Union Rejection Of Contract Has Boeing Looking Outside Puget Sound Region

It didn't take very long for Boeing officials to make good on their promise to look outside the Puget Sound region for a manufacturing site for the 777X.

The new airplane was announced at the Dubai Air Show Sunday to a flood of orders. But last week, the rank and file of the International Association of Machinists declined a contract offer from the planemaker that would have kept the work and jobs in the Puget Sound region for nine years.

The Seattle Times reports that Boeing officials began their search for an alternative site the day after the union vote. Currently, Long Beach, CA may be at the top of the list, but Boeing officials say they have not yet begun to make cuts to list of potential sites. Long Beach was acquired by Boeing when it bought McDonnel Douglas in 1997, and the company recently announced the end of production of the C-17 military transport plane assembled at the California facility.

Boeing officials have not closed any doors. The Washington State Legislature recently passed a generous package of tax incentives designed to keep the 777X assembly line in Seattle. But "everything is back on the table," said Boeing spokesman Doug Alder. "We are actively engaged in pursuing all options," he said.

Boeing said it has no plans to re-open negotiations with the IAM until closer to the current contract's expiration date in September 2016.

FMI: www.boeing.com