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June 19, 2009


June 18: WSLC VP Ocobock laid to rest

June 17: Cantwell cool to public health plan

June 16: WSLC '09 Convention Aug. 6-8

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Friday, June 19, 2009 


Boeing tanker should get a fair shake this time

Last year, the Defense Department tried to outsource 44,000 jobs -- and a defense contract worth as much as $100 billion to build the Air Force's new aerial refueling tanker -- to French company EADS. (Meanwhile, European governments have barred U.S. companies from bidding on European Union military contracts.) Our own U.S. trade representative has sued EADS before the WTO for violating international trade laws. The tanker contract is the worst example of a Pentagon procurement process that seems blind. Defense Secretary Robert Gates is taking steps toward acquisition reform, but the proof will be in the pudding. Read more.

 

More Boeing news: 

►  UPDATE -- The entire staff of WSLC Reports Today will appear this Sunday on KING-5 TV's "Up Front" at 9:30 a.m. and on NW Cable News at 8 p.m. to discuss Boeing's future here.

►  In today's Everett Herald -- New signals that Everett may lose second 787 line -- Avoiding labor strikes seems to be a major factor driving Boeing's choice. IAM District 751 President Tom Wroblewski, whose union is hoping to set up a more positive tone to their relationship with Boeing, says members are focused on proving they're the most qualified workers to build Boeing jets. The Machinists pitched in to help out when Boeing's global suppliers stumbled on the 787, shipping incomplete structures to Everett for final assembly.

►  In today's Seattle Times -- Strike won't fly at Boeing if Machinists want to keep 787 here (editorial) -- Boeing is signaling that unless it gets a no-strike assurance from the Aerospace Machinists, a second production line for the 787 will be in some other state, probably South Carolina. This is an accommodation with modern business that most of America's successful unions made decades ago, and it needs to happen at Boeing now.  

►  In today's Everett Herald -- Boeing to issue pink slips to 150 (brief) -- The company will issue 60-day layoff notices today to 150 workers in the Puget Sound region.

J.D. Crowe cartoon -- Click to enlarge►  At SeattlePI.com -- Frankentanker bride? Ouch. Boeing 777 tanker gets cartooned -- An Alabama editorial cartoonist drew this cartoon in response to Boeing's announcement this week that it is considering offering a 777 version of its tanker. During the competition last year, an anonymous cartoon surfaced calling Boeing's 767 tanker a "frankentanker" because its parts were made in different places and countries.  

  

Health care reform: 

►  In today's Washington Post -- Senate's draft bill calls for most to buy insurance, nixes Obama's 'public option' -- The document addresses none of the funding questions, but it includes an array of coverage provisions that were drastically scaled back from earlier versions, as lawmakers seek to shrink the bill's overall cost. For instance, it reduces the pool of middle-class beneficiaries eligible for a new tax credit meant to make insurance more affordable. The absence of a "public option" marks perhaps the most significant omission.

►  Today from AP -- House eyes new taxes as Senate pare health bill --  House Democrats have lots of potential targets for higher taxes as they aim to expand health care coverage. Under consideration are higher alcohol taxes, increases to the Medicare payroll tax and a value-added tax, a sort of national sales tax, of up to 1.5 percent or more.

 

Unemployment news: 

►  In today's Olympian -- Unemployment compensation to increase -- A 3.4% increase in the state's annual average wage will result in higher unemployment benefit checks this year. Starting July 5, the minimum weekly benefit will increase to $133 and the maximum benefit will rise to $560. Including temporary federal stimulus dollars, which expires at the end of the year, the minimum benefit will increase to $225 and the maximum benefit will rise to $630.

►  From AP -- Jobless people exhaust benefits -- The number of Americans receiving benefits has finally fallen, but that doesn't necessarily mean more companies are hiring. More workers have exhausted their standard benefits, which last 26 weeks. The proportion of recipients who used up their benefits in May topped 49%, a record.

 

News from Olympia: 

►  In today's News Tribune -- Governor to set state "hiring cap" -- Gov. Chris Gregoire plans to order another round of state government spending cuts after Thursday’s revenue forecast showed the state will almost run out of money by mid-2011 unless reductions are made. The governor will tell state agencies to cut their payroll costs by about 2% to trim $200 million to $250 million in state spending. Basically, the governor will be imposing a “hiring cap.”

 

Local news: 

►  In today's Tri-City Herald -- Sen. Murray seeks $12 million for PNNL -- Sen. Patty Murray has included $12 million for the Pacific Northwest National Laboratory in the 2010 Homeland Security Appropriations bill. The money will go toward PNNL's relocation out of facilities that are being decommissioned and demolished as part of the Hanford 300 Area cleanup. Funding for replacement facilities will preserve 800 to 900 jobs in the Tri-Cities, Murray says.

►  At TheNewsTribune.com -- Federal stimulus can pay for bus drivers, as well as buses -- Many transit agencies have been planning layoffs, staff furloughs, and significant service cuts because of the strain on their budgets. Sen. Patty Murray is inserting language to allow these agencies to use up to 10% of the billions in stimulus funds they receive for operating costs.

►  In today's Tri-City Herald -- Possible record-breaking cherry harvest under way in Mid-Columbia -- Washington's crop is projected at 200,000 tons. That would be 19% larger than the previous record of 168,000 tons in 2006. Farmworkers appear to be plentiful, says one orchard owner.

►  In today's SeattlePI.com -- City reluctantly argues for release of gay employees' names -- The City of Seattle and a self-described "civil rights leader" seeking the release of the names of gay and lesbian city workers involved in a city-sponsored club have lined up on the same side.

►  In the Daily World -- Teamsters will audit Ocean Shores' general fund -- The mayor will allow the union to do an audit in the wake of the city’s request for concessions from the union.

►  In today's Seattle Times -- Nickels, firefighters agree to disagree over labor protest -- Providence, R.I., firefighters say the Seattle mayor crossed a picket line. Nickels says he didn't, as there was no labor stoppage and he didn't physically cross because his hotel was adjacent to the convention center. The protest prompted the Obama administration to skip the event. Kenny Stuart, president of the Seattle IAFF union, says Nickels is not off the hook, but that the local has decided that would take the focus off the Providence labor dispute.

 

National news: 

►  In the USA Today -- Firefighters see cuts eroding public safety -- Thousands of firefighters across the country face possible layoffs this year due to city and county budget cuts. "Whatever you do that results in increasing response times (to fires), you are absolutely playing Russian roulette," says Harold Schaitberger, head of the International Association of Firefighters (IAFF). 

►  From AP -- Obama says immigration overhaul is essential --  The president tells a gathering of Hispanics that U.S. borders must be strengthened to thwart illegal immigration, but he also says the millions who are now in the U.S. illegally should have the chance to become citizens. He said they must pay a fine and taxes, learn English and "go to the back of the line" of people trying to enter the United States.

►  In today's NY Times -- A move to put the union label on solar power plants -- Some developers say they are being pressured to sign agreements pledging to use union labor. If they refuse, they say, they can count on unions demanding costly environmental studies and delivering hostile testimony at public hearings. 

►  In today's Wall St. Journal -- CEOs of bailed-out banks flew to resorts on firms' jets -- Flight records show numerous occasions when banks receiving federal money have flown their planes to destinations near resorts or executives' vacation homes.

 

FRIDAY, JUNE 19, 2009
Boeing tanker bid should get a fair shake this time

The following guest column by Richard Michalski, vice president of the International Association of Machinists and Aerospace Workers, appears in today's edition of The Seattle Times:

Last December, as many of our most important financial institutions were crumbling in a kind of Wall Street Tower of Babel, hotshot money manager Bernard Madoff was arrested for operating the largest-ever Ponzi scheme, a $50 billion shell game that wiped out his biggest investors.

Amazingly, a whistle-blower has since testified that he presented overwhelming evidence of Madoff's scam to the Securities and Exchange Commission for nine consecutive years — but the agency refused to investigate. The Madoff case raised a serious question: Which other government bureaucracies are neglecting to protect the American people from cheaters?

Unfortunately, recent history suggests the worst offender is the biggest agency of all: the Pentagon.

Last year, the Defense Department attempted to outsource 44,000 jobs — and a defense contract worth as much as $100 billion to build the Air Force's new aerial refueling tanker — to French company EADS. Our own U.S. trade representative has sued EADS before the World Trade Organization for violating international trade laws.

Experts noted that EADS' aircraft was also less fuel efficient and less flexible than the one offered by Boeing. The Government Accountability Office found "significant" flaws in the decision, ultimately overturning the contract award.

Why did the Pentagon tilt the scales in favor of a foreign company with a trade-outlaw reputation and a less capable aircraft? That question is about to take center stage, as the Pentagon prepares to rebid the tanker contract this summer.

In the Wild West of international commerce, EADS is a modern-day Jesse James. EADS has received tens of billions in illegal subsidies since 1969 from European governments whose explicitly stated purpose is to help EADS take business from U.S. companies and has, in the past decade alone, redirected 65,000 good-paying jobs from the U.S. to Europe.

While underwriting EADS' pursuit of Pentagon contracts, European governments have barred U.S. companies from bidding on European Union military contracts. As if that weren't enough, EADS repeatedly has been implicated in bribery of procurement scandals in an array of countries, from Saudi Arabia to Switzerland.

Equally frustrating, the Pentagon clearly chose the inferior refueling tanker. Compared with Boeing's KC-767, EADS' KC-30 is too large to land at key air bases and will allow fewer refueling props to be launched at any one time. It's also more vulnerable to attack and will cost taxpayers at least $30 billion in additional fuel costs.

The Air Force's own analysts previously stated that the KC-30 airframe would be too big to serve as an effective tanker. Increasingly, neutral industry experts have weighed in on Boeing's behalf.

The tanker contract is only the worst example of a Pentagon procurement process that seems blind.

Defense Secretary Robert Gates is taking steps toward acquisition reform, but the proof will be in the pudding. Will this summer's Air Force tanker procurement process be Exhibit 1 for a better, cleaner Pentagon — or the latest evidence that when it comes to defense dollars, cheaters continue to prosper?

 

Copyright © 2009 --  Washington State Labor Council, AFL-CIO