Economy increases Boeing’s clout

Washington politicians busy catering to firm

? In the past two years, Boeing has moved its headquarters from Seattle to Chicago and cut nearly 35,000 workers.

Yet, in Washington state, the epicenter for every Boeing boom and bust, the company’s clout only seems to grow.

In a down economy, Boeing’s souring financial health — coupled with a willingness to go where the grass is greener — has become one of its biggest assets in securing big political wins in Washington state.

“A recession is not a comfortable environment for politicians,” said Dick Conway, a Seattle economist and co-author of the Puget Sound Economic Forecaster. “Politicians have to look as if they are trying to do something about the recession.”

They’ve been busy.

This year, Washington state’s congressional delegation pushed for a $17 billion contract from the U.S. Air Force for Boeing to provide 100 converted 767 jets as refueling tankers. But even that mega-deal, now under review by Congress, won’t mean any new jobs, Boeing has said. It would only help to preserve jobs.

Legislators also have been scrambling at the state level. In the past session, legislators passed overhauls to the unemployment tax and workers compensation laws at Boeing’s behest.

Even when Boeing doesn’t ask, it receives.

Boeing, which builds all but one of its commercial jets in Washington state, is considering alternative sites to build its proposed super efficient 7E7 jet. Communities around the country have submitted bids, dangling incentives to lure the aerospace giant.

Washington overwhelmingly passed a package of tax incentives worth $3.2 billion over 20 years if Boeing commits to building the 7E7 in the state. It’s the largest package of tax incentives in Washington’s history.

Ron McGaha, of the International Association of Machinists and Aerospace Workers, speaks at a rally at Boeing Field in Seattle. Washington Gov. Gary Locke, right, listens during the June 20 rally. In the past two years, Boeing has moved its headquarters from Seattle to Chicago, and cut nearly 35,000 workers, yet in Washington state, the epicenter for every Boeing boom and bust, the company's clout only seems to grow.

With all that politicians brought back for Boeing, it would seem that Boeing’s response — announcing another 5,000 job cuts, mostly in Washington state might elicit some backlash. Instead, state officials were clear to finger the economy, not Boeing, as deserving the blame.

“No one wants more layoffs,” U.S. Sen. Maria Cantwell, D-Wash., said in an e-mailed statement. “Boeing workers should be in the assembly line, not the unemployment line. This disappointing announcement highlights exactly why we need to continue creating opportunities for Boeing workers to do what they do best — build the world’s greatest commercial and military planes.”

Boeing spokesman Chuck Cadena noted that the troubles for the commercial aviation industry since the Sept. 11 terror attacks have been clear to everyone.

“Certainly having to announce additional layoffs was a painful decision,” he said. “But we sometimes have to make these decisions with an eye on ensuring the long-term success of The Boeing Co. and make sure we are doing the things that will perpetuate the business to the benefit of community and the state.”