Boeing Seeks Cheap Labor, Huge Tax Cuts In Bidding War: Union Destruction Continues War On Labor

I have tracked Boeing for years and years.  Boeing jobs were ‘good’ (i.e.: union) jobs but after thirty years of free trade and open borders, after the former slave states passed anti-union laws, we have this result:  Boeing (BA) 777X: Economic Warfare Between States For Boeing Jobs Is Hurting The Poor, Endangering Public Services And Only Serves Foreign Customers

 

The competition for the Boeing contract began when Boeing employees in Washington State rejected a pay deal that would have restructured new employee’s pay scales and pensions, but on the other hand, would have guaranteed that the manufacturing of the new Boeing aircraft would stay in Washington State and keep valuable jobs until 2025. The deal was rejected and so began the scramble among state governors to entice Boeing out of Seattle.

 

The Boeing unions saw how the auto producers cut the unions up by having new employees work as semi-slave labor and then this broke the unions up due to lack of solidarity.  So they are desperately fighting back but will lose because our nation is in this race to the bottom whereby workers get virtually nothing from productivity gains and rich owners get all the capital value accrued from manufacturing systems.

 

On top of this, the unions and workers are told, they need to enable overspending by our government in military procurement because this means more jobs and more money for them even though the vast bulk of the overhead military costs go to the richest 1% who own everything.  I remember vividly the excuse for ‘privatization’ of the military systems.  It was to ‘save money.’  As soon as it began, our budget deficits shot upwards and much of this is due to military spending and Boeing has been in the forefront of ridiculous overhead costs to produce fighter jets that we can ill-afford to lose in any real battles.

 

The jet programs alone will come to over a trillion dollars and  then there is our hideously expensive navy that is equalling this overspending not to mention our expensive wars, invasions and occupations costing trillions.  This unsustainable system will destroy our nation as overspending by the Spanish empire sank that enterprise 500 years ago.  The Roman empire became a cannibal zombie operation which involved looting the economy so the rich could live in great palaces and do as they pleased.

 

The southerners who boast about outbidding northern labor are actually harming their own people but the politicians, nearly all Republicans, don’t care:  Mo. Black Caucus says Boeing deal withheld housing money

 

However, as Le Roy says, these tax incentives only make up a small percentage of the corporation’s income, but affect the average person in-state a lot more because public services are diminished, and when it’s all said and done, each job created, according to a report by Good Jobs First from June 2013, as described by a study of 240 state-business deals, costs around $456,000 to the state.

 

The return to Dicken’s England is the entire plan.  Couple this with liberals screaming for taxes on heating fuel which slams the north hard, we have dual warfare from both the left and the right aimed squarely at northern union workers and others who struggled successfully in the past to gain wealth and rights from the elites.  The Clean Air Act, for example, was a good thing but became a bad thing when we moved production to Asia via opening our borders to trade with zero protection for home industries.  We have to take into consideration many things when cleaning up the environment or balancing budgets.

 

Wild spending and tax cutting is no healthier than enabling huge trade deficits.  We have to focus on ALL these things at the same time to find some sort of balance.  This means crossing ideological lines.  Neither the left nor the right are 100% correct about anything.

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23 Comments

Filed under Free Trade

23 responses to “Boeing Seeks Cheap Labor, Huge Tax Cuts In Bidding War: Union Destruction Continues War On Labor

  1. Graywolf

    Boeing made an offer.
    The union said “no.”
    Boeing moves to plan B.
    There is a general misconception that companies have some sort of “obligation” to their employees.
    Not true – certainly not legally.
    Their ONLY obligation is to the owners (stockholders).
    And Boeing is getting sick and tired of constant problems with the union.
    Solution: Move to S. Carolina.
    See how all those self-righteously indignant union “workers” like that.
    They will continue to howl at the moon.
    Life’s tough; it’s tougher when you’re stupid.

  2. melponeme_k

    OT

    Russia continuing to set itself up as a level headed supplier of energy to Asia.

    http://rt.com/politics/official-word/russia-vietnam-cooperation-putin-512/

    “We uphold the rule of law in international relations and advocate that no alternative political or diplomatic tools should be used for resolving disputes and that every state has a right to choose it own path of development.”

  3. melponeme_k

    also, Putin seeks to put a stop to Russian companies offshoring their infrastructure and taxes.

    http://rt.com/business/offshore-tax-budget-russia-119/

  4. melponeme_k

    Last but not least (and I will stop spamming)

    http://rt.com/business/russia-usa-trade-shuvalov-111/

    Russia seeks to join Free Trade gravy train by helping the US elites cannibalize their own country.

    Guaranteed this will end with Alaska being a part of Russia once again.

  5. Vengeur

    “Their ONLY obligation is to the owners (stockholders).” Really? And all those government (TAXPAYER FUNDED) defense and border security contracts they get , those don’t have any effect on Boeing stock? LOL!!!!

  6. Petruchio

    @ Graywolf : “Life’s tough; it’s tougher when you’re stupid….” From reading your post, you are likely an expert on stupid. Your statement that employers have no obligation to their employees is COMPLETELY false. Employees make a company successful and profitable. THE SHARE HOLDERS DO NOT! It is basic fairness to require a company to reward their productive employees fair payment for their services. The shareholder/Investor class are leeches, gutting companies for their short term benefit. Society has a choice: serve the Investor/shareholder class and to hell with the rest of society or there can be a more equal playing field so that EVERYONE who contributes to a companies success is compensated. Boeing should spend more time worrying about getting their corporate butts kicked by AirBus than wage wars against Unions.

  7. CK

    Without the investor types there are no companies for the unions to leech.
    It isn’t society you have a beef with; it is that part of society that will not produce but steals. It has a name. Government. Without the war war war shit that is government, Boeing would be a middlin company of no great import that makes mediocre products. No one would care if it located in Titiute or Seattle. Society does have a choice. It could work to eliminate government theft and government coercion and government picking of meritless winners/BFFs. It is a choice you nor anyone else here will allow. Got’s to have them criminals running things; elsewise you would have to do your own creating.
    And without government, it really isn’t that tough if you are dumb. Folks are kindly, work can always be found that is within your capabilities and paid for as it has marginal value to the hirer. With government it is tough to be dumb. The dumb are only as valuable as they are numerous and corralable to the voting booth. Democracy is such a criminal thing. such an anti-human thing.

  8. Well if the shift operations to SC then watch quality plummet.

  9. emsnews

    The REAL investors are the taxpayers. We are paying 100% for everything.

  10. Dreamliner manufacturing is already scattered across the globe.(even China)I believe us Canadians got to build the landing gear doors.
    Built out of carbon fibre and epoxy for weight savings,not because it’s safer than aluminium.Li-Po batteries instead of onboard gensets to save fuel but much more dangerous.No thanks.
    Carbon fibre composites absorb water,then can freeze/thaw at high altitudes ,fracturing with predictably disastrous results.Maintenance is supposed to catch these flaws with elaborate testing before they fail.HA!
    I decided not to fly several years ago( NSA,)things like this just cement it.

  11. larry, dfh

    Lithium-Polonium batteries?

  12. It might be the efficiently-designed countries that win out in the end. Suburban houses with two cars, and people commuting an hour each way to their jobs, is not efficient. The workers in that system need relatively high wages just to pay their heating bills and transportation costs. The whole thing needs to be rethought. The US should do some long-term economic planning. It might be possible to improve quality of life without such high wages, but the invisible hand of the market won’t design a system like that anytime soon.

  13. emsnews

    Steve, why all the palaces and private jets?

    This is a pure income distribution problem with all the profits flowing to the top 3%. Or are you suggesting everyone live in mean, cold slums and work to death?

  14. Graywolf

    Petruchio:
    You sound like an undergrad trying to get a better grade by appealing to the basic anti-capitalism of the teacher.
    Stick to academia or government, or wherever you are, avoiding the real world

  15. emsnews

    Sorry, Graywolf, but workers DO matter a lot. When they are treated like slaves, things fall apart fast.

  16. Jim R

    Lithium Phosphate batteries.

    Anything that stores as much energy as a tank of gasoline, is going to be as dangerous, probably more dangerous than the gasoline.

  17. Graywolf

    emsnews:
    Somehow, I believe that the machinists at Boeing are quite a way from slavery.

    And generally, in history, bad management has brought in unions. and REALLY bad management invites union trouble.
    But, Boeing is still responsible to it’s owners, NOT a union.

    Glad to see you’re keeping warm in nowhere, NY.
    I know of what I speak. I was born and brought up there.

  18. emsnews

    They are losing their jobs and being replaced with near-slave labor.

  19. Elaine, your idea is to increase tariffs. If you could then redistribute some wealth, the US could move towards being a self-sufficient economy. The system might start working in reality the way it now works in propaganda: Americans pursuing the American dream can accumulate enough capital, from their high wages, to start up businesses that will satisfy the demands they perceive around them. The tax system could let innovators keep enough of their gains to make innovation worthwhile, while still transferring some of those gains to society as a whole so that some equality of opportunity was maintained.

    I approve of the goals. But the whole thing rests on the tariffs. Even if you could do it, it wouldn’t be stable. There’s this particular “American way of life,” that you’d be propping up by refusing to compete against other ways of living. I could see the logic if the “American way of life” were really so grand. But is it?

    It might be smarter, in the long-run, to learn from the competition, instead of trying not to compete.

  20. emsnews

    Huh?

    Why do we import anything at this point? We have one of the most diverse geological/human labor systems on earth! We have plenty of farmland, plenty of mineral wealth and oil which we export!!!

    No, the ‘cheap labor’ thing is all about profits for the rich. We ‘compete’ with cheap labor by exporting our raw materials to our trade rivals who in turn, export finished goods to us.

    A deadly trap for the US, a looting of our resources for foreign profits.

  21. I don’t disagree with any of that. The US has been deindustrialized. It could reindustrialize, probably within a generation at this point. (But the longer it waits the harder it gets. Knowledgeable people die off, and there’s not much incentive to study computer engineering when all the computer chips are manufactured in Asia.)

    I’m saying that we should look seriously at why foreign labor is often cheaper. Sometimes it is because the working conditions are hellish, and that shouldn’t be emulated. But it’s a mistake to cling to the old colonial assumption that the ‘developed world’ knows what it’s doing, and it’s the ‘developing world’ which needs to emulate _us!_

    More is not always better.

  22. Petruchio

    @graywolf: “Petruchio:
    You sound like an undergrad trying to get a better grade by appealing to the basic anti-capitalism of the teacher.
    Stick to academia or government, or wherever you are, avoiding the real world…” I was going to ignore this one but here goes: HAHAHAHAHAHAHAHA. Your ‘picture’ is COMPLETELY FALSE!! I spent 20+ years working for a Fortune 100 company. I am familiar and experienced with the ways of the likes of Boeing. You sound the a Foxoid; believing everything you hear on that propaganda network. In closing, imho you really shouldn’t make comments like the one I quote here. Number one, it is factually WRONG, and two, it makes you look like a…..moron. ‘Nuff said. Petruchio out.

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