New Boeing deal could affect St. Louis jobs

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(KTVI) - Boeing and its machinist union have reached a tentative deal on a long term contract extension that could help save jobs by lowering the costs to make fighter jets.

The leadership of the machinist union is recommending that members accept the deal.  On comments in the summary of the proposed extension, union officials say significant layoffs are possible without a new deal.

One of the big issues at play is that production of the FA18 Super Hornet, which is built in St. Louis, could end in 2016.  And that could wipe out thousands of jobs here.  Production is also winding down on the F15 which is also built in St. Louis and the C-17 -- parts of that cargo plane are also put together here.

The new deal would run through July 2022.  The current contract is set to expire in January of next year.

Our partners at the St. Louis Post-Dispatch are reporting that the agreement would sweeten the buyouts for veteran workers and cut wages for many future hires.  Boeing hopes lowering labor costs will help it convince the Navy to buy more of the Super Hornets.

1 Comment

  • Maserati

    Really? The US Navy is buying the JSF at a cost of what…..120 million a copy, plus development and cost overruns? It’s a POS. The Superhornet cost is about 85 million a copy I’m guessing, and even a million a unit in labor savings isn’t going to influence buying….. so why the lies. It’s all BS. It’s really getting old…the threats of job loss, the lies about addityional procurment and the creation of jobs, the corporate tax breaks, the procurement of unnecessary billions of equipment not needed or wanted, etc.

    I’m in no way degrading Boeing. It’s a great company and was always great to its employees. The US government keeps insulting Boeing in contract awards in the last few years, and uses the US media to tarnish its products every chance it gets. It’s been very obvious, but I have no idea why they’re doing it. Want to really stimulate the economy? Pay 120 million for each F-18 instead of the junk JSF, with the extra 35 million being distributed strictly to support engineers and production labor to stimulatte the ecopomy through discretionary income in the area. No, ait….. that would make too much sense. Let’s just spend the money on alleged “next generation” junk (JSF), that will never be used and just a money pit for taxpayer money to stockholders and corporate officers. Let’s also buy some more F-22 Raptors at a quarter billion dollars apiece we’ll never use, so we can ground them with the rest of the Raptor fleet every other month as well. It’s a shame there is no money for schools and we have to close school districts, isn’t it? What a joke, a very sad joke.

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