LABOR - Union leaders agree to concessions to lure Boeing

Major construction unions have agreed to a 24-hour, no-overtime work schedule if Boeing selects St. Louis as the location for its new jetliner factory, Gov. Jay Nixon announced Tuesday.

Union leaders of the St. LouisBuilding and Construction Trades Council, the Eastern Missouri Laborers District Council and the Carpenters District Council of Greater St. Louis committed to the plan, Nixon said. The proposal means lower overall costs and faster completion of the plant.

“This unprecedented commitment offers Boeing another reason to build the 777X right here in the Show Me State,” Nixon said on a conference call with reporters.

Lawmakers are in special session considering a package of incentives worth potentially $1.7 billion over 23 years in an attempt to lure the factory making the updated version of Boeing’s twin-engine aircraft. Debate will begin tomorrow in the Missouri Senate on the bill, which allows up to $150 million in annual tax benefits.

Boeing, which has $130 billion worth of orders for the airplane, must begin deliveries in 2020. It is searching for a location for the factory after union machinists in Washington state voted to reject concessions sought by Boeing.

Construction union members have not voted on the deal offered by their leaders but Nixon said he was confident the commitment would be kept in contracts signed as construction gets underway.

“The union rank and file have not voted but these are empowered leaders who are empowered to make significant offers of this level and I am confident they speak for the thousand workers in this regard,” Nixon said.

The labor concessions are part of the larger package, which will include local incentives as well, that must be ready to present to Boeing by next Tuesday. The details of those local incentives have not been announced.

Source: Columbia Daily Tribune