Biz

Boeing’s Bad Day

JOB LOSSES, MORE PLANE PROBLEMS … Remember when Boeing threatened to cut jobs if the federal government didn’t keep doling out taxpayer-subsidized goodies from the Washington, D.C. favor factory? We do … Well, squishy politicians bowed to Boeing’s demand … but the aircraft manufacturer is cutting jobs anyway. How many…

JOB LOSSES, MORE PLANE PROBLEMS …

Remember when Boeing threatened to cut jobs if the federal government didn’t keep doling out taxpayer-subsidized goodies from the Washington, D.C. favor factory?

We do …

Well, squishy politicians bowed to Boeing’s demand … but the aircraft manufacturer is cutting jobs anyway.

How many jobs? According to reporter Bhanu Pratap of Reuters, the Chicago-based firm “will eliminate about 4,000 jobs in its commercial airplanes division by the middle of this year and another roughly 550 jobs in a division that conducts flight and lab tests.”

The news comes as officials in Russia are moving to revoke flying certificates for Boeing’s 737 passenger planes.

All in all, a terrible day for the crony capitalist conglomerate.

South Carolina has bet big on Boeing – giving the company $1 billion and counting in taxpayer incentives in exchange for its decision to locate a manufacturing facility in North Charleston, S.C.  It’s not clear yet how these mass layoffs will impact that facility, which builds the company’s next-generation 787 “Dreamliners.”

Unlike the rest of South Carolina’s political and media class, this website does not reside in Boeing’s back pocket. We’ve got no particular beef with the company, we just don’t believe your interests as American taxpayers are served by us kissing up to them like everybody else does.  Accordingly, FITS has been unafraid to call out Boeing’s reliance on government-subsidized incentives – including the U.S. Export-Import Bank (a.k.a. “Boeing’s Bank“) as well as the command economy bribes the company has received from South Carolina taxpayers.

Over the years we’ve been able to get inside Boeing’s North Charleston, S.C. facility to bring readers the real scoop on serious production problems and efforts by the International Association of Machinists and Aerospace Workers (IAM) to unionize the plant.

Unfamiliar with the IAM?  Ask S.C. governor Nikki Haley, who is ostensibly “anti-union.”  She’ll tell you all about them.

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17 comments

Bible Thumper March 30, 2016 at 11:04 am

Put in perspective
Boeing employs 159,250 people. … No more than 25,682 outside the US. 4550 job loses represents 2.9% of there workforce. While the company had 219 fewer jobs in February, South Carolina actually saw an increase of 85 jobs. Boeing employs 466 more people in South Carolina now than in February of last year.
Total South Carolina employment at Boeing is now at an all time high of 8,189. SC represents 5.1% of Boeing’s employees. If South Carolina suffers layoffs proportionally, it would lose 234 jobs or half of last year’s gains.

http://www.boeing.com/company/general-info/#/employment-data

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Rocky Verdad March 30, 2016 at 11:08 am

And represents less than 2% of the total jobs created monthly in the US.

The Sky Is Falling by FITS nad POGO

The Sky is fall, really it is,
We’re just doomed, the fault is his,
That black in the White House, chicken legs and all
Don’t look up, the sky’s about to fall.

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Bible Thumper March 30, 2016 at 11:13 am

ADP says 200,000 private sector jobs were created in March.

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Rocky Verdad March 30, 2016 at 11:49 am

Oh the Horror!!!!!!!!!! 3,000 of those were in manufacturing.

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CNSYD March 30, 2016 at 11:11 am

Thumper, you have been repeatedly told to cease and desist from posting factual information on this site. It screws up Folks’ narrative.

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Bible Thumper March 30, 2016 at 11:53 am

Folks makes it so easy.

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The Colonel (R) March 30, 2016 at 11:14 am

Yeah – stay with me here Will,

Russia has already revolked the airworthiness certificate for the 737: http://airwaysnews.com/blog/2015/11/05/russias-aviation-committee-suspends-boeing-737-airworthiness-certificates/ http://en.news-4-u.ru/aviation-authorities-have-revoked-the-certificates-on-boeing-737-all-russian-companies.html It happened last November.

This is the same country that leads the developed world in airline fatalities per capita by a factor of 3: http://www.wsj.com/articles/SB10001424052970204449804577068483346152726 Part of this is nothing more than an effort to boost the sales of their home built flying death trap, the Sukhoi “Superjet” 100: https://en.wikipedia.org/wiki/Mount_Salak_Sukhoi_Superjet_100_crash There’s been about 182 crashes of 737s out of the 9,000 built (for all reasons) since it started flying 50 years ago in 1966 (>2%). The Russian Supertjet has crashed twice since it first took off in 2012 and they’ve only built 100 (2%). Give them a couple of years and they’ll start falling out of the skies like every other airplane the Ruskies have ever built.

Oh, the majority of accidents for 737s involve aircraft flown and maintained by “Outer Slobovia Airlines” (or some other third world, cut rate carrier). and the Russian airlines only own 194 737s of all types amounting to 2% of the 737s flying. By way of comparsion, the Airbus A320 (similar size and market segment) has been around since 1986, has more than 90 crashes with only 7,000 air frames built

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Rocky Verdad March 30, 2016 at 11:49 am

Colonel, as someone who has to fly a lot from time to time, I prefer to settle my butt in an Airbus than a Boeing. Just more comfy.

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The Colonel (R) March 30, 2016 at 11:54 am

Disagree – I prefer Boeing. The 777 is a sweet ride as is the 747 (as long as it isn’t configured for the Asian market)

Boeing has 6 of the top 9 safest aircraft in the world. In fact, the Boeing 737 family is one of the safest airplanes in the world: http://www.travelvivi.com/the-safest-aircrafts-in-the-world/

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Rocky Verdad March 30, 2016 at 12:19 pm

I’ll give you the 777, but for most of my flying (regionally or to the Left Coast) – I prefer the Airbus. The seats are move comfy (however for it’s length of service the ole’ 737 is like an old whore – ain’t pretty – but never fails)

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TroubleBaby March 30, 2016 at 1:54 pm

“Well, squishy politicians bowed to Boeing’s demand … but the aircraft manufacturer is cutting jobs anyway.”

Hmmm….that’s interesting in light of the chatter I’ve heard recently about the plant slowdown in Charleston. It’ll be interesting to see the distribution of the layoffs in terms of plant location.

It’s funny that CNSYD gave me shit earlier this month over mentioning it too.

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CNSYD March 30, 2016 at 2:08 pm

Where did all those new 787s painted with airline colors come from that are parked along I-526? Is that the “slowdown?

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TroubleBaby March 30, 2016 at 2:21 pm

Look, if you have inside knowledge, please share. I don’t know when they were finished, do you?

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CNSYD March 30, 2016 at 3:22 pm

Simple observation. I travel I-526 about once a month. There are always at least half a dozen 787s parked outside the building already painted with colors of the buyers. It is a different set each month. Mainly foreign carriers. Last week it was Canada and Virgin. Somebody is buying so therefore Boeing is building them.

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TroubleBaby March 30, 2016 at 3:27 pm

Ok, but I really don’t see anything definitive in your statement either way.

We don’t know their production schedule, processes, etc.

There’s a layoff for a reason, who it impacts and how is another matter.

CNSYD March 30, 2016 at 4:59 pm

“We don’t know their production schedule, processes, etc.” Then why are you speculating? Is it solely based on “chatter”? From whence comes the chatter? The IAM?

Eye Spy March 30, 2016 at 4:06 pm

From the inside of Boeing, North Charleston …. Boeing will lay at North Charleston and shift senior employees from other plants as replacements. And let me add here; Thumper is a joke.

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