To: Original Mad Dog who wrote (16470 ) 8/29/2002 4:58:06 PM From: Alan Smithee Read Replies (1) | Respond to of 17639 More good news for the economy. Boeing Rejects Mediators' Request To Extend Machinists' Contract Associated Press SEATTLE -- Federal mediators asked Boeing Co. and its largest union to extend their contract and resume negotiations, but the big airplane maker refused Thursday, setting the stage for a possible strike next week. "There is nothing left to negotiate," the company said in a statement. Negotiators from Boeing and the machinists union were asked Thursday morning to report to the Federal Mediation and Conciliation Service headquarters in Washington, D.C., next Wednesday. The request came even as union members were voting on Boeing's contract proposal. A letter from mediation service director Peter Hurtgen said the agency was stepping in because "any job action threatens to cause a substantial disruption of commerce." The union quickly agreed to take part in the talks, said Richard Barnes, the mediation service's deputy director. But Boeing refused. "The teams spent months negotiating in good faith," Boeing said. "The Boeing negotiating team has done everything possible and within reason to craft an offer that is fair, competitive and respectful." The union was voting Thursday on whether to accept Boeing's "best and final" offer, made Tuesday, or strike at midnight Sunday, when the current contract expires. In anticipation of resuming negotiations, the union had said it would seal the ballots without counting them Thursday night. The machinists and federal mediators had no immediate comment on Boeing's refusal. The machinists union asked Boeing earlier this week to extend the existing contract day-by-day as talks continued. The company refused, saying negotiations had been under way for months. Mr. Barnes said the mediation service was concerned about the economic impact that a strike could have. "We are just trying to head off a train wreck," said Mr. Barnes. "We're hoping that cooler heads will prevail. ... Thirty days will not hurt." The agency similarly called both sides into negotiation three years ago for talks between Boeing and its engineering and technical workers union. The union ended up striking for 40 days before resolving the dispute. Boeing offer on Tuesday wrapped up two weeks of intensive negotiations for a contract to cover 25,000 machinists. Machinists had been seeking to more than double pensions and to secure job guarantees linked to aircraft deliveries, revenues or other business benchmarks. Boeing's final offer would have raised pensions by 20% by the third year of the contract and included no substantial changes to its job security contract language, inciting union leaders whose membership has been slashed by 25% since Sept. 11. The contract also calls for changes in employee health-care costs, including increases in monthly premiums. In addition, Boeing offered an 8% ratification bonus for accepting the contract, and raises of 2% and 2.5% in the second and third years of the contract. Copyright (c) 2002 The Associated Press URL for this article:online.wsj.com