Report: Boeing talks with union on 787 line falter
SEATTLE -- Boeing is nearing a decision on where to open a second production line for the new 787 jetliner, and it appears that location will likely be in South Carolina.
The Seattle Times on Wednesday reported that talks between the Machinists union and the company have fallen apart, with Boeing turning down further negotiation.
The company had indicated it wants a no-strike agreement with the International Association of Machinists union, which waged an eight-week strike last year that shut down the company's commercial airplane facilities.
Union leaders and state officials had hoped to have the second production line in Everett, where the 787 is already under construction.
Aviation analyst Scott Hamilton said he thinks Everett is out of the running.
"I think it's over," he said. "Based on the information that I've got as late as last night, there is no agreement between Boeing and the IAM, so that really means this is going to go to South Carolina."
In a written statement, Gov. Chris Gregoire said she is still working with Boeing and the union to try to reach an agreement that would keep the line second line in Everett.
"My philosophy is 'it ain't over 'til it's over,'" Gregoire said. "If there is a deal to be struck, we will leave no stone unturned in trying to strike it."
Sen. Patty Murray's office says she's trying to arrange talks Wednesday in Washington, D.C., between Boeing and the Machinists union.
Spokeswoman Alex Glass said Murray doesn't want to see the opportunity for a second 787 assembly line in Washington pass by. The Washington Democrat believes there is still room to negotiate an agreement to expand the widebody factory at Everett where the first 787s are being assembled.
On Tuesday, the South Carolina Senate approved an economic incentive package that appears tailored to bring a massive Boeing assembly facility to North Charleston.
The full Senate voted 44-0 on low-interest construction bonds and incentives that include a sales tax exemption on fuel used in test flights. To qualify, a company would have to create at least 3,800 full-time jobs and invest at least $750 million in the state over seven years.
Boeing's 787 project has been plagued by delays, parts shortages and last-minute fixes have cost it billions in extra expenses and lost years. That's on top of weak demand for aircraft as air travel and freight shipments take a hit during the economic downturn.
While popular, with 840 orders, the plane was delayed for the fifth time in June. Boeing said parts of the aircraft needed to be reinforced. The aircraft - designed to carry up to 330 passengers in wider seats and aisles - is more than two years behind schedule.
The Seattle Times on Wednesday reported that talks between the Machinists union and the company have fallen apart, with Boeing turning down further negotiation.
The company had indicated it wants a no-strike agreement with the International Association of Machinists union, which waged an eight-week strike last year that shut down the company's commercial airplane facilities.
Union leaders and state officials had hoped to have the second production line in Everett, where the 787 is already under construction.
Aviation analyst Scott Hamilton said he thinks Everett is out of the running.
"I think it's over," he said. "Based on the information that I've got as late as last night, there is no agreement between Boeing and the IAM, so that really means this is going to go to South Carolina."
In a written statement, Gov. Chris Gregoire said she is still working with Boeing and the union to try to reach an agreement that would keep the line second line in Everett.
"My philosophy is 'it ain't over 'til it's over,'" Gregoire said. "If there is a deal to be struck, we will leave no stone unturned in trying to strike it."
Sen. Patty Murray's office says she's trying to arrange talks Wednesday in Washington, D.C., between Boeing and the Machinists union.
Spokeswoman Alex Glass said Murray doesn't want to see the opportunity for a second 787 assembly line in Washington pass by. The Washington Democrat believes there is still room to negotiate an agreement to expand the widebody factory at Everett where the first 787s are being assembled.
On Tuesday, the South Carolina Senate approved an economic incentive package that appears tailored to bring a massive Boeing assembly facility to North Charleston.
The full Senate voted 44-0 on low-interest construction bonds and incentives that include a sales tax exemption on fuel used in test flights. To qualify, a company would have to create at least 3,800 full-time jobs and invest at least $750 million in the state over seven years.
Boeing's 787 project has been plagued by delays, parts shortages and last-minute fixes have cost it billions in extra expenses and lost years. That's on top of weak demand for aircraft as air travel and freight shipments take a hit during the economic downturn.
While popular, with 840 orders, the plane was delayed for the fifth time in June. Boeing said parts of the aircraft needed to be reinforced. The aircraft - designed to carry up to 330 passengers in wider seats and aisles - is more than two years behind schedule.