Boeing decision hinges on contract
Lawmakers say company seeks no-strike clause as it weighs site for 2nd factory
Staff and wire reports
SEATTLE — Unless Boeing Co. can win a long-term contract that bars strikes by its largest union, the aerospace company will build a second production line for its new 787 jetliner outside of Washington state, members of the state's congressional delegation say.
The machinists union, which represents production workers at Boeing, has struck the company four times over the past 20 years, most recently last fall for two months.
File/AP
Visitors crowd around the first production model of the Boeing 787 Dreamliner airplane in 2007 during a ceremony at Boeing's assembly plant in Everett, Wash. Boeing has purchased the North Charleston Vought plant, one of its key 787 suppliers.
"The whole thing comes down to, can they get a long-term agreement with the union, with a no-strike clause?" U.S. Rep. Norm Dicks, D-Wash., said in an interview with The Seattle Times on Tuesday. He added, "I think if they get this agreement, they would stay."
In a separate interview with the newspaper, Gov. Chris Gregoire said Boeing Commercial Airplanes CEO Scott Carson also told her recently the company wants a long-term, no-strike agreement with the machinists union.
Gregoire said Carson told her Boeing probably will decide on the location of a second 787 production line this fall, although he did not specifically link that decision and a no-strike agreement as an ultimatum.
Machinists union District President Tom Wroblewski balked at the idea of setting aside the union's strike weapon.
"Take away our only power?" Wroblewski asked rhetorically. "I can't see ever taking our power away."
North Charleston, where major components of the 787 already are made, will most likely be a contender for that line, a Boeing executive told The Post and Courier this week.
On Tuesday, the Chicago-based aerospace giant said it would pay $580 million for the Vought Aircraft Industries plant at Charleston International Airport, where Vought makes aft-fuselage sections for the long-delayed 787.
Read more
Aerospace Industry Competitiveness Study, prepared for Snohomish County, Wash. by Deloitte Consulting, April 2009 (38 page PDF)
Deliveries of the 787 have been postponed by nearly two years, partly because of problems with components made by suppliers, including Vought, and work that suppliers didn't complete. Those problems are expected to cost Boeing billions of dollars in added expenses and penalties.
Boeing is using suppliers from around the world to build large sections of the plane that are later assembled at the company's commercial aircraft plant in Everett, north of Seattle. Boeing has booked orders for a record 850 of the planes, though some 60 orders have been canceled so far this year.
Dicks, the third-ranking member of the House Appropriations Committee, has long been an aggressive Boeing supporter. He told The Times the labor ultimatum was laid out for him and other members of Washington's congressional delegation by "high-ranking people" at Boeing whom he declined to name.
Dicks also said that at a March meeting with Boeing CEO Jim McNerney, arranged by Gregoire and held in the Washington, D.C., office of Sen. Patty Murray, D-Wash., "McNerney was very candid."
"The message was that we need to get a resolution of this (strike) problem. We can't live with this," Dicks said.
He said Sen. Maria Cantwell, D-Wash., and most of Washington's U.S. representatives were present, as McNerney described how Boeing plans a detailed assessment of where to put a second 787 assembly line in an open competition, with Everett as only one option.
Boeing spokesman Jim Proulx said the company "can't comment on any conversations our senior executives may or may not have with government officials."
The International Association of Machinists and Aerospace Workers' current contract with Boeing expires in 2012.
Gregoire said that before Boeing decides on where to place a second 787 line, she plans to go to company headquarters in Chicago and make the case for the Puget Sound region before Boeing's board.
Gregoire said a no-strike agreement is an ambitious goal for Boeing, and is something that cannot be achieved through legislation. Dicks said any such agreement would have to involve some kind of binding independent arbitration of disputes between Boeing and the machinists.
Wroblewski said there have not yet been any extensive discussions on the subject.
"If we were to have these discussions, the company would have to come through with something, ... guaranteed employment of some sort," he said. "The trade-offs would be huge."
Vought production workers in North Charleston are represented by the machinists union. Boeing said it plans to negotiate a new labor contract with the union as part of its purchase of the local plant.
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mb300sl (anonymous) says...
Years ago unions were a good thing but now they seem to do more harm than good in many cases...
July 9, 2009 at 7:39 a.m. ( permalink | suggest removal )
Consequences (anonymous) says...
Before you pro and anti union bloggers go at it, need I remind you that Airbus is building the A320 in China? This is a June 23rd quote from China Daily; "The planemaker aims to deliver 10 more A320s this year from its factory at Tianjin, near Beijing, it said in a statement today." Let me see; Vought left Dallas and moved to Charleston. Why??? SC is a "right to work state", no union. Boeing is contemplating leaving the Seattle area. Why??? They must have a reason and I will bet dealing with unions is high on the "reasons to leave list." Keep the "I" and "me" in your dealing with Boeing:..hello China or Mexico, goodbye to Boeing and US jobs. With your myopic vision, you are walking over the edge of a cliff. Give them reasons to stay or excuses to leave. Which does the union mindset offer?
July 9, 2009 at 8:38 a.m. ( permalink | suggest removal )
sdr35hw (anonymous) says...
"Take away our only power?" Wroblewski asked rhetorically. "I can't see ever taking our power away."
Wasnt this guy in Georgetown last week, rhetorically
July 9, 2009 at 8:53 a.m. ( permalink | suggest removal )
postman01 (anonymous) says...
I would love to see Boeing build such a production line here. We aren't infected with the union disease and therefore it would be a good arrangement for Boeing and the lowcountry.
July 9, 2009 at 8:57 a.m. ( permalink | suggest removal )
CHRISJIII (anonymous) says...
I hope that Boeing does come here we need the jobs. However I would not blame the workers unions as being the main problem. If it wasn't for unions we would all be slave labor.
July 9, 2009 at 9:17 a.m. ( permalink | suggest removal )
zekemire (anonymous) says...
Why can't a no strike contract be handled by legislation? BETTER YET, WHY NOT A NO UNION CONTRACT? UNIONS ARE A SCOURGE ON AMERICA AND NEED TO BE BANNED PERMANANTLY!
July 9, 2009 at 9:38 a.m. ( permalink | suggest removal )
icbmman (anonymous) says...
CHRISJIII, I agree that unions were once valuable organizations that prevented companies from taking advantage of their workers. I think they are obsolete now, and this is especially demonstrated with the climate of the current market place. Companies are moving their plants and HQs to the South, because the South is not wraught with as much union corruption.
The quote that sdr35hw provided says it all: "'Take away our only power?' Wroblewski asked rhetorically. 'I can't see ever taking our power away.'" Good night...it is ALL about power with these goons.
July 9, 2009 at 10:13 a.m. ( permalink | suggest removal )
Consequences (anonymous) says...
CHRISJ, I agree that labor unions redirected the way management deals with the rank and file. It also is the primary reason the big 3 are now in or near bankruptcy. So step back and ponder the consequences. Abuse of power by management or labor has a negative outcome. SC is a "right to work state." You can be a member of the union and I am not required to join. Because unions stopped abuse, it does not justify their abuse. If you elected to join a labor union, you don't have the right to infringe on my choosing to work when you decide to strike. The fact is that you will. You will cut my tires, vandalize my property, throw objects at me, and insult me. Most of all you will deny me the "pursuit of happiness." Our founding fathers stated that this is a right endowed to all men from our Creator. Labor unions will do these things; I have seen it first hand. When you mix a tablespoon of poison with a gallon of ice cream, you have a gallon of poison.
July 9, 2009 at 10:17 a.m. ( permalink | suggest removal )
Zod (anonymous) says...
Did everyone miss the portion of the article that said the Machinists UNION represents the workers of VOUGHT?
It's not the UNION that is the scourge. Ultimately, the union official will do whatever the membership decides. The membership in Seattle has the power to decide their own fate. And all too often, the membership will overvalue it's own existence.
One should really consider what they are saying when they say union's are a dated concept. Because what you are saying is that the South Carolina Department of Labor is your friend. Dollars to donuts, that very same person will say government very seldom does anything right. When the South Carolina Department of Labor is the topic, it is a very true statement. Just ask anyone who has dealt with the agency. When it comes to the aforementioned advocate for the workforce, you are on your own........ You and your attorney for hire of course.
July 9, 2009 at 10:54 a.m. ( permalink | suggest removal )
icbmman (anonymous) says...
Zod, the reason why I say unions are obsolete is because workers' rights were not maintained or regulated with government intervention at the turn of the 20th century. Now, many agencies (private and government) actually accomplish the work of unions. While I strongly encourage limited government, some government agencies have useful purposes, and having a labor department is good for limiting illegal practices and maintaining workers' rights and compensation.
Companies now have to provide a remarkable amount of transparency in their human resources side of their business. Paying workers $1.00/hour for work is not going to happen in this country anymore, since the job market demands a better salary, and low wages are considered bad press.
If a company is forthright and cares about hiring quality employees in this day and age, it will have to provide good salary and benefits. Why does a union need to provide a middle man for that to happen? All that does is escalate the costs...as we are seeing with GM and Ford, not to mention the political mess that unions create.
July 9, 2009 at 11:35 a.m. ( permalink | suggest removal )
Consequences (anonymous) says...
Zod, One side negative does not make the other side positive. This issue is not a two-sided coin. You do not need to choose between a labor union and SCDL. One can stand on their own. Become highly skilled, be productive, and display a positive attitude, be the model employee that makes management wish they had more like you. You will not need the lawyer, unions or SCDL.
Unions are not dated. They are alive and well. Manufacturing is dated and moving out of the US. Ask yourself why? I think it is the labor unions and government intervention/regulations. Repeat the behavior, continue to achieve the same results and suffer the consequences
July 9, 2009 at 11:36 a.m. ( permalink | suggest removal )
wheels2u666 (anonymous) says...
As a former CNSYD worker, i would love to see boeing move to this area , there are still plenty of good hard working skilled people in this area who would ensure boeing would be a success , that being said, the shipyard had unions we could not strike but before the Anti-union establishment say how worthless they are, there were plenty of instances where and abusive supervisor was kept in check of what he could do to an employer, i have worked for Lowes who do not have unions and have seen good people terminated just because they disagreed with upper mgmt, we've seen wal-mart sued by women and have to pay millions for job discrimination, Unions like the UAW and what just happened in georgetown are what cause or one cause that forces companies to move to mexico or eastern europe or china, its a global marketplace and unions should and have to change and be more flexible, a no strike clause would be a smart move for the boeing workers, a rejection would be a god-send to the charleston area, our legislatures , mayors , governor (ha) should be on the phone with boeing officials courting them every way this fine state of SC can,
July 9, 2009 at 11:59 a.m. ( permalink | suggest removal )
mat (anonymous) says...
As much as I'd like to comment on the anti-union sentiment this article is meant to stir up, I am more inclined to mention that Boeing has not actually made this proposal to the union.
And that information comes from the union.
http://blog.seattlepi.com/aerospace/a...
Good work, Post and Courier.
July 9, 2009 at 2:21 p.m. ( permalink | suggest removal )
st33lz (anonymous) says...
I disagree ... SC has horrible laws in place to support employee rights.
My father got into an accident at work and they won't make it right .. disability is the only thing protecting him at this point and they don't do or pay that much.
This would never happen with unions. Until you experience wrongful acts by an employer you have no idea.
SC is also a "will to work" state which gives employers all the leverage and employees no leverage.
July 9, 2009 at 2:57 p.m. ( permalink | suggest removal )
Rocks66 (anonymous) says...
Consequences,
"Unions are not dated. They are alive and well."
Hardly. According to the Dept. of Labor Statistics, union membership in 1983 was 20.1% of the work force. In 2008, it was 12.4%. Were it not for the explosive growth in the government sector, the declines would be even worse.
The unions in this country have done themselves in, and the recent travails and near-death experience of GM is proof-positive. You can sing the liberal mantra of "...all those bad U.S. companies sending jobs overseas..." all you want, but, in GM's case, outrageous union demands and shoddy build-quality were the main culprits. Moreover, the government's bail-out of GM and Chrysler (Chrysler finished dead-last in Consumer Report's reliability survey) will only serve to prolong the inevitable death of these two automotive anachronisms.
As to Boeing's future here, I would be shocked if we even make it to the Short List. Sliding crankshafts into a BMW is a long way from building subassemblies for an aircraft that will daily carry 300 people over the course of 30 years.
July 9, 2009 at 4:25 p.m. ( permalink | suggest removal )
Consequences (anonymous) says...
Wow Rocks66, I think you missed my point. Unions are not going away and the effects are just as you stated. They destroyed the steel industry in our country as well as the big 3.
I did not say the companies were bad; I say they have good reason to leave. Companies are failing and leaving because of the unions and government telling them how to run their business.
I do disagree with you on SC making the short list. The Gulfstream G5 in hand built in Savanna and is recognition world wide as the primer private jet in all of aviation.
Please read my previous comments and you will see I am anything but liberal.
July 9, 2009 at 5:16 p.m. ( permalink | suggest removal )
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