Despite the highly successful rollout of the new jet, local union workers in Washington recently rejected a deal put together by Boeing and the International Association of Machinists and Aerospace Workers union.
Thomas Buffenbarger, the president of the International Association of Machinists and Aerospace Workers union, told Reuters on Friday that the union was now in “a precarious situation” but the union does not intend to approach Boeing about further negotiations on the contract.
For its part, Boeing is looking at right-to-work states where labor costs are more competitive to build its new 777X production plant. The 777X project does not begin production until 2017 and the current machinist union expires in 2016.
Boeing offered to build the 777X plant in Washington had the machinist union approved an eight-year contract but is now looking into multiple alternative locations.