Possible Good News For Boeing

Fox News reported yesterday that Boeing’s machinist union will vote today on a four-year contract extension. Workers are expected to ratify the contract, which includes dropping the complaint to the National Labor Relations Board against Boeing for opening a non-union plant in South Carolina.

The article reports:

Crucially for the union, it would ensure that jobs for Boeing’s updated 737 line — the 737 Max — stay in the Puget Sound region. Boeing said in July it was studying other locations for the new 737.

Industry analyst Wayne Plucker, of the San Antonio, Texas, research firm Frost and Sullivan, said the agreement is good for both sides. Considering the looming Defense Department budget cuts that threaten defense contracts across the industry, Boeing is going to need solid performance from its commercial airplanes division, Plucker said.

It sounds as if both sides got some good things in the agreement. It is just unfortunate that the union used a government agency to bully the company. Government interference in a company’s decision as to where to locate their facilities is one of the things that inhibits economic growth. Industry in America is currently overregulated, and until the government loosens its grip, the American economy will not grow at the rate needed to bring down the current unemployment numbers.




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