IAM, Boeing have tentative deal; Washington State steps up for 777X

The International Association of Machinists and Boeing have a tentative agreement that means the Boeing 777X will be built in Everett. The new contract is eight years, to 2024.

The IAM membership is to vote on the contract next week.

Gov. Jay Inslee has called a special session beginning tomorrow to approve a bi-partisan incentive package. Inslee said that if the IAM membership and the Legislature approve the packages, the 777X will be built here.
The state package includes:

  • A package of statewide transportation improvements, which Inslee calls an essential piece of the aerospace future as well as the state generally;
  • Expand investments in education;
  • Expansion of policies for industry;
  • Extend the 787 tax incentives to 2040 and to include the 777X. This has a “ballpark” value of $8bn through 2040.

All this has to be approved in a week.

Inslee noted that this deal “reverses the outflow of work from this state.”

Inslee’s statement is below the jump.

Governor Inslee calls special session to approve package that ensures 777X project will be built in Washington


OLYMPIA – Gov. Jay Inslee today announced he is calling legislators to a special session beginning Thursday, Nov. 7, to approve a legislative package that The Boeing Company says will ensure its new 777X and composite wing will be built in Washington state. Inslee wants legislators to approve the package in one week.

“I am asking lawmakers to pass a package of legislation that will guarantee that the Boeing 777X and its carbon fiber wing are built in Washington state,” Inslee said at a press conference today where he was joined by a bipartisan group of legislators, Boeing’s Ray Conner, chief executive officer of Boeing Commercial Airplanes. In addition, Machinist union officials Tom Wroblewski, president, Mark Johnson, aerospace coordinator, and Rich Michalski, general vice president, joined the group.

 “If we can do this in the next seven days, we can be certain that Washington’s aerospace future will be as bright as its past,” said Inslee.

 Inslee spoke with officials from Boeing and the Machinists union earlier today when they notified him that they’ve reached a tentative labor agreement to be voted on next week.

 The 777X package includes several proposals that Inslee, his 777X task force and other legislative leaders have been working on, including:

·       A bipartisan transportation revenue package.

·       Extension of all commercial airplane tax incentives until 2040 and expansion of the current sales and use tax exemption on construction of buildings to manufacture “superefficient airplanes” to include all commercial airplanes and suppliers of wings and fuselages.

·       Education and workforce development investments to boost enrollments in aerospace fields at community and technical colleges, train workers for manufacturing of composite wings and complete the Central Sound Aerospace Training Facility in Renton.

·       Streamlined permitting actions that will speed up development and expansion of facilities at large manufacturing sites around the state.

·       Developing balanced, practical solutions that achieve water quality goals (also referred to as fish consumption).


“This is great news for every Washingtonian,” Inslee said. “Thanks to the good-faith negotiations between Boeing and our Machinists, legislators can finish the job to win this project. Everyone in Washington has a stake in what we’re doing here. Construction of that carbon fiber wing and assembly of the 777X wing would be a linchpin for our future economic growth and thousands of jobs.”


The aerospace industry in Washington generated $76 billion in economic activity last year. The 777 generated $20 billion in economic activity and supports 56,000 jobs.


More information about the 777X package is available here: http://www.governor.wa.gov/documents/777XPackageElements.pdf


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6 Comments on “IAM, Boeing have tentative deal; Washington State steps up for 777X

  1. I don’t like this. The unions and politicians in WA aren’t to be trusted.

  2. There must be something drastically wrong with some working Americans regarding unions they seem to hate them? To cut a long story short, the worst “union” of any kind in America seem to be the members of congress and the house, who accept money from companies to get away with anything they find profitable and advantageous, no matter how detrimental to the voters and nation.

  3. Look, no one wins everything in a negotiation. Boeing gets peace and more cost certainty in addition to a stable experienced work force. The union gets cost certainty and a long contract. The state invests to get jobs and stable tax base. Money comes into the state from outside…a good thing.
    The rest of the world is competing with Boeing. Best get efficient but also take care of your workers.
    Now the engineers are on deck…

  4. Never understood the hate towards unions. Simply mind-boggling, or it could be just a well-coordinated astroturf campaign by corporate shills.

  5. Pingback: Assessing the 777X events for Washington State, IAM, Boeing | Leeham News and Comment

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