Daily Update - Local Lodge 2766

26 Jan 2006

Boeing, machinists to resume talks

Decatur plant reportedly set to replace Delta IV with Lockheed's Atlas V

Thursday, January 26, 2006 By BRIAN LAWSON

Times Business Writer brianl@htimes.com

Boeing Co. and its striking machinists are scheduled to resume negotiations this weekend in Birmingham, nearly three months after workers in Huntsville, Decatur, California and Florida went on strike.

About 1,500 Boeing workers went on strike Nov. 2, and the contract dispute includes about 485 jobs at Boeing plants in Decatur and Huntsville.

The Decatur plant builds rockets including the Delta II and Delta IV, but questions have arisen in recent days about the kind of rockets the plant will build in the future. A Web site dedicated to space issues reported this week that Boeing plans to discontinue the Delta IV program and replace it with a Lockheed Martin Atlas V in Decatur.

Boeing and its machinists are divided over the cost of health care for employees and benefits for retirees and new hires.

The Web site usspacenews.com reported Monday that Boeing will announce retirement of the Delta IV later this year if the Pentagon and federal regulators approve Boeing's planned joint venture with Lockheed.

The government is reviewing the proposal for space launches between rivals Boeing and Lockheed, known as the United Launch Alliance. The joint venture plan calls for moving rocket production to Decatur, but there has been no public discussion of discontinuing the Delta IV. Lockheed makes the Atlas rockets in Colorado.

Boeing did not directly answer questions Wednesday about whether it would eliminate the Delta IV, referring questions to its customer, the U.S. government.

Usspacenews.com is run by managers from Boeing, Lockheed and the Air Force who do not wish to be named, the site's editor said in an e-mail Wednesday.

Boeing officials initially denied the claim about the Delta IV in a letter to the site Monday.

Boeing and Lockheed have said their alliance would save the government $100 million to $150 million a year by "eliminating redundancies." The launch business has proven expensive for both companies. Their main customer is the Air Force, which needs satellites launched.