Boeing Signals Approval of 777X Jet Manufacture

Dipika Rangasami,

Editor (Business)

 

SEATTLE- Following a narrowly cast union vote, Boeing machinists approved of a vital labour contract that secures the manufacture of the 777X within Washington state creating thousands of jobs and profitable economic flow but at the cost of the workers’ pensions.

The votes, a difference of a minute 2% (being 51% majority against 49%) secured Seattle- Boeing’s manufacturing hub as the location of the 777X jet construction. If the votes had failed to secure Seattle as the locale for the 777X construction, Boeing would have sought out other interested states (a reported 22 states had offered taking up its place).

A spokesperson for the Machinist Union, District 751 stated “This decision means Boeing hopefully will stop pursuit of another site for its 777X program”. A district council delegate, Lester Muller voiced frustration over the vote results saying “They held a gun to our head and our people were afraid,”.

Boeing’s own outlook given the securement of Seattle however, highly contrasted that of the workers. In a statement Boeing’s commercial Airlines Chief Executive, Ray Connor mentioned Boeing’s future in the Puget Sound region as having “never looked brighter”, he stated further “This will put our workforce on the cutting edge of composite technology, while sustaining thousands of local jobs for years to come.”

A reported 600 votes were what made the difference. An appeal for a recount was made and rebuffed by the Union Leaders. Prior to the vote, a complaint was filed by a member seeking the evaluation of the timing of the voting, just before Boeing’s holiday closure, when majority of the workers were away. The union however, stated as having allowed online absentee voting.

The votes also mark a stark divide in the workers’ outlook. The younger workers voiced their concern over facing unemployment over failing to vote and having Boeing move the construction elsewhere. Older workers however were noted to have valued their pensions even more so than their jobs at Boeing. Had the votes been unfavourable for the younger workers, the aerospace job market in Washington would have faced certain deterioration.

Boeing has also reportedly ensured the workers will not have an opportunity to conduct potential strikes until the expiration of their contracts in 2024. This move has won the favour of politicians who also pressured the union to bring about the vote to approve the deal.

Stating in a brief press conference, Governor Jay Inslee stated “I’m very pleased that the best place in the world to build jet airliners for decades will continue for decades to come”. Responding to the concerns raised by the Boeing machinists, Inslee confirmed the inclusion of a number of safeguards consisting of $8.7 billion incentives to Boeing that ensure that the manufacturer keeps 777X jobs in Washington State.

The vote approved by members consisted of an eight year extension of a reported $1 billion worth of additional benefits beyond a previous offer but is to put an end to pension contributions by 2016.