BEIJING, Oct. 13 (Xinhuanet)-- Negotiations have begun between the machinists and the world's no. 2 commercial airplane maker the Boeing Co. to end a five-week strike, according to a note posted by the International Association of Machinists and Aerospace Workers Sunday.

    Covering 25,000 hourly production workers in the Seattlearea and about 2,000 more in Oregon and Kansas, the association said the talks were under way with a federal mediator. 

    However, Connie Keller, the association spokeswoman said she was not sure "where the talks are taking place."

    Last Wednesday an agreement was announced to renew contract talks for the first time in five weeks since the strike began on Sept. 6.

    Sources said job security, pay raise, retirement benefits, mediacre and other issues of benefits are the key ones in the talks. Boeing has offered an 11 percent raise over three years, while rejecting a reduction in the use of outside contractors. The strikers asked a bigger share of the company's profits and limits on the outsourcing of work.

    "We have kept lines of communications open and have agreed to pursue additional talks through the federal mediator," Doug Kight, Boeing's lead negotiator, said last week. "Any agreement must allow us to remain competitive and provide the flexibility to manage our business."

    An analyst said the strike is expected to cost Boeing about 21 aircraft deliveries and up to 15 cents per share in earnings for every two weeks it continues.

    Boeing reported last week that deliveries are off, largely due to the strike. The company delivered 84 planes in the third quarter, down from a pre-strike forecast of 119 planes, and its stock downed 6.9 percent to 44.41 dollars last Thursday.

    (Agencies)