An artist’s rendering of the Boeing 777X, which will be built in Everett thanks to tax breaks passed by the Legislature in 2013.

An artist’s rendering of the Boeing 777X, which will be built in Everett thanks to tax breaks passed by the Legislature in 2013.

A consensus is growing that Boeing tax breaks need teeth

  • By Jerry Cornfield Herald columnist
  • Wednesday, April 13, 2016 2:40pm
  • Local News

The first time area aerospace Machinists tried to claw back bits of Washington’s ginormous tax break to the Boeing Co., they found themselves up against national leaders of their own union and the governor of the state.

The next time, they won’t.

Bob Martinez, the new international president of the International Association of Machinists and Aerospace Workers (IAM), is publicly backing efforts to redo the deal to tie the tax breaks with Boeing employment levels in Washington.

And Gov. Jay Inslee told members of IAM District Lodge 751 last week that he will work on the issue with them in 2017 — presuming he’s still governor.

It’s quite a climate change since November 2013, when Inslee summoned lawmakers into a special session to approve a deal waiving billions of dollars in future tax payments by the company if it built the new 777X jetliner in the state.

Boeing is doing just that in Everett.

But it’s also been bleeding jobs, starting literally when the ink dried on that tax break: 5,000 trimmed so far, with company execs warning another 4,000 could disappear this year.

In early 2015, the tally of lost jobs hadn’t reached the point where Martinez’s predecessors were acutely concerned.

When local machinists lobbied lawmakers on a bill linking tax breaks with jobs, they heard that a contingent, including former IAM international vice president Rich Michalski, had traveled from Washington, D.C., to Olympia to deliver a completely different message.

“They came out totally against the bill, and then they went around the campus and told everybody else in all four corners of the building the same thing,” said House Minority Leader Dan Kristiansen, R-Snohomish.

When Martinez took charge in January, he wrote lawmakers to let them know things had changed and that Machinists are now united.

“The IAM will speak with one voice in this matter,” he said in an email this week. “Protecting aerospace jobs in Washington state requires more than $8.7 billion in incentives. It requires strong legislation that holds Boeing accountable for preserving jobs.”

In 2015, Inslee didn’t embrace the workers’ legislative effort, either. He didn’t publicly oppose it. However, some union members thought the governor worked behind the scenes to keep it bottled up.

Inslee’s tune is different this year.

In early February, in an address to a crowd that included Boeing officials and aerospace executives, he cautioned of a future reckoning if the decline in jobs persisted.

“I don’t know that anyone has figured out the perfect answer to this problem,” the governor said. “But I do believe that some measure of future job accountability is worth considering, as maintaining and growing our aerospace industry is a priority that I know we all share.”

Last month, Inslee said he would “entertain consideration” of rewriting the 2013 deal, to put in job requirements.

Then last week, in his endorsement interview with District Lodge 751 members, Inslee said he would work on this issue with Machinists and union-represented engineers in 2017.

The Machinists’ political director, Larry Brown, also suggested to the governor, in a half-serious, half-joking way, that he call a special session to tackle the matter — just as he did to get those tax breaks passed in 2013.

“At what point, was my question, do we have time to wait until next year?” Brown said.

Political reporter Jerry Cornfield’s blog, The Petri Dish, is at www.heraldnet.com. Contact him at 360-352-8623; jcornfield@heraldnet.com and on Twitter at @dospueblos.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Local News

Irene Pfister, left, holds a sign reading “Justice for Jonathan” next to another protester with a sign that says “Major Crimes Needs to Investigate,” during a call to action Saturday, April 12, 2025, in Arlington. (Aspen Anderson / The Herald)
Arlington community rallies, a family waits for news on missing man

Family and neighbors say more can be done in the search for Jonathan Hoang. The sheriff’s office says all leads are being pursued.

Jury awards $3.25M in dog bite verdict against Mountlake Terrace

Mountlake Terrace dog was euthanized after 2022 incident involving fellow officer.

Northshore School District Administrative building. (Northshore School District)
Lawsuit against Northshore School District reaches $500,000 settlement

A family alleged a teacher repeatedly restrained and isolated their child and barred them from observing the classroom.

Everett City Council on Wednesday, March 19 in Everett, Washington. (Will Geschke / The Herald)
Everett council to vote on budget amendment

The amendment sets aside dollars for new employees in some areas, makes spending cuts in others and allocates money for work on the city’s stadium project.

Bryson Fico, left, unloaded box of books from his car with the help of Custody Officer Jason Morton as a donation to the Marysville Jail on Saturday, April 5, 2025 in Marysville, Washington. (Olivia Vanni / The Herald)
Books behind bars: A personal mission for change

Bryson Fico’s project provides inmates with tools for escape, learning and second chances.

Everett
Everett man, linked to Dec. 31 pipe bomb, appears in federal court

Police say Steven Goldstine, 54, targeted neighbors with racial slurs and detonated a pipe bomb in their car.

Signs in support of and opposition of the Proposition 1 annexation into RFA are visible along 100th Avenue West on Thursday, April 3, 2025 in Edmonds, Washington. (Olivia Vanni / The Herald)
Voting underway in Edmonds RFA special election

Edmonds residents have until April 22 to send in their ballots to decide if the city will annex into South County Fire.

Congress member Suzan DelBene speaks at a roundtable on Thursday, April 17 in Monroe, Washington. (Will Geschke / The Herald)
DelBene talks possible Medicaid cuts at Monroe roundtable

Health experts worry potential cuts to the program could harm people’s health, strain hospital resources and drive up the cost of care.

Everett officer-involved shooting leads to hours-long standoff at motel

Friday’s incident ended with SWAT members taking a man and woman into custody and the activation of the Snohomish County Multiple Agency Response Team.

Over a dozen parents and some Snohomish School District students gather outside of the district office to protest and discuss safety concerns after an incident with a student at Machias Elementary School on Friday, April 18, 2025 in Snohomish, Washington. (Olivia Vanni / The Herald)
Parents protest handling of alleged weapon incident at Machias Elementary

Families say district failed to communicate clearly; some have kept kids home for weeks.

Edmonds Mayor Mike Rosen speaks during a special meeting held to discuss annexing into South County Fire on Tuesday, Dec. 3, 2024 in Edmonds, Washington. (Olivia Vanni / The Herald)
PDC issues warning, dismisses complaint against Edmonds officials

The agency found that emails and texts from the city broke state law, but the minor violation didn’t warrant further action.

Jacquelyn Jimenez Romero / Washington State Standard 
Gov. Bob Ferguson during a media availability on April 1.
Ferguson criticizes Democrats’ $12B tax plan as ‘too risky’

The governor is still at odds with lawmakers in his party over how much revenue the state should raise to deal with a multibillion dollar shortfall.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.