Seattle-based Boeing Co.'s machinists on Friday narrowly approved a crucial labor contract that secured thousands of jobs and billions of dollars of economic activity for Washington state. The said contract, however, will cost workers their pensions.
According to a report by Reuters, Boeing workers' vote of 51% against 49% in favor of accepting the deal means Boeing will build its new 777X jetliner and wings in the Seattle area. Boeing has built aircraft in Washington for more than 90 years.
Had the workers rejected the offer, Boeing would have considered making the successor to its popular 777 widebody jet elsewhere. The aircraft company had received offers from 22 states interested in hosting the new factory, the report said.
In clinching the agreement, Boeing secured the location favored by analysts and investors, who saw far lower risk in using the factory and workers who now build the 777, Reuters wrote.
Boeing also ensured that the machinists won't have an opportunity to strike until 2024, when the new contract expires, the report said.
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