June 29, 2011 in Business, Nation/World

Obama: Boeing, U.S. companies need freedom to move

Associated Press

WASHINGTON — President Barack Obama says it would defy common sense for Boeing Co. to have to shut down a new aircraft plant or lay off workers as a result of a labor dispute with the government.

Obama says companies need to have the freedom to relocate work, though they must follow the law when doing so.

The president was responding to a question about a lawsuit filed by the National Labor Relations Board against Boeing, accusing the aerospace company of illegally retaliating against its unionized work force in Washington state by opening a new production line for its 787 airplane in South Carolina, a right-to-work state.

Obama says the case was brought by an independent agency and a judge would decide the facts.

32 comments on this story so far. Add yours!

mikeln on June 29 at 10:52 a.m.
Slipping and slideing into third world status, right to work= slavery, plain and simple. We are truly on the fasttrack to corporate rule, just add a little water to the slip and slide and….
greenlibertarian on June 29 at 11:07 a.m.
So much for the wing nut teabaggers shrieking Obama’s trying to kill Boeing in favor of the unions.
Dolts.
kneedrager on June 29 at 11:26 a.m.
Unions have cost that company so much money over the years. I have a few friends that just got fed up and quit Boeing and the Union and got lower paying jobs (by not much), but more stability etc. No more worrying about “having” to go on strike and losing wages. If you think Unions are good, look at how many sales/contracts that strikes have cost Boeing over the years.
avboden on June 29 at 11:26 a.m.
GOOD!
everyone cries about workers rights this, workers rights that
well what about the companies rights?! Anyone ever think of that?
The Washington state boeing union is the reason they didn’t build the factory here. That union is NOTHING but trouble. They are overunionized, as is much of this nation.
I say good for boeing for sticking it to the union and good for obama for realizing that!
hawken on June 29 at 11:29 a.m.
Yea Obama! Re-election year! Vote for me!
Take a hard turn to the right, and fool more Independents!
President Barack Obama says it would defy common sense for Boeing Co. to have to shut down a new aircraft plant or lay off workers as a result of a labor dispute with the government.
Suddenly,,,, you are embracing conservatives?
Only the foolish will accept your political swing to the right as temporary,,,, to get re-elected.
Fool us once, shame on you. Fool us twice, shame on us.
hardwroc on June 29 at 11:46 a.m.
So, there weren’t jobs and a new factory in Washington state? They didn’t lay off workers in wa?
Sounds like the ONLY difference in takes here is WHEN you stop laying off and relocating, or WHICH state you support jobs in.
Since they STARTED in Washington, it would seem they should stay there, NOT laying off and abandoning a factory built for their needs. And besides that, do YOU want to fly in a plane built by the lowest bidder?
Cletis may not be the most skilled laborer after all. Funny how all the non union/GOP states think they are creating jobs by stealing businesses from unionized states, rather than actually creating anything of value.
WHY don’t we do the same for CEO’s and other execs? I’m sure we could get a Guatelmalan to head Exxon for dirt cheap wages.
OR, maybe actual cost cutting isn’t the agenda more than defeating unions and laborers and putting them in their place, licking boots and hoping for a lump of coal for Christmas, a work day of course.
SpokaneLiberal on June 29 at 11:52 a.m.
Obama has been more or less right wing.
He passed the Republican Healthcare Bill of the 1990s.
He cut taxes on the wealthiest Americans.
He re-authorized the Patriot (Traitor) Act
He has continued two wars and started a 3rd.
He spent at (deficit) levels that are only ever reached during Republican Presidents like Reagan and Bush Jr.
The only moderately liberal thing he has done is stop Republicans from eliminating Medicare and repealed Don’t Ask Don’t Tell which is still not in effect.
Dazzeetrader11 on June 29 at 12:23 p.m.
How stupid of the Dems to think he was a liberal. Don’t vote for him. CoOme from the dark side . Run to the light!!
Listen you guys..he is whatever he needs to be when he needs votes. He’s nothing special..in fact much worse than most.
All you need to know is how he became a state senator in Illinois. This is the REAL Obama.. a miscreant, inexperinced fraud. Vote him out. Can’t you feel the love?
And if you take a run at him…you get called a racist. Grow a brain..he’s harmful to the country. But he gives a very nice speech…….not much for thinking on his feet but he does wear nice clothes and talks fast.:)
nslopeofw on June 29 at 12:44 p.m.
Green-
Nice that you somehow blame this on the stupid tea party. (Using hate filled, rage inciting words) Try giving the blame to those who deserve it. The people who voted for this miracle working, Nobel prize winning, super man named Obama. In fact, probably to yourself.
Great job, green libertarian! Thanks!!
empyrius on June 29 at 12:59 p.m.
What about the police union . . .
eagleproducer on June 29 at 1:17 p.m.
I agree that companies can move where ever they want. They can’t, however, do so in retaliation for a union’s legal right to strike. That’s the issue between the government and Boeing, nothing else.
eagleproducer on June 29 at 1:23 p.m.
spokaneliberal: Those with operating brain cells can see we are in the middle of Boy George’s third term.
greenlibertarian on June 29 at 1:29 p.m.
Give it up, nslope, the teabaggers invented their political term, used the exact language and actual teabags in protesting the President’s policies, and the only hate filled rage incitement is in your dirty myopic mind.
teabagger - a person who protests President Obama’s tax policies and stimulus package, often through local demonstrations known as “Tea Party” protests (in allusion to the Boston Tea Party of 1773)
-New Oxford American Dictionary
http://www.prnewswire.com/news-releases/unfriend-named-new-oxford-american-dictionarys-2009-word-of-the-year-70201607.html
CougarGold on June 29 at 1:34 p.m.
Boeing never moved this line. It is a new line that was built for a new product. That they elected to open a new line in S. Carolina rather than is Washington is the crux of the complaint. I don’t believe this decision was made as retaliation against the union; rather it was made due to fear of what the union has done to their business in the past with strikes. I also don’t believe it will save them costs (or much, anyway) related to labor rates or benefits. It still costs a certain amount to have the necessary skills to produce technological devices and whether driven by bargaining efforts or just by the cost of the job market, these are NOT minimum wage jobs.
As for Boeing in the Puget Sound, they are actually adding jobs, not laying off as hardwroc indicated. They have the new contract for tankers that will be the focus of much of their effort there. They did not shut down any lines in relationship to the introduction of the 787 so that whole post is based on incorrect information. What has driven Boeing to other locations are three things: 1. - HQ moved to Chicago in order to be close to their largest customer, UAL. 2. - Business climate in Washington has been punitive to Boeing in many ways (B&O tax, WC rates). 3. - Strong unions have held Boeing hostage at critical times in the past, creating very difficult issues for Boeing to deal with customers over.
This was not retaliation based decision, it was pure fear. Who won that contest?
liberal_in_right_wing_land on June 29 at 1:40 p.m.
Do people know if it wasnt for unions these so-called wonderful corporations you are fighting for would still be paying us $1 a day - if that - we would have no benefits, no overtime pay and working 15-20 hour days, there would be no workplace safety rules, this country would look like India or Bangladesh and these corporations you are fighting for would be even richer, their CEO’s even richer?
And don’t even throw out this they support liberal and democrats and support them, they don’t contribute and influence politics nearly as much as corporations and people like the Koch Brothers and Papa Rupert do, who are fighting to strip away as many worker rights as possible and they will do it at price necessary to make sure we workers only get paid $1 a day.
Yes, unions are evil for fighting for workers rights……you should be thanking unions everyday you go to work and get that paycheck.
hawken on June 29 at 1:44 p.m.
Right on! Comrade Eagle!
Boeing execs spend their day…. asking themselves….. ‘How can we retaliate against the union?’
Oh yea! Got it! Let’s open our new plant in South Carolina!
Meanwhile: In The Real World:
Boeing execs…. “Where and how can we maximize our profits with a new plant?”
“South Carolina! It’s a right to work state. Our operating costs will be much less and we have a friendly, state government. That’s a no-brainer.”
Isn’t it funny???
Whenever Obama flip-flops on an issue, such as going against his NLRB (whom he appointed),,,, and his sell out to unions,,,,, moving to the right,,, for the sake of his political future,,, to get re-elected in 2012,,,, we watch all of the liberals on this web site, immediately, immediately, fall in line like good little Sheeple.
CougarGold on June 29 at 1:54 p.m.
lib in RW land - Yes, everyone recognizes that unions fought the good fight for those issues, as is repeated ad nauseum by those who support the unions. As for everyone working for $1 a day, not likely. You know why? Because someone would have offered the good ones $1.05 per day years ago, then someone else $1.10 with Christmas off, then someone else $1.15 with Christmas and Thanksgiving and so on. That’s what happens in a market-driven economy. So yes, the unions fought the good fight….decades ago. The question is what are they fighting for now and what is the economic and market impact in a global marketplace for things like…..oh, I don’t know….airplanes?
Unions are relying on their past victories to support their futures. The only problem is that their past victories aren’t current enough to support their futures. What matters now is that we are able to compete globally. What matters most for Boeing is assuring they can take care of their customers and not lose that business to EADS or the up and coming Chinese aircraft industry. Protecting themselves against union retatiation seems prudent in serving their customers and other stakeholders.
flutieflakes on June 29 at 1:55 p.m.
Politicians in democracies do and say things in order to try to get elected?
http://tinyurl.com/3avernl
greenlibertarian on June 29 at 2:11 p.m.
This is all shuffling the deck chairs anyway.
In ten years, Boeing employees in the Seattle area, Charleston, and elsewhere will be crying in their cheap beers, unemployed, as China becomes the world’s major commercial aircraft maker, aided by various US aviation technology companies.
The Chinese airliners will be next generation technology, super-efficient, quiet, cheap to maintain, and 2/3’s the cost of (not) competitive Boeing and Airbus products.
Until then, if Boeing wants to move it’s HQ closer to its biggest customers, then they should move to China. UAL ain’t gonna be expanding at anywhere near the rate of Chinese and other Asian airlines.
eagleproducer on June 29 at 2:12 p.m.
http://www.nytimes.com/2011/06/30/business/30mortgage.html?_r=1&hp#
More great news for average citizens! The real big boys pay off the big boys while homeowners watch their investments dwindle to half of their purchased value.
“bu, bu, but Fannie and Freddie…”
hawken on June 29 at 2:27 p.m.
Comrade Eagle:
News alert 1:
Relating to your link above, Bank of America has to pay their obligations and creditors, just like the rest of us.
News alert 2:
First time home buyers don’t buy homes,,, nor can they qualify to buy a home,,,, when they don’t have a job.
First time home buyers move the market. They buy homes from previous, First time home buyers, who want/need larger homes and on and on.
It’s ALL about jobs.
__________________________________________
Here’s why there are no jobs:
Small business must provide all the start-up capital,
Small business must provide for all the labor and benefit expense.
Small business owners must take all the risk.
Small business owners must pay state, local and the federal government half (50%) or more of their profits.
Additionally, small business owners must pay apx 12% to the government the amount they pay their employees.
Small business must comply with all kinds of government regulations that tell them what they can sell, when they can sell, how much they pay their employees, when and where they can operate their business.
After the small business owner pays the government 50% and more year after year,,,, and then the small business owner decides to sell the business and retire,,,, they must pay the government 20% or more of the capitalized value of the business at the time of sale.
Then when the small business owner dies, they must pay the government 50% of whatever their estate is worth.
If a small business owner is one of the rare, lucky, hardworking people who can grow their business and create lots of jobs, they will end up paying the government some 75% of their income for life.
Sorry, there are two more things:
1- Many of our constituents want to raise your taxes more and increase the rules we put upon you. We’ll let you know how that works out in the next couple of years.
2- Also, we don’t quite have Obamacare fully implemented. That will take a couple more years as well. We don’t know how much more that will cost you…. but, cost you more it will. We’ll keep you posted here as we can.
Anyway, lets get started!
We’re your state, local and federal government. At your service!
And people wonder why there are no jobs?
And people wonder why business is collectively, sitting on trillions of dollars of cash, unwilling to create more jobs in all of the government uncertainty?
CougarGold on June 29 at 2:35 p.m.
So greenlib - Is it your opinion that Boeing and any other technological products company should just fold up there tents and call it a day? That’s not utilizing all that America can offer in terms of industriousness or entepreneurship. If unshackled by over-regulation, over-reaching of labor, over-taxation, and over-oversight, American innovation is still well ahead of the balance of the world. However, if the trend toward all the ‘overs’ continues then you’re right, our best days are behind us. Not the America I want to see. I would hope your view is one; in the minority and two; wrong.
I have faith in our country and our abilities to stay ahead of the pack. But if we have too much drag caused by all the ‘overs’ we won’t stay there. I’m looking forward to a new version of ‘hope and change’ that’s an unshackling of the ‘overs’.
greenlibertarian on June 29 at 3:10 p.m.
It’s a global economy now, CG. Multinational corporations don’t care where they make their products, who they employ, or who will buy their products. In the global marketplace, there is no American nationalism or any other sort of nationalism.
The growth in middle class consumers is no longer driven the the US and the EU. It’s in Asia, primarily, and a few other pockets, like Brazil.
An entire iconic $7.2B bridge in the San Francisco bay was built in China in order to save a paltry $400M. The California taxpayers and tollpayers are the ones paying for that bridge. If we can’t even keep that infrastructure built domestically, it’s all over, just a matter of time.
How China unfairly bests the U.S.
China’s manufacturing advantage over the U.S. is actually due to a complex array of unfair trade practices, all of which are illegal under free-trade rules.
June 21, 2011|By Peter Navarro
The American economy has been in trouble for more than a decade, and no amount of right-wing tax cuts or left-wing fiscal stimuli will solve the primary structural problem underpinning our slow growth and high unemployment. That problem is a massive, persistent trade deficit — most of it with China — that cuts the number of jobs created by nearly the number we need to keep America fully employed.
To understand why huge U.S. trade deficits represent the taproot of the nation’s economic woes, it’s crucial to understand that four factors drive our gross domestic product: consumption, business investment, government spending and net exports. This discussion focuses on net exports.
Net exports represent the difference between how much we export and import. A trade deficit means net exports are negative, and that directly reduces both the GDP growth rate and rate of job creation.
America’s trade deficit is costing us close to 1% of GDP growth a year at a loss of almost 1 million jobs annually. That’s millions of jobs we have failed to create over the last decade; and if we had those jobs now, we wouldn’t see continuing high unemployment numbers, padlocked houses under foreclosure and empty factories pushing up weeds. (continues)
http://articles.latimes.com/2011/jun/21/opinion/la-oe-navarro-trade-china-20110621
Bridge Comes to San Francisco With a Made-in-China Label
By DAVID BARBOZA
SHANGHAI — Talk about outsourcing.
At a sprawling manufacturing complex here, hundreds of Chinese laborers are now completing work on the San Francisco-Oakland Bay Bridge.
Next month, the last four of more than two dozen giant steel modules — each with a roadbed segment about half the size of a football field — will be loaded onto a huge ship and transported 6,500 miles to Oakland. There, they will be assembled to fit into the eastern span of the new Bay Bridge.
The project is part of China’s continual move up the global economic value chain — from cheap toys to Apple iPads to commercial jetliners — as it aims to become the world’s civil engineer.
The assembly work in California, and the pouring of the concrete road surface, will be done by Americans. But construction of the bridge decks and the materials that went into them are a Made in China affair. California officials say the state saved hundreds of millions of dollars by turning to China. (continues)

http://www.nytimes.com/2011/06/26/business/global/26bridge.html?_r=1&pagewanted=print
The only unique things we make in this country anymore are bizarre financial products that mask their real risk, cost, and debt, and the best munitions the world and Uncle Sucker can buy.
Google China building airliners to see what’s going on there.
liberal_in_right_wing_land on June 29 at 3:45 p.m.
Corporations couldn’t care less about America, they don’t care what they pay their american workers or if they sell their products in America anymore. Most multi-national corporations now make only a fraction of their money from America and its shrinking everyday. These, and most other companies, are focusing their attention on China and India who both have over a billion people and both have middle class populations that are growing rapidly everyday…..while ours shrinks smaller every year. They are taking our jobs and shipping them to China and India.
Its sad people think its unions destroying American, thats just being lazy and repeating what you here are Fox News and talk radio. Do a little research into who really is killing America and you will its these corporations and the politicians they are paying to do whatever they tell them to.
When are you people going to see our politicians don’t work for the American people anymore, we are not the ones who put these people in office, the corporations paid to put them in office. Why would they work for the American people who are to dumb to do anything to stop what these elected officials are doing, when the corporations are giving them endless amounts of money and then jobs once out of office.
CougarGold on June 29 at 3:47 p.m.
greenlib - I understand the current trend as I noted above. And I won’t argue that the direction of the country as it stands now is toward your prognosis. And yes, I am familiar with what is happening in China with their aerospace industries. However, we’re still, by far, the biggest economy in the world and have the ability to recover IF we have directional change. That was my point.
I still believe this is recoverable. You apparently have already written us off. I tend to be a bit more optimistic compared to your apparent pessimism. I hope and believe that I’m right and you’re wrong. But, it’s going to require us to ‘bootstrap’ our leadership and change the directional trend. Unions will need to be cooperative in this effort or they will become essentially non-existent, along with the American jobs they represent. They’re already at very low levels of private sector jobs and are rapidly becoming irrelevant, in light of the global competition. My concerns are not unlike your view in that I’m really afraid that our best days are behind us. But it’s not due to inability to compete at a global level, it’s due to lack of fortitude by leadership to get it done.
hawken on June 29 at 5:32 p.m.
Blaming China is a Red Herring when it comes to the US producing jobs ad growing business here at home.
See my post at 2:27 pm.
Blaming China is a Red Herring, to divert attention away from Obama’s hostile attitude toward American Business.
nslopeofw on June 29 at 6:07 p.m.
Green, your hatred (hidden in your weak attempts to blame it on those who did not know the meaning of the word as described in the urban dictionary ) keeps shining through. If you really cared about having civil discussions, you would stop. But, alas, all you really seem interested in is inciting the right to fight with you. You are a sad little man. I do have sympathy for your need to draw attention to yourself, even if it shows your hatred for those you dont agree with.
nslopeofw on June 29 at 6:19 p.m.
PALTRY $400 million. That says it all for liberals, (in libertarian clothes made from hemp) doesnt it. *^%$ saving money, lets do it the most expensive way, and then we’ll just pass on the losses to the federal government. ($100 bucks says there is fed money in that bridge) They can pay for it by raising taxes. What a great deal for everyone.
eagleproducer on June 29 at 6:27 p.m.
It doesn’t matter what the bagger Hawken thinks about Boeing. It’s what the NLRB thinks and they agree with me!
SCOREBOARD!
Dazzeetrader11 on June 29 at 7:40 p.m.
Everyone except Obama wants America strong. Unions have outlived their usefulness. Now the remanants of the unions are stupid enough to think they matter anymore. Their minions are stupid enough to agree.
Unions are the past. Unions charge for nothing. How they could possibly convince anyone they’re usefull should be turne dinto a movie.
SO let’s understand that innovative solutions will not be generated by the UNION knuckledragger crowd. It’s take industry, smart negotiators and a stron in terest in America succeeding that will help America. Belief in a God might help too.
In the end though, it’s business, innovation and use of the government ( not resistance from this present government) that will help the country back on her feet. Do America’s people still have the will to compete? I do believe so. Being demoralized by union bosses don’t help much.
Obama will play to whatever crowd is in front of him. He’s never had a job outside of government so don’t expect much…what he’s done in his 3 years is the “best he’s got. Obamacare is the biggest loser….. nice way to defeat a country. How he talked the idiot Dems into voting for it is plain crazy logic. Remember in November….it’s not too soon.
http://online.wsj.com/article/SB10001424052702304584004576415841964301396.html?mod=WSJ_Opinion_BelowLEFTSecond
detroitdude on June 29 at 8:33 p.m.
“Everyone except Obama wants America strong.”
Defend your own point concisely and describe to me his agenda and ulterior motives. He was elected President of the United States. Are you implying we have elected the black Hitler? Do you know something I don’t? The guy is not a great President and by no means perfect, but Jesus, you just really have a bitter hatred for him, don’t ya? Please, if you respond, respond to my whole paragraph like a grown up and don’t start with the last sentence. I want to know what makes the CnC such a traitor. Because in all honesty, as much as we all bicker around here, he has been more of the same of Bush Jr., who I am sure 3 years ago could do no wrong in your posts.
greenlibertarian on June 29 at 10:26 p.m.
nslopeofw on June 29 at 6:19 p.m.
PALTRY $400 million. That says it all for liberals, (in libertarian clothes made from hemp) doesnt it. *^%$ saving money, lets do it the most expensive way, and then we’ll just pass on the losses to the federal government. ($100 bucks says there is fed money in that bridge) They can pay for it by raising taxes. What a great deal for everyone.
Obviously you didn’t read the article, you ignoramus. California officials SPECIFICALLY didn’t ask for federal aid for this SEVEN BILLION, 200 MILLION DOLLAR project, particularly stimulus money, which had strict BUY AMERICA provisions.
Here’s a quarter, get a freaking clue.
$400M was 6% of the cost of this project. SIX PERCENT!
Just can’t help revealing your ignorance, eh nslope? Has your union retarded your ability to understand FACTS?