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 TUESDAY, FEBRUARY 9, 2010 3:18 pm |
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Business 
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Boeing 'has what it needs' to make 787 decision South Carolina is on track to offer breaks on taxes and construction bonds to lure Boeing's second 787 line. EVERETT — While lawmakers from Washington state urge the Boeing Co. and its Machinists union to continue talks over the company's second 787 production line, Boeing leaders say they have what they need to make the decision."No decision has been made," said Boeing spokesman Tim Healy. But Boeing has the needed information to make a choice between Everett and Charleston, S.C., he said. U.S. Sen. Patty Murray, D-Wash., said early Wednesday that she's trying to arrange talks between the two parties. Spokeswoman Alex Glass says Murray doesn't want to see the opportunity for a second 787 assembly line in Washington pass by. Washington Gov. Chris Gregoire also encouraged the two parties to work together to find a way to keep Boeing's 787 line here in Everett. "My philosophy is ‘it ain't over ‘til it's over.' I am continuing to work with both sides to urge them to keep talking and reach an agreement that would result in the second line being located in Washington," Gregoire said. Healy declined to say whether Boeing accepted the senator's offer. However, "We were very clear with the union about when we needed their best and final offer," Healy said. Boeing is expected to announce where it will site its second 787 production line as early as today. As Washington leaders scramble, South Carolina politicians work to pass tax incentives to land the second line. South Carolina's state Senate gave the OK Tuesday to a set of incentives aimed at making Charleston an attractive choice for Boeing's second 787 assembly line. Boeing already owns a former 787 supplier factory in Charleston. Company Chief Executive Jim McNerney said in an earnings report last week that Boeing will decide between Charleston and Everett within weeks. “We've got an opportunity before us now ... to bring jobs to our people that are so desperately needed,” South Carolina state Sen. Hugh Leatherman, R-Florence, said Tuesday. South Carolina's unemployment rate hit 11.6 percent last month. The Legislature is holding a special session to discuss providing aerospace tax incentives, which include low-interest construction bonds and a sales tax exemption on fuel used in test flights. To qualify, a company would have to create at least 3,800 full-time jobs and invest at least $750 million in the state over seven years. South Carolina's Senate passed the legislation 44-0. House members are expected to vote later this week. Boeing's decision, however, could hinge not on tax incentives but on avoiding potential work stoppages. In his remarks last week, McNerney noted the difficult relationship between the company and its Machinists union here in the Puget Sound region. The Machinists went on strike for 57 days last fall. “Our balance sheet would be a lot stronger today had we not had a strike last year,” McNerney said. “Our customers would be a lot happier today had we not had a strike last year, and the 787 program would be in better shape had we not.” Union leaders and Boeing managers have been in discussions about the second 787 line. But Machinists president Tom Wroblewski told members last week that any agreement, such as a rumored long-term no-strike deal, would need member approval. The union reacted Tuesday to South Carolina's pitch to Boeing. “Instead of spending another $750 million to collect the incentives the South Carolina Legislature proposed ... we would all be better off if Boeing made the rational decision, with the least amount of risk and best chance of success by simply continuing to work with us,” Machinists leader said in a statement. The union said that Boeing can “ill-afford” to spend $750 million and guarantee South Carolina 3,800 jobs given that it has made no job guarantees in Washington. Instead, the Machinists suggested Boeing leaders focus on getting the delayed 787 Dreamliner in the air, as promised, by year's end. Boeing's 787 is running more than two years behind on deliveries to customers. South Carolina state Sen. Robert Ford said lawmakers have been told not to discuss the company by name because the situation is too sensitive. “Of course, for any district in the world, it would be a major, major employment opportunity,” said the Charleston Democrat, whose district includes Boeing's existing North Charleston plant, which makes fuselage sections for the 787. South Carolina's legislation, which does not name Boeing specifically, would exempt taxes on computer equipment and allow a qualifying company to immediately pay no sales tax on construction materials, rather than wait for a planned 2011 phase-in. It would ensure the company could negotiate with state officials to pay little corporate income taxes for 10 years by deleting a minimum pay requirement. The proposal would also allow the state to issue up to $170 million of economic development bonds that would allow qualifying aerospace companies to build their projects at a lower interest rate. “I think if what we believe is going to happen happens, without talking about a name, this is almost as big as ”Michelin's expansion and BMW's move to South Carolina more than a decade ago, said Otis Rawl, president of the state Chamber of Commerce. “This is another one of those marquee companies that puts South Carolina not only on a national map but a global map.” The Associated Press contributed to this report. |
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COMMENTS
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The union is hurting the machinists. Not only did they lose a lot of pay during the long strike last year, because the union is too stubborn to agree to a no-strike deal, they are about to lose thousands of jobs and any potential future growth. If the new 787 plant in SC is fruitful, what is to stop Boeing from building any future 737 plants there as well?
Time to follow suite like the rest of the South and disband the union or regret it for a lifetime. Don't we learn anything from our history? Detroit Automakers thought they were safe from foreign car makers because the talent and experience in making cars was in Detroit. Now, the non-union foreign automakers in the South are slaughtering Detroit.
Please disband and before it is too late. Not only are the machinists' jobs on the line but the entire Washington state economy as well...
John Lee | Oct 28, 2009 12:55 pm | 0 replies | Request removal
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Of course Boeing is leaving, they aren't announcing because there's more tax incentive to bleed out of SC. And once they make their choice we should make ours. It's clear we're anti-boeing now so we need to make them pay. That land they own is extremely valuable, time to raise those taxes..
And what's more, boeing employees aren't much competition in the workplace, the good ones will go with boeing, the rest will suck on hind t*t around here for awhile until they bleed the program they're on dry.
So goodbye to boeing, who's next, Microsoft? Bet they can be had, all we need is to get a union in there interested in raising thier cost of business higher than anywhere else in the country, we already have a govt. of experts in anti-business philosophies.
No Sonics, Boeing on the way out, no road improvements in Seattle, high B&O, high property taxes, high sales taxes, lots of gvt spending programs, we just need a few more liberals in office to finish the job though.
It's like a poison pill, and no Californians will want to come here anymore, and growth will go way down, and the waters may become cleaner, and people will start moving away. Sure it's gonna hurt for awhile, especailly if you got a high mortgage now, but eventually your house will be worth what a house in SC is worth or less, and that's gonna help.
Just need the right perspective, and if destruction of business, decreased population and a greener Northwest is what we want, were suceeding
Bill Middleton | Oct 28, 2009 11:55 am | 0 replies | Request removal
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I used to work at PSNS, I know the sub safe program and am familiar with Nuclear Reactors on submarines. Its not something that you just use a bit of duct tape and gum to fix. If you think that Boeing is going to stay and those in the south are just slacked jawed yokels you're fooling your self.
Wilol the last person leaving Everett please turn off the lights?
Mike Flavin | Oct 28, 2009 11:54 am | 0 replies | Request removal
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I just thought I would inject a little humor with Bubba...however S.C is a very advanced state. I used to transport a lot of high tech chemicals and products for the electronics industry from there, nothing backwoods about those folks...and they are nice people too.
Rich Kruml | Oct 28, 2009 11:23 am | 0 replies | Request removal
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"all they do is strike"
Since the last strike in 2008, when was the strike before that? Bet you don't even know.
david kirby | Oct 28, 2009 7:12 am | 1 replies | Request removal
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What were y'all saying before Boeing took off to Chicago? It's simple stupid---it's business and money. They can't afford work stoppages any longer and Boeing management won't tolerate. They need another alternative.
I see--they can fix submarines in Charleston, but they can't build an airplane? Your making a mistake if you think SC, and especially Charleston, is back woods. Boeing employees will have access to some great medical facilities---set up by Fritz Hollings. The SC Medical University is right in downtown.
K Dog | Oct 28, 2009 10:19 am | 0 replies | Request removal
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Howdy ya'll...ma name is Bubba and I build them thar areoplanes fer Boing.
Fly Airbus and live another day.
Rich Kruml | Oct 28, 2009 9:55 am | 0 replies | Request removal
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Plenty of sunshine. There is the Grand Strand, Ilse of Palms Jekyll Island and other beach resorts. Skiing in the winter and plenty of mt. activities. Land is cheap and so is housing.
K Dog | Oct 28, 2009 8:16 am | 1 replies | Request removal
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Sell, sell, sell!
neil thomson | Oct 28, 2009 7:54 am | 0 replies | Request removal
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We've known for a while that Boeing's new generation of management has no loyalty to this area.
With all the difficulties w/ heat and light affects on that skin, can't wait to see what the good ol' South Carolina sun and heat do to those skins.
Sad that McNerney has not been held accountable for his inept management, but once again, the workers are held responsible for management's failings.
CC At the Big B | Oct 28, 2009 7:03 am | 0 replies | Request removal
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let's call it like it is, shall we?
SC has no competition in this ... the crazy union here makes it a joke for the Boeing Co to add another line here when all they do is strike. I know people at Boeing that are unskilled, with no college, able to make $400+ a DAY by working overtime etc ... if they cannot bargain to not strike for 10 yrs to keep it here, I hope Boeing wakes the state up by moving - serves us right - as a business they would be nuts not to move all of it. Unions are yesterday - time to get with today.
rita stanwood | Oct 28, 2009 6:49 am | 0 replies | Request removal
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BMW and Michelin have done well in the Upstate (Piedmont) since they moved there. Clemson University (a state school) has provided excellent engineering support. The SC legislature is willing to put it ALL on the line. What has queenie done to retain Boeing? I say they are a gonner.
K Dog | Oct 28, 2009 3:12 am | 0 replies | Request removal
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