$8.7 billion - Where is the accountability?
Missouri passes legislation granting tax
breaks to Boeing if the company expands
high-wage employment by 2,000. Boeing
announces it is moving 2,000 jobs from
Washington to St. Louis.
Four years after its first Boeing incentive
package, South Carolina passes a new
$120 million tax incentive package for Boeing to expand its North Charleston plant.
To secure this tax break, Boeing must create 2,000 new jobs in South Carolina.
Oklahoma provides aerospace tax credits based on a percentage of compensation provided to employees. Boeing announces it will move more defense work
Even in Russia, Boeing commits to $5 billion in design and engineering services.
Wage ceilings in
In 2012, more than 7,600 Washington
aerospace workers, or 7.8% of the
aerospace workforce, were paid in the
lowest two wage bands established by
the Department of Revenue (DOR), between $9-$15. That was more than the total employment combined of the Boeing
Auburn and Frederickson facilities.
Excluding Boeing, it amounts to 58% of
the workforce employed by aerospace
companies receiving preferential tax status who are barely getting by on aerospace wages. These workers use food
banks and public assistance to feed families and keep roofs over their heads.
In 2009, 4,310 aerospace workers – 5.5%
of the aerospace workforce, 22% of non-Boeing aerospace workers – were paid in
the lowest two wage bands.
The number of low-wage aerospace
workers is growing despite the public investment in aerospace skills training and
tax incentives for aerospace companies.
Good training and experience
but aerospace wages stay low
Miguel M., 9 years in manufacturing
(makes $13.84 per hour)
I have been there (AIM Aerospace) for
3 years. I hired in at $9.50 an hour and
am now making $13.84. Since AIM is an
aerospace company, we were hoping
the wages would be better than they are.
I am a lead assembler in the duct assembly area. I have been there training guys,
making sure the quality of work is good. I
have had special training to get certifications in pressure test in various areas of
the company so I’m pretty versatile with
what we need to do in the company. The
skill level is a lot more than the company
cares to admit we have.
The company thinks we are making
enough. We need to make more money. It is hard with a family to survive. I
have to work overtime to make ends
meet and use the food bank. I have
three different food banks I visit occasionally, but mostly one that I visit once
a week to supplement what we are
making. I work 10-hour days Monday-Friday and 5-8 hours on Saturday.
IAM 751 members supporting NW Harvest.
Washington lost aerospace
jobs after granting tax breaks
• 800 - 1,200 Boeing design and
research jobs moving from
Washington to research centers
in South Carolina, Alabama,
Pennsylvania, and Missouri.
• 777X wing and tail work goes to
• 777X tail work goes to China.
• More automation, with fewer workers,
planned for Everett wing plant.
• Flight simulators move from
Renton to Miami.
• A $12 billion stock buyback program is
launched, the largest in Boeing’s history.
• 1,000 Boeing in-production
customer service positions moving
from Washington to California.
• 2,000 Boeing defense jobs moving
from Washington to Oklahoma and
• Jobs continue moving from
Washington to India, Russia, the
Ukraine and elsewhere.
In earlier announcements: 777X detailed
design work will be outside the Puget
Sound region; 1,500 information technology (IT), 675 out-of-production, and
100 pilot jobs are moving out of state.
Other states tie tax incentives
to more jobs and good wages
South Carolina law requires Boeing to
create 3,800 jobs to secure $900 million
in state tax breaks for locating a 787 plant
in the state.
SPEEA members pack a meeting at Boeing Seattle - one of several held - to have questions answered about their jobs moving.
Watch for updates
Visit the SPEEA website for updates
during the legislative session.