Labor up in the air

A tentative labor agreement between Boeing Co. and striking union workers isn't going to help the Vought Aircraft Industries plant in North Charleston return to a normal production schedule anytime soon.

Vought, which makes aft fuselage sections for Boeing's new 787 jet, said Tuesday that it was still considering a possible temporary shutdown of its large factory off International Boulevard.

"We're moving forward with our contingency plans announced Friday," said Lynne Warne of Vought.

Boeing and the International Association of Machinists and Aerospace Workers agreed to a tentative four-year labor deal late Monday that could end a 53-day walkout that has shut down the company's commercial airplane factories, cut into profits, delayed jet deliveries and crippled some suppliers.

The union said it plans to vote on the labor pact Saturday, a process that could end the costly eight-week strike.

Dallas-based Vought said last week that, partly because of the walkout, it could no longer afford to keep its North Charleston plant operating at full staff given the dramatically reduced work load.

Lay-off notices went out Friday to 50 employees who work in the company's fabrication unit, where manufacturing work was suspended. Other employees were reassigned and 65 contractors were let go.

Another more drastic cost-saving option that's still on the table is to close the plant temporarily. That decision could be made within a month, Vought said last week.

In addition to the strike, Vought's local plant is being squeezed by the delayed launch of the 787 Dreamliner. The aircraft is more than 15 months behind schedule because of numerous startup problems, including some in North Charleston.

Boeing's latest timetable calls for the company to begin test flights by the end of the year and start delivering the new jets by around the third quarter of 2009, though some industry analysts doubt whether it can meet those deadlines.

As of mid-August, Vought had temporarily stopped making its barrel-shaped 787 aft fuselage sections because Boeing had stockpiled enough to build 19 Dreamliners.

"They can't accept any more deliveries," Warne said.

She said Boeing officials will dictate how quickly manufacturing will resume at the Vought plant.

"We should know more, I'm told, within 30 days after the strike. ... A lot will depend on ... how they decide to revise their master production schedule," Warne said.

Vought had about 300 employees on its local payroll as of about two months ago, not including contractors.

Tim Healy of Boeing said Tuesday that company and union officials would meet soon to set a schedule for workers to return to their jobs if the contract is ratified.

It remains to be seen how long it would take Boeing's commercial aircraft business to return to pre-strike production levels. The company said it will conduct an assessment once work resumes.

The machinists union, representing 27,000 production workers in Washington state, Oregon and Kansas, went on strike Sept. 6 after rejecting a final contract offer. Job security and health benefits were among the major sticking points.

The Associated Press contributed to this report. Contact John McDermott at 937-5572 or jmcdermott@postandcourier.com.