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10/30/2009

Don't Blame Boeing

That's the headline on an editorial in today's Columbian. State political leaders should take those three words to heart as they begin a necessary assessment of the state business climate for manufacturing and other critical sectors. While focusing on labor-management issues, the editorial takes a broad view of the changed nature of global competition. This line intrigued me.

...as long as our state sanctions compulsory union membership, it will compete at a disadvantage against right-to-work states such as South Carolina.

Does anyone remember a major newspaper questioning the state "sanctioning" of compulsory unionism before?

The Walla Walla Union-Bulletin also uses the Boeing decision as an editorial springboard for a discussion of labor relations.

But the labor union refused to concede that this is a changing world and it can no longer be as demanding about pay and benefits. Folks in South Carolina and elsewhere are willing to do the work for far, far less. In addition, the union cannot continue to threaten a strike that would stop production of airplanes. Boeing can't be competitive if it can't deliver its product on time.

There's a lot at stake. In this story by Jerry Cornfield in the Herald of Everett I say that arguing over who lost Boeing is unproductive. We need to look ahead. Part of that, inevitably and profitably, will require an objective assessment of the state's strengths and weaknesses. There are some clear shortcoming, about which we had plenty of information months and years ago. Tom Captain summarized them in his op-ed in the Seattle Times:

Companies note the disadvantage of potential work stoppages — this is key. They note high aerospace wages, cost of living, real-estate prices, cost of unemployment and workers' compensation insurance. Of these, labor, business and government leaders can impact the risk of work stoppage, and unemployment and workers' compensation insurance.

If Washington wants a winning season, it needs to address these disadvantages with a sense of urgency.

Maybe now, it will.

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