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300 jobs lost as production rate declines at Boeing

By Dominic Gates
Seattle Times aerospace reporter

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Sources attributed the uptick — twice as many as in February — to declining production rates in the 747 and 767 lines in Everett.

Boeing handed out the 60-day layoff warning notices to 298 members of the International Association of Machinists (IAM) union and 19 members of the Society for Professional Engineering Employees in Aerospace union.

"It's disappointing to see a larger number this time," said IAM spokeswoman Connie Kelliher.

There is not an exact match between layoff notices and eventual layoffs. About a dozen members of the IAM were laid off Friday, although 37 had received warning notices 60 days earlier. In the interim, some of those layoffs were canceled or postponed, while some employees on the list may have left for other jobs or retired. The warning notices issued Friday would take effect May 21.

Boeing's signature 747 jumbo jet is currently being produced at a rate of 18 per year. The line is expected soon to slow to 12 per year. In the past year, Boeing has received only six 747 orders, all of those for freighter versions.

Meanwhile, with the 767 military tanker deal still in limbo awaiting Pentagon review, the 767 production line is expected next month to slow down also.

Anticipating a contract with the Pentagon, the first Air Force 767 tanker is already being built in Everett, and is due to be completed May 12. Pending a firm contract, Boeing will park that jet rather than fly it to Wichita, Kan., for conversion into a tanker.

Boeing has received orders for 11 of the 767 jets in the past year. It has delivered one 767 in 2004. Also reducing the work available in Everett, ongoing refurbishment of three in-service 777 jets will be completed in May, said the IAM's Kelliher.

In January, Boeing stopped its practice of reporting layoff statistics, citing an expectation of relative work-force stability.

"There'll be ups and downs as we go through the year," said company spokeswoman Cathy Rudolph. "We're adjusting the mix. We've also got job openings."
 
Boeing's Web site lists 89 job openings in Washington state, almost all in business and engineering positions. As of last month, the Boeing work force in the state stood at 53,451 — down from 80,000 in September 2001.

Dominic Gates: 206-464-2963

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