7 Sep 2008

US Boeing workers on strike

3:46 pm on 7 September 2008

Production at the world's largest aircraft manufacturer, Boeing has halted in the US, after 27,000 workers went on strike over a pay dispute.

Their labour union, the International Association of Machinists, is demanding greater job security, other benefits and a commitment from Boeing that it will stop out-sourcing jobs.

Boeing says it has offered more than $34,000 per employee in pay and benefits.

The union says with that with Boeing's record profits and its members going without a pay rise for the last four years, the offer is not good enough.

Analysts say the strike could cost Boeing more than $100 million per day in lost revenues.

The company said it would not attempt to assemble any planes during the strike, putting on hold the production of four different types of aircraft.

Analysts say the stoppage is likely to cause further delays in the delivery of the new Dreamliner aircraft.

No new talks are scheduled and both sides say they are now waiting for the other to make the next move.