Boeing workers decide to strike

Boeing staff have rejected an 11% pay rise over three years

Workers at US aviation giant Boeing have voted to go on strike in a dispute over pay and benefits, but any walkout has been delayed for two days.

The strike - voted for by 87% of assembly workers - was due to start on Thursday, after staff rejected Boeing's new contract offer.

Yet the strike has been postponed for 48 hours after Boeing agreed to extend the outgoing contract by two days.

Boeing staff have turned down an 11% pay deal over three years.

The firm's "best and final" proposal includes average pay and benefits of $34,000 (£18,600), said the firm.

Unions and management have disagreed over basic pay, health benefits, pension increases and cost of living adjustments.

Mark Blondin, the union's chief negotiator, said the company would have to propose a significantly better offer to prevent a walkout.

Deal brokering

The contract extension came at the request of Washington State governor Chris Gregoire, who is working to try to broker a deal.

If Boeing fails to come up with a new proposal within two days then the strike, by some 27,000 workers, will go ahead.

Both sides are to meet with a federal mediator on Thursday, said Boeing spokesman Tim Healy.

A strike could mean further delays to Boeing's forthcoming Dreamliner 787 plane.

The new mid-sized plane's maiden flight will take place later this year, about 15 months behind its original schedule.

The first delivery of the Dreamliner is due in the second half of 2009.

A strike could cost Boeing some $100m daily in deferred revenue, say analysts.