EVERETT, Wash. — Boeing Co. machinists walked out on strike Saturday after contract talks arbitrated by a federal mediator failed to produce an agreement.

About 100 union members hoisted their strike signs at 12:01 a.m. outside the Boeing plant north of Seattle.

"It's been about lack of respect," said Steve Morrison, 42, a tester at the Everett plant. "They always tell us we're valued much but labor is the first out the door, the first to be outsourced."

This is the machinists' second strike in as many contract negotiations with Boeing. They struck for 24 days in 2005.

The machinists assemble Boeing's commercial planes and some key components. Key strike issues include pay, outsourcing, retirement and health care benefits.

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