October 28, 2008
Boeing's Future in the Evergreen State

Short-term news of the potential end to the Machinists strike aside, an aerospace analyst is now saying what this blogger has been saying for some time after watching how events unfolded with the aforementioned work stoppage:

This strike, following myriad others and with little hope of improved relations, will almost certainly precipitate a [Boeing Commercial Airplane] exit. Over the next ten years, BCA will move to southern states with weaker unions and right-to-work laws that diminish union power. As the car companies realized, it's easier to train flexible workers than it is to work with experienced but inflexible workers.

Perhaps the Machinists could announce the results of their Saturday vote on the current contract offer under a "Mission Accomplished" banner?

Posted by Eric Earling at October 28, 2008 08:08 PM | Email This
Comments
1. I agree Eric...but the Union blinked, for sure.
They only got 3%, 4% & 4% rather than the 10%, 10%, 10% they asked for.
They are trying to put a happy face on their "victory"...but I think they have sealed their fate.

Posted by: Mr. Cynical on October 28, 2008 07:55 PM
2. The machinists have finally cooked the goose that laid their golden egg...and when Boeing comes up with an 'exit strategy' out of here, the egg will be very visible on those same machinists face. Well, to everyone but themselves anyway.

Posted by: Rick D. on October 28, 2008 08:22 PM
3.
Based on the predicted inflation rate, I think someone at Boeing ran the numbers and realized their getting the bargain of the century.

As far as the unions, they're screwed unless the super high cost of living in Puget Sound normalizes itself with the rest of the country.

It's just not that special here anymore to justify the sky high costs.

Posted by: John Bailo on October 28, 2008 08:37 PM
4. I've said this before......Boeing and the Union are in collusion on this IAM Strike and will orchestrate when the Strike will end. Apparently, most if not all of the testing and supply concerns have been remedied and the production lines are ready for Full production. The Union has stated that the contract should be approved. The Union members will have their so-called Vote and the Strike will end.

Posted by: Daniel on October 28, 2008 08:42 PM
5. Again,an observation of the vehicles at District 751's parking lot will show 50%+ Asian marqued vehicles. When these owners are confronted many will state "the car is manufactured in the U.S. Quite possibly, just like the next gen Boeing AC, in the deep south.

Posted by: paul on October 28, 2008 08:49 PM
6. Unionism is killing themselves in America, but fully alive in Washington State Government, the only feasable reason, is the Unions in Washington Government are for all purposes negotiating with themselves. Gregoire doesn't get it, Rossi Does!

I will say at least Ron Simms, is asking his unions to share the pain a bit and take twn days off with no pay. I would hope he drops his 1 million dollar slush fund soon, but I do have to give him credit as he seems to be cutting everywhere and understands that the spending spree is over in Washington government. He has about a 100 million dollar defecit to deal with, and it looks like he is actively dealing with it.
I give him credit for that.

Gregoire on the other hand has no clue how she will approach the 3.2 Billion dollar mess she is directly reponsible for after spending 8 Billion and hiring 8100 new state employees.

What is she offering in cuts to match this mess?

4/10's, robbing the smokers fund, robbing the rainy day fund, cutting travel....

Lots of robbing, no cutting

Does that sound like the approach to a 3.2 Billion dollar defecit.

I think not!

Go Rossi, this Gregoire B needs to be retired!

Posted by: GS on October 28, 2008 08:58 PM
7. I agree with Daniel that some of this was in Boeing's interest. But I also agree with the others, that long term, Boeing will do its best to leave for a right to work state. WA only survives now because there is a significant non-union tech workforce. But long term, the growing burden of government unions, Boeing unions, and a tech falter, will make the current budget problems look great.

Posted by: Jeff B. on October 28, 2008 10:04 PM
8. One problem is the that labor law gives the senior members excessive influence. Those seeking to retire in 3 - 7 years know the jig is up, but hope to get as much as they can before retirement. This skewing of power keeps the union from thinking long-term. Bad for both management & labor -- but especially bad for the rank & file with

I'll bet BCA regrets not building the 787 in Kansas.

Posted by: John S on October 28, 2008 10:26 PM
9. Mr. cut off nose--meet Mr. spited face; only a matter of time now; hello, Southeastern seaboard; told you so...

what i mourn are the customers, suppliers and collateral companies & THEIR workers who rely on the tantrum strikers; they're the ones who really get the shaft;

the "us & them" mentality is hopelessly ingrained; too bad, too sad;

Posted by: jimmie-howya-doin on October 29, 2008 05:58 AM
10. If this all plays out as expected- Boeing leaving, this strike will be textbook example on why workers should not be allowed to unionize. Hold on, I know it's not PC, but how else can you explain the actions of the machinists union and the workers in this time of economic uncertainty.

Their strike sure hurt my business and several others I know. This strike is an example of 'trickle down' economics and not in a positive sense.

I listened to a couple of the soccer team parents talk about the election. I, theoretically, was part of the discussion but one of the guys wanted everyone to know why and how to vote for president. Couldn't get a word in edgewise even though the guy had all his facts wrong.

But, one thing folks, rich people are just not going to party if they can't make a reasonable investment. This is the fatal flaw of the socialistic Democratic party.

Folks, I repeat, rich people are not going to invest if they can't make a reasonable profit.

Posted by: swatter on October 29, 2008 07:01 AM
11. Fortunately for the union, President Obama will sign the card check bill allowing the unions to organize workers in any state in the union, making a move to the south less attractive.


Of course BCA could just as easily move their operations to a different country and get rid of their union problems all together.

I've never like unions, I say sell your labor to your employer at what ever rate you can negotiate, work hard, create value, and you'll get ahead.

Posted by: Dan on October 29, 2008 11:01 AM
12. Since I agree with most of you that Boeing is on its way out of WA, let's hope they get to a right-to-work state before Obama and the Democrat one-party-rule machine gets firing on all cylinders and removes the provision in Taft-Hartley that allows states to pass right-to-work laws.

At least Boeing would have a non-union assembly line that they could fight to maintain.

Posted by: blindman on October 29, 2008 05:04 PM
13. Unions do more harm than good. Why do you think law firms don't allow paralegals and legal secretaries to unionize?

The funny thing about the news coverage of the union workers was that they kept saying that they wanted to have their kids work there. I don't see how that is possible when the union is running the company into the ground.

Posted by: Thomas B. on October 29, 2008 06:30 PM
14. In a perverse way, liberals should be pleased when Boeing leaves. Machinists are the kind of macho, gun loving guys urban metrosexuals don't want around. Puget Sound would be even more divided into two core groups: #1 highly educated white people in high tech/creative industries and #2 poor non-white people group#1 sends their children to private schools to avoid.

Posted by: Bill on October 31, 2008 10:17 AM
15. It is so expensive to live here I think Boeing would be happy to leave and as quickly as it can. Seems to me that Boeing would do better in a friendlier tax state etc. etc

Posted by: dee on November 3, 2008 12:56 PM
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