Labor and Boeing
April 28, 2011 on 10:28 am | In Aircraft Development | 1 CommentThe National Labor Relations Board has found that Boeing was punitive when it placed the second 787 manufacturing line in South Carolina. The International Association of Machinists and Aerospace Workers union District 751 filed the complaint with the support of its national union.
It described this move as coerceive and retaliatory against the union after the union struck against Boeing shortly before that decision was made.
I’ve no doubt that Boeing did make its decision based upon the effects of that strike in part. Boeing needs stability and that strike put it at odds with its customers who publicly criticized Boeing during the strike. However, just because Boeing was uncomfortable with having to make guarantees to the union doesn’t mean it was punitive or retaliatory either. The truth is, Boeing has probably needed another manufacturing center for the last 10 years. Furthermore, there is nothing preventing union organization at the new manufacturing center.
Things work best when they are in balance. Until recently, there has been a fairly anti-labor bias going on. That bias seemed to exist primarily through the President Bush Administration. With the beginning of the President Obama Administration, the bias seemed to shift rapidly to pro-labor, anti-business. I’m OK with either shift in general but I have to say that I’m beginning to find the most recent shift going just a few steps over the line.
Like I said, it’s about balance. My perception is that we are now “rigging the game” in favor of labor. Boeing should have the ability to be agile enough to build their aircraft competitively and that should include relocating production to another state if they find their present location and labor climate too difficult to deal with. Likewise, labor should have the power and option to organize at the new locations and laws governing labor in those new locations.
A lot of labor goes into the cost of building an airliner. When you start potentially changing the balance of power between labor and the company, you potentially turn a company like Boeing into a non-globally competitive entity.
And that isn’t something you want to do to a company that can literally change your monthly world trade balance from negative to positive by delivering a few extra aircraft.
