Boeing Seeks Union Bargain With Threat to Fly 777X South

A Boeing 777 at the company's production facility in Everett, Wash. Photograph by Patrick T. Fallon/Bloomberg

Boeing is using the threat of taking 777X production outside the State of Washington to help extract a longer-term contract from its machinists union, as well as incentives from the state. The contract, set to expire in 2016, could last a decade—if extended—and represents part of Boeing’s effort to keep costs of the 777X tightly curbed to help compete with a rival model from Airbus.

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