SEATTLE (AP) — The stakes were high and the vote was
close as Boeing production workers agreed to concede some benefits in
order to secure assembly of the new 777X airplane for the Puget Sound
region.
Washington Gov. Jay Inslee and Boeing hailed Friday’s
vote, which proponents said solidifies the aerospace giant’s presence in
the Seattle area.
"Tonight, Washington state secured its future as the aerospace capital of the world," Inslee
declared.
Under
the terms of the eight-year contract extension, Boeing said the 777X
and its composite wing will be built in the Puget Sound area by Boeing
employees represented by the Machinists union.
"Thanks to this
vote by our employees, the future of Boeing in the Puget Sound region
has never looked brighter," Boeing Commercial Airplanes President and
CEO Ray Conner said. "We’re proud to say that together, we’ll build the
world’s next great airplane — the 777X and its new wing — right here.
This will put our workforce on the cutting edge of composite technology,
while sustaining thousands of local jobs for years to come."
Local
officials of the International Association of Machinists and Aerospace
Workers had urged their 30,000 members to oppose the deal, arguing that
the proposal surrendered too much at a time of company profitability.
They had opposed taking a vote at all but were overruled by national
leaders in the Machinists union.
The announcement that the contract had passed with a 51 percent yes vote was somber.
"Our
members have spoken and having said that, this is the course we’ll
take," Jim Bearden, administrative assistant for Machinists District
751, said in announcing the results. "No member liked this vote or the
position we were put in by the company, nor was it an easy vote for
anyone to cast."
Opponents of the contract opposed the idea of
freezing the Machinists’ pensions and moving workers to a
defined-contribution savings plan.
The issue fractured the union
and drew unusual pleas from politicians who said the deal was necessary
to support the area’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 place where Boeing was founded.
"We
missed it by 1 percent because people were confused and worried about
their jobs," said Rick Herrmann, who has been working at Boeing for 46
years.
Hazel Powers and Dena Bartman lingered at the Seattle union
hall after the results were announced, their eyes swollen from crying.
Powers described a solemn mood after the announcement.
"Shocked. Disbelief," she said.
"I’m still just numb," Bartman said.
Powers
has worked for Boeing for almost 35 years, while Bartman has been there
for 25 years. Her 25-year-old daughter has worked at the aerospace
giant for seven years.
"I think people that voted for it were
scared," Powers said. "The pressure from the politicians and the
community – people are scared about not having good-paying Boeing jobs."
Bob
Dennis, an inspector at Boeing for six years, said earlier in the day
he was voting for the contract because it represented the best chance to
keep the 777X jobs in Washington state.
"I don’t think Boeing had
to come back to the table. We forced them that way. But at the same
time, I think this is our last opportunity to keep those jobs in the
state," he said.
"The tough vote taken by the Machinists today
means the 777X will be built in the only place it should be, by the only
people prepared to deliver," said U.S. Sen. Patty Murray, D-Wash.
"I
know well this decision wasn’t easy for any of the Machinists or their
families, and I know that many of those men and women decided Boeing’s
latest offer was still unacceptable," Murray added. "Their concerns
about income and retirement security for current and future generations
of aerospace workers – and all American workers – are legitimate."
Bearden,
speaking in place of District 751 President Tom Wroblewski, who has
been ill, said Boeing production workers "faced tremendous pressure from
every source imaginable." He took a dig at "the politicians and the
media, and others, who truly didn’t have a right to get into our
businesses, were aligned against us and did their best to influence our
folks’ votes."
Machinists International President Tom
Buffenbarger, who forced the issue to a vote over the objections of
local union leaders, said in a statement that "the impact of this
agreement extends far beyond IAM members who voted today.
"For
decades to come, the entire region will benefit from the economic
activity and technological innovations that will accompany" the jet
production.
Washington state has always been the most natural
place for Boeing Co. to build the 777X, since most of the company’s
production is still done in the Puget Sound area. Chicago-based Boeing
offered to keep the 777X in the region but sought two big deals: An
extension of tax breaks all the way to 2040 and a new contract with the
Machinists union that would transition workers away from traditional
pensions.
In November, state lawmakers swiftly approved the tax
benefits — valued at some $9 billion — but the Machinists rejected a
proposed contract shortly afterward. After the initial contract
rejection, Boeing immediately began soliciting bids from other states.
The company said it received submissions for 54 locations in 22 states.
The
competition has underscored Boeing’s commanding bargaining position in
an economy where top-notch manufacturing jobs remain scarce and elected
officials feel obligated to aggressively pursue such opportunities.
Boeing
improved its offer after the last vote by machinists. An initial plan
to slow the rate that workers move up the pay scale was tossed while the
company also offered $5,000 in additional bonus money and improved
dental coverage.
In addition to the pension issue, opponents
decried increased health care expenses and slower wage growth. However,
some machinists will likely see their base salaries rise above $100,000
under the new agreement.
Boeing began offering the 777X in May,
and company officials have said they needed to move swiftly to decide
where the plane will be built.
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 current 777.
___
Associated Press writer Mike Baker in Seattle and photographer Elaine Thompson in Everett contributed to
this report.
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