Posted on 10/28/2009 4:12:37 PM PDT by 1rudeboy
CHICAGO—Boeing Co. said it would build a second final assembly line for its troubled 787 Dreamliner jet in South Carolina, a move that spurns the powerful aircraft machinists' union that had been negotiating with Boeing to locate the work at the current factory near Seattle.
Boeing has been laying the groundwork for a new factory in South Carolina for months and could begin construction at a facility it owns in North Charleston, S.C., as early as Nov. 2. The factory is expected to be operational by July 2011.
Boeing's decision comes after a flurry of lobbying by officials in both Washington and South Carolina. On Wednesday the South Carolina legislature moved to offer Boeing a variety of tax incentives to lure the company to build a massive new factory on the site of an existing facility it owns in North Charleston.
It's the first time since 2006 that Boeing will assemble a commercial airplane outside of the Puget Sound area and provides the company with an assembly line beyond the reach of the labor union that has caused production headaches off and on for decades in Seattle.
(Excerpt) Read more at online.wsj.com ...
I thought of it. I liked it.
>>Think of all the high-paying manufacturing jobs that were lost in Seattle, and how North Charleston is driving manufacturing wages downward.<<
Seattle should have seen the writing on the wall when Boeing moved its official location out of town.
Seattle is the perfect example of what not to do when you are blessed with a lot of physical beauty — and clearly no brain.
Every single move they make is wrong.
SC ping!
Washington is about the worst state that you can do business in. My company was doing business there, software development at a cellular company. The taxes were hideous.
Dude, Boeing moved to Chicago to escape. Think about that for a minute.
Congrats to SC, and congrats to Boeing for making a sound business decision.
WA voters: wake up.
ML/NJ
Think of all the money the tax payers of South Carolina are paying for a few jobs.
Ah, but the quality should go up.
Unions - running themselves out of jobs.
Too bad, so sad, Unions!
....as a Boeing stockholder,I say good move!
>>Boeing moved to Chicago to escape. Think about that for a minute.<<
I was actually living (sort of) in Seattle when that happened (I also remember how po’d Dallas was for losing be/c they have no noght life). The collective gasp from the city and county leaders was audible and palpable. It was like that hot chick in college when you tell her “no thanks Hon, I think you have an STD.”
BOEING GOES BYE-BYE BECAUSE ???
SOUTH CAROLINA: 1 Republican Governor... 2 Republican Senators... 4 out of 6 Republican Representatives. Tax Incentives!
WASHINGTON: 1 Democrat Governor... 2 Democrat Senators 7 out of 9 Democrat Representatives. Backed the Striking Union Workers!
TRUTH HURTS
Interesting definition of the term, "paying," but thanks . . . you are completely correct if you believe South Carolina does not see this facility as generating more tax revenue in the whole. Who could've guessed that South Carolina is populated by idiots, and the largest argument a protectionist can make--that we all need to pay more to keep jobs here in the U.S.--is completely arbitrary?
YEA! Time to celebrate at Kaminsky’s... Those from Chas will know the place.
When Boeing did that I just sat and thought “What do you union jackasses think is gonna happen NOW?”
Tacoma just lost Russell Investments just when the downtown area was becoming viable again.
Until we can win some elections we are doomed. Anyone hear about all the 15 and 16 year olds that have been registering to vote? Sure it's illegal, but it's happening.
You’re spot on.
My perception of taxes on individuals is that gas and sales taxes are high, no income tax, property taxes are okay. Retail prices are higher partially due to the high minimum wage.
We need a billboard near Boeing that reads, “It’s the democrats, stupid.”
Congrats to S.C., and especially you folks in the Low Country, which is one of my favorite parts of the U.S.
Oh, and I just love to watch unions shooting themselves in the foot, too. You know, now there’s a group that just might have a good argument in favor of gun control! On second thought, maybe they just need better aim, or maybe just not let them have any bullets :)
The people of SC are paying Boeing to locate their plant there?
More like Boeing is getting a tax break to build which is pretty standard for any large corp to locate anywhere.
I would have no problem making a bet that Boeing pays better, has better benefits and overall is a huge tax generator for the area than many other employers
The only losers I see are the city of Seattle and the Unions.
—Perfect for many places.
How does the black labor factor in South Carolina?
Nissan came Canton Mississippi about 20 miles north of Jackson and had trouble filling needs and had poor production with local black labor and hence had to bring in workers under contract from elsewhere inclduing South Korea....all incontrast to Nissan’s middle TN plant which is different demographics.
How will this fare in fairly black low South Carolina?
Chart 1. Union membership rates by state, 2008 annual averages
It’s not a sound business decision. They can’t get the first line running and fully stocked and now they will have two separated assembly lines competing to get the very same late, short-handed, and defective supplies. The suppliers are struggling to keep up as it is. Common sense would tell me get the damn thing flying and one line rolling before taking on more risk. McNerney is an ass clown that should have stuck to making post-it notes. Leaving WA is going to prove to be penny wise and dollar foolish.
I don’t know . . . perhaps you should look at the percentage of black workers at Nissan/Canton, then look at the percentage of blacks in the population of Canton (and see if it is reflective), then look at the percentage of blacks in the population of North Charleston, then assume that the percentage of blacks at Boeing/North Charleston will be the same, then . . . .
Just tells you how bad it is in Washington! Even Chicago is better...
In Washington, it's the B&O tax. It's a tax on GROSS receipts, before deductions, costs, etc. You bring a dollar in, the first cut off the top goes to the State before you pay for ANYTHING else.
And if you lose money? Tough. You still pay that tax...
Congratulations South Carolina! Nice job of jamming your thumb into Fraudoire’s eye Boeing!
As a resident of King County in Washington State, I want to congratulate our Governor, Senators, and the Machinist Union for a job well done. /sarcasm
I know what the black percentage is in Madison county given that I am 7th generation from that area and I am acquainted with former Nissan North America honcho...
I’m asking about South Carolina from anyone here who knows.
The conventional wisdom for Nissan locating in Gluckstadt MS (technically) was No Unions, low taxes and large relativelylower income black ..and white labor pool to train and use. The results and productivity were disappointing early on with regards to local black input. Far fewer wanted jobs, were more likely to vote in Union and had lower productivity/quality.
It should be noted that Nissan Canton has since corrected this.
North Charleston is 50% black but these entities often draw labor from over 50 miles away.
What the heck are they doing with 10-14.9% union membership in Montana? What’s there to unionize up there? Plus, I thought Montanans were smarter than that.
They can easily draw on a statewide labor pool. People can and will relocate. Charleston is only 3 hours from the other end of the state. N. Charleston has always been fairly industrial especially when compared to Charleston. I don’t think they will have any trouble finding good employees. BMW, Michelin, GE Turbines, Honeywell, etc etc haven’t had any.
Like West Virginia, Montana has a lot of jobs in mining and a relatively low population base, so it doesn’t take many UMW contracts to boost union membership.
Thanks for the info.
South Carolina
Ping
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It’s not welfare. It’s massively beneficial to the taxpayers of South Carolina in the long run. I worked in SC for a year and it’s a great place, without all the sleazy liberals and union punks in the Seattle area.
It is not welfare. Welfare is a cash payment to someone who is not working. Boeing and its employees will pay many millions of dollars in taxes to South Carolina and cities in the Charleston area. How can paying millions in taxes be “welfare”?
And it is collection and redistribution of wealth.
Same as everywhere else, I was driving down a back road in south Caroline last week, came to the small town of Saluda, first people I saw were two fat women from south of the boarder and three kids from the same heritage.
Have you been to Bozeman lately? How about Missoula or Whitefish or Kalispell? Who lives in these places nowadays? Certainly not people born in Montana.
yeah, but they wouldn’t do all that stuff if it didn’t pay off for the state in the long run. They have financial analysts who crunch all those numbers and figure out what pays off for the state.
I really think it is possible to start a business, make nothing of value sell it at a loss and get rich off of the tax benefits and government grants and the hand outs from local and state governments, collect from the sucker tax payer.
I guess you could say that is what Enron did, they didn't make anything, they didn't own anything to make anything, but they were selling the hell out of thin air.
Mexicans sure take outdoor and kitchen job here that most whites or blacks won’t do for the same wages....Nashville
not too many Mexicans etc in Mississippi...not a real vibrant economy, huge crime in Jackson proper and so forth but it has grown.
That is great.
My point was that at least it looks like from the Nissan Canton experience that locating a factory in a high minority underemployed area does not always result in those folks flocking to jobs like one would think since they are underemployed, working well and producing well and with good quality...in Canton that was the experience early on but they drew from outside the local pool and improved on the locals who stayed and now do rather well I think.
My only experience with Charleston is from my former ship ownership days and the urea docks, my wife was raised there early on (PI) and it’s now very sheik in the old part but has pretty bad crime in the usual areas like where I come from.
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