Boeing's South Carolina threat remains

CHICAGO, Oct. 27 (UPI) -- U.S. planemaker Boeing failed to make a decision on future production of the 787 Dreamliner, a critical matter for machinists, sources close the company said.

Boeing is negotiating with machinists to seal a 10-year contract with a no-strike clause. Otherwise, the company is threatening to create a second production line for the 787 in South Carolina, rather than Everett, Wash., The Seattle Times reported Tuesday.

Future production of other aircraft is also at stake. From the union's point of view, the more Boeing invests in its South Carolina facility, the more it subtracts from Washington.

While union negotiators are balking at the no-strike clause, South Carolina is assembling an incentive package for Boeing called "Project Gemini."

Industry analyst Scott Hamilton said a move to South Carolina would be costly. Besides infrastructure costs, Boeing would be working with a less experienced staff. In addition, it could cause further delays for the 787, already more than two years behind its original production schedule.

"Boeing could well be put in a position of winning the battle but losing the war. Both sides have a tremendous opportunity. Let's hope neither one of them blows it," Hamilton wrote on the Leeham.net Web site.