Boeing 777X assembly plant won't come to Missouri

SEATTLE -- Boeing machinists conceded some benefits and narrowly approved a contract Friday that would keep assembly of the company's new 777X airplane in Washington state, instead of moving it to Missouri or other prospective states.

Boeing had explored the prospect of building the 777X elsewhere, including the St. Louis region, a move that could have triggered an exodus of aerospace jobs from the place where Boeing was founded.

Missouri Gov. Jay Nixon said Saturday morning the incentives package worth up to $1.7 billion over two decades that Missouri offered to Boeing showed the state is "ready to compete" in the global economy. The Missouri General Assembly approved the incentives package during a special session last month.

Nixon thanked the General Assembly, community colleges and local business and labor partners for the "nationally-recognized proposal."

Nixon also said Boeing's decision last month to shift some research positions to Missouri is "proof positive" the state is a "top destination for high-tech jobs and investment."

Union officials in Seattle urged their 30,000 members to oppose the deal, arguing the proposal surrenders 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.

Tina Shrader, a Boeing worker for eight years, said she was voting no.

"I don't want to mess with my pension. I'm here for my paycheck and for my pension," Shrader said.

Bob Dennis, an inspector at Boeing for six years, said 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.

Washington state has always been the most natural place for Boeing Co. to build the 777X, because 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, Washington state lawmakers swiftly approved the tax benefits -- valued at about $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 has improved its offer since the last vote by Machinists. An initial plan to slow the rate workers move up the pay scale was tossed while the company is offering $5,000 in bonus money 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 would likely see their base salaries rise above $100,000 if the deal passes.

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

Production of Boeing's 777X would likely 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 current 777.