Machinists to fight boeing over China plant

With an eye on the potentially lucrative Chinese aircraft market which has an estimated value in excess of US$1 trillion over the next 20 years, Boeing plan to open a facility in China which, among other things, will have the capacity to finish and paint 737s that will be built at the Renton, Washington facility. While a number of aircraft manufacturers are aiming to challenge Boeing’s duopoly with Airbus on the wide-body market, including a proposed joint venture between Russia’s United Aircraft Corporation (UAC) and China’s Commercial Aircraft Corporation (Comac), Boeing see the opening of a facility in China, which is still to receive approval from the Chinese government, as essential to remain financially competitive and a means to secure increased order numbers. Boeing and Airbus each supply about half of the aircraft fleet operating in China with Airbus’ share rising from 6% 20 years ago. Analysts have indicated that this increase was largely due to the plant it set up there in 2008 and which currently builds A320s.
However the news of Boeing’s expansion into China has been badly received by the Union representing over 35,000 Boeing workers who see any jobs not carried out by workers in Washington as a job lost. Boeing however have made it abundantly clear that expansion into China will not see jobs lost in the USA as a consequence. Another complaint is that last year Boeing and the Washington aerospace industry won USD$8.7 billion in tax incentives for locating work in the state and as part of the agreement, the machinists approved a contract extension that terminated their pension contributions.
Jon Holden, who is the President of the International Association of Machinists District 751 said “It’s a tough pill to swallow to see our jobs being used as bargaining chips to win orders when we gave up so much for supposed job security.” He continued “This is not simply about China. The company is creating capacity and capability outside the Puget Sound region,” adding “Those are our jobs.”