ContractsProf Blog

Editor: Myanna Dellinger
University of South Dakota School of Law

Monday, January 6, 2014

Union Contract Paves the Way for Boeing to Remain in Seattle Area

777sAs reported here in The New York Times, Boeing's machinists union has agreed to a new eight-year labor contract in which the union sacrificed some benefits in order to guarantee that Boeings 777X aircraft will be built at is Washington State plant.  The union local's leaders opposed the new contract, but the national union urged them to hold a vote, and 51% of those participating voted to accept the contract.

According to the Times, Washington state was the logical choice for  the construction of Chicago-based Boeing's 777X.  However, the company sought tax breaks and a new union contract before agreeing to use its existing infrastructure on the new project.  The state legislature quickly approved tax breaks that will be good through 2040 and save the company an estimated $9 billion, but when the machinists originally rejected the new contract offer, Boeing began shopping around for a new location for its plant.  


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