GRESHAM, Ore. - They're on the picket lines at Gresham's largest employer.

Boeing Co. workers - including more than 1,200 at the company's plant in Gresham - are in their first 24-hours on strike.

Workers at the plant, which makes specialized parts for the new, super-efficient 787 Dreamliner - make good money. But they say the walkout is not about hourly wages - it's about payback and security.

"We've always been at least top-of-the-line as far as our trade goes, but we can't afford to retire without the medical benefits, so that's why I'm out here," said Boeing worker Paul Baeckel.

Union members voted to strike on Wednesday, but both sides agreed to a 48-hour contract extension - requested by Washington Gov. Chris Gregoire and a federal mediator. However, negotiations failed Friday and the strike was on.

The union bargains for about 25,000 workers in the Puget Sound area, 1,500 in the Portland, Ore., area and about 750 in Wichita, Kan.

Boeing's "best and final" three-year offer, presented Aug. 28 after talks that began May 8, included bonuses totaling at least $5,000 and averaging $6,400, raises averaging 11 percent, pension increases and a 3 percent cost-of-living adjustment - $34,000 in average pay and benefit gains per employee, according to the company.

The average Boeing machinist earns $27 an hour, or about $56,000 a year, before overtime and incentives.

"This is more about an issue of respect toward your employees," said Picket Captain Ron Breunig while outside the Gresham plant. "You know, we helped you guys out in the tough times, and now times are good, it's like you're just saying 'Hey, we don't care.' "

Based on past walkouts, Boeing expects a minimum work stoppage lasting several days.

The union believes Boeing will have extra pressure to settle this strike because airlines are clamoring for delivery of its new fuel-efficient 787 Dreamliner, which is already behind schedule and has a 7-year backlog for orders.

Analysts have said a strike could cost Boeing about $100 million per day in deferred revenue. During the last strike, Boeing was unable to deliver more than two dozen airplanes on schedule.