Published March 2001

Boeing, Everett deal allows company to expand
work force

By Bryan Corliss
Herald Economy Writer

EVERETT — The Boeing Co. and the city of Everett signed an agreement last month that allows the company to expand its work force here.

The deal allows Boeing to have 1,500 more workers and 1,000 new parking spaces at the Everett factory, raising the employee maximum to 35,000.

It also specifies how several million dollars, which Boeing already has paid the city in impact fees, will be spent.

The deal closely followed acknowledgement by Boeing Chairman and Chief Executive Officer Phil Condit that the company is studying closing its Renton plant and moving production of 737s and 757s to Everett.

However, city Planning Director Paul Roberts stressed that the agreement to lift the employment ceiling “has no bearing on whatever else Boeing is working on.”

The city and Boeing have been discussing increasing the “head count” — the number of employees allowed to work at the factory — since 1998, he said.

Spokesmen for Boeing have not explained why the company wants the increase.

Before the Feb. 1 agreement, the company was allowed to have 33,500 workers at the Everett factory.

There are about 25,000 workers at the Everett factory and about 8,000 at Renton, according to published reports.

The deal is the result of negotiations surrounding several million dollars that Boeing kicked into a fund in 1991 to pay for road improvements to alleviate traffic caused by commuters to the Everett plant.

The money was to be spent to improve highways surrounding the plant, but certain projects were shelved. Since then, Boeing and the city have been discussing what to do with Boeing’s contribution to the fund.

The agreement includes a list of projects to be funded in part with Boeing money. Improvements to Highway 527 top the list.

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