Executive Briefings

Tax-Break Extension Voted to Keep Boeing Project Near Seattle, But Union Could Scuttle Deal Over Contract

The Washington State Legislature passed a measure on Saturday to extend nearly $9bn in tax breaks for Boeing through 2040 in an embattled effort to entice the company to locate production of its newest jet, the 777X, in the Seattle area.

Tax-Break Extension Voted to Keep Boeing Project Near Seattle, But Union  Could Scuttle Deal Over Contract

Lawmakers acknowledged, however, that their efforts would most likely be undermined if the airplane maker's machinists union votes down a proposed labor contract due to go before the membership on Wednesday.

A contract locking in Boeing's labor costs, along with the tax incentives, is crucial to state officials' plan to keep the 777X production local. Boeing has said that without approval of the labor contract, it would be looking at other potential locations.

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Lawmakers acknowledged, however, that their efforts would most likely be undermined if the airplane maker's machinists union votes down a proposed labor contract due to go before the membership on Wednesday.

A contract locking in Boeing's labor costs, along with the tax incentives, is crucial to state officials' plan to keep the 777X production local. Boeing has said that without approval of the labor contract, it would be looking at other potential locations.

Read Full Article

Tax-Break Extension Voted to Keep Boeing Project Near Seattle, But Union  Could Scuttle Deal Over Contract