During contract negotiations with Boeing, the International Association of Machinists (IAM) agreed to drop their charges against the company for building a new plant in South Carolina. This is a victory for conservatives. The National Labor Relations Board’s (NLRB) attempt to dictate where businesses invest has failed.
The IAM is spinning this as a victory, claiming that in exchange Boeing will build their new 737 Max planes in Washington State. However, if Boeing did want to build their 737 plant elsewhere, the promise of dropping charges would not be nearly enough to change their mind.
This deal looks a lot like a face-saving way for the IAM and the NLRB to give up. Boeing had probably already decided to build the 737 Max in Washington (though we cannot know that for sure) and that is why they agreed to the “deal.” On the union side, the IAM knew the courts were very unlikely to shut down the South Carolina plant, while the NLRB itself will soon lack a quorum — and ability to act.
The union movement took a lot of heat for trying to destroy jobs in South Carolina. The Obama administration would have a difficult time defending it on the campaign trail. Today’s contract allows the IAM and the administration to back down without formally admitting they made a mistake. Hopefully they have learned a lesson: The government should not try to dictate to businesses where they can and cannot invest.
— James Sherk is a senior policy analyst in labor economics at the Heritage Foundation.
That is wonderful news.
Reply to this commentLinkReport Abuseif this was dropped during contract negotiations, then there was a quid pro quo -- aka folding to extortion. How can that be a victory? Only victory would be if the union's back were broken, and all Boeing plants de-unionized (like de-nazification) and fumigated.
Reply to this commentLinkReport AbuseYeah, I fail to see how this is a "victory for conservatives." Sounds like the union got pretty much what it wanted. It forced Boeing to change its mind about building a plant in right-to-work South Carolina. That sounds like an absolute victory for the unions.
Hope someone can explain better how this is supposed to be a win for the good guys.
Reply to this commentLinkReport Abuse@JakeTaylor -
Wait, are you being sarcastic, or just misreading the story?
This is a huge win for Boeing. The IAM and NLRB are dropping their b.s. opposition to Boeing opening their new plant in South Carolina. That new plant is for building the new 787 Dreamliner.
The pathetic face-saving statements of the IAM and NLRM are that "in exchange" they got Boeing to still build their Max 737 in Washington state. But anyone who's been watching this story from the beginning knows that's a laughable claim of victory from IAM/NLRB, since part of Boeing's argument has always been that they were never planning on moving existing work or manufacturing from Washington state - where 737 work is already done.
Reply to this commentLinkReport AbuseSorry, I didn't realize that the 737 plant was a different one from the one being built in SC. Even so, I kinda wish Boeing had seen it through and forced the NLRB/IAM to try to actually defend their tyranny.
Reply to this commentLinkReport AbuseI wish Boeing had taken this one to a final decision. The advantages:
1) it would have established in court that a company has the right to locate where they want to, and the government cannot interfere;
2) it would have weakened all unions, not just the ones going after Boeing;
3) it would have become a campaign issue to be used against the party that was trying to bully a major employer at the expense of good paying jobs for hard working Americans;
4) it would have clipped the wings of the NLRB; and
5) it is far more fun to watch a smack-down of union thugs and arrogant administration officials than it is to watch those same miscreants slink away before they get what's coming to them.
As it stands, Boeing won, but the issue is not settled. Half a loaf.
Reply to this commentLinkReport AbusePretty sad when you need to set a court precedent that a business should be able to locate where they want to, isn't it?
Reply to this commentLinkReport AbuseMaybe not when John Jay was on the court, and a few things had to get settled, but this late in our history? Shameful.
Reply to this commentLinkReport AbuseLearned their lesson? They've simply backed off in the face of superior legalistic firepower, and will await more favorable conditions in future. "Fight, fight -- talk, talk -- fight, fight."
Reply to this commentLinkReport AbuseI fail to see how this is a victory for Boeing, and indeed, the whole boast rings hollow. The writer himself admits that no one can really prove that Boeing was going to build the new 737's in Washington all along. No, Boeing should have fought this one in the courts and established their right to build airplanes wherever they please.
Reply to this commentLinkReport AbuseI don't think this is anything more than a pyrrhic victory for Boeing and certainly not one for free-market principles. Because no judgement went against IAM/NRLB they will continue to have this particular cudgel in their armory.
Moreover since Boeing was looking at several sites for the 737-MAX, now as a quid pro quo Boeing will be forced by contract to build the 737 using a work force and political environment that knows the company has no leverage.
Third, if you look at the contract details, it says that IAM employees will be able to continue to receive an employer paid pension and that new hires will get them now. Boeing had wisely moved away from this for IAM and other employees. Now IAM alone among other Boeing new employees will be getting a paid pension benefit. This will be expensive and make the 737-MAX perhaps less competitive compared to subsidized rivals.
Reply to this commentLinkReport AbuseThe NLRB will lack the votes to do anything in a few days due to Craig Becker not being confirmed. His appt is up.
Reply to this commentLinkReport AbuseI call B.S. The Democrats wanted this issue off the campaign trail - since it was such a complete sign of governmental overreach. They made it go away, and will airbrush it completely over time - certainly before November 2012. Think about it - with the Dreamliners coming online, how much longer will Boeing keep building 737's? Reminds me of JFK and our missiles in Turkey...
Reply to this commentLinkReport AbuseAs far as continuing to build the 737, that will probably continue for many years to come. Keep in mind the 747 is still in production from the 70's.
The 737 remains to be a fuel efficient and practical airplane.
Reply to this commentLinkReport AbuseTake one on the chin union thugs
Reply to this commentLinkReport AbuseNLRB still needs its wings clipped. They are over-reaching when they try to dictate WHERE a company can build a plant. Maybe they should concentrate on those companies who build OUTSIDE the USA.
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