Help may be on its way for Boeing, airlines

  • LES BLUMENTHAL / Scripps-McClatchy Western Service
  • Thursday, September 20, 2001 9:00pm
  • Business

By LES BLUMENTHAL

Scripps-McClatchy Western Service

WASHINGTON — Washington lawmakers apparently succeeded Thursday in convincing drafters of a bill providing a multibillion-dollar bailout of the airline industry to include a provision providing laid-off Boeing workers with extended unemployment and medical benefits.

The action came as the lawmakers stepped up the pressure on other fronts to help Boeing, which said Tuesday it may have to lay off up to 30,000 workers as the airlines cancel orders in the wake of last week’s terrorist attacks.

Sen. Patty Murray pressed the Chinese to buy more planes. Reps. Norm Dicks, D-Wash., and Jennifer Dunn, R-Wash., sought funding for the Pentagon to buy additional Boeing planes.

And an Oregon Democrat, Rep. Peter DeFazio, said he was intent on pushing a "buy America first" provision that would require the airlines to drop their Airbus Industrie orders first or not get a piece of the bailout.

Much of the day, however, was spent trying to convince drafters of the bailout bill to cover not only airline workers who face layoffs, but workers for such aerospace manufacturers as Boeing.

On the Senate side, Murray and Washington state’s other senator, Democrat Maria Cantwell, convinced those writing the bill to include Boeing workers.

"We can’t just cover corporations, we also must cover workers and their families," Murray said.

The bill, which could come to the Senate floor as early as today, would provide 52 weeks of extended unemployment benefits to Boeing and airline workers, 18 months of health care benefits and additional retraining opportunities.

The cost of the benefits for laid-off Boeing and airline workers would be $3.75 billion over two years, said Todd Webster, a Murray spokesman.

There were encouraging signs a House bailout bill, which could also reach the floor Friday, would include a similar provision.

"Aerospace workers would clearly be covered," said George Behan, a Dicks spokesman.

Dicks spoke with both House Minority Leader Dick Gephardt and Minnesota Rep. James Oberstar, the ranking Democrat on the House Transportation Committee, about the need to include Boeing workers in any legislation.

House and Senate staffers worked into the night on the bailout bill, which could provide up to $17.5 billion in cash and loan guarantees to the airlines. The administration had requested a smaller $8 billion package to stabilize the industry and provide funding for increased airport security.

Airline executives said the industry faces $24 billion in short-term losses, more than 100,000 workers may be laid off and several carriers face bankruptcy in the next several weeks unless something is done.

Murray, meanwhile, was among a small group of senators who met Thursday with Chinese Foreign Minister Tang Jiaxuan and the Chinese ambassador to the United States, Yang Jiechi.

The senator suggested additional purchases of Boeing’s planes by the Chinese could help the company and the U.S. economy.

"The senator impressed on the foreign minister the trouble the U.S. economy faced and how the purchase of Boeing aircraft would help," Webster said. "He said he would take the message back."

Dunn and Dicks lobbied members of the House defense appropriations subcommittee to provide additional funds to the Pentagon to buy more planes, based on commercial airframes, from Boeing.

"I am determined to do whatever is necessary to save thousands of Boeing jobs," Dunn said after meeting with Rep. Jerry Lewis, R-Calif., chairman of the defense appropriations subcommittee.

Dicks is a senior Democrat on that committee and also talked with other members.

DeFazio, a senior Democrat on the House Transportation Committee, vowed to press for his amendment involving Airbus despite considerable opposition.

"If we are going to give tax dollars to the airlines, we should promote U.S. interests," DeFazio said. "I suggest they (airlines) cut their Airbus orders before their Boeing ones. If not, no (bailout) money. It’s only sensible."

Dicks was aware of DeFazio’s effort, but was more focused on providing worker compensation, Behan said.

"It could be a showstopper and we don’t want anything to slow the bill down," Behan said. "If it doesn’t slow things down, we support it."

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