Why Boeing Came to SC

A cautionary tale from Seattle.

BOEING IS GONE
WHERE THE MACHINISTS WENT WRONG

By John M. Payne, Esq.

Davis Grimm Payne & Marra

After more than 75 years of building airplanes in Seattle, how could we let

Boeing get away? Here is where the Machinists Union went wrong:

1. Strikes. Four strikes in 20 years. Are you kidding me? Boeing is the

highest paying manufacturer in the Pacific Northwest. The Machinists Union

let the radicals in the Union call the shots. They knew it and Boeing knew

it. It killed the golden goose.

2. 2009 Negotiations. What was the Machinists Union thinking? Six months

ago, Boeing announced it will leave if it cannot secure a 10 year no-strike

commitment from the IAM. In the meantime, Boeing's Machinists in South

Carolina voted to go non-union.

Instead of recognizing it must work with Boeing to remain in Washington, the

IAM reverted to its old ways. It played hardball. The Machinists Union

insisted on guarantees that Boeing's new work would be placed in Washington.

It insisted on a $5,000 per employee signing bonus. And, incredibly, it

insisted on a neutrality clause so that Boeing could not exercise its legal

rights to oppose union organizing at other facilities.

This was badly misplayed. With no leverage whatsoever, the Union bowed their

backs and overplayed their hand. Now the Union lost it all. Boeing's

comments were correct: The Union's last minute brinksmanship was the wrong

strategy at the wrong time.

3. How could this happen? The Union leadership lost touch with its members.

At a time when Washington's blue collar workers needed the Union the most -

to save their jobs - the IAM failed them miserably. The Machinists Union

leaders put themselves ahead of their members.

How else can you explain the insistence that Boeing agree to a neutrality

clause in Union organizing drives? Do you think the rank-and-file members

care about union organizing neutrality agreements?

Do you think the rank-and-file employees are worried about future union

membership? No, they want their jobs. The Union leadership lost touch. This

ill-played strategy cost them and the Puget Sound region dearly. The

Machinists Union could have learned a valuable lesson from their

counterparts in the United Auto Workers (UAW) or the Steel Workers. But,

they failed to do so.

4. What is next ? It happened in Detroit. It will no doubt happen here.

Good paying blue collar jobs will slowly disappear. As jobs are eliminated,

skilled craftsmen become underemployed. Tax revenues shrink. The education

system suffers. Related industries such as parts suppliers, transportation,

hotels and restaurants also suffer. It goes without saying, housing prices

flatten or are reduced.

It won't happen today or even in the next couple of years. But, by 2014 it

is inevitable that the Puget Sound area will feel the harsh effects of

Boeing's gradual departure. The high-tech industry won't save Seattle.

Successful economies are diverse economies. Manufacturing is a key

component of that success. What manufacturing do we have left?

5. One last question. One last question - Where were the politicians who in

2008 promised our citizens new hope and a great economy? Couldn't the

Governor and Legislature have matched South Carolina's $170 million pledge

to Boeing?

Instead, they arrogantly insisted that we have quality laborers that Boeing

can't live without. This argument fell on deaf ears, particularly when

Boeing's leadership now lives in Chicago. This was a misplayed hand by

political leadership who should know better.

6. Summary. This was a colossal failure by leaders in the Union and

government who could have done much better. If Detroit, Youngstown and

Cleveland are any indication of the impact of a loss of manufacturing jobs,

we are in for difficult times ahead.

[John Payne practices law exclusively in the area of labor and employment.

His firm is Davis Grimm Payne & Marra, 701 Fifth Avenue, Suite 4040,

Seattle, WA 98104.