South Carolina plant
Boeing is reportedly investing $1 billion in its South Carolina plant, where it produces 787 Dreamliners, and plans to create 500 new jobs. The investment comes amid ongoing struggles and mass layoffs within the company, which has faced challenges in recovering production of its 737 MAX jetliner after a seven-week strike that involved 33,000 factory workers.
The confidence our customers have in our airplanes
Boeing executive Scott Stocker said, “I’m thrilled for this next phase of growth, which is made possible by our incredible teammates and the confidence our customers have in our airplanes.”
Reflects Boeing’s commitment
Stocker added, “This decision reflects Boeing’s commitment to the workforce, the 787 program and the community.”
The 737 MAX production
The 737 MAX production resumed recently, with Boeing holding about 4,200 orders from airlines eager to meet rising global air travel demand. The Federal Aviation Administration (FAA) limited production to 38 planes per month due to safety concerns, with analysts projecting an average production of 29 planes per month in 2025.
Allowing production to continue uninterrupted
Boeing’s decision to invest in South Carolina was partly influenced by the state’s “right to work” laws, which make union organizing more challenging. The South Carolina plant was not affected by the recent strike, allowing production to continue uninterrupted.
South Carolina Governor Henry McMaster
South Carolina Governor Henry McMaster said, “Boeing’s decision to expand in Charleston County further solidifies South Carolina’s position as a leader in the aerospace industry.”
Pro-business environment
McMaster added, “This significant investment and the 500 new jobs it will bring to the Lowcountry reflect Boeing’s confidence in our workforce and highlights the strength of our pro-business environment.”
Boeing is laying off 396 employees in Washington
Despite the investment, Boeing is laying off 396 employees in Washington state as part of a broader 10% workforce reduction, impacting approximately 17,000 jobs globally. A total of 2,199 workers in Washington will be laid off over the coming months, while additional layoffs will occur in Oregon, South Carolina, and Missouri.
Benefited from wage increases
The International Association of Machinists and Aerospace Workers (IAM) noted that non-union employees in South Carolina have benefited from wage increases and bonuses, asserting that union contracts positively influence all workers in the industry. The IAM secured a commitment from Boeing to build the next commercial airplane model near its Washington state manufacturing base.
Launches a new commercial airplane
The union stated, “If the company launches a new commercial airplane program during the agreement, the company commits to build the new airplane model here,” adding, “All final assembly, wing fabrication and assembly, major components, fabrication, and delivery operations will be IAM work.”
Standard wage increase
The union added, “In Boeing South Carolina, non-union employees have benefitted from this ratified agreement by receiving a 9% standard wage increase and a $12,000 retention bonus.”
Whether unionized or not
The union said, “This recent pay increase and retention bonus payout demonstrates how union contracts are a rising tide that uplifts all workers in an industry, whether unionized or not.”
Midair incident
Boeing’s recent challenges include a midair incident involving an Alaska Airlines flight, which prompted regulatory scrutiny and led to the departure of its CEO. Boeing previously stated, “As previously announced, we are adjusting our workforce levels to align with our financial reality and a more focused set of priorities. We are committed to ensuring our employees have support during this challenging time.”