Boeing’s final contract offer. And here in Seattle, union members are streaming into the Machinists hall to watch as the ballots are counted.
Workers in Everett marched to the union hall to vote both at 10 a.m. and at 2 p.m.
The Herald’s online poll also has closed. Although about 600 people voted today, the final vote remains about the same as yesterday afternoon.
Roughly 65 percent of poll participants say the Machinists will get the two-thirds majority needed to strike.
Union members gathered here seem to agree. From longstanding employees to those who just joined the company, many vote watchers voted to strike.
“I thought it was a subpar contract,” said Tim Gurno, a worker on the 767 line.
The union plans to have the results by 9 p.m. A strike would start at 12:01 a.m. ... [Read More] E-mail | Print | CommentNEW!
Herald readers continue to cast their votes in an online poll about the Boeing Co. and its Machinists union.
About 64 percent of readers say that the Machinists union will get enough votes to strike the Boeing Co. over its new three-year contract offer, as of 10 a.m., Sept. 2.
Roughly 6 percent of participants say they’re unsure how the votes will fall when the Machinists vote tomorrow. And 30 percent of readers believe the Boeing Co. has won over enough Machinists to avoid a strike.
In order to strike, the union needs 66.7 percent of its members to reject Boeing’s offer and vote to strike. The Herald’s poll is open to all readers – Machinists, SPEEA members, Boeing executives, community members, etc.
Pressure, stakes run high in Boeing Machinists' vote Posted at 1:30 pm by Michelle Dunlop You know there’s bad blood between the Boeing Co. and its Machinists union when even minor gestures of convenience are rejected.
Boeing is offering shuttle service tomorrow to and from union halls as Machinists make their way from Boeing factories to vote on the company’s new labor contract offer.
Machinists’ leaders have responded by urging members to “forget the bus, march with us.” By marching, rather than riding Boeing’s buses, Machinists are sending the company a message that they’re “insulted” by Boeing’s tactics.
As you know, union leaders are telling members to reject Boeing’s contract offer and vote to strike against the aerospace company.
A company spokesman Tim Healy assures me that no Boeing managers will be on the bus to pressure Machinists into accepting the contract. And Boeing won’t hand out pro-contract fliers or literature. Boeing just wants to see as little of disruption of possible to the production floor, Healy said.
Union members used their breaks today again to rally outside Boeing’s Everett factory.
With one day left before Machinists vote on the contract, both the union and Boeing are expected to have managers talking to members. Boeing’s lead negotiator, Doug Kight, has instructed managers to review the company’s Web casts with employees. And managers will be talking to employees individually today.
The Machinists are telling members to report what is said during the meetings. Union leaders are angry at Boeing’s bargaining approach and have filed an unfair labor practice complaint against the company.
Boeing put out a new radio spot aimed at Machinists over the long holiday weekend. The ad features Scott Carson, president of Boeing Commercial Airplanes.
Highlights from Carson’s radio ad:
“It’s an outstanding offer by any measure.”
“It affects Boeing’s future, it affects your future and it affects your family’s future.”
“Our customers and our communities are counting on us to continue building on our success.”
Answering Boeing Machinists questions … Posted at 11:50 am by Michelle Dunlop First of all, I want to update you on our reader poll. The poll, as of 11:45 a.m., Sunday, shows about 66 percent of respondents believe union members will strike the Boeing Co. next week. You still can cast your vote below.
Over the past couple of weeks, I’ve been getting some interesting e-mails and phone calls from readers about negotiations between the Boeing Co. and its Machinists union.
I think sharing a few of these with you might help clear up questions that many other readers have. I’ve summarized the questions/comments and referred to the reader by first name only when a name was provided.
Question: Why to you keep writing that the average wage for a Machinist is $56,000? The average wage is about $15 an hour ($31,200 annually)? -- Tim, in a phone message a week ago
Answer: Boeing provided the annual salary estimate of $56,000 in May when it began negotiations with the union. When thousands of new Machinists are signing in at $10.72 or $11.72 an hour, it’s understandable to think the average should be much lower. But keep in mind, the union also has thousands of members with 10, 20 and 30 years experience who are topping out the maximums.
That said, Tim is right: $56,000 is not the average any longer. His question prompted me to check in with the union, which had never disputed the figure to me. They pointed out the number was from last August, which is when Boeing provides its annual update to the union on members' salaries. I checked with Boeing. They provided the new, lower average current figure. The union has pointed to the lower annual salary as reason the minimum rates need to be bumped – a contentious point in Boeing’s contract offer.
Q: Why do you refer to International Association of Machinists and Aerospace Workers members as “Machinists” when we have plumbers, electricians, toolmakers in our ranks? And why do you publish our salaries? That info should be kept private. – Peter, a 28-year Boeing employee
A: It is important to keep in mind that not all IAM members are “machinists.” Good point. However, on the most recent flyer the union put out on Boeing’s contract offer, district president Tom Wroblewski refers to his members as “The Fighting Machinists.” The union sets the tone – so you’ll have to take that question to Wroblewki and other union leaders.
As far as printing salaries … that’s also one you might want to address both with Boeing and the union, as discussed above. But average wage info for nearly any occupation is reported to government labor authorities and can be found (by county) readily on the Internet.
The same day Peter wrote in, I received a phone call from a very angry wife of a Machinist. Due to increased deductibles and maximums, as well as a new mandatory generic drug policy, her husband would only get an increase of about $16 monthly from the new contract. She said this was how the “average” Machinists was impacted under the contract and the Herald should be printing it.
The point? One reader, Peter, doesn’t even want salary information out there. The other reader wants really personal information – the average Machinist’s prescription drug info – printed. I guess I’m in the middle. Prescription drug information, and how frequently the average Machinist maxes out his/her insurance coverage – that’s too private. And based on reader comments and discussions with union and company leaders, I'm unconvinced her husband’s case is the “average.”
Countdown to Boeing Machinists strike vote ... Posted at 10:23 am by Michelle Dunlop Leaders for both the Boeing Co. and its Machinists union have four days to convince union members why they should or should not accept the company’s contract offer. On Sept. 3, Machinists will decide whether to shut down the Boeing Co.’s factories and strike.
Yesterday, negotiators for the International Association of Machinists and Aerospace Workers urged their members here to reject Boeing’s contract and go on strike on Sept. 4. Boeing’s negotiators say they’re disappointed by the recommendation. But they hope union members will reject not Boeing’s contract but the Machinists leaders’ recommendation and ratify the new contract.
The Herald started a reader poll shortly after the Machinists’ leaders recommended a strike. As of 10 a.m., Aug. 30, about 71 percent of participants said the Machinists will get enough votes to strike. (The union needs two-thirds of its members to vote both to reject the contract and to strike.) Twenty-four percent of readers have said the union won’t strike. And a few, 5 percent, aren’t sure yet.
Remember to cast your vote below:
Check back on HeraldNet each day for an update on the reader poll. We’ll also post updates from Boeing and the Machinists union. Below are the latest videos from each side.
Boeing’s leader negotiator lays out the company’s offer in this video:
Boeing also has added some short videos on cost of living adjustment and the final offer on its negotiations Web site.
And the Machinists outline why members should strike in this video:
The Machinists have provided an outline of why they’re urging members to reject the contract as well as a copy of the offer. ... [Read More] E-mail | Print | CommentNEW!
The 24,000 Machinists in the Puget Sound region will vote on Boeing's contract Sept. 3. The union needs 66.6 percent of its members to reject the company's offer and agree to strike. A work stoppage would start at 12:01 a.m., Sept. 4.
What do you think of union leaders' decision? Should the members strike?
Cast your vote in our reader poll, post a comment below or send me an e-mail
Union leaders posted an update at 2:30 a.m. asking members to be patient.
"We need to understand every clause before formulating our recommendation so we can present ALL the facts," they wrote.
The Machinists are printing copies of Boeing's offer for the 24,000 members here in the Puget Sound region to read. Union negotiators will post their recommendation whether to accept Boeing's offer by the end of the day.
Company negotiators will meet with the press a few hours after they deliver their “last, best and final” three-year deal to the union, said Boeing spokesman Tim Healy last night.
Union officials have been miffed about Boeing’s decision to cut off negotiations so early. Boeing has said it is making the offer early in response to conversations with Machinists on the shop floor.
Boeing made its second offer on Tuesday. And it isn’t expected to make drastic changes to that offer. The Machinists say Boeing left two strike issues on the negotiating table. ... [Read More] E-mail | Print | CommentNEW!
The Machinists warned that they would strike over four issues:
Bargaining unit: Boeing sought to eliminate Wichita from the unit.
Pension: The company wanted to offer a different 401(k)-type retirement plan to new employees rather than the defined pension plan.
Outsourcing: The union seeks further assurances over outsourcing.
Early retiree medical: Boeing wants to discontinue this benefit for Machinists hired after Jan. 1, 2010.
Boeing says that only the fourth, retiree medical, remains on the bargaining table. Company spokesman Tim Healy said Boeing has eliminated this benefit for its nonunion employees and for 45 of its 49 bargaining units.
I’m still waiting to hear the Machinists’ take on Boeing second full offer. They could have concerns over the incentive plan. Perhaps the outsourcing language isn’t everything they wanted it to be. We’ll see.
The early retiree medical benefit is one the Machinists have said they aren’t willing to give up. They’ve hiked wages 9 percent over three years. They’re offering a 5 percent lump sum payment in the first year.
But is Boeing’s offer good enough to avoid a strike? The company will present one last proposal later this week. The Machinists vote Sept. 3.
What I’d like to know is how important is preserving early retiree health insurance to Machinists?
This second offer also includes a 5 percent lump sum payment in the first year. The incentive plan, however, wouldn't kick in until year three, rather than year two as was proposed in the first offer.
Boeing already withdrew its request to carve out Wichita from the bargaining unit.
The company also withdrew some outsourcing language from its proposal. That leaves one "strike" issue on the table for the Machinists: early retiree medical benefits.
The multi-billion dollar question of the day: Will the Machinists strike over early retiree medical? ... [Read More] E-mail | Print | CommentNEW! Boeing gambles big Posted at 7:29 am by Michelle Dunlop A multi-billion dollar corporation like Boeing can hang with the high-rollers.
But lately, Wall Street worries that Boeing might be involved in too many high stakes games at the same time.
Even before the market opened this morning, Boeing’s shares were expected to drop as a result of growing concerns about the company’s gambles with its Machinists union, its 787 program and the U.S. Air Force tanker program.
Today, we should see how Boeing responds to the demands of its Machinists – the men and women who build Boeing commercial jets. The union has threatened to strike on four issues at the bargaining table. Boeing has backed down on only one. Keep in mind, the Machinists walked out three years ago on some of those same issues, and they weren’t holding nearly as good of cards as they are this time around.
The company is expected to present its second full offer to the union today. The Machinists will vote on Sept. 3 on the offer and could walk out at midnight. A strike means further delays to Boeing’s 787 Dreamliner.
Boeing bet big on a new global production system, banking on partners around the world to deliver parts on time for the mostly composite material jet. That didn’t happen, and Dreamliner deliveries to customers have been delayed by 20 months on average.
Boeing is also “playing chicken” with the Pentagon and its competitor for a lucrative U.S. Air Force aerial refueling contract. That’s how analyst Paul Nisbet, with JSA Research, described Boeing’s threat to pull out of the competition against Northrop Grumman and EADS. Boeing says it wants six months to devise a bid for the latest go-round of this long-running competition. We could find out this week whether the Defense Department blinks.
Smells like a Boeing 787 … Posted at 4:32 pm by Michelle Dunlop I hate to tell the advertising gurus over there at the Boeing Co. this, but the 787 Dreamliner stinks.
At least, their air freshener (bearing the resemblance to a 787 jet and promising the “new airplane smell”) does.
My coworker brought in a 787 air freshener that he picked up at the Evergreen State Fair in Monroe over the weekend.
It’s a nice idea – dangling a Dreamliner from your dash. Eventually, though, we had to give it a whiff.
Bottom line: Five out of five Herald journalists agree … it stinks.
(Disclaimer: I’ll admit that I don’t like “new car smell” air fresheners either.)
Seeing the air freshener reminded me that Boeing had pegged this summer as the time when it would unveil the first installed interior of a 787. This would be the first time we would get a sniff of a real 787. The company had said in April that it would install the interior in Dreamliner number three this summer.
Background: after announcing a series of schedule delays, Boeing’s latest timeline for its Dreamliner is being closely watched by analysts, customers and media. Boeing’s Pat Shanahan laid out a number of minor and major milestones to watch for up until first delivery, scheduled for third quarter 2009. The company hopes to have its 787 in the air in the fourth quarter of this year.
With summer months coming to a close, Boeing spokeswoman Mary Hanson said in an e-mail today that the company hasn’t started interior installation yet in the third 787. The interior is on hand in Everett when the factory is ready for it, Hanson said.
But that milestone, along with first flight and first delivery, could be disrupted if Boeing’s Machinists union goes on strike next week. A strike could really create a stink for Boeing and its Dreamliner. ... [Read More] E-mail | Print | CommentNEW!
August 24
The Herald/Mark Mulligan
Boeing Machinists rally, talk strike Posted at 7:16 pm by Michelle Dunlop You got to hand it to Boeing’s Machinists. They won’t let a little rain ruin their rally. And they always come up with catchy slogans.
Despite Sunday’s sloppy conditions, the Machinists made their presence known outside the hotel where leaders for Boeing and the union are negotiating a new three-year contract.
Standing in light rain in the hotel parking lot, Machinists turned up the volume with this number:
“Power. Power. Power to the union.
Power. Power. Getting stronger by the hour.”
They held signs:
“Remember 2005? We do.”
“Get it right or fly a Kight.”
“Strike #7 2008 at Boeing.”
“Don’t have to deal with tension, increase pension.”
“In the end, Boeing will lose because bad guys never win.”
The gathering drew not only thousands of Machinists but also SPEEA members and a few politicians.
Cynthia Cole, president of the engineers union, pledged support for the Machinists:
“I say Boeing needs to share the success and honor the best workers in the world.”
And Darcy Burner, Democrat for Congress, told the Machinists that they are fighting for middle class America:
“You are on the front line of arguably the most important battle in the United States right now. …when Boeing tells you that they’re profitable but they can’t afford to share, tell them we will stand together.”
The union votes on Sept. 3 on Boeing’s contract offer. If two-thirds of the members vote to strike, the 24,000 union members in the region would walk out at 12:01 a.m. Sept. 4. ... [Read More] E-mail | Print | CommentNEW!
The offer includes a $2,500 bonus in the first year and inclusion in a new incentive program that could pay 10 extra days wage each of the remaining two years of the contract. General wage increases would be 2.5 percent in the first year, and 2 percent the next two years.
While the company dropped its bid to separate the Wichita group from the bargaining unit, Boeing did not give in on two key issues to the Machinists: eliminating its defined pension plan to new Machinists and eliminating early retiree medical benefits to new employees.
Those are two topics that the union has identified as strike issues.
The Chicago-based aerospace company is competing against Northrop Grumman and its partner EADS to replace 179 aerial refueling tankers for the Air Force. The Pentagon was expected to release next week its final terms in an expedited redo of a prolonged competition.
"I think the option we would have if we were not given the six months, there is a really high likelihood that we would no-bid the program," Jim Albaugh, head of Boeing's defense unit, told the publication on Thursday.
The Air Force originally awarded the contract to Northrop and EADS on Feb. 29. But government auditors recommended the Pentagon reopen the competition, saying Air Force errors could have cost Boeing the competition.
The Defense Department took over the reopened competition and recently released a draft of its revised requirements.
The Pentagon needs to demonstrate to Congress that it held a competition for the lucrative contract. If Boeing withdrew, the Defense Department would face difficulty getting funding for the tanker program. ... [Read More] E-mail | Print | CommentNEW!
You can listen to BCA president Scott Carson's radio commercial at Boeing's Negotiations Web site. In the radio spot, Carson tells the Machinists, "We're in this together. We can only succeed by working together."
Machinists to Boeing: We’re willing to strike Posted at 10:43 am by Michelle Dunlop The Boeing Co.’s Machinists say they’ll strike if several key issues aren’t resolved to their liking.
The local district of the International Association of Machinists and Aerospace Workers recently surveyed members on contract negotiations with the Boeing Co. Intense or "main table" talks between the aerospace giant and its Machinists union start on Thursday. The existing contract expires on Sept. 4.
About 15,000 Machinists (out of more than 24,000 union members) took part in the contract survey, according to the IAM negotiations Web site.
Roughly 80 percent of survey participants said they would strike if Boeing tries to discontinue early retiree medical benefits for future Machinists. Eighty-four percent said they would strike if Boeing doesn’t increase minimum pay rates by more than $1.28 an hour.
About 86 percent of Machinists also said they would prefer to keep the existing pension plan rather than switch to a 401(k) type plan for future Machinists.
The Machinists in Everett have been protesting at the factory each Wednesday as the union gets ready to start round-the-clock talk with Boeing.
Machinists already are into their third week of a strike against Hawker Beechcraft in Wichita, Kan., reports the Wichita Eagle. The IAM also represents about 600 Boeing Machinists in Wichita. ... [Read More] E-mail | Print | CommentNEW!
August 18
SPEEA: Boeing 'undermines' 787 by depending on foreign workers Posted at 9:48 am by Michelle Dunlop With a few months to go until Boeing’s engineers union sits down for contract talks with the aerospace company, SPEEA leaders already are taking Boeing to task.
The Society of Professional Engineering Employees in Aerospace say Boeing is putting its delivery schedule and programs at risk by not tracking foreign workers at its U.S. facilities.
In a press release, SPEEA said it is noticing a growing number of mistakes by inexperienced foreign workers at Boeing’s or its partners’ sites here in the United States.
Boeing partnered with companies across the globe on its 787 Dreamliner program. The jet has been delayed due to supply chain issues and trouble assembling the first Dreamliner in Everett.
A foreign worker for Italy’s Alenia Aeronautica failed to follow procedures while working in South Carolina and damaged a center fuselage piece in late June.
SPEEA starts contract negotiations with Boeing in October. Like Boeing’s Machinists union, SPEEA union repeatedly has expressed disappointment in the amount of outsourcing that Boeing has used on its 787 jet. ... [Read More] E-mail | Print | CommentNEW!
August 14
Boeing to meet with Pentagon officials Saturday Posted at 4:53 pm Representatives of the Boeing Co. and Defense Department will meet again this Saturday to discuss the $35 billion Air Force tanker contract.
Boeing met with Pentagon officials earlier this week on the revised specifications to replace 179 aerial refueling tankers. Defense officials released the draft request for proposal for the contract last week and had been expected to publish the final requirements as early as Friday.
Boeing’s spokesman Dan Beck reiterated the company’s position from earlier in the week: “We hope to have a continuing dialogue” with Pentagon officials on the draft requirements. Supporters of Boeing had criticized the revised tanker specifications saying the Pentagon changed its requirements to meet its initial pick of Northrop’s larger KC-30 over Boeing’s KC-767. ... [Read More] E-mail | Print | CommentNEW! Northrop: Air Force values 'getting more' tanker for its money Posted at 1:03 pm by Michelle Dunlop Northrop Grumman’s CEO Ron Sugar sounds confident about his company’s chances of winning a $35 billion tanker contest with the Boeing Co. in this Reuters report.
Representatives of the Los Angeles-based defense contractor met earlier this week with Pentagon officials to discussed revised specifications for the tanker bid.
“They revalidated the requirements for the tankers. We don't see a change in that," Sugar said, adding that Northrop had never doubted that "the Pentagon would value getting more for their money, more capability, for a comparable price."
Northrop, and its partner EADS, initially won the contract with their larger, KC-30, beating out Boeing and its KC-767. Government auditors found flaws in the Air Force’s evaluation process and urged the Pentagon to start over. The Defense Department is expected to release shortly its final request for proposal for the rebid.
Boeing supporters have accused the Pentagon of merely changing its latest request for proposal to meet its initial pick of the larger tanker. ... [Read More] E-mail | Print | CommentNEW!
August 12
Tanker update: Boeing, Northrop respond to Pentagon meeting Posted at 3:59 pm by Michelle Dunlop UPDATE: After meeting with Pentagon officials today, Boeing said it's still "committed to providing the Air Force with a next generation tanker."
And Northrop had this to say: “It is clear that the Defense Department met the concerns raised by the Government Accountability Office, and the draft amendment to the KC-X Tanker Request for Proposals addresses those concerns by clarifying, but not altering the tanker requirements and specifications."
You can read more about the two defense contractor's comments in this AP story or in the Herald tomorrow.
The Boeing Co. will face penalty payments to Italy for delivering its KC-767 tankers nearly three years late, reports Bloomberg.
Boeing officials meet today with the Pentagon on the $35 billion U.S. Air Force tanker contract. The aerospace company’s past performance – late deliveries to both Japan and Italy – is relevant to the Air Force bid. ... [Read More] E-mail | Print | CommentNEW!
August 11
Tanker factors into state, presidential races Posted at 5:32 pm by Michelle Dunlop The dispute between the Boeing Co. and Northrop Grumman- EADS over a $35 billion tanker contract keeps popping up in political contests.
Politicoreports on how the controversial Air Force tanker contract is having an impact on the Congressional race between incumbent Rep. Dave Reichert, R-Wash., and Democratic challenger Darcy Burner.
Reichert recently condemned radio advertisements taken out by a pro-Northrop and EADS group called Alabamians to Build a Better Tanker.
Burner, according to Politico, questions some of Reichert’s fundraising from a group with ties to EADS.
The Democratic National Committee released a new Web video called "Job-killing John" this weekend. The DNC says that "14,000 American Jobs Are At Stake Because of John McCain and His Lobbyist Advisors." The group cites a Economic Policy Institute report that said a Northrop-EADS win of the $35 billion tanker contest would cost America 14,000.
When it published that report, the Economic Policy Institute noted that it receives funds from both the Boeing Co. and the aerospace company’s Machinists union. The DNC commercial omits that tidbit.