Richard Davis, commenting on the no-end-in-sight Machinists strike against Boeing:
Job security in this environment will always be elusive. Employers cannot provide workers with guarantees they themselves do not have. Expanding global prosperity, markets and, inevitably, competition has transformed the workplace. While no one would deny the workers who generate profits an appropriate share of current earnings, it's not realistic to make long-term commitments for pension, survivor and health-care benefits. Brisk sales and high profits this year do not assure future success.
The problem is, despite that economic reality, the Machinists have made job security and related legacy costs their cause du jour .
Davis continues:
The drama has already played out in the automobile business, where the once-dominant Big Three hemorrhage red ink, shed jobs and struggle to catch up with their more nimble international competitors. Still, they stumble under the weight of the enormous legacy costs of unsustainable pension and health-care obligations. Displaced autoworkers painfully learned that paper contracts don't provide job security.
One increasingly gets the feeling that the Machinists won't figure this out until Boeing announces it will assemble the next generation of the 737 and 777 models somewhere else.
UPDATE: link fixed.
Posted by Eric Earling at September 12, 2008 08:14 PM | Email ThisIf collectivism worked, there would be many examples of its success throughout history. But it does not work, because human nature is metaphysically of the individual. We are all our own persons. We must act accordingly for our rational self interest. The only system that can accommodate human nature is rugged individualism, capitalism, etc. A philosophy that motivates us not for the sake of our neighbor but for the sake of ourselves.
The Left will keep on trying, and keep on failing. And the smarter amongst them, will figure out that their collectivism doesn't work, and they will come and join us on the right where we know individualism, hard work, and personal responsibility are the keys to success and happiness.
If you wait for the union or the collective to grant your wishes, you might wait a long time, or forever.
Posted by: Jeff B. on September 12, 2008 09:10 PMI heard on the radio the other day that some company in Spokane has had to lay off half their workers, due to this strike. Spokane does not need this kind of thing to be happening. It needs that productivity as much or more than than Seattle does. I was sorry to hear about the effects the strike is having on a city clear across the state.
Posted by: Michele on September 12, 2008 09:12 PMThere might be a few minor changes to the contract, but in the end it will probably be very close to what was turned down. However, I am sure the union bigwigs will spin doctor this as a "victory". I have also wondered how many of the strikers ever stop to consider that one reason the union is insisting on higher wages instead of bonuses and incentives is that higher wages means more dues money, something that might not be deducted from the bonuses (depends on the contract). Gee willikers, who is really benefiting from all this? Duh.
Posted by: Burdabee on September 12, 2008 09:59 PMNo, they won't. KOMO talked to a union striker in Everett the other day. "Boeing will never move, this is the biggest building in the world." said the union man.
Posted by: MattC on September 12, 2008 11:27 PMSo what do we say about the most powerful state Union that Gregoire supports
I say I have no more to give you Gregoire, I have no More to give you....
Posted by: Gs on September 12, 2008 11:39 PM
(Just kidding!)
Back when Otto Von Bismarck was running the newly-created German state, he gave everybody a pension who served in the German army at age 65. The system worked because most people were dead at age 59, so not many pensions were actually paid to army vets.
All the pension plans (including social security) adopted age 65 as the magic age when we all could start drawing benefits. It worked for many years, but medical technology and the general level of knowledge concerning one's health has led to increased life span. This essentially doomed companies with pension plans because the liability grew to unprecedented levels as life expectancy increased.
Pension plans at firms like Boeing, GM and Ford will eventually doom those companies (and any government bali-out of pensions will be kopelessly inadequate for the beneificiaries). The machinists should wake up and smell the coffee: pensions won't be there if Boeing fails and/or government has to bail out Boeing's pension plan. What are they going to do then? Live off of that great Ponzi scheme, Social Security?
Posted by: Politically Incorrect on September 13, 2008 03:49 AMand as for the big company #'s? anything big will have big #'s; and as for exec pay? ask your stockholders why they o.k. it; or any company's stockholders; as for post-retirement bene's? you're lucky; they owe you nothing but a paycheck and reasonably safe place to work; companies are not charities by their natural charters; their mission is only 1 thing--profit; what they do more is nice, but not a corporation's pure natural mission;
Posted by: jimmie-howya-doin on September 13, 2008 06:38 AMI still recall that day in 2001 when I sent a scalding resignation letter to the IAM that was on Buffaloburger's desk (confirmed by my DC connections) that same afternoon. The IAM had crossed too far left with their member magazine and I'd had enough. When will union workers get smart and realize they would do better without greedy bums like Buffaloburger?
Posted by: Saltherring on September 13, 2008 07:08 AMAs a sidenote, it's an odd paradox that liberal minded people buy Toyota Priuses built by non-union labor. Hmmm....
Posted by: Thomas B. on September 13, 2008 10:06 AMLet's look at some numbers first. In 2002, BA had approximately the SAME number of employees as it does today (160k). The output is much higher (double the deliveries), yet there are approximately half the number of IAM folks at BA.
Damn, those machinists are putting out TWICE as much. Deserving of TWICE the pay!
Secondly, why is employment approximately the same? As I've noted countless times, there are more managers wandering aimlessly, putting up charts for everything from toilet times, which colors should designate "happy and productive" colors (seriously!?!), putting lines around every pencil sharpener and chair (they PAY SOMEBODY for this???!!!).
Exactly the right conclusion: Management has GONE WAY WAY WAY UP in numbers.
Now, if ya'all are REALLY conservatives, you should applaud and reward the increased productivity of the SKILLED help and DECRY the CORRUPTION (continuous, ongoing, see: Sears, Michael, et al. Why exactly CAN'T BA get a straight shot at the tanker? HISTORICAL, WELL-DOCUMENTED CORRUPTION!) of management. What kind of featherbedding, increasing management by a like number of machinists actually working?
Why, why that would be UNETHICAL! Nope, no history of THAT at BA! No sir! Other than those few thousand times....
Posted by: cmiklich on September 13, 2008 10:53 AMPAY ATTENTION!
BA puts ZERO DOLLARS (that's a "0", followed by lots more "0"s) in the IAM pension fund! It puts ZERO DOLLARS into the BA machinists' pension fund. IT IS SELF-SUPPORTING through its own interest.
Now, can anyone guess how much $$$$ BA is putting into the EXECUTIVE PENSION FUND??? That's right, HUNDREDS (and HUNDREDS) of MILLIONS of dollars! Every year!!!!! Whoa! Ya'all didn't know that didja? That's 'cause yer brainwashed!
Anybody on this board wanna do an about face? (Probably not.) Like the boondoggling executives, NONE of YOU know what it takes to actually design or build aerospace products. Can't just read a process sheet or a book and do it. It takes years of HANDS ON experience, whether an engineer or machinist. Obvious that NONE of you, especially Earling, have ever worked a real job.
What, exactly, is wrong with you people?
No country has EVER changed its form of government from other countries being NICE to it. Doesn't work. RED CHINA isn't going to be all nicey-nice to America because we send them our technology and jobs. Neither is Russia. Anybody know just how much raw material BA gets from Russia? (Hint: It's a lot!)
You want BA to get the tanker? Hell, parts of that are made in RED CHINA! How, exactly are we supposed to engage the most obvious threats in the world (Russia and RED CHINA) when parts of our MILITARY airplanes are made there? And materials for them come from there?
What is this place, Horsesass "lite"?
Posted by: cmiklich on September 13, 2008 11:09 AMNo one wants to see a great American company like Boeing move all of its jobs to China. That would suck. But, like Detroit, bad union policy does have impact. And if those jobs are lost overseas, hey, it's tough out there in America with free will, capitalism, etc. The rest of us play by those rules every day, sink or swim, work hard or lose you job. And frankly, we don't shed a tear for an overpaid union employee with a guaranteed job, be it in government or at Boeing.
Posted by: Jeff B. on September 13, 2008 02:45 PMAfter reading these documents, I want those of you that hate the IAM, It's members, want us to work for whatever crumbs Boeing tosses our way, want our kids to starve, think we are ruining the economy etc........
I want you to come back here and re-state your point and support your arguements.
Let's see if you can make a calm, well thought out, logical and intellectualy based arguement for your case.
I don't think you can. I think it's entirely likly that you will come back with 'you are a bunch of whiney greedy ingrates. I hope you are fired and your families suffer'.
**********************************************
Boeing, Boeing, Gone:
How the American planemaker clipped it's own wings.
The American Conservative
January 31, 20
http://www.jpri.org/friends/BoeingFingleton.pdf
Boeing's Diffusion of Commercial Aircraft Design and Manufacturing Technology to Japan : Surrendering the US Aircraft Industry for Foreign Financial Support
http://www.leeham.net/FileLib/March2005BoeingOutsourcing.pdf
Posted by: Graphite Epoxy on September 13, 2008 04:11 PMAnd not just factory workers, but engineers and managers and everyone else it takes to design and build airplanes.
The fact of the matter, as proven beyond a shadow of a doubt on the 787, is that American workers are worth more money than any workers anywhere else in the world.
The machinists are just asking to get paid what they're worth. And the SPEEA engineers will make the same claim for the same reasons.
Posted by: Mark on September 13, 2008 04:13 PMIt also renews the debate as to whether being conservative is really consistent with free trade globalism, and lazzies fare economics (AKA anarchy).
I don't think it is, and I do think most conservatives outside pat Buchannan have been hoodwinked by Wall St into believing that free trade policies without hope of reciprocity, having America prostrate befo the WTO and an coperate and financial system free of any restraint is a good thing.
Any job is only worth what somebody will pay for it. So, to those union workers out there who are screaming that their job is worth so much more than what Boeing is paying, why not go find somebody who is willing to pay you what you think you are worth?
As former boss of mine once said when people were complaining about their work situation "I don't see an anchor on your ass. If you think it sucks here, go find something better."
Posted by: Ken on September 13, 2008 06:42 PMSure, but the union is making its case to Boeing, the upper management and the shareholders (public) that overall they can do a more efficient job.
It's the same argument that the old leveraged buyout guys made when they raided a company: get rid of inefficient management and bad decision making and let us do the job and keep more money inside the company.
Posted by: John Bailo on September 13, 2008 10:11 PM