Thursday, April 21, 2011

NLRB Asks Judge to Stop Boeing's SC Production Since Execs Cited Strike Risk as One Reason For Move

Atlas is shrugging; twice on the same day.

"In 2009 Boeing announced plans to build a new plant to meet demand for its new 787 Dreamliner. Though its union contract didn’t require it, Boeing executives negotiated with the International Association of Machinists and Aerospace Workers to build the plane at its existing plant in Washington state. The talks broke down because the union wanted, among other things, a seat on Boeing’s board and a promise that Boeing would build all future airplanes in Puget Sound.

So Boeing management did what it judged to be best for its shareholders and customers and looked elsewhere. In October 2009, the company settled on South Carolina, which, like the 21 other right-to-work states, has friendlier labor laws than Washington. As Boeing chief Jim McNerney noted on a conference call at the time, the company couldn’t have “strikes happening every three to four years.” The union has shut down Boeing’s commercial aircraft production line four times since 1989, and a 58-day strike in 2008 cost the company $1.8 billion.

This reasonable business decision created more than 1,000 jobs and has brought around $2 billion of investment to South Carolina. The aerospace workers in Puget Sound remain among the best paid in America, but the union nonetheless asked the NLRB to stop Boeing’s plans before the company starts to assemble planes in North Charleston this July.

The NLRB obliged with its complaint yesterday asking an administrative law judge to stop Boeing’s South Carolina production because its executives had cited the risk of strikes as a reason for the move. Boeing acted out of “anti-union animus,” says the complaint by acting general counsel Lafe Solomon, and its decision to move had the effect of “discouraging membership in a labor organization” and thus violates federal law.

Via which adds;

"Ah, that must be the Anti Dog-Eat-Dog Law, or one of the Fairness Laws, or something, right? The WSJ isn’t sure what law the NLRB is talking about, either. Not only do businesses routinely relocate to find the most advantageous environment possible, states and cities compete for that business by calculating their business climate. If this has escaped the notice of the NLRB, perhaps they should get out more."

1 comment:

  1. How did we let this happen? Sure the people that voted for him wanted these things, but the ones that didn't have done nothing to protect our rights. Is this not a free country? In two years Obama has succeeded in doing exactly what he wanted to do, which was above all, turn the American people against each other, make the government the biggest in history, pay reparations to the black people, and turn America into a socialist nation. We are just sitting here and letting it happen. Even people in worse countries stand up against their government when they don't agree, as a majority, on the governments actions. Our voting last election hasn't proved to be the success that we thought it would be, so what do we do next?


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