As they trickled into the local union hall Wednesday, Boeing Co. Machinists had one thing on their minds: a tentative deal between the union and the company that removes concern over labor strife and solidifies the fate of the 737 in the state.
The deal hinges on a Dec. 7 vote by Machinists, who need to ratify a four-year extension to their contract to keep the 737 MAX work here.
“The Boeing Co.’s commitment to work here in the state of Washington and in the Puget Sound region is big,” said Rod Sigvartson, who works with Boeing and the Machinists’ joint programs. “It’s a pretty tough (contract) to just say no to. The last thing we want to do is go to contract negotiations and travel down the same roads we had to in the past.”
The Machinists have gone on strike during the past two contract negotiations. After the 2008 strike, Boeing decided to locate its second 787 line in South Carolina. That decision is the source of a federal lawsuit, brought on the Machinists’ behalf by the National Labor Relations Board. Machinists’ leaders will ask the case be dropped if the contract is accepted.
Pat Story, who has worked at Boeing for six years, said he liked everything about the contract. News of the 737 MAX being built in Renton was a good surprise he added.
“Everybody in our shop was expecting them to hold the 737 over our heads … everyone is surprised,” the Marysville resident said.
The news, while surprising to most, was hailed as great for the economy, including here in Snohomish County.
“This is the most positive sign we’ve had for the economy in the last two or three years,” said Jeff Johnson, president of the Washington State Labor Council. “To know with this agreement, they will continue to produce the best airplanes in the world without strife for the next four years has enormous positive value for the Machinists, the company and the economies of Snohomish County and the state.”
Although the 737 MAX won’t be built in the county, it gives security for Boeing suppliers here and adds stability to the region’s workforce.
“I think it’s nothing but good news for Snohomish County,” said John Monroe, chief operating officer for Economic Alliance Snohomish County.
Monroe and the alliance’s president, Troy McClelland, met earlier this week with Craig Gottlieb, the author of a recent study by the Accenture consulting firm on Washington’s competitive position for the 737 MAX.
If 737 MAX production were to go elsewhere, “it would be a setback for the industry in Washington. It would put the state in a less advantageous position in the long term,” Gottlieb said Tuesday in an interview with The Herald.
For Snohomish County, the long term includes Boeing’s decision on what to do with its Everett-built 777. Economic Alliance’s McClelland called Wednesday’s tentative deal a “positive signal for future opportunities in Snohomish County and the Puget Sound region.”
However, McClelland, Monroe and Gov. Chris Gregoire all stressed the importance of improving the county and region’s competitiveness. Monroe, a former Boeing executive, said his only concern was: “We become fat cats and don’t follow through” on recent recommendations for the state.
Gregoire said she will urge lawmakers to pass her $10 million package to increase workforce training, increase engineering slots at state universities and enhance aerospace research in the state.
By continuing to improve the region’s workforce, Washington and Everett put themselves in a better position for the next jet contest, Monroe said.
“Boeing wouldn’t have a reason or an excuse to put a new airplane anywhere else,” he said.
Monroe believes the more positive relationship between the Machinists and Boeing also could encourage other companies to locate or to expand here in the county or in Washington state. In the past, labor unrest has been a concern expressed by companies eyeing the region, he said.
“It’s huge,” said Rep. Norma Smith, R-Clinton. “Absolutely it’s a net plus. Anything that happens that increases certainty is critically important for our economic recovery.”
The $5,000 bonuses for the region’s 29,000 Machinists means a $145 million payout that should provide an immediate boost to the state’s economy as Machinists shop and patronize businesses here. At least half of the bonus money will come to Boeing workers here in Everett.
Bill Herrmann, a Boeing Machinist who works in the company’s hazardous materials department, didn’t see any major negative issues in his initial look at the proposed contract. A Lynnwood resident, Herrmann is glad a contract is being examined so much earlier than in past years.
“I’m happy that we’re going to get the 737 MAX and have other job security. That was one of my big issues,” he said.
Herald writers Jerry Cornfield and Amy Daybert contributed to this report.
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