Opinion Columnists

<< Previous   of   Next >>   ADVERTISEMENT   HAVE YOUR SAY Feel strongly about something? Share it with the community by writing a letter to the editor. You’ll need to include your name, address and daytime phone number. (We’ll only publish your name and hometown.) We reserve the right to edit letters, but if you keep yours to 250 words or less, we won’t ask you to shorten it. If your letter is published, please wait 30 days before submitting another. Send it to: E-mail: letters@heraldnet.com Mail: Letters section The Herald P.O. Box 930 Everett, WA 98206 Fax: 425-339-3458 Have a question about letters? Contact Carol MacPherson (cmacpherson@heraldnet.com or 425-339-3472).   Published: Wednesday, November 4, 2009 Labor wasn’t Boeing’s only concern By Richard S. Davis Boeing’s not gone. Yet. Nearly everyone sees the decision to put the second 787 line in South Carolina as portentous. It’s like the shrieking strings in “Psycho.” We’re on edge, anticipating more bad news. And more bad news may come. But it needn’t. This region’s script is still being written. We know a growth opportunity escaped us. The incentive package signed in South Carolina last week only pays off if the company creates 3,800 jobs and invests $750 million over the next seven years. You can bet Boeing intends to hit the targets. The folks involved here assure us that they did everything that could be done over the last few months to win the competition. I believe them. But they could not undo the checkered record that is Boeing’s experience in Washington. Critics cite regular and costly strikes, high business costs and antagonistic legislative proposals. The sales team touts the region’s productive and skilled workers, the generous incentive package that won the first 787 competition, enhanced workforce training programs, and high-profile political support in Olympia and D.C. At best, offsetting pros and cons, with labor relations tipping the balance. Everett entered the ring an underdog. Jawboning and promises — even unprecedented union concessions — weren’t going to close the deal. Over the weekend came reports that after union leaders offered a conditional last-minute deal closer to what the company wanted, Boeing balked, citing new reasons to Charleston down the road. Although Boeing executives and state political leaders highlighted the need for labor stability — a no-strike agreement — over the summer, the company has consistently cited business climate concerns. Those concerns did not disappear as labor issues emerged dominant. As recently as September, responding to the governor’s business case for building in Washington, Boeing spokesman Bernard Choi said that “While Washington state has made progress, there is still work to do to deal with the high costs of doing business.” Did Boeing fail to mention everything that mattered? Maybe. Or maybe they figured we ought to know what mattered. Last April, a Deloitte Consulting study commissioned by the Snohomish County Economic Development Council reiterated Washington’s well-known competitive disadvantages for aerospace, including unemployment and workers’ compensation costs, the history of strikes, labor costs, housing affordability and high cost of living. The report also cited the region’s strengths: educated workforce, quality of life, competitive research and development. Here’s the key takeaway: “While Washington offers many advantages to aerospace companies, its disadvantages outweigh the advantages...” So, regardless of the what was said, implied or inferred by participants in private meetings, we know what matters if Washington is to succeed in winning future competitions. And let’s not make this all about Boeing. While aerospace drives the state economy, states and metropolitan areas are engaged in a relentless, unforgiving and unsentimental global competition for new investment and job creation. As we just witnessed, Washington can take nothing for granted. Firms founded here can leave, moving headquarters and production facilities to more congenial climes. Costs matter and corporate leaders will do what they must to be profitable and stay in business. The search for more congenial climes may lead them to Bangalore or Barcelona, China or Charleston. In the first week after the announcement, those left behind have all too publicly gone through the first four of the five stages of grief. We’ve seen denial, anger, bargaining and depression. “They couldn’t have!” “This isn’t the Boeing I knew. I’ll fix them.” “Maybe we can get them to come to the table one more time.” “We’re doomed.” Acceptance, the fifth stage, begins the recovery as we confront the need for a new competitive model for our state. Currently, we’re on the cusp. Nothing has changed. Boeing’s work here goes on. Yet, everything has changed. And now our policymakers must respond. In 2010 the governor and Legislature must act to improve the state’s long-term competitive position. They can begin with workers’ comp reform, handling the budget shortfall without new taxes, and making smart use of incentive programs. Avoid recrimination. Stay focused. Draw the right lessons from the Boeing decision. Then make sure we give other employers good reasons to stay. Richard S. Davis writes on public policy, economics and politics. His e-mail address is richardsdavis@gmail.com. READER COMMENTS Be the first to comment. You must be a registered user and verify your e-mail address to post comments to blogs or articles on HeraldNet. To register, click here. To read other terms and conditions, click here. Log out

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