Boeing Workers Approve 8-Year Contract Extension Boeing As part of Washington's efforts to woo Boeing, the state legislature approved $8.7 billion in subsidies for Boeing through 2040 if it placed 777X assembly in the state, where Boeing now does most of its production. Boeing workers narrowly approved an eight-year contract extension, their union announced late Friday, in a move that will assure production of Boeing's new 777X aircraft in the Puget Sound area. The workers voted 51 percent to 49 percent in favor, responding to pressures from top union officials and Washington State lawmakers, who warned that Boeing might place 777X production elsewhere, potentially costing Washington more than 10,000 jobs. Washington's governor, Jay Inslee, said late Friday, "Tonight, Washington State secured its future as the aerospace capital of the world." Friday's vote, by members of the International Association of Machinists and Aerospace Workers, came after Boeing workers rejected a similar deal in November, 67 percent to 33 percent, because it contained numerous concessions, including a pension freeze and a modest raise. Many Boeing workers changed their stance and backed the deal after they saw Boeing solicit offers from other states. The company said 22 states had offered to assemble the 777X, some offering billions of dollars in subsidies. Boeing had promised to do final assembly of its planned 777X in the Puget Sound area and assemble the plane's composite wings there if the machinists approved the eight-year contract extension, which will be added to a contract running through 2016. With Friday's vote, Boeing is assured that it will not be hit by any machinist strikes through 2024. "Thanks to this vote by our employees, the future of Boeing in the Puget Sound region has never looked brighter," Raymond L. Conner, chief executive officer of Boeing Commercial Airplanes, said in a statement. We're proud to say that together, we'll build the world's next great airplane - the 777X and its new wing - right here. The new 777X would be one-fifth more fuel efficient and carry up to 400 passengers. The contract extension produced a bitter rift in the machinists" union. Local leaders opposed holding another vote, saying the revised deal was not different enough from the rejected deal. But R. Thomas Buffenbarger, president of the parent union, ordered a new vote, fearing Boeing would move assembly to a right-to-work state where it might be hard to unionize new workers. Officials at the parent union expressed concern that Boeing would lay off thousands of machinists in Washington once production of the 777X replaced that of the 777. To persuade union members to approve the revised deal, Boeing, pushed by the parent union, agreed to add a $5,000 one-time payment to each worker, in January 2020, on top of the $10,000 signing bonus it had previously promised upon ratification. In the biggest revision, Boeing agreed to preserve the current six-year progression it takes for new employees to reach full pay. In the earlier deal, that would have taken at least 16 years. Most of the 31,000 machinists eligible to vote were in Washington, but some worked in Oregon and Kansas. Many machinists bridled at approving a contract extension that contained a pension freeze and other concessions at a time Boeing had record profits and a record order backlog. Boeing said its strong earnings resulted from pricing on planes ordered years ago. It warned that its airplanes are now being sold at significant discounts. A Boeing official wrote to workers saying that, despite the concessions, they would still "receive market-leading wages and benefits." Many have base pay of $70,000 a year, with some earning $100,000 with overtime. Emma G. Fitzsimmons contributed reporting.