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September 12, 2009 Key Boeing factory goes non-unionEven as unions revel in their access to political power with Barack Obama, actual workers handed the union movement a stinging defeat. Watch for a political reaction to this news, from Dominic Gates of the Seattle Times:
Given the fierce competition in the global airliner market, it would not in the least surprise me if Boeing opened a second 787 assembly line in Charleston, where labor costs (and several other factor costs, including taxes) will be considerably lower than in the Puget Sound region, one of the pricier locales in America. One final assembly is located in South Carolina, the pressure on the IAM -- which has not hesitated to strike against Boeing in the past -- will be considerable. Sooner or later, Boeing will retire the 737, the 747, and even the 777 models, and replace them with aircraft utilizing the carbon fiber fuselage technology being pioneered by the 787. (Note: this assumes Boeing is able to master the difficult new technologies of the 787 approach, with which it has had considerable problems, causing delays in the launch of the 787. There is little reason to suspect that it won't be able to get past these teething issues.) In effect, the Seattle locations will have to bid against the South Carolina workforce, once final assembly is located in two different regions of the county. Boeing has already moved its headquarters out of Seattle, demonstrating to all in Washington State that history alone will not keep the company there. If nothing else, this move will increase pressure on the Democrats to ram through the Orwellian-named Employee Free Choice Act, which will end the secret ballot for union elections. The Boeing blue collar work union work force has been one of the highest paid in the country. The prospect of losing the cream of what remains of the union manufacturing workforce (along with the vastly diminished UAW ranks) has got to scare the labor bosses. They will retaliate, I am certain. And they will use their political clout to do so. Keep your eyes on this one.
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