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Fri, Oct 08, 2010

Kansas Playing HBC Deal Close To The Vest

Governor Doesn't Want Details Released Before Union Vote

Details of the deal announced this week by Kansas Governor Mark Parkinson (D) that he says will keep Hawker Beechcraft in Wichita are being very closely held until the company's machinists' union has an opportunity to vote on a new contract October 16. Talks between HBC and the union had stalled when it became known that Louisiana was trying to lure HBC into a move south.


Kansas Governor Mark Parkinson

According to the governor's office, the deal includes tax incentives for the company, as well as the possibility of some training dollars for employees, but there are still "a lot of details to be finalized," said Amy Jordan Wooden, a spokesperson for Governor Parkinson.

She said that if details were released, it would allow Louisiana officials to come up with a new offer and stall contract negotiations again. Talks were set to resume Friday after breaking off last weekend.

The Associated Press reports that the deal is said to be "similar" to one offered by Kansas to Bombardier Aerospace. The state authorized $27 million in bonds for the planemaker to expand. The bonds will be repaid by diverting moneys normally collected from employees for income taxes. A state law encouraging aviation companies to expand makes that diversion possible.

Parkinson said the deal would keep "most" of HBC's jobs in Wichita, but he could not guarantee that no jobs would leave the state. Hawker Beechcraft still employs about 6,000 workers in Wichita.

FMI: www.hawkerbeechcraft.com, www.governor.ks.gov

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