Boeing intends to build upcoming new aircraft in Washington

Labour unions are recommending members accept the proposed "historic contract offer," which could see Boeing's new aircraft built in the Pudget Sound region of the state.

Boeing building

The upcoming new Boeing aircraft (speculated to be the 797 model) could be produced in northwest Washington, the US aircraft giant has confirmed, with labour union representatives due to vote on what Boeing describes as a “historic contract offer” in a couple of days’ time.

“Boeing’s roots are here in Washington – it’s where generations of workers have built incredible airplanes,” Boeing Chief Commercial Officer Stephanie Pope; confirming that the new contract will enable the team in the Puget Sound region to “build Boeing’s next airplane,” something she promised would bring “job security for generations to come”.

Boeing’s as-yet-unconfirmed 797 new midsize aircraft (NMA) has been touted as a replacement for the twin-engine, single-aisle 757 (with a capacity of between 200 and 295 passengers) and the twin-aisle 767 (able to seat between 199 and 261). With demand for a middle-of-the-market aircraft rising as airlines look to continue increasing their capacity, the new twin-aisle design could compete against the A320 and A330 family aircraft.

Other elements covered by the proposed contract include the largest-ever general wage increase of 25% for all employees (over the life of the contract), including an 11% rise from day one.

“After 16 years, we finally got back to the bargaining table,” stated the International Association of Machinists and Aerospace Workers (IAM) District 751. With the existing contract to expire imminently, a vote on this will take place on 12 September; something the Union Bargain Committee recommending accepting.  

“We can honestly say that this proposal is the best contract we’ve negotiated in our history,” stated the union, whose members – upon ratification of the agreement – will also receive a one-time lump sum of $3,000 (subject to a timely ratification of the contract). The contract will also provide lower medical cost shares, reduced mandatory overtime, additional paid parental leave, and greater company contributions towards retirement.

Over 66,000 Boeing employees live and work in Washington, the largest percentage of its global workforce, with the state the exclusive home of the 737 MAX, 767, 777X, P-9 and KC-446A aircraft.

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