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CEO says Boeing committed to building 737s in Renton

by GLENN FARLEY / KING5 News

KING5.com

Posted on March 5, 2010 at 3:14 PM

Updated Friday, Mar 5 at 5:52 PM

EVERETT - Jim Albaugh, chief executive of Boeing Commercial Airplanes, said Friday the company is committed to making the 737 airliner in Renton for a very long time.

For more than 40 years, the Renton-built Boeing 737 was one of the most popular airliners in the world. But now it's getting competition. Canadian transportation giant Bombardier is building a new jet with up to 149 seats.

Speaking to KING5 News, Albaugh said the aircraft manufacturer wants to keep the 737 assembly line in Renton if it can reach agreements with its labor unions. For years it has been assumed that the 737 line would eventually be moved north to Everett, but Albaugh said that's not in the plans.

Albaugh said the company will make a decision later this year on whether to replace the engines on 737s with new-generation engines that have higher fuel efficiencies or build a new aircraft.

"We are going to re-engine or go with a new airplane," said Albaugh. "It would be crazy for us to walk from all the learning we have in Renton and go to another site... We've got to be competitive in how we build in Renton."

But even years before Boeing decided to move some of its Dreamliner production to South Carolina, the assumption has been that Boeing would move its 737 production to Everett.
 
Charleston is where Boeing will build three 787s each month, splitting production with Everett. Albaugh says this isn't going to happen on other programs.

"But do we have a strategy where we have two lines everyplace? That's not a strategy we've talked about. That's a strategy that would cost us a lot to implement," he said.

But the company's new plan to keep more jet building in-house is still contingent on labor peace with the Machinists Union.

The company and the union have about two-and-a-half years to figure that out.

Jim Albaugh, who used to run Boeing's military business, says if Boeing wins the contract to build the new tanker for the Air Force, most of the work would take place in Everett, including installing refueling booms and other military hardware.

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Comments: Displaying 1 - 12 of 12

yessir said on March 6, 2010 at 11:20 AM

yes... short sighted indeed... to believe corporate self interest (greed) left unchecked by the balance of a labor movement will not lead to a tremendous backslide in wages, working conditions, and workplace safety is utter folly of thought. It's one thing when you hear a CEO from a major corporation ranting the talking points of anti-labor theology... after all... that's part of of their negotiations strategy.... but when you hear some bloke who's a member of the working class himself trying to spout it out? There is the height of foolishness. Great Americans gave their heart, sweat, and even their lives to achieve the labor rights Americans now enjoy. Don't think for a moment it can't all slip away if we listen to the foolish chatter of the politically benumbed.

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factoid said on March 6, 2010 at 10:08 AM

Hey 'jackwong' where does it say "Boeing secured in Washington State". Boeing will move when cost of doing business here is higher than the costs associated with moving away. They already have one foot out he door. So, to all the union guys that want to strike, go ahead, to all the folks that want to raise taxes on business, go ahead. Then afterwards you can help Boeing pack. What a short sighted society we have become.

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yessir said on March 5, 2010 at 6:54 PM

It's always amusing when people say "unions used to be a good thing", as if somehow corporate America has now learned its labor lessons and will continue to treat workers with respect and dignity once organized labor has been abolished. Yet even now, as we note those infamous "right to work" states where workers are making dramatically less in wages, have disparagingly low benefits, work more hours, for less pay, with no voice to change any of that, we still here people trying to say "unions bad". You live under some delusion corporate America will take good care of you when there is no true worker representation? You think the gains the greatest generation fought for not only on the battlefields of the world, but in the labor struggles in our own nation will not back slide once the dunces have given away their labor voice? Ah then... well you deserve what you get.

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carlconstantine said on March 5, 2010 at 6:42 PM

noskills - I totally agree with you. Boeing Machinists are such cry babies! They strike anytime that Boeing tries to do anything without giving them unmerited raises and bonuses. In Texas, Boeing would have workers that would work much harder for less pay and they wouldn't complain at all. There was a time that labor unions were a good thing. Now they are just dead weight, since many companies have union and non-union employees and the non-unions employees are far more respected and often work much harder than union workers. Labor unions nearly killed GM and if this becomes an issue with Boeing, I hope that the company will pull completely out of the state in order to stay strong without dead-beat workers & labor unions.

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noskills said on March 5, 2010 at 5:38 PM

My biggest complaint with the Union is that it breeds laziness. Hard working individuals get laid off because they have less seniority then some lazy worker who has been there 20 years.

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graham said on March 5, 2010 at 5:14 PM

How sweet of him

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runningtenbeers said on March 5, 2010 at 5:09 PM

To Boeing, stop with your threats to move if you don't get a labor aggreement, your 2016 vision is already in place where the 737 will be built, you can maybe fool the public, but for puget sound workers we know it's going to move because your management is running the company into the ground, try disciplining the lazy people who sit and walk around doing nothing (you know who you are, race card lovers), why don't you just put the union on your payroll your all in collusion anyway, so my point is just move who cares anymore, it's to the point where it's just blah blah blah, take back control and make put the company back at number 1 instead of behind Airbus....

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noskills said on March 5, 2010 at 4:12 PM

Most workers in this state would be happy with Boeing pay and benifits. Too many Boeing workers have no idea what everyone else pays and what benifits they offer. If they did they would be happy with what they got.

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yessir said on March 5, 2010 at 4:08 PM

blankingout says this in every boeing news related blog...just an effort to stir up anti-union sentiment on their part. Standard sarcastic negativity on these blogs... nothing more.

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jackwong said on March 5, 2010 at 4:06 PM

With Boeing secured in Washington State, we'll hold them to it. We can now definitely consider the much needed state income tax without much retribution.

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jamey said on March 5, 2010 at 3:49 PM

@ Blank - IAM will NEVER be happy until Boeing executives are making less than the rank and file. Until the rank and file start comparing their wages and benefits to industry standards instead of Executive pay, Boeing will continue to search for a "more favorable business climate" to locate their production lines. Start working with Boeing management rather than against them and there may still be a Boeing footprint in the Puget Sound area 20 years from now. Otherwise, right to work state (like South Carolina) or Outsource Vendors, here Boeing comes.

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blankingout said on March 5, 2010 at 3:21 PM

If they will raise our income rates 2%, we will be happy, otherwise it's STRIKE!

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