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red states rule
11-02-2009, 09:59 AM
Another union strikes itself out of work. So now Boeing will not have to deal with the unions and tax happy Dems





On Wednesday, Boeing announced it would put a second 787 assembly line in Charleston, S.C., rather than Everett, WA
Union leaders and politicians like Sen. Patty Murray, D-Wash., expressed shock, dismay and outrage at the company’s decision.

Either they are feigning surprise, or they’ve been comatose for the last decade. Your guess is as good as mine.

For years, politicians and labor leaders in Washington have ignored Boeing’s pleas to stay competitive. In 2002, Boeing CEO Alan Mulally told the State House Labor Committee that “the state of Washington is not competitive. . . . meaning it costs us more to operate [here].” He specifically pointed to Washington’s costly workers’ compensation system, which requires employers to purchase insurance coverage from the state or be on the hook to cover all claims costs themselves, rather than allowing them to choose from among competing private providers. As a result, Washington collects some of the highest premiums from employers and injured worker rates are well above the national average.


Boeing’s decision to place its second 787 line in South Carolina is too complicated, however, to be blamed on any single factor. In 2002, Mulally told lawmakers that Washington would have to become more competitive in taxes, unemployment insurance (UI) and regulations, among other factors, in order to keep the state attractive for Boeing.

Unfortunately, rather than engaging in an honest discussion about reform in these areas, legislators decided on a $3.2 billion “incentive package” that included some UI and workers’ comp. reforms. Just a few years later, however, the legislature rescinded many of those changes. The Evergreen Freedom Foundation fought a lengthy battle to get the details of the state’s contract with Boeing. Once we finally got them (the unredacted portions), we discovered that Boeing could walk away from the deal at any point without penalties, whereas Washington was on the hook for pricey commitments until Boeing decided to cease building 787s.

This is one of many examples illustrating why one-on-one handouts between governments and businesses are bad for taxpayers, and in the long run, bad for the businesses themselves. Once the luster of the handout runs out, the business will scramble for another, and another, and so on. Better to build a strong business climate across-the-board, which is good for large and small companies alike.

Washington’s competitiveness, from a labor standpoint, is dismal. Other states should take note. South Carolina is a right-to-work state, meaning workers do not have to be members of a union as a condition of employment. Workers at the South Carolina plant where Boeing plans to locate its second 787 line recently voted to remove the union from the plant—an unlikely feat in Washington given our current labor laws and the history of organized labor in this state.

It would be difficult to overstate labor’s role in Boeing’s decision to forego expansion in Washington. In September 2008, we wrote that Boeing machinists would likely get much more than they had bargained for when they went on strike. “Given the machinists’ apparent disregard for economic realities and their totally unsustainable demands on their employer, Boeing would be wise to take its business elsewhere.” And so it is.

The 2008 strike was Boeing’s fourth in just two decades, and, at 57 days, the longest since the 69-day strike in 1995, which “poisoned morale for years.” According to the AP, the 2008 strike cost Boeing $100 million a day in deferred revenue and postponement of the 787. That kind of loss won’t be recouped for years.

http://biggovernment.com/2009/10/31/boeing-heads-south-for-better-business-climate-washington-state-politicians-are-surprised/

cat slave
11-02-2009, 10:58 AM
The Peterbilt Truck plant will also be officially closed as of Dec. 1st.
Its in Madison, TN where I used to live.

The workers there were known for extended strikes and each time we all
wondered when Peterbilt would just find it more trouble to stay than to leave.

We are a union family and the UAW has made it possible for us to buy and pay
for two homes, numerous vehicles, boats, camping tailer, build savings all while
putting $$ back into the community and all the tax bases (!) which in turn
made jobs available to other people in the consumer driven system.

However, the union has become little more than organized crime to protect
mediocrity. And where the UAW was when my husband went to work at the
Ford Glass plant in Nashville in '57 was far different when he retired a few
years ago.

I see nothing wrong with blue collar people making good wages and good
benefits as those things make everything better for everyone. Beyond
that it did get out of hand and never think for a minute that while the
evil unions have had the power to harvest good things for its members,
never doubt for one minute the CEOs reaped unfathomable salaries and
life long benefits.....kinda like congress!!!!!!!!!

And who gets vilified? The worker! And its going to be amusing (have to
find humor where you can) when the well paid worker is replaced with third
world wage laborers, the market for their vehicles will plummet and they will
learn first hand that their low cost, competitive laborers cant afford to
buy their products!!!! DUH!!!! How smart is that??

hjmick
11-02-2009, 01:50 PM
Good for Boeing.

theHawk
11-03-2009, 05:09 PM
Shouldn't the Northwestern libs be rejoicing that the "greedy military industrial machine" is moving out of their backyard?