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November 14, 2013

Washington State Machinists Reject Pension, Benefit Cuts; Boeing Offered Largest Ever State Subsidy 
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The union of 30,000 machinists in Washington state has rejected a
contract proposal from the aerospace giant Boeing that called for major
concessions in return for guaranteed jobs. Boeing had offered workers a
$10,000 signing bonus for decades of work on its 777x aircraft in return
for large cuts to workers' pensions and health benefits. But on
Wednesday, the union rejected the plan by a 67 percent margin. Boeing
has previously threatened to move its 777x production out of state. In a
bid to entice Boeing, Washington recently approved the largest corporate
tax break by a state to a single corporation in U.S. history. Signed
into law this week, the measure hands Boeing $8.7 billion worth of
incentives through 2040 to build the 777x in Washington. The new package
comes a decade after Washington gave Boeing more than $3.2 billion in
incentives to build its 787 airplane in the state.

 

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