The Latest

NYT: NLRB Killing Jobs

NYT: NLRB Killing Jobs

If the Obama-selected top lawyer for the National Labor Relations Board gets his way, Boeing will have no real choice but to abandon a brand-new $2 billion plant and 1,000 good jobs in Right to Work South Carolina. You know things are bad for the National Labor Relations Board and their outrageous efforts to punish Right to Work states when the liberal New York Times publishes an editorial by Joe Nocera acknowledging the damage the Board is doing to the country: That is what is so jarring about this case — and not just for Boeing. Without any warning, the rules have changed. Uncertainty has replaced certainty. Other companies have to start wondering what other rules could soon change. It becomes a reason to hold back on hiring. The airplane’s aft section arrived early Monday morning. That’s what they’d been waiting for at the final assembly plant in North Charleston, S.C. They already had the wings, the nose, the tail — all the other major sections of Boeing’s new 787 Dreamliner. With the arrival of the aft, the 5,000 nonunion workers in the plant can finally begin to assemble their first aircraft — a plane three years behind schedule and critical to Boeing’s future. The Dreamliner is important to America’s future, too. As companies have moved manufacturing offshore, Boeing has remained steadfast in maintaining a large manufacturing presence in America. It is America’s biggest exporter of manufactured products. Indeed, despite the delays, Boeing still has 827 Dreamliners on order, worth a staggering $162 billion. But with the plane so far behind schedule, Boeing decided to spend $750 million to open the South Carolina facility. Between the two plants, the company hopes to build 10 Dreamliners a month. That’s the plan, at least. The Obama administration, however, has a different plan. In April, the National Labor Relations Board filed a complaint against Boeing, accusing it of opening the South Carolina plant to retaliate against the union, which has a history of striking at contract time. The N.L.R.B.’s proposed solution, believe it or not, is to move all the Dreamliner production back to Puget Sound, leaving those 5,000 workers in South Carolina twiddling their thumbs. Seriously, when has a government agency ever tried to dictate where a company makes its products? I can’t ever remember it happening. Neither can Boeing, which is fighting the complaint. J. Michael Luttig, Boeing’s general counsel, has described the action as “unprecedented.” He has also said that it was a disservice to a country that is “in desperate need of economic growth and the concomitant job creation.” He’s right.

Trouble in Paradise; DNC getting pusback from Big Labor

At least 12 trade unions will boycott the Democratic National Convention in part because of its location -- Charlotte, North Carolina.  Apparently, North Carolina and 21 other states are on a union blacklist because they are Right to Work states.  The states are far from union-free, its just workers can't be forced to pay to a union boss. But in addition to locating in North Carolina, union bosses have "broad frustration" with President Obama and the Democrats in Congress.  Obama and the Democrats have given big labor everything they could but, of course, that is not enough. The Charlotte Observer has the story: CHARLOTTE, N.C. — Casting North Carolina as an anti-union bastion with “regressive policies aimed at diluting the power of workers,” more than a dozen trade unions affiliated with the national AFL-CIO have told the Democratic National Committee that they will sit out the 2012 convention in Charlotte, N.C. Coming on the heels of some liberals’ complaints that President Barack Obama is giving in to Republicans, the unions’ decision is another sign that key Democratic allies are unhappy with Obama and other party leaders as they gear up for a difficult election season. It’s also a signal that anything relating to Charlotte — from its besieged hometown bank to its lack of unionized hotels — will face scrutiny as the city eases into the national spotlight. Labor unions have long played an integral role in Democratic conventions. And some big ones, including the National Education Association and the Service Employees International Union, still plan to be active participants when the Democrats come to Charlotte in 2012. Local and state labor leaders also are still on board. The N.C. AFL-CIO helped lobby for Charlotte to be the convention site. On Friday, a leader of the Raleigh-based labor group called the national unions’ decision understandable, but “shortsighted.”

NLRB is Killing Jobs

The Wall Street Journal makes the point that the NLRB's reckless actions in the Boeing case is causing reverberations throughout the economy.  These decisions do not happen in a vacuum and affect investment decisions across the nation.  NLRB Wake Up! The National Association of Manufacturers asked its members last month how the National Labor Relations Board's decision against Boeing's Sourth Carolina plant case is affecting their decision-making. Some 60% said the government's case already has—or could—hurt hiring. Sixty-nine percent said the case would damage job growth. And 49% said capital expenditure plans "have been or may be impacted by the NLRB's complaint." Around 1,000 of the association's 11,000 members contributed to the survey. That's a lot of lost jobs. Some might dismiss these results as self-interested, or predictable given the general business distaste for regulation. But that ignores the role that confidence plays in reviving the animal spirits essential for economic growth. When CEOs or entrepreneurs fear political intervention that might impose higher costs, they are more reluctant to invest or to hire new employees. That's especially true when the economy is already growing slowly, or emerging from recession. The NLRB's assault on Boeing has been especially damaging because it violates what most Americans consider to be a core tenet of U.S. capitalism—the ability to move capital or business where you think it has the best chance of success. Boeing's executives are being punished for remarks they made long ago about strikes at their Washington plants.