Boeing-Union Duel Pits Pensions Against 777X Output Risk

Boeing Co.’s long-term production plans for its new 777X aircraft and three other jets are at stake in a showdown with its largest union that pits worker pensions against the planemaker’s appetite for risk.

Assembly of the 777X, its composite wing and other major parts would stay at Boeing’s Seattle-area industrial hub if Machinists union members agree to freeze their retirement programs, Doug Alder, a spokesman, said by e-mail. Boeing also would continue making the 737 Max, KC-46 military tanker and P-8 submarine hunter in the Pacific Northwest for a decade.