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posted 10/28/09 10:36 AM | updated 10/28/09 10:37 AM
Featured Post! | Views: 390 | Comments : 6 | Business

Boeing Machinists Will Work for...Someone Else?

By Michael van Baker
Editor
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UPDATE: Boeing has announced the second 787 assembly line will be sited in North Charleston, S.C.

The Seattle Times says that talks between the Boeing machinists union and management have broken down. Boeing wanted a 10-year no-strike guarantee, and the machinists wanted Boeing to pretend they haven't been planning on moving the second 787 production line to Charleston all along. (It's like no one even listens to the Times editorial board any more.)

Sen. Patty Murray tried to get the two sides to talk today, but it's as if Boeing management doesn't quite have their heart in it.

The South Carolina legislature is busy pushing through a Boeing-sized welcome package that is contingent upon "a business entity" investing $750 million and creating 3,800 jobs. The Times quotes Otis Rawl, chief executive of the South Carolina Chamber of Commerce, as saying that those numbers came from "the entity that's looking at the state."

The Times' Jon Talton called this last week: "When Boeing executives announce a second 787 line in North Charleston, S.C., it will be the biggest non-surprise of the year." The second biggest non-surprise of the year, apparently, will be Boeing's announcement that the 787 Dreamliner won't fly before the end of the year. Morgan Stanley is fed up.

Still, you can't question Boeing's long-term business strategy: not shipping planes not built on time for $14 an hour is much less expensive than paying $28 an hour.

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Tags: boeing, no-strike, charleston, south carolina, 787, dreamliner, talks, machinists, union, patty murray + add tags
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Training
Who is going to train these people to build the plane? LOL Boeing workers will have the last laugh, it is going to cost Boeing more money to repair/ fix the problems created by unskilled workers than it would be to open a second line in Washington
Comment by Bryan
3 days ago
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Un-skilld laber in South Carerliner
You are so rite. Us poor un-edumakated hicks kant build no air e o plane like you smart pepull out west.
So, if I understand your logic, only union people are smart enough to the skills needed in modern society. Perhaps if you overly-educated latte drinkers had paid attention - (did any of you notice the migration of all those automotive companies to the South?) - then perhaps you would understand the competitive nature of the businss world today. By the way, the Gulfstream corporation has been building some of the world's most advanced aircraft - at great profit - in Savannah, GA (just south of Charleston for you west coasties who need a GPS to find your own garage) for over 40 years. In truth, I would have left the plant in your home town - but children need to be taught a lesson every once and while. Hopefully, your own Union greed won't cause you to lose even more jobs.
And yes, we even have indoor plumbing now.
Comment by rich
3 days ago
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RE: Un-skilld laber in South Carerliner
I completely agree with Rich on this. Union politic has driven out companies from their hometowns for a long time. Unions did good things to this country, it is hard to deny it, however we aren't dealing with some garment factory in the 1930's here.

Now unions have become synonymous with forcing the companies to their knees; either move, off-shore, or go bankrupt. It becomes difficult for a company to justify a plant where the worry of a 8-week long strike hangs over their head like an albatross.

As for skill of labor, we aren't talking about opening a plant in Tijuana. If anything they should be able to attract more skilled labor than in Washington State. You forget that Georgia Tech is a stone throw away from SC, and is ranked second when it comes to aerospace engineering.

Lastly do not forget that the 8-week strike, cost Boeing an estimated $100m per day in deferred revenue and production delays (NYT; 2008/11/03).
Comment by Bob
3 days ago
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Union Fail
Once again the Unions price themselves out of the market and then stomp around like angry children when they are not placated.

Go Boeing!
Comment by Joe West
3 days ago
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RE: Union Fail
You would think with the high unemployment rate union workers would actually start behaving as if they worked for Boeing instead of the IAM. Frankly, this is just the slap upside the head they need. Boeing can now look forward to higher productivity, fewer workers comp cases and the ability to fire non-productive and surly employees. It's a win-win for everyone that deserves a win.
Comment by Patricia
3 days ago
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Plenty of labor available in SC
There are thousands of military retirees near Charleston with the right skills to join the Boeing workforce. Between the low cost of living and the attractiveness of the Charleston area (along with much better weather than Washington) moving to SC would be a win for may potential workers.
Comment by Old MSgt
3 days ago
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