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Locke praises combined effort that helped keep Boeing at home

By Luke Timmerman
Seattle Times business reporter

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At Locke's urging, the Legislature enacted a $3 billion tax cut over 20 years for Boeing and the aerospace industry if the 7E7 is built here, while avoiding an increase in business taxes during a budget crisis. It raised gas taxes for transportation improvements, overhauled the unemployment insurance system to save businesses money, and clamped down on workers' compensation claims.

Yesterday, Locke stuck to what he's been saying for months: Without all this, the 7E7 would have gone elsewhere and, in a domino effect, could have spelled the gradual end of commercial airplane building in Washington.

"We said we're not letting Boeing leave — not on our watch," Locke said. "This serves notice to companies all over the world that Washington is definitely open for business, and family wage jobs. Open for business in ways we've never been before. Today a new era begins. A new era for Boeing and Washington state. We're strategic partners."

Locke singled out his economic development director, Martha Choe, who choked up when he described her as "tireless" in crafting the state's 7E7 proposal to Boeing, refining it, explaining it and selling it.

Choe likened the 7E7 sweepstakes to a "an eight-month-long finals week" and exulted, "Oh, how sweet it is." She said she was personally invested in what she called "the biggest economic development challenge in decades," pointing out her father was recruited by Boeing from the East Coast to Washington — the reason why she grew up and put down roots in the state.

U.S. Rep. Norm Dicks, D-Bremerton, one of Boeing's closest friends in Congress, teased Locke about how ineffective he once considered state government to be.

"I must say for many years, governor, I've been a critic, saying, 'Do they ever get anything done in Olympia?' Well, you got something done that will be remembered in the history of this state. This was your finest hour," Dicks said.

For some, the announcement was a bit anticlimactic because of previous published reports that Boeing's 7E7 team had decided on Everett. Charles Bofferding, director of the Boeing engineers union, compared it to the excitement surrounding a baby's birth, because "you know it's going to happen, but you're still excited when it does."

But U.S. Sen. Maria Cantwell said she wasn't so sure. Four days ago, she said a fellow senator from the South assured her that Boeing would assemble the plane in one of the Carolinas.

In an interview, Cantwell said the morale boost from the announcement will be the opposite of the pain the region felt when Boeing moved its headquarters out.

"This was an open evaluation and competition and Puget Sound came out on top," she said. "It's a big day for Puget Sound."

U.S. Rep Rick Larsen, who represents the area around Everett, said he's seen multiple "For sale" signs on houses when he's been out doorbelling, from people who've lost Boeing jobs. He said the 7E7 announcement is a moment that could turn the tide, with workers feeling more secure about their futures in commercial airplanes.

"You don't have to sell your home. There's work right here in Washington state," he said.

U.S. Rep. Jim McDermott of Seattle had a different view, saying he believed the decision was "never in doubt." There was no way the company could walk away from the skilled workforce that has been built up in the region, because it's so hard to replace. "If this was making hamburgers, you could probably move it to South Carolina."

But Mark Blondin, District 751 president of the Machinists Union, which represents Boeing production workers, said he never considered the company to be bluffing. He thanked Locke for putting himself on the line.

"We had business leaders, labor leaders, economic development people, mayors, county executives, our governor, our Legislature all in the same room," Blondin said. "We put them all in a room and said we can do it. Let's do it. Build this airplane in Washington and create jobs. We did it. I'm proud to be part of this group. Let's do it again."

Don Brunell, president of the Association of Washington Business, said Boeing's decision is a "psychological victory" and a sign of the state's, and the country's, ability to hang on to some manufacturing jobs that are being lost to other parts of the globe.

"This is the first positive sign we've seen since 9-11," Brunell said. "The competitiveness of this state has improved a great deal."

Luke Timmerman: 206-515-5644 or ltimmerman@seattletimes.com

Copyright © 2003 The Seattle Times Company