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November 3, 2009


Nov. 2: Health reform Call-In Day Thursday

Oct. 30: 'One big step' to health care reform

Oct. 29: Boeing "doubles down on failed 787 strategy"

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Tuesday, November 3, 2009

 
Boeing decision "bad for company, employees and shareholders"

SPEEA Executive Director Ray Goforth says Boeing executives' decision to locate a second 787 assembly line in South Carolina "is bad for the company and employees and will ultimately be bad for shareholders." In a guest column in today's Seattle Times, he writes, "The 787 is a money pit, siphoning manpower and cash from the 747-8, Air Force tanker and other critical programs. Boeing Chicago's decision to outsource design, engineering and manufacturing failed. Instead of concentrating efforts to get the 787 back on track and in the air, Boeing leaders decided money is better spent setting up a new production line. This will further delay the profitability point of the 787 by nearly doubling capital investment." Read more.

►  From AP -- President Obama gets pro-Boeing message -- A bipartisan group of lawmakers want President Barack Obama to force the Air Force to include a recent WTO ruling against Airbus in its air refueling tanker decision.

►  Also today -- Air New Zealand picks Airbus over Boeing -- Air New Zealand has ordered 14 Airbus A320 aircraft to replace its existing domestic fleet of 15 Boeing 737-300s.

 

Crystal Springs Waters workers will vote Nov. 23 on unionizing

The drivers and warehouse employees with Crystal Springs Waters will be voting on Monday, Nov. 23 on representation with Teamsters Local 231, an affiliate of the Washington State Labor Council. The union reports that these workers are receiving a daily barrage of anti- union propaganda from union-busting consultants brought up from California. The Teamsters ask that all union members and supporters of workplace democracy, especially those of you who are clients of Crystal Springs Water, to reassure these employees about the benefits of having a voice at work, the right to collectively bargain and a union contract. Thank you for your support. 

 

Health care news:

Get ready for Thursday!

Download this flier and make plans to distribute it to your union's members for this Thursday's National Call-In Day on Health Care Reform. Learn more.

►  Today from AP -- House to take up health care overhaul this week -- The U.S. House of Representatives will take up a sweeping healthcare reform bill later this week, House Democratic leader Steny Hoyer says. "It is our intention either Friday or Saturday to have this bill on the floor," Hoyer tells reporters, adding that House votes could occur on Monday and Tuesday of next week as well.

►  In today's NY Times -- Senate pressing insurers on amount of premiums they spend on care -- The health insurance industry likes to cite figures showing that 87 cents of every dollar in premiums is spent on medical claims. But a new Senate analysis suggests that for-profit insurance companies are spending as little as 66 cents of each premium dollar toward doctor and hospital bills, while the rest covers administrative expenses, marketing and profits.

►  From AP -- Health care plan hits rich with big tax increases -- The House bill is funded largely from a 5.4% tax on individuals making more than $500,000 a year and couples making more than $1 million, starting in 2011. The tax increase would hit only 0.3% of tax filers, raising $460.5 billion over the next 10 years, according to congressional estimates.

►  At NYTimes.com -- Health bill worse than "terrorist," Republican says -- “I believe we have more to fear from the potential of that bill passing than we do from any terrorist right now in any country,” says Rep. Virginia Foxx (R-N.C.).

 

Local news:

It's Election Day: Mail your ballots by today!

The Washington State Labor Council urges all union members and their families to vote in today's important election, and to oppose Initiative 1033, to approve Referendum 71, and to contact your Central Labor Councils for information about labor endorsements in local races. Your mail-in ballot must be postmarked or delivered to a drop box today to count in the election. Check out your County Auditor's website for a list of ballot drop boxes in your area.

►  In today's Olympian -- New state agency for open records? -- A task force wants the Legislature should create a new Office of Open Records that can sort out disputes, giving citizens a place they can go – outside of court and costly legal actions – when their requests for documents are rejected or ignored by state agencies, cities, counties or other government jurisdictions.

►  In today's Olympian -- Olympia notifies 14 of layoffs -- The city employees were told Monday that they will probably lose their jobs in January, part of about 27 fulltime positions City Manager Steve Hall plans to eliminate next year in a massive reorganization of city government.

►  In today's Everett Herald -- Edmonds turns over firefighting duties to Fire District 1 -- The Edmonds City Council votes 6-1 to have Snohomish County Fire District 1 take over the city’s century-old fire department, approving a $6.2 million, 20-year contract with the fire district.

►  In today's Oregonian -- Sanyo Electric plant opens new solar panel plant in Salem -- Oregon's  investment -- nearly $45 million in tax incentives and grants -- hinges on Sanyo's success. Together, the subsidies total about $225,000 per job if the company employs 200.

 

Flu news:

►  In today's NY Times -- Lack of paid sick days may worsen flu pandemic -- Public health experts worried about the spread of the H1N1 flu are raising concerns that workers who deal with the public, like waiters and child care employees, are jeopardizing others by reporting to work sick because they do not get paid for days they miss for illness. Tens of millions of people, or about 40% of all private-sector workers, do not receive paid sick days, and as a result many of them cannot afford to stay home when they are ill. Even some companies that provide paid sick days have policies that make it difficult to call in sick, like giving demerits when someone misses a day.

►  In today's Olympian -- Budget cuts limit H1N1 flu response -- The springtime Thurston County budget cuts, which contributed to a more than 15% cut to staff in the Public Health and Social Services department, has affected the county's ability to provide mass vaccination clinics and has affected its pandemic flu response to the H1N1 influenza virus, department officials report.

►  In today's LA Times -- Shortage of flu vaccines leaves health-care workers vulnerable -- On the front lines of the H1N1 outbreak, tens of thousands of local doctors and nurses are scrambling to get vaccinated. One nurse says it's like "asking us to fight a war without protection."

  

National news:

►  At AFL-CIO Now -- Mediation board proposes democratizing airline, rail elections -- The National Mediation Board on Monday proposed changes to airline and rail election rules to mirror the rules that govern every other democratic election -- the outcome is decided by the side that receives the majority of votes cast. Under current rules, every worker who does not cast a vote is counted as a vote against forming a union.

►  From AP -- Rule would boost unions at airlines, railroads -- "The current rules embrace a veto by silent principle that is not only unfair, it is undemocratic," said Edward Wytkind, head of the AFL-CIO’s transportation trades department. "Just because a worker does not vote doesn’t mean he or she does not want a union; it just means he or she didn’t vote."

►  In today's LA Times -- Obama urges bold action to create jobs as economy gains strength -- Ford's surprisingly strong quarterly earnings and other upbeat economic reports contrast sharply with the rising U.S. unemployment that threatens the nascent recovery.

►  In today's Wall St. Journal -- Pensions for executives on rise -- Pensions for top executives rose an average of 19% in 2008, with over 200 executives seeing pensions increase more than 50%.

►  In the USA Today -- Philly commuters scramble as transit workers strike -- The strike by the Transport Workers Union will all but cripple a transit system that averages more than 928,0000 trips each weekday. The union had threatened to go on strike during the World Series. But over the weekend Gov. Ed Rendell ordered the union and SEPTA to remain at the bargaining table.

 

 

TUESDAY, NOVEMBER 3, 2009
Boeing decision bad for everyone

The following guest column by Ray Goforth, Executive Director of the Society of Professional Engineering Employees in Aerospace/IFPTE 2001, appears in today's edition of The Seattle Times. A local of the International Federation of Professional and Technical Engineers, SPEEA represents 24,950 aerospace professionals at Boeing, Spirit AeroSystems in Wichita, Triumph Composite Systems, Inc., in Spokane, Wash., and BAE Systems, Inc., in Irving, Texas:

BOEING'S DECISION TO ADD SECOND LINE IN S.C. BAD FOR EVERYONE
By SPEEA Executive Director Ray Goforth

Boeing's decision to build the second 787 assembly line in South Carolina is bad for the company and employees and will ultimately be bad for shareholders. In point of fact, employees own 10 percent of the Boeing stock, making them arguably the company's largest stockholder group.

The 787 is now more than two years behind schedule. This is largely due to Boeing's abandoning of a long-standing, successful design and production method. Corporate leaders bet the company's future on a new business model based on a far-flung chain of suppliers from around the world.

The concept was to hire other people to do much of the engineering and production work. Boeing employees would perform final assembly, and the company would keep the lion's share of the profit. This is the business model used for consumer goods such as tennis shoes and cellphones. It had never been tried for something as complex as a commercial aircraft. To compound the challenge, Boeing adopted this new "global integration" business model to build the world's first completely composite aircraft.

While Boeing raced to implement this new way to build aircraft, members of the Society of Professional Engineering Employees in Aerospace (SPEEA), IFPTE Local 2001, (which represents engineering, technical and scientific employees) explained in excruciating detail how it would not work for highly complex products like commercial airplanes. Further, SPEEA members told management it would clearly not work to develop a new aircraft based on developing technology.

SPEEA released a formal study in 2002 accurately predicting each and every major problem the 787 program has experienced.

Nonetheless, our message to Boeing is not: "SPEEA told you so." Rather, the message from engineers and technical workers is: "Boeing, you are about to make the same mistake again by spreading limited resources to build a second assembly line."

The 787 program is in trouble for a variety of reasons but the most obvious are quality control and coordination problems arising from Boeing's fragmented supply chain. Separating the production lines by 2,400 miles will only compound these problems and push the point of profitability on the 787 program out years beyond where it should be. Moreover, these added delays are a double-hit on Boeing. The company will be striving to financially "break even" on the 787 while it builds a new plant, trains a new work force and pays penalties — now estimated at $5 billion — to customers waiting for new aircraft.

Instead of generating profits, the 787 is a money pit, siphoning manpower and cash from the 747-8, Air Force tanker and other critical programs. Boeing Chicago's decision to outsource design, engineering and manufacturing failed. Instead of concentrating efforts to get the 787 back on track and in the air, Boeing leaders decided money is better spent setting up a new production line. This will further delay the profitability point of the 787 by nearly doubling capital investment.

The cost of labor for a project like the 787 is between 8 and 9 percent of the billions being spent on development. Increasing productivity is a much larger factor in driving profitability. Labor controls productivity. Experienced workers can drive a program along the learning curve and toward profitability much faster. An inexperienced labor force comes down the learning curve slower. Therefore, beating down labor costs is little help to Boeing's bottom line.

Thousands of dedicated Boeing employees continue to sacrifice family life to work long hours fixing the problems created by a far-flung supply chain and Boeing's disconnected leadership.

This latest shortsighted decision shows that despite what Boeing leaders say, the company is not yet ready to admit "global integration" failed. Until they do, Boeing employees everywhere will worry about their future and shareholders will wonder if the 787 will ever turn a profit.

 

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