September 23, 2011 in Business, Nation/World, Region

Union: Documents show Boeing aimed to trump unions

Associated Press

WASHINGTON — Documents released today by a union in a high-profile labor dispute with Boeing Co. suggested the aerospace giant opened a new plant in South Carolina partly to escape its labor problems in Washington state.

The Machinists union said the documents bolster the National Labor Relations Board’s lawsuit accusing the company of retaliating against unions in Washington state by opening a second production line for its 787 aircraft in Charleston, S.C.

The internal documents — presented to Boeing’s board of directors in 2009 — show Boeing officials believed opening the South Carolina plant was the highest-risk option they studied with the highest likelihood of failure.

But the documents also say the South Carolina plan, dubbed “Project Gemini,” would help in “rebalancing an unbalanced and uncompetitive labor relationship.”

One document listing rationale supporting the South Carolina plan said it “creates a non-union, competitive labor choice” and “lowers labor costs and avoids the current hostage situation,” an apparent reference to past strikes at plants in Washington, Oregon and Kansas. The same document also lists other positive reasons for choosing South Carolina, including logistical efficiency, geographic diversity and gaining political support in a key state.

“The Project Gemini documents prove what we’ve suspected all along — that Boeing moved to Charleston to punish our members for exercising their union rights,” said Connie Kelliher, a spokeswoman for the union’s District 751.

A Boeing spokesman had no immediate comment. Boeing has denied it opened the new plant to retaliate against the union, saying it did so for valid economic reasons.

The latest documents were obtained as part of the government’s lawsuit now pending before an administrative law judge in Seattle.

The NLRB contends that Boeing opened the second line in right-to-work South Carolina to punish union workers in Washington state over a series of costly strikes. NLRB assistant general counsel Lafe Solomon wants Boeing to move the new line to Washington state.

It was already known that Boeing executives had made public comments that criticized union activity and mentioned it as a reason to invest in South Carolina. Boeing officials said those comments were twisted out of context and that just because the company complained about the union didn’t necessarily mean those issues drove the decision to open a new line in South Carolina.

Boeing officials say granting the government relief would force it to close a $1 billion plant and lay off more than a thousand South Carolina workers. The company says the government has no legal right to interfere with business decisions about where to locate production.

The case has become an issue in the campaign for the Republican presidential nomination and GOP lawmakers have used the issue to bash the Obama administration’s economic policies.

11 comments on this story so far. Add yours!

The_Seer on September 23 at 12:27 p.m.
Well of course Boeing was acting with malicious retaliation. That’s what hugely tax payer subsidized corporations always do to the ones who pay their bills.
Talk about biting the hand that feeds.
liberal_in_right_wing_land on September 23 at 12:39 p.m.
Not that surprising, its pretty obvious Boeing wanted to punish the unions and pretty obvious that Boeing broke the law. I know the tea baggers will not think so since corporations never do anything wrong, but its now in writing that they broke the law, kind of hard to ignore that fact.
Not sure I favor though laying off 1,000 workers who had nothing to do with Boeings stupidity, can’t they instead work something out that allows these workers to join the union if they want? If given the that option it would be very interesting to see how many choose to join the union….I have a feeling a majority would once they realize the benefits of being in a union as opposed to working for no protection under a corporate master who will throw you under the bus the second they realize they could save a few bucks.
johnclarke on September 23 at 12:49 p.m.
Last time I checked, Boeing machinists don’t make a fortune. In fact, even at the top I think they make 75k a year. Let’s see anyone live on that in Seattle. Take a look at Boeing’s 10-k and note the BILLIONS they make in profit, the millions collected by executives and lastly take note that Boeing enjoys big time tax breaks for aerospace. That CEO is a real ball of fire too. Thanks to wars and government contracts, Boeing leadership can essentially phone it in. Heaven forbid they share a little of that gubmint gravy with the workers.
Any second now, we’ll all get a lecture about how corporations only responsibility is to make money for the shareholders. What about a responsibility to not be pigs ?
DavidBray on September 23 at 12:58 p.m.
Not sure I see the problem with a company that doesn’t want to hassle with unions. Remember Kaiser? Seems like in a free country a business should have the right to hire and fire whoever it wants.
Since when do the enlisted tell the officers what to do?
MrNatural on September 23 at 1:10 p.m.
I’m sure with Boeings profits they could afford the WORKERS over the shareholders profits a little…I’m just pleased they didn’t move overseas like the rest of the capitalist thugs…
Mike1950 on September 23 at 1:40 p.m.
Boo hoo for the greedy unions. Any company should be allowed to open a shop wherever they choose. If it happens to be so that they aren’t held hostage to union demands and strikes so be it. It’s a free country.
The_Seer on September 23 at 1:56 p.m.
Yay for David and Mike!
The numbers who betray their social class just amaze me. They’ll slobber all over themselves with Pavlovian predictability any time an opporunity arise to defend a class of wealth people/corporations who wouldn’t cross the spit on them should they become ablaze.
Traitors to your class. We’ll remember you especially when the proletariat grabs the reins. There is a special ring in hell for you too, just read The Inferno by Dante. My taxes support Boeing. Without our taxes in the forms of military contracts Boeing isn’t expanding outside Washington. Government contracts in Washington that don’t use union labor are required to pay prevailing wage and Boeing is trying to execute an end around that law.
tomnsahl on September 23 at 3:20 p.m.
Amazing commentary from the extreme right … here’s a thought that often is missing from these threads - follow the law!!
While not a fan of many union tactics, including striking teachers - there are legal/binding contracts that “money talks” corporate shysters ignore. Sadly our own Congress not only lets them get away with it, but actually encourages through shady lobbying “deals” (aka - eat pork!).
Unions, business & government share the blame for this mess. Until we wake up it will continue and the costs will be paid for on the backs of the real workers.
Dazzeetrader11 on September 23 at 5:12 p.m.
Nothing wrong with finding a non union State to work in. They own the company and they should have to duck everytime a union slacker says “boo”.
They can set up shop anywhere they want. Nothing in this article about being anti union. They might be faulted for being against anti huge salary and benefits with a gun to their heads. Remember how much the unions costed Boeing a few years ago in a non right ot work state? Lots of millions.
So the Boeing people are looking after their bottom line and ditching the unions.. SO what? Who says the unions have right to tell Boeing how they’ll run their business. It’s not union breaking. They simply don’t want to hire unions that costs them millions and hassles them when they want to do something else…not mandated by the unions.
I wouldn’t spend spend 0.1 tenth of a second at a table with unions. Poland is much better. I’m sure the Carolinas are too.
Unions aren’t entitled to claim jobs. Non union folks do the same work and are capable….just like in the longshormen deal last week in Longview.. Fire em or don’t hire em. Let freedom be upon us.
We have jobs…lots of em too…just not union jobs. Hope this goes to the Supremes. Unions are signing their own death sentences. NLRB is a bout to be disbabnded…full of unionists. Obama’s work..gee..who would have thought that!!!
mpcannon on September 23 at 6:12 p.m.
Funny how it’s only law breaking if a company does it. Apparently unions can break the law whenever they want….especially if they’re teaching kids in Tacoma.
mdriftmeyer on September 23 at 8:19 p.m.
“Boeing officials say granting the government relief would force it to close a $1 billion plant and lay off more than a thousand South Carolina workers. The company says the government has no legal right to interfere with business decisions about where to locate production.”
Boeing and United Airlines were created by The US Government. The US Government can create a new Contractor and Boeing can lose all those Military contracts.