NOV. 6, 2009:NWLP
11/3/09
10:21 AM
Page 2
Boeing rejects Machinists 10-year ‘no strike’ offer
By DON McINTOSH
Associate Editor
Boeing told the world Oct. 28 it will
build its second 787 Dreamliner as-
sembly line at its nonunion location in
North Charleston, South Carolina —
not at its unionized plant in Everett,
Washington. That seemed to end the ar-
tificial suspense the company had cre-
ated when it publicly dithered over
where to locate the second final assem-
bly site.
Boeing unions called it a bad busi-
ness decision, and said it had been clear
during confidential talks that the com-
pany wasn’t serious about negotiating
a “no-strike” pledge.
But buried in the Boeing announce-
ment was contradictory news: The
company will use what it called “tran-
sitional surge capability” to make 787s
in Everett until the new North
Charleston facility is completed in
2013. In other words, the second as-
sembly line for the 787 will be built
where the Machinists Union argued it
should be built: right next to the first
one in an unused bay at Boeing Everett,
the world’s largest building by volume.
It’s just that that line may be phased out
once the North Carolina facility comes
online.
The 787 uses lighter, stronger com-
posite materials than previous Boeing
models and has been a big seller with
commercial airlines because it will be
quieter and more fuel-efficient. Boeing
has reported as many as 840 orders for
the 787. But the program is two years
behind schedule, and not a single plane
has been delivered. Boeing chose to out-
source production of most components
of the plane, and has been plagued by
quality problems and supply chain de-
lays. [That includes the North
Charleston facility, which makes 787 aft
fuselage sections. Boeing bought it from
a subcontractor after experiencing qual-
ity problems.] The second assembly line
was proposed as a way to deal with the
backlog. But the decision to put it in
South Carolina didn’t make sense to
unions familiar with the industry.
“Boeing has de-
cided to double-down
on its failed 787 strat-
egy and place an ill-
advised, billion-dollar
bet on a strategy that’s
a proven loser,” said
Machinists District
751 President Tom
Wroblewski.
“We are astounded
that Boeing has chosen to compound
the problems of the 787 program by fur-
ther fragmenting the supply chain,” said
Ray Goforth, executive director of the
Society of Professional Engineering
Employees in Aerospace (SPEEA), Lo-
cal 2001. “There is no credible business
case for this decision.”
Business explanations for locating in
South Carolina — lower wages, and
government incentives — didn’t add
up, said Machinists District 751
spokesperson Connie Kelliher. Boeing’s
South Carolina workers, most of whom
have less than four years experience, av-
erage $14 an hour, while its Washing-
ton workforce, with an average of 19
years experience, make $28 an hour on
average. But a new line in Everett, Kel-
liher points out, would be expected to
employ mostly new hires, and those
come in at $15 an hour under the Ma-
chinists contract.
Then there’s the incentive package
put together by South Carolina officials,
reportedly worth $170 million. To take
‘This was all a ploy to paint us as
the bad guys, and to play their
hand as hard as they could (for
incentives from) South Carolina.’
IAM President Tom Buffenbarger
advantage of that, Boeing would have
to invest $750 million and commit to
long-term employment of 3,800 work-
ers — more than triple the jobs Boeing
said it would need for the second line.
Kelliher said it became clear that
Boeing intended to expand in North
Charleston, and there was nothing the
union could offer in behind-the-scenes
talks that would change its mind. Boe-
ing had already obtained the land in
North Charleston, and had architectural
plans, building permits, and contractors
lined up. Groundbreaking was to occur
just weeks after Boeing’s official an-
nouncement that they’d be expanding in
North Charleston.
Once Boeing announced its deci-
sion, details of its confidential talks with
the union and elected leaders came out.
In an interview with the online-only
Seattle Post-Intelligencer, Washington
Gov. Chris Gregoire said Boeing Com-
mercial Airplanes CEO Jim Albaugh
told her the Charleston decision was not
about workers’ compensation expenses
or state taxes. Gregoire said Albaugh
told her: “This is about negotiations
with labor.”
The company said publicly it needed
assurance of labor peace — a no-strike
pledge — in order to locate the second
line in Everett. But the Machinists con-
tract contains a no-strike pledge, for as
long as the contract remains in force.
The current contract runs through 2012.
To extend that would be to extend the
no-strike pledge.
Wroblewski said the union offered
Boeing a 10-year contract, and even of-
fered to go longer than that.
“And when we did, they seemed
stunned, and stopped talking,” Wrob-
lewski said. “It was obvious to me that
Boeing wasn’t really interested in work-
ing with us. They didn’t take our pro-
posals seriously and they never offered
any proposals of their own. Most of the
time, they didn’t even take notes.”
“When I asked them to confirm that
the extended contract would secure the
second 787 line for Washington state,
their reply was only: ‘Well, it would be
helpful.’ But they would not commit to
anything.”
Why was Boeing taking part in talks
if it wasn’t serious? Machinists Interna-
tional President Thomas Buffenbarger
put it bluntly.
“This was all a ploy to paint us as the
bad guys,” Buffenbarger said, “and to
play their hand as hard as they could
(for incentives from) South Carolina.”
“For us,” Kelliher said, “we have to
move forward. They made their deci-
sion. We’re going to continue to prove
every day why we’re worth the money
and benefits we’re paid. Hopefully it’ll
convince them that the ‘transitional
surge’ line should be a permanent sec-
ond line, because it’s going to be a
money maker for Boeing.”
(International Standard Serial Number 0894-444X)
Established in 1900 at Portland, Oregon
as a voice of the labor movement.
4275 NE Halsey St., P.O. Box 13150,
Portland, Ore. 97213
Telephone: (503) 288-3311
Editor: Michael Gutwig
Staff: Don McIntosh, Cheri Rice
Published on a semi-monthly basis on the first and third Fridays of
each month by the Oregon Labor Press Publishing Co. Inc., a non-
profit corporation owned by 20 unions and councils including the
Oregon AFL-CIO. Serving more than 120 union organizations in Ore-
gon and SW Washington. Subscriptions $13.75 per year for union
members.
Group rates available to trade union organizations.
PERIODICALS POSTAGE PAID
AT PORTLAND, OREGON.
CHANGE OF ADDRESS NOTICE: Three weeks are required for a
change of address. When ordering a change, please give your old
and new addresses and the name and number of your local union.
POSTMASTER: Send address changes to
NORTHWEST LABOR PRESS, P.O. BOX 13150,
PORTLAND, OR 97213-0150
PAGE 2
NORTHWEST LABOR PRESS
NOVEMBER 6, 2009