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Gov. Nixon announces historic agreement among St. Louis construction labor councils to help win production of the Boeing 777X

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NEWS RELEASE ISSUED BY THE OFFICE OF MISSOURI GOVERNOR JAY NIXON

Gov. Nixon announces historic agreement among St. Louis construction labor councils to help win production of the Boeing 777X

St. Louis-area construction labor councils commit to a 24-hour work schedule without overtime to reduce costs and construction time

JEFFERSON CITY, Mo. – Gov. Jay Nixon today announced an historic agreement among St. Louis-area construction labor councils to work a 24-hour work schedule and forgo overtime to help Missouri compete for and win Boeing’s next-generation commercial aircraft, the 777X. In a letter to the Governor, the St. Louis Building and Construction Trades Council, the Eastern Missouri Laborers’ District Council, and the Carpenters District Council of Greater St. Louis committed to 24-hour work schedule without overtime during construction of Boeing’s facilities. This aggressive work schedule would double the number of work hours each week, triple the committed workforce, and reduce the construction time by at least a year. A copy of the letter is available here.

“Here in Missouri, building things is in our blood and this historic agreement demonstrates that when it comes to competing for game-changing economic development projects like the Boeing 777X, Missouri’s skilled workforce is one of the best advantages we have,” Gov. Nixon said. “By reducing the cost and time associated with building these facilities, this unprecedented commitment offers Boeing yet another very compelling reason to locate production of the 777X right here in the Show-Me State. Today it’s clear that the most highly-skilled, hardest-working labor force in the world is committed to doing whatever it takes to compete and win in the global economy. I applaud these organizations for recognizing the importance of this transformative opportunity, and for stepping up in an aggressive way to help us seize it.”

Missouri is among more than a dozen states competing for production of the Boeing 777X. To put forward a competitive response to Boeing’s Request for Proposal, the Governor has called the General Assembly into a special session to pass legislation to provide additional capacity of up to $150 million annually for large-scale aerospace projects under four of Missouri’s performance-based economic development programs: Missouri Works, Missouri Works Training, Missouri BUILD, and the Real Property Tax Increment Allocation Redevelopment Act. The total amount of benefits Boeing could earn would be based on the number of new jobs created and the wages of those jobs, the amount of new capital investment, and the cost of training workers to build this next-generation aircraft.

Under these programs, a project must demonstrate a net positive fiscal benefit to the state, before any incentives may be authorized. In addition, companies must invest and create jobs first before being eligible to defray these costs by keeping a portion of the revenue they generate. By retaining these existing safeguards and creating a separate cap to accommodate an aerospace project of this scale, Missouri can compete to win production of the 777X without jeopardizing other economic development projects or investments in public education or other vital services.

To meet the company’s workforce needs, Gov. Nixon’s administration is also working to finalize a consortium of area community colleges to train and certify thousands of additional graduates in aerospace and advanced manufacturing areas to grow a pipeline of highly-skilled workers for this project and others in this sector.

Boeing already has nearly 700 suppliers and vendors in 24 counties across the state. Production of the Boeing 777X would expand opportunities for these and other suppliers, creating jobs and growing local economies throughout Missouri.

State responses to Boeing’s RFP are due by Dec. 10, with a decision by Boeing expected by mid-January.

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