An artist’s rendering of the Boeing 777X, which will be built in Everett thanks to tax breaks passed by the Legislature in 2013.

An artist’s rendering of the Boeing 777X, which will be built in Everett thanks to tax breaks passed by the Legislature in 2013.

A consensus is growing that Boeing tax breaks need teeth

  • By Jerry Cornfield Herald columnist
  • Wednesday, April 13, 2016 2:40pm
  • Local News

The first time area aerospace Machinists tried to claw back bits of Washington’s ginormous tax break to the Boeing Co., they found themselves up against national leaders of their own union and the governor of the state.

The next time, they won’t.

Bob Martinez, the new international president of the International Association of Machinists and Aerospace Workers (IAM), is publicly backing efforts to redo the deal to tie the tax breaks with Boeing employment levels in Washington.

And Gov. Jay Inslee told members of IAM District Lodge 751 last week that he will work on the issue with them in 2017 — presuming he’s still governor.

ADVERTISEMENT
0 seconds of 0 secondsVolume 0%
Press shift question mark to access a list of keyboard shortcuts
00:00
00:00
00:00
 

It’s quite a climate change since November 2013, when Inslee summoned lawmakers into a special session to approve a deal waiving billions of dollars in future tax payments by the company if it built the new 777X jetliner in the state.

Boeing is doing just that in Everett.

But it’s also been bleeding jobs, starting literally when the ink dried on that tax break: 5,000 trimmed so far, with company execs warning another 4,000 could disappear this year.

In early 2015, the tally of lost jobs hadn’t reached the point where Martinez’s predecessors were acutely concerned.

When local machinists lobbied lawmakers on a bill linking tax breaks with jobs, they heard that a contingent, including former IAM international vice president Rich Michalski, had traveled from Washington, D.C., to Olympia to deliver a completely different message.

“They came out totally against the bill, and then they went around the campus and told everybody else in all four corners of the building the same thing,” said House Minority Leader Dan Kristiansen, R-Snohomish.

When Martinez took charge in January, he wrote lawmakers to let them know things had changed and that Machinists are now united.

“The IAM will speak with one voice in this matter,” he said in an email this week. “Protecting aerospace jobs in Washington state requires more than $8.7 billion in incentives. It requires strong legislation that holds Boeing accountable for preserving jobs.”

In 2015, Inslee didn’t embrace the workers’ legislative effort, either. He didn’t publicly oppose it. However, some union members thought the governor worked behind the scenes to keep it bottled up.

Inslee’s tune is different this year.

In early February, in an address to a crowd that included Boeing officials and aerospace executives, he cautioned of a future reckoning if the decline in jobs persisted.

“I don’t know that anyone has figured out the perfect answer to this problem,” the governor said. “But I do believe that some measure of future job accountability is worth considering, as maintaining and growing our aerospace industry is a priority that I know we all share.”

Last month, Inslee said he would “entertain consideration” of rewriting the 2013 deal, to put in job requirements.

Then last week, in his endorsement interview with District Lodge 751 members, Inslee said he would work on this issue with Machinists and union-represented engineers in 2017.

The Machinists’ political director, Larry Brown, also suggested to the governor, in a half-serious, half-joking way, that he call a special session to tackle the matter — just as he did to get those tax breaks passed in 2013.

“At what point, was my question, do we have time to wait until next year?” Brown said.

Political reporter Jerry Cornfield’s blog, The Petri Dish, is at www.heraldnet.com. Contact him at 360-352-8623; jcornfield@heraldnet.com and on Twitter at @dospueblos.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Local News

(City of Everett)
Everett’s possible new stadium has a possible price tag

City staff said a stadium could be built for $82 million, lower than previous estimates. Bonds and private investment would pay for most of it.

Jennifer Humelo, right, hugs Art Cass outside of Full Life Care Snohomish County on Wednesday, May 28, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
‘I’ll lose everything’: Snohomish County’s only adult day health center to close

Full Life Care in Everett, which supports adults with disabilities, will shut its doors July 19 due to state funding challenges.

The age of bridge 503 that spans Swamp Creek can be seen in its timber supports and metal pipes on Wednesday, May 15, 2024, in Lynnwood, Washington. The bridge is set to be replaced by the county in 2025. (Ryan Berry / The Herald)
Snohomish County report: 10 bridges set for repairs, replacement

An annual report the county released May 22 details the condition of local bridges and future maintenance they may require.

The Edmonds City Council gathers to discuss annexing into South County Fire on Tuesday, Dec. 3, 2024 in Edmonds, Washington. (Olivia Vanni / The Herald)
Community group presents vision for Edmonds’ fiscal future

Members from Keep Edmonds Vibrant suggested the council focus on revenue generation and a levy lid lift to address its budget crisis.

Cars drive along Cathcart Way next to the site of the proposed Eastview Village development that borders Little Cedars Elementary on Wednesday, May 7, 2025 in unincorporated Snohomish, Washington. (Olivia Vanni / The Herald)
Former engineer: Snohomish County rushed plans for Eastview development

David Irwin cited red flags from the developers. After he resigned, the county approved the development that’s now stalled with an appeal

People listen as the Marysville School Board votes to close an elementary and a middle school in the 2025-26 school year while reconfiguring the district’s elementary schools to a K-6 model on Wednesday, Jan. 22, 2025 in Marysville, Washington. (Olivia Vanni / The Herald)
Marysville schools audit shows some improvement

Even though the district still faces serious financial problems, the findings are a positive change over last year, auditors said.

Outside of the Madrona School on Monday, Aug. 26, 2024 in Edmonds, Washington. (Olivia Vanni / The Herald)
Sewer district notifies Edmonds schools of intent to sue

The letter of intent alleges the school district has failed to address long-standing “water pollution issues” at Madrona K-8 School.

Kim Crane talks about a handful of origami items on display inside her showroom on Monday, Feb. 17, 2025, in Snohomish, Washington. (Olivia Vanni / The Herald)
Crease is the word: Origami fans flock to online paper store

Kim’s Crane in Snohomish has been supplying paper crafters with paper, books and kits since 1995.

Providence Regional Medical Center Everett. (Olivia Vanni/The Herald)
Providence Everett plans to reduce certified nursing assistants

Nursing assistants at Providence Regional Medical Center Everett have until Thursday to accept a voluntary severance package.

A firefighting helicopter carries a bucket of water from a nearby river to the Bolt Creek Fire on Saturday, Sep. 10, 2022, on U.S. 2 near Index, Washington. (Ryan Berry / The Herald)
How Snohomish County property owners can prepare for wildfire season

Clean your roofs, gutters and flammable material while completing a 5-foot-buffer around your house.

Nedra Vranish, left, and Karen Thordarson, right browse colorful glass flowers at Fuse4U during Sorticulture on Friday, June 7, 2024, in Everett, Washington. (Olivia Vanni / The Herald)
Everett’s Sorticulture festival starts Friday

Festivities will include art classes, garden vendors and live music.

Logo for news use featuring Snohomish County, Washington. 220118
11-year-old, teen injured in Snohomish County shooting

The 11-year-old is in critical condition, the sheriff’s office said. Investigators believe the shooting was gang related.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.