51 F
Mobile
42.9 F
Huntsville
46.8 F
Birmingham
46.1 F
Montgomery

Union demands give right-to-work Alabama a chance to land Boeing

Boeing 777X
Boeing 777X

The machinists union in Washington rejected a long-term labor deal proposed by Boeing several weeks ago, sparking a nationwide competition among states trying to become home to a new assembly plant that will build the aerospace giant’s new 777X jetliner.

The labor deal would have transitioned workers with pensions into 401(k) plans and had them contribute more to their healthcare plans, which are experiencing skyrocketing costs due to ObamaCare requirements. In return, Boeing would have placed the new 777X assembly plant in Washington and given each worker a $10,000 signing bonus, among other promises.

The Herald, a union-friendly publication covering local news in Snohomish County, Washington, detailed the drama-infused relationship between not only Boeing and the machinests union, but also between local union members and their national leadership.

Local union leaders tried to block the Boeing proposal from even being put to a vote by the membership but were overruled by national IAM (International Association of Machinists and Aerospace Workers) leaders. The leaders from the East Coast called the shots after that, prohibiting District 751 (Washington) leaders from speaking publicly about the offer.

District 751’s roughly 32,000 members were caught off guard…

“There are some very hard feelings — some of them are mine,” said Paul Veltkamp, a quality inspector on the 747 line in Everett.

[A]fter the count revealed that union members overwhelmingly rejected the offer, the IAM’s national aerospace coordinator, Mark Johnson, stood to announce the results and was greeted by boos and jeers at District 751’s headquarters in Seattle…

Several union members said some in District 751 have even been talking about leaving IAM for another union.

Washington state legislators have tried to swoop in to save the day by offering an incentives package to Boeing, but the Chicago-based airplane manufacturer has already started eyeing other potential sites around the country.

According to Boeing documents, the 777X facility will employ 8,500 workers at peak production, including 800 engineers, 6,750 production workers and 950 support personnel.

Boeing sent requests for proposal to numerous states, with a deadline for submission of Tuesday, Dec. 10.

Here are the states that are in the running for Boeing’s plant, based on media reports from around the country:

Alabama
Right to work — Yes
Annual aerospace revenue — $7.8B
Current aerospace industry workforce — 23,090

California
Right to work — No
Annual aerospace revenue — $52.3B
Current aerospace industry workforce — 162,162

Missouri
Right to work — No
Annual aerospace revenue — $6.6B
Current aerospace industry workforce — 20,510

North Carolina
Right to work — Yes
Annual aerospace revenue — $2.9B
Current aerospace industry workforce — 12,140

Ohio
Right to work — No
Annual aerospace revenue — $9.6B
Current aerospace industry workforce — 28,157

Pennsylvania
Right to work — No
Annual aerospace revenue — $10B
Current aerospace industry workforce –31,220

South Carolina
Right to work — Yes
Annual aerospace revenue — $2B
Current aerospace industry workforce — 7,894

Texas
Right to work — Yes
Annual aerospace revenue — $27B
Current aerospace industry workforce — 87,781

Utah
Right to work — Yes
Annual aerospace revenue — $3.8B
Current aerospace industry workforce — 11,489

Washington
Right to work — No
Annual aerospace revenue — $32.8B
Current aerospace industry workforce — 93,925

Although Boeing will weigh numerous factors when making their final decision — including tax incentives, workforce training, overall business climate, etc. — right-to-work states offer Boeing the opportunity to avoid vicious labor disputes that grind operations to a halt and drive up costs. That gives states like Alabama, North Carolina, South Carolina and Utah an immediate advantage over the competition.

The importance of right-to-work laws even compelled analysts to include Arizona, Georgia, Kansas and Oklahoma in the list of possible suitors that may also submit proposals by the deadline, even though they weren’t in the initial round of states said to be under consideration.

Alabama Governor Bentley, Commerce Secretary Greg Canfield and the rest of the team at the Alabama Department of Commerce worked through the weekend to craft a plan that will make Alabama as attractive as possible to Boeing.

Yellowhammer reached out to Canfield Sunday evening to check on the status of their efforts.

“Alabama has enjoyed a 53-year history with Boeing,” Canfield said. “We certainly view the fact that we are a right-to-work state as a positive selling point — both for this project and for many others.”

Mobile Mayor Sandy Stimpson and members of Canfield’s team recently returned from Germany where they were working to lure aerospace suppliers to locate in Alabama.

Canfield believes that landing Boeing would be a major development in the Commerce Department’s strategy to develop the state’s supply chain for the aerospace industry.

“It is our feeling at the Department of Commerce that a project like Boeing, coupled with the final assembly line for Airbus in Mobile, would do much to make our strategy to develop the supply chain to support the aerospace industry more successful,” he said. “Chief among their considerations is always how business-friendly a state is.”

While the unions fight amongst themselves in other parts of the country, Alabama’s workforce, overall business-friendly climate and right-to-work status continue to stand out, attracting manufacturers from all over the world.

We’ll know soon if Boeing is next.


Follow Cliff on Twitter @Cliff_Sims

Don’t miss out!  Subscribe today to have Alabama’s leading headlines delivered to your inbox.