With the ink barely dry on bids from states seeking to win
Boeing's next jetliner plant, the company is back at the table with a union
about building the 777X in the Pacific Northwest.
Boeing and the International Association of Machinists are
negotiating a deal that could secure assembly of the plane in Washington state
with a possible new vote on a contract extension by Christmas, according to a
report in The Seattle Times on Wednesday.
The union made a new contract offer to Boeing late
Wednesday. A response is expected as early as today.
"We tried to craft a proposal that would meet the needs
of our members, while also ensuring the long-term success of the Boeing Co. in
Washington state," said Tom Wroblewski, the president of Machinists Union
District Lodge 751.
The two sides met briefly Tuesday, including Ray Conner, CEO
of Boeing Commercial Airplanes, and talks have progressed rapidly since then to
see whether a deal the Machinists rejected in November can be changed to make
it acceptable.
"Our membership wants to build this airplane, and we
believe Boeing wants to do it here," Wroblewski said.
Aviation analyst Richard Aboulafia of The Teal Group said
Washington has always been the ideal location for the final assembly.
"From an economic standpoint, Seattle was the
overwhelmingly logical place to build the 777X," he said. "It was
just a matter of sitting down and getting cooler heads to prevail."
Boeing's previous labor contract offer included concessions
on pensions and medical benefits, and slower wage growth. The union rejected it
by a 2-1 margin Nov. 13.
The revelation of fresh talks between the two sides came a
day after the deadline for states, including South Carolina, to submit their
bids to win the 777X jobs.
Washington, for instance, recently approved tax breaks for
Boeing valued at $8.7 billion through 2040. The Evergreen State also passed
legislation to improve aerospace training programs and its permitting process.
Missouri lawmakers passed $1.7 billion in incentives. South Carolina, like many
other states involved in the bidding, has not disclosed its offer.
Boeing's only other commercial aircraft assembly plant
outside of Washington state is at Charleston International, where it builds the
787 Dreamliner.
"I would have thought Charleston was the only viable
alternative for Boeing," Aboulafia said of 777X. "It quickly became a
bit of a circus."
At least 10 other states were said to be in the running
along with Washington and South Carolina. Wisconsin submitted a proposal even
though Boeing didn't ask for one.The company has said it will make a decision
on where to produce the new plane early next year. That could change if it can
come to terms with the union before then.
Boeing currently leases 265 acres for its North Charleston
operation, but on Friday it's expected to acquire through a state agency 267
acres across the street from the 787 campus. It hasn't disclosed its plans for
the property.
Source: The
Post and Courier
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