Inslee spokesman David Postman called Thursday's breakdown in negotiations "a setback, no doubt" but said the governor planned talks with both sides Thursday night.
Boeing presented what it called a final counterproposal to the Machinists union and company spokesman Doug Alder says union leaders rejected the offer. A union spokesman did not immediately return calls for comment.
In a statement, Inslee says he still hopes that Boeing "will recognize that the best way to ensure that the 777X is delivered to its customers on time and at the least cost is to build it here."
Boeing says it has received proposals from 22 states eager to build the 777X. In its own bid to win the jobs, Washington state recently approved tax breaks for Boeing valued at $9 billion over the coming years, along with legislation to improve aerospace training programs and the permitting process.
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