http://www.dailyfinance.com/2009/11/09/boeings-move-to-south-carolina-cuts-787s-costs-but-risks-labo/
Boeing (BA) is opening a plant in South Carolina to help build its 787 Dreamliner -- the up to 330-passenger aircraft whose scheduled delivery date has been delayed six times. BusinessWeek reports that Boeing is investing $750 million in that plant and expects to pay the workers there $15 an hour, 42% less than its unionized Washington state workers get. With 850 Dreamliner orders worth $110 billion on the books, Boeing can hardly afford more problems with this plane. Is this move by the company short-sighted?
The answer depends on whether Boeing can train those South Carolina workers to do what those in Washington can. Lately, things haven't worked out so well for Boeing in its relationship with those Washington workers. About a year ago, Boeing's 27,000-member machinists union there went on strike for 57 days, which contributed to one of those six 787 delays and cost the company $2 billion.
The Boeing Co. is a huge part of Washington's history. Whether it will be a significant part of the state's future remains to be seen.
Harley Shaiken, a labor expert at the University of California at Berkeley, said Boeing is "sending a message to the union that this is our other alternative" by moving the second assembly line to South Carolina.
He said that Boeing has had disagreements with the machinists union and that they "marred the fact that they have a skilled and capable workforce" in Everett. Experts say it could weaken union support as Boeing is expected to decide in the coming years where to build the next generation of its 777 and 737 aircraft.
That could come as a blow for the Puget Sound area, which depends heavily on the aerospace industry.
4 comments: