A Huge Corporate Loss, and a Huge Gain

As I sat awaiting the International Machinist Union vote on Boeing’s “final and best” offer, and if the vote went against Boeing, then Boeing has solicited bids from at least a dozen other states — each of which would love to get the jobs currently in Seattle area.

The 31,000 Machinists defeated the previous offer by 60+ percent. It is reported that the new vote was VERY close. Reportedly, out of 23,900 votes cast, the vote to accept the Boeing offer won by 600 gates!

This is bad news for everyone involved

Bad news for the union because there is HUGE division among the members — neighbors actually HATE neighbors (I read the blog entries, pre and post), and a HUGE division between the local union and the national leadership. The national headquarters “FORCED” a re-vote on a previous vote in November where the local union turned down an offer and had refused a re-vote.

And it was bad for the company — Boeing has tens of thousands of really unhappy workers who hate Boeing for forcing a second vote, and hate many of their fellow workers for changing their initial vote. It may even be bad for those who fly on Boeing plans — they are being built by unhappy machinists.

I think the company made a terrible decision. It would have been better for almost everyone if the new composite wing had been built in South Carolina by happy campers. The South Carolina Boeing plant has turned down the International Machinist Union organizing efforts — twice. I believe that history will show that Boeing lost big in giving the union another vote with the PROMISE that if the union accepted the final offer, the wing would be constructed in Washington.

Also losing were the Democratic Party politicians who count heavily on union support. Those politicians STRONGLY supported ratification of the Boeing offer because if the vote failed, the Washington state economy would suffer badly. Their support, which many union members will see as “selling out to corporate greed” will rankle many liberal voters.

Everyone lost in that vote!

But on the subject of corporate decisions, there is a Colorado company you may never have heard of, named MagPul. MagPul makes magazines for guns, and in the past few years the liberal Democrats who control the Colorado legislature started passing anti-gun legislation. MagPul told the legislature that they would not corporately remain in a state that made it illegal to own a product that MagPul manufactured.

The liberals decided either that  MagPul was bluffing, or that their ideology trumped jobs, so they passed legislation limiting the size of gun magazines.

MagPul just announced the move of their manufacturing to Wyoming, and their corporate headquarters to Texas. The manufacturing is not small potatoes — MagPul will initially lease a 58,000 square foot facility while building a 100,000 square foot facility.

I think MagPul made a wise decision, and Boeing did not.

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One Response

  1. You didn’t factor in the 8+ billion dollar tax incentive that WA promised Boeing (if the machinists vote went their way), contingent upon keeping the entire 777 project exclusively in WA for eight years. That’s a big fat corporate welfare check, and none of the other states could match it or even come close.

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