Machinists at Boeing’s Seattle location have approved a labour contract that gives up some pension benefits in order to secure assembly of the company’s new 777X aircraft.
Under the terms of the eight-year contract extension, the 777X and its composite wing will be built in the Puget Sound area by Boeing employees, represented by the International Association of Machinists & Aerospace Workers District 751IAM. This work includes fuselage build, final assembly and major components fabrication such as interiors and wires.
The vote approving the eight-year contract was 51 per cent to 49 per cent.
“Thanks to this vote by our employees, the future of Boeing in the Puget Sound region has never looked brighter,” said Boeing Commercial Airplanes President and CEO Ray Conner. “We’re proud to say that together, we’ll build the world’s next great airplane—the 777X and its new wing—right here. This will put our workforce on the cutting edge of composite technology, while sustaining thousands of local jobs for years to come.”
Had the workers rejected the offer, Boeing would have considered making the successor to the 777 widebody jet elsewhere and had received offers from 22 U.S. states interested in hosting the new factory.
Production of the 777X is scheduled to begin in 2017 and first delivery is targeted for 2020.