Boeing’s flight comes down to machinists’ vote

Seattle machinists union member Rob Curran chants “no” at a rally Thursday against Boeing’s proposed contract. Unions urged members to vote down the deal Friday, saying it surrenders too much.

Seattle machinists union member Rob Curran chants “no” at a rally Thursday against Boeing’s proposed contract. Unions urged members to vote down the deal Friday, saying it surrenders too much.

Saturday, January 4, 2014

SEATTLE - Boeing machinists were to decide Friday whether to accept a contract that would concede some pension and health-care benefits to secure assembly of the company’s new 777X airplane in Washington state.

The offer has fractured the union and drawn pleas from politicians who say the deal is necessary to support the Puget Sound region’s economic future. Boeing has been exploring the prospect of building the 777X elsewhere, a move that could trigger a steady exodus of aerospace jobs from the region where Boeing was founded.

Local union off icials, meanwhile, urged their 30,000 members to oppose the deal, arguing that the proposal surrenders too much at a time of company profitability. They have opposed taking a vote at all but were overruled by national leaders in the Machinists union.

Voting was scheduled for 5 a.m. to 6 p.m. PST on Friday. Results were expected to be announced later in the night.

A few hundred workers had lined up in front of the union hall in Everett, located across from Boeing, on Friday morning to obtain ballots. A steady stream of workers walked inside with light blue envelopes in hand.

Washington state has been the most natural place for Chicago-based Boeing to build the 777X because most of the company’s production is still done in the Puget Sound area. Boeing has offered to keep the 777Xin the region but sought two big deals: an extension of tax breaks until 2040 and a new contract with the Machinists union that would move workers out of a traditional pension and into a 401(k)-style retirement savings plan.

In November, state lawmakers swiftly approved the tax benefits - valued at $9 billion - but the union rejected a proposed contract shortly afterward. After the initial contract rejection, Boeing began soliciting bids from other states.

The company said it received submissions for 54 locations in 22 states.

Asked recently whether a site in Arkansas is under consideration, an official with the Arkansas Economic Development Commission said he could not comment on “projects currently in progress.”

Boeing has improved its offer since the last vote by machinists.

An initial plan to slow the rate that workers move up the pay scale was tossed while the company offered an additional $5,000 signing bonus and improved dental coverage.

Opponents of the contract oppose the idea of freezing the pension and moving workers to a defined-contribution savings plan. They also decry increased health-care expenses and slower wage growth.

However, some machinists likely would see their base salaries rise above $100,000 if the deal passes.

Boeing Co. began offering the 777X in May, and company officials have said they need to move swiftly to decide where the plane will be assembled.

Production of Boeing’s 777X likely would bring thousands of well-paying jobs to whatever region wins the work.

The plane is a new iteration of its strong-selling 777, and the company recently received orders for 225 new 777X planes from three airlines at the Dubai Airshow.

Boeing has said the 777X is expected to carry as many as 400 passengers and be more fuel efficient than the 777.

Business, Pages 27 on 01/04/2014