Published: Sunday, July 12, 2009
GUEST COMMENTARY / BOEING ANNOUNCEMENT
State must do more to keep aerospace jobs here
By now we've all heard the news that the Boeing Co. purchased a factory and land in South Carolina. And we're certainly all aware of the threat this poses to keeping aerospace jobs in Washington. The question at this juncture is what to do about it.
The warning signs have been clear. The crisis point is now. State government must act to improve our business climate and ensure Washington remains the nation's aerospace leader.
A recent report on Washington's aerospace competitiveness showed we're less competitive than other states, especially when it comes to unemployment insurance, workers' compensation and other business-related costs. When the report came out in early April many urged the Legislature to act quickly and adopt reforms before the session ended that month. It didn't happen. Now we won't be back in session until next January, and Boeing has positioned itself to make possible future expansions in a low-cost southeastern state. Plain and simple, the Legislature blew it.
Some would say the aerospace community has already gotten everything it wants out of state government; that in fact we've bent over backward to meet its "demands." With all due respect, that just isn't true. Two of Boeing's top priorities are reducing their UI and workers' compensation costs. If you asked many small companies across Washington, they would say those are their priorities as well. Yet this year the Legislature made virtually no progress on either of those fronts. Rather than "bending over backward," the Legislature hurled out a myriad of business-busting bills at employers of all sizes. The message this sent job-makers, including Boeing, could not have been worse -- or more poorly timed, given how important it is to keep every job right now.
Much has been made of the tax incentives given to Boeing in 2003 when the company was trying to decide where to locate its 787 production line. Forgotten is what Boeing said it needed most, even more than tax breaks: some relief from our state's crushing unemployment insurance regulations. With bipartisan support, including active participation from then-Gov. Gary Locke, the Legislature made changes that benefitted not only Boeing, but businesses large and small all across our state. Sadly, those reforms have been systematically dismantled year after year until they are all but gone.
I keep a map in my office that reminds me every day why businesses like Boeing are important to the people of our state. The map includes "rings" around some of our biggest employers -- Boeing, Microsoft and others. The rings represent the thousands of small businesses that depend on those employers, from aerospace parts providers to small sandwich shops. For Boeing alone, there are 2 1/2 spinoff jobs for every one Boeing job. Large and small employers alike -- and the people who hold the jobs they provide -- are all counting on their leaders to do all we can to help them stay viable, especially in this tough economy.
Let's face it: Boeing's Washington ties changed dramatically when its headquarters moved to Chicago, and the D.C.-based unions will still collect dues whether the jobs are located in Washington or South Carolina. Those facts make the threat that Boeing may move even more real. All local union members and state political and business leaders must work together to keep the aerospace industry and its associated jobs in Washington -- jobs that account for $36 billion in economic value and represent 15 percent of our state's economy. A CEO in Chicago and a D.C. union leader don't have the ultimate commitment to keep jobs in Everett or Renton. Only business and political leaders and union members in our state have that ultimate commitment. A job in South Carolina doesn't help us.
It's time for lawmakers and others in a position of influence to wake up and to act. Washington must be competitive to keep jobs here, whether they're jobs at small companies or big ones like Boeing. The Legislature should be working tirelessly to make our workers' compensation, UI and tax policies competitive. If we don't make our state more attractive to employers, I fear we could see even more jobs -- including our coveted aerospace jobs -- flying right out of Washington.
Sen. Mike Hewitt (R-Walla Walla) leads the state Senate Republican Caucus and is a member of the Governor's Council on Aerospace.
The warning signs have been clear. The crisis point is now. State government must act to improve our business climate and ensure Washington remains the nation's aerospace leader.
A recent report on Washington's aerospace competitiveness showed we're less competitive than other states, especially when it comes to unemployment insurance, workers' compensation and other business-related costs. When the report came out in early April many urged the Legislature to act quickly and adopt reforms before the session ended that month. It didn't happen. Now we won't be back in session until next January, and Boeing has positioned itself to make possible future expansions in a low-cost southeastern state. Plain and simple, the Legislature blew it.
Some would say the aerospace community has already gotten everything it wants out of state government; that in fact we've bent over backward to meet its "demands." With all due respect, that just isn't true. Two of Boeing's top priorities are reducing their UI and workers' compensation costs. If you asked many small companies across Washington, they would say those are their priorities as well. Yet this year the Legislature made virtually no progress on either of those fronts. Rather than "bending over backward," the Legislature hurled out a myriad of business-busting bills at employers of all sizes. The message this sent job-makers, including Boeing, could not have been worse -- or more poorly timed, given how important it is to keep every job right now.
Much has been made of the tax incentives given to Boeing in 2003 when the company was trying to decide where to locate its 787 production line. Forgotten is what Boeing said it needed most, even more than tax breaks: some relief from our state's crushing unemployment insurance regulations. With bipartisan support, including active participation from then-Gov. Gary Locke, the Legislature made changes that benefitted not only Boeing, but businesses large and small all across our state. Sadly, those reforms have been systematically dismantled year after year until they are all but gone.
I keep a map in my office that reminds me every day why businesses like Boeing are important to the people of our state. The map includes "rings" around some of our biggest employers -- Boeing, Microsoft and others. The rings represent the thousands of small businesses that depend on those employers, from aerospace parts providers to small sandwich shops. For Boeing alone, there are 2 1/2 spinoff jobs for every one Boeing job. Large and small employers alike -- and the people who hold the jobs they provide -- are all counting on their leaders to do all we can to help them stay viable, especially in this tough economy.
Let's face it: Boeing's Washington ties changed dramatically when its headquarters moved to Chicago, and the D.C.-based unions will still collect dues whether the jobs are located in Washington or South Carolina. Those facts make the threat that Boeing may move even more real. All local union members and state political and business leaders must work together to keep the aerospace industry and its associated jobs in Washington -- jobs that account for $36 billion in economic value and represent 15 percent of our state's economy. A CEO in Chicago and a D.C. union leader don't have the ultimate commitment to keep jobs in Everett or Renton. Only business and political leaders and union members in our state have that ultimate commitment. A job in South Carolina doesn't help us.
It's time for lawmakers and others in a position of influence to wake up and to act. Washington must be competitive to keep jobs here, whether they're jobs at small companies or big ones like Boeing. The Legislature should be working tirelessly to make our workers' compensation, UI and tax policies competitive. If we don't make our state more attractive to employers, I fear we could see even more jobs -- including our coveted aerospace jobs -- flying right out of Washington.
Sen. Mike Hewitt (R-Walla Walla) leads the state Senate Republican Caucus and is a member of the Governor's Council on Aerospace.
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