In 2003, Boeing opened bidding between states for final-assembly work on its 787. Washington won by slashing benefits for unemployment and injured workers, and by granting the single biggest tax break in the history of this state -- or any other state.

In 2009, Boeing was back. As in, "What have you done for me lately?" Although it has yet to decide whether to add another 787 assembly line (or even produce a single 787), Boeing told lawmakers that it might, that location is a choice, and that its assembly work may move to an anti-union "right-to-work" state in the South. Legislative hand-wringing immediately commenced -- with nary a soul asking, what exactly was Washington promised in 2003?

What did Boeing want this time around? At the top of the list was to kill the Worker Privacy Act. Since its workforce is already mostly unionized, Boeing’s apparent motivation was to help its growing list of contractors avoid unionization so their workers don’t demand what Boeing workers used to get to do those jobs. Democratic leaders obliged in killing the WPA. Leaving no doubt about the real reason it was killed, Gov. Chris Gregoire said, "I made it clear... that if the bill applied to Boeing, it will not get past my desk."

Boeing also wanted to prevent permanent benefit increases from being included in SB 5963, the Unemployment Insurance tax cut. Again, despite compelling arguments and public pressure for a balanced approach (see Page 1 story), Democratic leaders joined Republicans in granting employers a tax cut worth hundreds of millions, while blocking benefit improvements.

In addition, Gregoire ordered an analysis of how Washington stacks up against other states in terms of business competitiveness on the costs of unemployment insurance, workers’ compensation, taxes, and labor. Deloitte Consulting -- whose major clients include Boeing -- was hired.  (In 2003, Deloitte recommended a multi-billion tax break for its client, and its client got it.)  Predictably, the 2009 Deloitte study says Washington compares poorly with other states and recommends cutting benefits for unemployed and injured workers, and granting more aerospace tax incentives. Déjà vu.

After the session, Gregoire established a new 12-member Washington Council on Aerospace to recommend what else the state can do to retain aerospace jobs. The panel includes legislators, business executives and representatives of Boeing’s two biggest unions, Machinists District 751 and SPEEA/IFPTE 2001, both of which are WSLC affiliates.

Stay tuned to see what this panel recommends.