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October 29, 2009 |
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Thurs
Boeing 'doubles down
on failed 787 strategy'
IAM
District 751 President Tom Wroblewski on Boeing's decision to build a
second 787 assembly line in Charleston, S.C.: "It’s now clear that Boeing was only using our talks as a smoke screen, and
as a bargaining chip to extort a bigger tax handout from South Carolina. ...
They didn’t want solutions, but only a scapegoat. Our seven-week strike
last year is not the reason the 787 is already more than 120 weeks behind
schedule. ... Boeing has decided to
double-down on its failed 787 strategy and place an ill-advised,
billion-dollar bet on a strategy that’s a proven loser.” Read
more, plus reactions from other labor and government leaders.
► In today's Seattle Times -- Machinists: We offered Boeing 10-year, no-strike deal -- Leaders and members of Boeing unions say the move smacks of union-busting and poor business sense. SPEEA's Ray Goforth says the company is already $12 billion in the red for the 787 (due to outsourcing and supply chain problems). Adding a new supply chain in a region without an established airplane manufacturing base can only slow the process further.
► In today's Seattle Times -- Machinists disappointed, call union "a handy scapegoat" -- "This is a company that makes decisions two, three, four years in advance," said John Scofield, a Machinist who works on final assembly for the 777. "The company used the negotiations to scare South Carolina into a sweeter offer. We make a handy scapegoat."
More Boeing news:
► In today's Seattle Times -- Boeing to recreate local plants in South Carolina -- By 2016, Boeing's East Coast complex will grow to more than 6,400 employees due to the decision to put a second 787 assembly line in Charleston, instead of Everett. It will include, on a smaller scale, the full range of airplane-making capabilities found at its Puget Sound-area factories.
►
In today's Everett Herald -- Why
Everett lost out on Boeing's second 787 line -- In the end, it just
wasn't enough. A long-term, no-strike offer from the union. A local training
center. More than $3 billion in state tax incentives passed three years ago.
► At SeattlePI.com -- Gregoire: "I'm angry"... Boeing "made wrong decision" -- "(Boeing's) Jim Albaugh made it very clear to me. 'This is not about workers' compensation, this is not about taxes from the state of Washington, this is not about you and your efforts or the Legislature and their efforts, because in fact they've been good efforts and we appreciate them... this is about negotiations with labor'.''
► In today's Seattle Times -- "We did all we could" to keep Boeing work, Gregoire says -- She says nobody was at fault and that Boeing told her there was nothing more the state could have done.
► In today's Everett Herald -- Politicians trade blame -- Rep. Mike Hope (R-Lake Stevens): “Gov. Gregoire and the majority party in the Legislature ignored the warning signs, and the price of Washington’s terrible business climate will be the loss of thousands of family jobs.”
► In today's Everett Herald -- Keep focus on future flight (editorial) -- Producing excellent airplanes is the best argument for Boeing to continue investing in jobs here, which it vows to do. Meanwhile, figuring out how to maintain a strong aerospace presence in this region is more important than ever before. Repairing a relationship is difficult, but the Machinists and Boeing have so many reasons to keep this long, fruitful partnership thriving, and flying.
► In today's Seattle Times -- Hutchison faults Gregoire, Constantine on 787 decision -- The Republican tries to connect Boeing's problems with the Machinists union to Dow Constantine, saying that his campaign has been funded by unions and claiming he is "beholden" to labor. She also faulted Gregoire, saying the governor walked a picket line with Machinists last year.
► In today's Seattle Times -- A wake-up call (editorial) -- The decision is made. The question now is, what next? The Machinists will have to defend all the work they have here. They cannot do it by going on strike. They will do it by being more accurate and dependable than workers in South Carolina. Washington's Boeing workers have the knowledge and education. They can do this.
Health care news:
►
Today from AP -- Pelosi:
New health care bill is "historic moment"
-- After months of struggle, House Democrats unveil sweeping legislation to
extend health care coverage to millions who lack it and create a new option
of government-run insurance. A vote is likely next week on the plan
patterned closely on President
Barack Obama's own.
► In today's Washington Post -- House health reform bill to include public option -- Pelosi's new bill will include a government insurance option and a historic expansion of Medicaid, although sticking points in the legislation involving abortion and immigration remain unresolved.
► In today's NY Times -- Pelosi backs off set rates for public option -- Under pressure from moderate-to-conservative members of the House Democratic caucus, Pelosi has decided to propose a government-run insurance plan that would negotiate rates with doctors and hospitals, rather than using prices set by the government.
Election news:
►
At TheOlympian.com -- Mainstream
Republicans oppose Initiative 1033 --"
As Republicans from communities all over Washington State, we believe there
should be reasonable limits on government spending. However, Initiative 1033
proposes an unreasonable and unworkable limit that punishes local
governments, locks in funding cuts for law enforcement, schools and other
important services, and weakens the ability of our communities to invest in
projects that would help attract or retain jobs in our state. We ask you
vote No on Initiative 1033 and reject Tim Eyman's ill conceived and
unreasonable proposal that will make already tough times worse."
Local news:
►
At AFL-CIO Now -- Shuler
in Oregon: The sharks we defeated are still circling
-- At the Oregon AFL-CIO convention, AFL-CIO Secretary-Treasurer Liz Shuler,
who got her start organizing in Oregon, speaks to hundreds of delegates from
across the state and encouraged them to start now on educating and
mobilizing union members. "There’s one thing we have to get right,
and that is to give the next generation hope. Fight for them, embrace them
and welcome them into our movement."
► In today's Tri-City Herald -- More Hanford workers could be compensated -- As many as 25,000 former Hanford building trades workers may have developed illnesses covered by the Energy Employees Occupational Illness Compensation Program, but less than 10% of those have applied for benefits, says a federal official.
► In today's Spokesman-Review -- Raha: State's recovery is here -- Washington’s top economic forecaster says the recession is over, for now. Arun Raha said a potential second “dip” is possible if consumers remain cautious and regional banks burdened with real estate and development debt cannot provide enough credit to support renewed economic growth.
National news:
►
In today's LA Times -- U.S.
economy returns to growth -- The gross domestic
product rose at a 3.5% annual rate in the third quarter. The expansion unofficially marks the end of the recession that began
at the end of 2007.
► From AP -- Jobless claims drop, but less than expected -- More evidence the labor market remains weak even as the economy recovers.
► At Huffington Post -- Democrats square off against Republicans on shareholders' rights -- In the debate over making it easier for shareholders to nominate board directors, Republicans side with the people who run the companies; Democrats with the people who own them.
► At AFL-CIO Now -- Rite Aid workers win big victory from NLRB -- In March 2008, nearly 700 workers at Rite Aid’s distribution center in Lancaster, Calif., overcame a vicious two-year anti-union campaign to gain a voice on the job by voting for ILWU Local 26. But they are still waiting to win a first contract. But it has been hard given the employers’ conduct. However, in a nod to justice, the NLRB has issued a complaint against Rite Aid based on its actions.
THURSDAY,
OCTOBER 29, 2009
Boeing 'doubles down on a failed 787 strategy'
The following
statement by Tom Wroblewski, President of International Association of
Machinists District 751, was distributed Wednesday afternoon following
Boeing's announcement that it will add a second 787 final-assembly line in
Charleston, S.C., instead of Everett:
October 28, 2009 -- "Boeing has betrayed our loyalty once again, walking away from our discussions just like they walked away from Seattle eight years ago to move to Chicago.
We tried very hard to reach an extended agreement with Boeing. We listened closely to what executives said, and suggested ideas to meet their needs. We offered concrete, real-world solutions.
More reaction
to Boeing's decisionSPEEA Executive Director Ray Goforth: "We are astounded that Boeing has chosen to compound the problems of the 787 program by further fragmenting the supply chain. There is no credible business case for this decision.” (read more) IAM International President Tom Buffenbarger: "This was all a ploy to paint us as the bad guys and to play their hand as hard as they could (for incentives from) South Carolina."
U.S. Sen. Patty Murray: "This is a disappointing moment for our state and for Boeing customers. We had an opportunity today to take a step toward workforce stability and a win for Boeing, our workers, and the state of Washington. I am disappointed that Boeing cut off negotiations and passed on a final chance to make this happen. ... It’s a shortsighted decision." (read more)
Gov. Chris Gregoire: "I'm angry. I hurt for the workers. I think the company made the wrong decision." (read more) The governor also said Boeing's Jim Albaugh "specifically said it's not about workers' compensation and it's not about state taxes. It's about the cost of salaries and benefits to the workers we have in Everett versus what we can pay in Charleston. And it's about having work stoppages that would be hard for their clients."
U.S. Rep. Jay Inslee said he "point blank" asked a "high-level official" with Boeing last week whether there were any tax breaks or changes in workers' compensation benefits that would convince Boeing to build the line here. "The answer was no," Inslee said.
State Senate Republican Leader Mike Hewitt: "We could have looked at more tax incentives. We could have fixed workers' comp for them. I think those are clearly good messages to send to someone like Boeing when we're in this kind of situation."
Boeing Commercial Airplanes CEO Jim Albaugh: "We are adding jobs in South Carolina, not taking them away from Puget Sound -- which is and will continue to be -- our center for design, flight test and manufacturing."
But I can tell you now, no matter what Boeing says or implies, the truth is this: We did offer Boeing a 10-year contract, and even offered to go longer than that. And when we did, they seemed stunned, and stopped talking.
It was obvious to me that Boeing wasn’t really interested in working with us. They didn’t take our proposals seriously and they never offered any proposals of their own. Most of the time, they didn’t even take notes.
It’s now clear that Boeing was only using our talks as a smoke screen, and as a bargaining chip to extort a bigger tax handout from South Carolina.
I haven’t reported this before -- not to our members and certainly not to the media -- because Boeing had asked for confidential talks. My word means something, so I said nothing, even while the company was leaking half-truths to reporters.
When our team asked Boeing if 10 years was going to be enough for them, they didn’t respond. And when I asked them to confirm that the extended contract would secure the second 787 line for Washington state, their reply was only: "Well, it would be helpful." But they would not commit to anything.
Still, we tried to get a deal, because I know that’s what our members and our community wanted. To do that, we were willing to discuss any issue to get a deal that we could recommend to our members. We floated ideas on health care costs, wages, pensions and lump sums.
None of this mattered to Boeing. They didn’t want solutions, but only a scapegoat.
Our seven-week strike last year is not the reason the 787 is already more than 120 weeks behind schedule.
Instead of investing in our shared future and a highly talented workforce in a region ideally suited for aerospace, Boeing has decided to double-down on its failed 787 strategy and place an ill-advised, billion-dollar bet on a strategy that’s a proven loser."
Copyright © 2009 -- Washington State Labor Council, AFL-CIO