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September 29, 2009 |
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Tues
Gregoire: Washington is "best location" for 787
On
Monday, Gov.
Chris Gregoire issued "The Business Case for Consolidating
Boeing 787 Assembly in Washington," a report highlighting the state's
attractive business climate, low production risk, quality workforce and
improving labor relations, stable government providing infrastructure
improvements, commitment to education, quality of life and
broad-based support among political and community leaders. Read
more.
►
At SeattlePI.com -- Washington
pitches Boeing for 2nd 787 line -- Aerospace
analyst Scott Hamilton: "While Washington isn't blunt enough to say
there is higher risk in locating Line 2 in Charleston because of the lack of
an experienced workforce, we've had no need to be politically correct:
Everett's experienced (engineering) and (machinist) workers have had to
spend the last two years fixing engineering, design and production issues
originating in the outsourcing to Japan, Italy and -- importantly -- Charleston.
We believe it would be folly to locate Line 2 anywhere but
Everett because of this history and the continuing program risks well into
the future. Boeing cannot afford any more risks along these lines."
► In today's Seattle Times -- State offers no goodies for 2nd 787 assembly line -- The state will not offer new financial incentives to induce Boeing and state officials said they are deliberately staying out of the issue of Boeing's push for a no-strike agreement with the Machinists union. State Department of Commerce Director Rogers Weed says some 700 to 900 jobs are immediately at stake: "That's a lot of jobs, especially in this kind of economy."
► From AP -- Gregoire makes case for 787 assembly line -- Boeing said it appreciated the thoroughness of the report but emphasized that it still sees workers' compensation and unemployment insurance costs as too high. "While Washington state has made progress, there is still work to do to deal with the high costs of doing business," said a Boeing spokesman.
►
In today's Everett Herald -- State
won't sweeten deal for 787 line with more tax breaks -- Democratic Snohomish County Executive Aaron Reardon finds the governor’s
business case lacking. Instead, he would have liked to see it address issues
-- workers compensation, unemployment insurance and workforce training --
that Boeing has raised repeatedly.
While “it appears Washington is losing the competition to South Carolina,
some (lawmakers) in Olympia still seem to think that everything is fine,”
Reardon said.
(It's too bad that Mr. Reardon can't support our state's efforts to tout what's great about our state, its aerospace workforce and its superior business climate with the same enthusiasm he musters for hawking energy drinks.)
Health reform news:
► At Huffington Post -- Public option vote could pit Democrat vs. Democrat -- The Senate Finance Committee is debating whether the government should offer its own insurance plan for the middle class in competition with private carriers. "Win or lose, it's clear that the strong public interest and support for a public option will be well represented by the supportive senators," said Gerald Shea, a top health care policy expert for the AFL-CIO. "My sense is that our message about how vital the public plan is to the critically important issue of cost control is beginning to break through the bubble that has surrounded Finance for months."
► At NYTimes.com -- Liveblogging from the Senate Finance hearing on the public option
► At Huffington Post -- The public option lives on (Robert Reich column) -- Today is a critical day in the saga of the public option in the Senate Finance Committee. Big Pharma and big insurance hate it. But the public option lives on, nonetheless. It's still in the Senate Health, Education, Labor, and Pension bill. It still headlines the House bills, and Speaker Nancy Pelosi says she's still committed to it. The latest Times/CBS poll shows 65% of the public in favor of it.
►
In today's Seattle Times -- Sen.
Snowe is woman with clout on health care -- Maine Sen. Olympia Snowe is
the only Republican in Congress who might vote for the health care overhaul,
which gives her enormous power over the bill's fate. Snowe
is one of a minority in her state and the nation who does not support
creation of a government-run option to private insurance. Instead, she has
proposed using the public option as an incentive, or a threat, to private
insurers who do not make their plans affordable by certain deadlines. This
"trigger" option, or some version of it, has survived the bitter
debate and scrutiny to remain a viable option for compromise.
► In today's NY Times -- Abortion fight complicates debate on health reform -- Abortion opponents in Congress are seeking to block people who might receive insurance subsidies to help them buy coverage from using the money on plans that cover abortion.
► At NYTimes.com -- Obama rebound? -- A Kaiser Health Tracking Poll shows that support for health care reform moved upwards in September, particularly among Republicans.
Local news:
► In today's Seattle Times -- King County executive's proposal cut into jobs, parks -- County Executive Kurt Triplett proposes a budget that would eliminate 367 jobs (approximately one-half of a Boeing 787 final-assembly line), mothball 39 parks and increase Metro fares 25 cents next year and the year after. Under his proposal, county workers would also take another round of furloughs next year, though that has to be negotiated with the unions.
► Today's privatization success story from the Tri-City Herald -- State freezes payments on contract with security firm --
The state has frozen payments on its contract with HWA, a Seattle-based security company that already has lost its federal contracts after employees complained their paychecks bounced. HWA has a contract to provide security for 25 state-run liquor stores.► In today's Seattle Times -- Valley Medical center CEO collects special $1.7M payoff -- Richard Roodman collected a $1.73 million retirement payment earlier this year, even though he's still working at the tax-supported facility and was paid more than $900,000 last year.
► In today's Oregonian -- Daimler's Portland truck plant to stay open -- Daimler's stunning decision to save its plant preserves about 650 jobs, but whipsaws workers who were bracing to leave the old Freightliner factory. Workers have had almost a year since Daimler declared the plant would close next June to prepare to move on. Now the Machinists union aims for another three-year contract in what the company calls a "second chance" for the four-decade-old factory.
► From AP -- Airbus confident it'll get tanker deal -- The chief of Airbus parent EADS says his company will win the $35 billion contract, despite a recent global trade ruling against Airbus.
TUESDAY,
SEPTEMBER 29, 2009
Gregoire: Washington is "best
location" for 787
On Monday, Gov. Chris Gregoire
issued "The Business Case for Consolidating Boeing 787 Assembly in
Washington," a report intended to convince the company to locate a
potential second Dreamliner final-assembly line beside the first one here
in Everett. The report highlights the state's attractive business
climate, low production risk, quality workforce and improving labor
relations, stable government providing infrastructure improvements,
commitment to education, quality of life and strong broad-based support
among political and community leaders.
The Boeing Co. has indicated that it may add a second final-assembly line for the new 787 Dreamliner and that the company is considering locating that facility outside of Washington state, perhaps in South Carolina. Boeing officials have said they plan to make the decision by the end of the year.
Gregoire's report was presented to Boeing Commercial Airplanes President Chief Executive Jim Albaugh on Friday. The governor's office declined to comment on Albaugh's reaction to the presentation, but Boeing spokesman Bernard Choi told reporters on Monday, "While Washington state has made progress, there is still work to do to deal with the high costs of doing business," referring to the cost of workers' compensation and unemployment insurance in Washington.
Regarding unemployment insurance tax rates, the governor's report points out, "While other states might have lower rates, Washington’s unemployment insurance (UI) fund is in solid financial condition, and the rates charged to employers are declining. Washington’s average UI tax rate declined 42% in the past four years, almost double the national average. Washington’s UI trust fund is among the healthiest in the nation. This stands in stark contrast to many of our competitor states, which will need to raise taxes because they have insolvent or nearly-insolvent trust funds." (Learn more in the WSLC report, Unemployment insurance saving WA businesses, jobs amid recession.)
Here is the "Message
from the Governor" introduction to the report:
Washington is proud of its long history as the commercial airplane capital of the world. We are proud of the thousands of airplanes in service that originated in Renton or Everett. And we are proud of the many thousands of men and women who have dedicated their lives to designing, building, selling and servicing these airplanes. Commercial aerospace is in our blood.
Boeing’s revolutionary 787 is the quickest selling airplane in history, with over 800 planes already on order. That success has generated competition among states for a second production line for this highly popular model.
Washington provides Boeing with the best location for the second line. Washington is the highest quality location Boeing could possibly identify for siting additional 787 production. Washington has a large, highly skilled and adaptable workforce, an attractive business climate, stable and sustainable government, a robust and funded infrastructure improvement plan, a strong education system, and the highest quality of life of any competitor state. Washington also has a highly competitive cost environment.
Boeing can site a second 787 assembly line in Washington with confidence that the world’s best airplanes can be built at a competitive cost.
For almost a century, Boeing, Washington and countless other companies and organizations have worked in partnership to improve Washington’s economic and business competitiveness. True there is more to do, but we have made significant progress, and we look forward to continuing to improve.
On behalf of the people of this great state, I am proud to deliver the business case for consolidating Boeing 787 assembly in Washington.
Click here to download the full report (5 MB PDF file).
Copyright © 2009 -- Washington State Labor Council, AFL-CIO