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Boeing's 7E7 'Bidding' Follows Airbus Lead

SPEEA Calls Boeing's Bidding Process for 7E7 Work 'Misguided'

After taking assistance from cities and states where its factories have been located for more than 80 years, The Boeing Company is turning its back on communities by setting up a bidding process to choose the location for its new 7E7 plant, according to the union representing technical workers at the aerospace giant.

The Society of Professional Engineering Employees in Aerospace (SPEEA) IFPTE Local 2001, AFL-CIO, now the largest union representing Boeing workers in the Puget Sound region, said the bidding process announced this week disregards years of contributions by employees and whole communities like Renton, Seattle, Everett and Auburn (WA), and Wichita (KS). In many cases, communities and states have worked hand-in-hand with Boeing for decades.

That was then. This is now. As municipal gravy trains dry up in used-up communities, Boeing looks for fresh ground to plow.

"This is a slap in the face of everyone who has worked and supported Boeing for decades," said Pat Waters, SPEEA Council Chairman. "Now, The Boeing Company is saying all that work, all the help over the years, doesn't matter. We are taking a stand now, not to hurt Boeing, but to help save Boeing from misguided management."

'Bidding' out in the open, now...

Rumors of Boeing's using a bidding process to parcel out 7E7 work have been heard for months. On Monday, Boeing officials said publicly they will soon lay out "requirements for building the new airplane in Washington." A similar announcement was made in Wichita. Last week Boeing informed Kansas state officials the company wanted $500 million in tax incentives and other government contributions before committing to send 7E7 work there.

"It's very distasteful that the largest aerospace firm in the world would use these tactics," said Charles Bofferding, executive director of SPEEA, IFPTE Local 2001. "There seems to be no appreciation for everything the communities and their residents have done for this company." Boeing has long enjoyed special treatment from many communities, with non-Boeing employees' in effect subsidizing their higher-wage Boeing neighbors. Discounts in water, trash, electricity, property tax; and special treatment in the granting of zoning, parking, and runoff variances, are a way of life in Boeing's towns. As those towns tire of the endless demands, it's no wonder that Boeing is apparently shopping around for better deals elsewhere. It's no different from sports franchises' looking for the best new free stadium...

It's not been graceful.

In the past 18 months, the Boeing Commercial Airplane Company has laid off more than 31,000 workers. The company plans to cut 4,000 more employees before the end of the year. The aerospace layoffs have helped make the unemployment rates in Washington and Kansas among the highest in the nation.

Boeing set up a bidding war among Dallas, Denver and Chicago when it shopped for a new location for its corporate headquarters two years ago. The company picked Mayor Daley's Chicago after the state of Illinois offered $54 million and other benefits, (many of which Boeing later said were, to the company, irrelevant; yet they cost the taxpayers the full amount of the politicians' giveaways). According to Bofferding, many workers declined invitations to follow their jobs to the new location.

Union leaders point out moving executive offices is simple compared to moving the equipment used by engineers, technical workers and skilled mechanics to design and build today's commercial aircraft. In addition, any area looking to attract work on the next generation of commercial aircraft also needs to provide thousands of skilled and experienced aerospace workers. Boeing knows this; its labor costs are apparently high enough that it's willing to make the move.

"Boeing has to realize the employees are part of what makes Boeing aircraft great," said Jennifer MacKay, president of SPEEA, IFPTE Local 2001. "This is a company that has made many commitments to factories, communities and workers overseas. Why don't they start making that same commitment to their workers at existing faculties? To focus on costs to the exclusion of the impact on employee morale and productivity is short-sighted and misguided."

FMI: www.boeing.com; www.speea.org

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