WTO Condemns Boeing For Millions In Tax Breaks/Illegal Subsidies > Might Shift Jobs To Arizona

Boeing might shift hundreds of Seattle jobs to Arizona By The Associated Press June 15, 2017 [see below]

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Here's an update:
Boeing Set To Relocate Support Unit To Arizona
By Angela Nhi Nguyen June 15,2017
One of Boeing’s business support units is moving to Mesa, Arizona.
Source: http://nwpr.org/post

From NWPR's post: Boeing’s Shared Services Group is set for complete relocation by 2020.

It currently employs around 3,000 people and has responsibilities like hiring and payroll.
Scott Hamilton is an aerospace analyst with Leeham Company.
His theory is that Boeing wants to move the jobs to the southwest and pay people less.

“I can only assume that this is to reduce costs in Washington state and move the work to a lower cost state,” he said.  
“Why Arizona? I don’t know.”
Here's a hint > might be losing the $800 Millions in "tax breaks" and illegal subsidies given away by Washington State that are being challenged by the World Trade Organization
- see below

SEATTLE — Boeing plans to shift another work group away from the Puget Sound region.

The Seattle Times reported that the company confirmed Wednesday the work shifting to Mesa, Ariz., could involve hundreds ofjobs

The changes will affect Boeing’s Shared Services Group, which employs about 3,000 people and provides support services to Boeing’s corporate and production units.

The unit’s leadership has initiated a review and has started to tell specific groups that their jobs could be moving.

The move is part of Boeing’s drive to cut costs, which is largely responsible for the loss of more than 18,300 Boeing jobs in the state since the most recent employment peak in fall 2012.

Boeing aims to complete the reorganization by 2020.

Source: The Register Guard

WTO upholds ruling against Washington’s tax reduction for Boeing

Originally published June 9, 2017 at 8:13 am Updated June 9, 2017 at 10:14 am

Source: Seattle Times

The World Trade Organization (WTO) reiterated Friday that Washington state’s business tax reduction, worth $800 million to Boeing through 2016, is an illegal subsidy. The U.S. will appeal, a process that will take about a year.

The World Trade Organization (WTO) on Friday ruled that the U.S. has suitably addressed all but one piece of the European Union’s case alleging that Boeing receives illegal subsidies.

As the years-long legal process enters its final chapters, the lingering trouble lies in the biggest slice of Washington state’s aerospace tax incentives.
A WTO panel adjudicating U.S. compliance with previous rulings found that, while all other Boeing subsidies have been remedied, the state’s aerospace business tax rate reduction — worth about $800 million to Boeing since 2004 through last year — remains illegal and must still be fixed

 

WTO condemns Boeing's non-compliance and new subsidies

Published on ASDNews: Jun 9, 2017

• WTO: U.S. failed to comply with rulings on massive illegal subsidies provided to Boeing
• Today's WTO compliance panel report finds Boeing subsidies causing Airbus to lose hundreds of aircraft sales with an estimated value of US$ 15-20 billion
• Illegal subsidies to Boeing have, over time, resulted in over US$100 billion in total lost sales for Airbus
• Harm to Airbus will only increase if dispute is pushed out further, in case of likely U.S. appeal

Today, the EU prevailed in demonstrating the continuing existence of a number of illegal subsidies, including R&D support provided by NASA and the Department of Defense (DoD), and the multi-billion dollar tax breaks from Washington State. The EU has also prevailed in demonstrating continuing adverse effects caused by some of those subsidies...
After the original ruling was published in 2012, the U.S. further increased their subsidies to Boeing, with measures such as the provision of incentives for the production of the 787 in South Carolina, U.S. Federal Aviation Administration funded R&D programmes, increased tax reductions from Washington State, and the award of additional NASA and DOD R&D funding and support. Today, the Panel agreed with the EU that it was correct for these additional measures to be included within the scope of the proceedings.
Source : Airbus, an EADS N.V. company (Paris: EAD.PA) - view original press release     
      





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