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Lots of reaction to Boeing purchase
Posted
at
9:39 am
by Jerry Cornfield
Boeing's purchase of Vought is stirring lots of reaction. This batch from business and political leaders shows they see the problem as a case of high costs of the work force and operating in Washington.
Here are excerpts:
Steve Mullin, president of the Washington Roundtable:
“Boeing has to make a business decision about where future production should go. I want it to be here in Washington, but there are absolutely no guarantees anymore.
“Boeing is a global company and they will locate where it makes the best business sense. Their customers are going to have a lot to say about it and some of those customers have expressed concern about Boeing’s labor relations here in the Seattle area.”
John Stanton, chairman of the Washington Roundtable:
“Unless things change, Boeing’s future will be outside the Northwest and that will be devastating to the Washington economy.
“My father worked 25 years for Boeing and I know firsthand just how skilled the workforce is, but Boeing customers are telling the company that workers need to be reliable as well as skilled. Airlines simply can’t make billion-dollar decisions on new aircraft and then face the prospect of delivery delays because of labor disputes. If the workers and the company can’t figure out how to trust each other and get along, then the company has little choice but to locate operations in communities that will be more welcoming. If Seattle wants to keep Boeing, they better stand up and show it because there are dozens of other states that will welcome the jobs and the economic activity.”
Don Brunell, president, Association of Washington Business:
“This is our wake-up call. In this economic climate, businesses must locate where they have the best chance for success. If staying in Washington makes Boeing less competitive, it has to look at other options. Boeing must deliver value to their customers by delivering products cost-effectively and on time. That means Boeing cannot have frequent strikes and labor discord.”
Richard Davis, coordinator, Washington Alliance for a Competitive Economy
“Boeing jobs would be a prize for any state. Losing the second line of the 787 would be a substantial loss for our economy. Washington has highly skilled workers but it also has a history of difficult labor relations. It’s logical for the company to try and expand its options. In addition to losing the jobs created by the second 787 line, we could face the potential loss of related manufacturing jobs. With Boeing going there would be less reason to stay.”
Senate Minority Leader Mike Hewitt, R-Walla Walla, who serves on the Washington Council on Aerospace:
"Today’s announcement is not good news for the people of Washington, and represents another in a long line of warning signals the Legislature should be heeding about our state’s dismal business climate.
“A recent report on Washington’s competitiveness showed that two issues were very important to the aerospace industry – labor-management relations, and cost-related measures such as unemployment insurance, workers’ compensation, taxes and other business costs.
“Work stoppages over the past several years have cost Boeing nine billion dollars in revenue and two billion dollars in lost profits...If labor-management relations is the industry’s number one concern, and the report says that it is, why wouldn’t Boeing look to expand elsewhere given this dismal record?
“Amazingly, on the business cost front, the Legislature made little to no progress this session on making our state more competitive.
“If we don’t make our state more attractive to employers, I fear we could see Boeing and other companies taking steps like the one we saw today – steps that could lead them right out of Washington.”
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