Rep. Kratky: Boeing will get no tax breaks, incentives unless jobs are created

In her latest newsletter, Rep. Michele Kratky, D-St. Louis, goes over the details of the Boeing incentive plan passed during last week's special session.

Last Friday the Missouri Legislature passed legislation to provide the Boeing Co. with up to $1.7 billion in tax breaks over the next 20 years if the company agrees to build its next generation Boeing 777X airliner in St. Louis. Missouri is one of several states vying for the 777X production line. Boeing had been expected to build the plane at its Seattle facility after the Washington Legislature approved $8.7 billion in tax breaks for the company over several decades during a special session in early November. Those plans fell through, however, after the local Machinists union overwhelmingly rejected a new contract that called for employees to make deep concessions on pensions and health care benefits. Boeing is expected to make a decision on the 777X in January.

 The incentives we passed here in Missouri are in addition to pledges from our local labor leaders in the construction trades and local Machinists unions agreeing to cooperate and negotiate with Boeing if indeed they select St. Louis for the production line. It's worth noting that the labor issues in Seattle which tanked the 777X deal in Washington State - dealing with pensions and health care costs - do not exist in St. Louis. Those exact same issues were successfully resolved between our local Machinists union and Boeing in 2012. 

 Boeing already employs about 15,000 workers in Missouri. An additional 8,000 jobs could be created in Missouri if the company decides to assemble the 777X in St. Louis. The company also could choose to manufacture components of the plane in Missouri for assembly elsewhere, which would mean 2,000 to 3,000 additional jobs. In addition to the permanent jobs at Boeing itself, putting the production line in St. Louis would also create thousands of temporary construction jobs and more work for company's local suppliers.

 It's important to note that no incentives or tax breaks will be awarded unless Boeing actually creates jobs here in Missouri. Boeing is expected to select its assembly site by mid-January.