By FITSNews || Employment at Boeing’s commercial airplane unit will be cut by 2,000 positions in 2010, a development that could affect the company’s operations at a new manufacturing facility that’s currently under construction in North Charleston, S.C.
Palmetto State lawmakers recently approved an unprecedented $270 million worth of incentives to land Boeing – a deal that could climb as high as $330 million before it’s all said and done. In exchange for such an exorbitant incentives package, Boeing is supposed to create at least 3,800 jobs in the S.C. Lowcountry – although there is no requirement that those jobs come from within South Carolina.
The Boeing job losses were first reported Wednesday by The Seattle Times.
For our purposes, here’s the relevant details from the story …
(Boeing spokesman Tim) Healy was not able to detail how the employment projections specifically will affect Boeing Commercial’s Puget Sound region and the new unit in Charleston, S.C.
At the end of 2009, after a reclassification of some information-technology employees, a total of about 60,000 people worked in the commercial-airplane unit.
Of those, about 2,800 are in South Carolina and most of the rest are in Washington.
It wasn’t all bad news for Boeing on Wednesday, though, as the company’s oft-delayed 787 Dreamliner – i.e. the plane which will be built in South Carolina beginning in 2012 – passed its initial “airworthiness” tests.
UPDATE: So … is the Charleston Post and Courier (which, if you’ll recall has a phallic thing for Boeing) on top of this? Of course not … but they do have another big Boeing fluff piece in case you’re interested …
UPDATE II: Good news … for now, anyway. A source close to Boeing tells FITS that no South Carolina jobs will be impacted by this announcement.
By Just a thought January 20, 2010 at 4:41 pm
I hope someone other than the ‘Snooze and courier’ – the local booster club — is looking at the Boeing incentives. JAL is one of its biggest customers for the 787. JAL went into BANKRUPTCY! How many new planes do you think JAL will be buying? Add this to Boeing comments that 2010 will include further layoffs, then add the design problems with its fuel tanks. The incentives are just a transfer of South Carolina tax money to a private corporation from Washington. Way to go SC legislature —- you just bought a dead pig.
By Billy Bob January 20, 2010 at 8:13 pm
First, for “Just a Thought” – EVERY major airline in the world has been in bankruptcy in the past 10 years/ It’s something they do. Second for FITS, the cuts are “elsewhere” so they can move the Jobs to SC. That’s how the game works.
This is killin’ 2 messangers with 1 message(grin)
By James the Foot Soldier January 20, 2010 at 8:30 pm
Ok class, let’s not make this harder than it is….it actually quite simple: Boeing cuts 2000 union workers in Washington and is able to employ for the same total salary dollars 2800 South Carolinians.
Any questions, class?
By James the Foot Soldier January 20, 2010 at 8:32 pm
The best stock advice I’ve heard is to sell any airline stock you may be so unfortunate to own on days ending in a “y”.
By Just a thought January 20, 2010 at 8:55 pm
Not to distract you with the facts, Japan Airlines and most foreign carriers have not been in Bankruptcy. They can however reject and renegociate Boeing contracts. Add these numbers to the 61 airplanses alrady cancelled. Of course you didn’t deal witht he defective carbon-fiber fuel tanks — a defect that under its contracts allows its buyers to walk away. They still have not solved, nor is it likely they will solve the problem. How many more contracts would they lose to Airbus?
As to the layoff, it is ALOT more than the 2000, I’ve read numbers already announced that are significantly higher.
By WorkingTommyC January 20, 2010 at 9:32 pm
This practice of bribery as usual at the expense of other companies
(like the home grown business I work for) has got to end. This is fascism and power politics for those working the deals.
By carolinabuckeye January 20, 2010 at 9:32 pm
“Boeing” might not, but watch the subs like Vaught and the others down there.
By Huhhh??? January 20, 2010 at 9:43 pm
From what I’ve seen, the Post and Courier is doing a pretty good job on trying to get the numbers on the incentives.
By No Way! January 20, 2010 at 9:57 pm
Some agreements and some corrections:
First, I could not agree more with James the Foot Soldier. For every job lost in Seattle under union control, you can hire 2.1 SC workers. Thus, Seattle will lose in this.
A correction: JAL Airlines has and has recently filed for bankruptcy protection. The Japanese government has stepped in to sure up the balance sheet for JAL.
By Marvin January 20, 2010 at 10:03 pm
What a surprise. Boeing is having problems in a tough economy. Yeah, we all are. That’s why it is a bad idea to invest public dollars that are supposed to pay for other stuff in any private companies.
There is no up side to this, folks. We’ll all have to pay the bill. And it’s a lot higher than we were told., according to P&C and also what’s being reported by SC Policy Council on The Nerve. No one seems to know what this thign will cost us. Surprise – politicians didn’t tell the truth. Not Boeing’s fault, folks. It’s ours. We get what we deserve for letting this crap go on for decades. Had enough yet?
By rick January 21, 2010 at 1:25 pm
people,have no Illusions this is strictly economics.Bad leadership as well.I lived in everett/pain field area for years.Boeing had enough of the strikes,especially during the constructing of A new PLANE.Boeing has been there for more than 70 years.All because of some tax breaks washington would’nt give,and carolina did.The end result JOBS !!!!
By Just a thought January 21, 2010 at 2:35 pm
Clarification: JAL has never been in Bankruptcy BEFORE. Most foreign airlines have never been in bankrutcy. Au contraire, most American carriers have been in, out and around Bankruptcy courts and are famililar with rejection of aircraft contracts.
Apparently someone does not want to address the ramifications of JAL’s bankruptcy and the continuing abilty of a debtor-in-possession (as it is called in USA)on the ability of JAL to reject and/or renegociate contracts — including JAL’s contract with Boeing. JAL was Boeing’s LARGEST buyer of its 787. Furthermore, Japan, a civil law country; has different laws controlling bankruptcies … significantly those laws that pertain to contract rejection, reaffirmation and renegociation. This Bankruptcy will be a problem in the near future for the production of the 787 when combined with the problems with its fuel tank design defect and the right of its other buyers to walk-away if it is not corrected soon.
Obviously Boeing took these factors into consideration when it announced its current round of lay-offs of significantly more than 2000. Boeing also announced that the layoffs will continue through 2010. Simply asserting that for every 1 employee fired (actually laid-off) Boeing hires 2.1 South Carolina employee fails to consider the foreseeable loss of contracts and the requirement of highly trained employees for aircraft construction, particularly for new technology built of carbon-fiber.
Although 270 Million incentives were spread. Nobody knows yet what that number is. They have kept the number secret and have asked that the numbers be kept secret because they are in the middle of a ‘lawsuit’ before one of the worlds trade organizations in which Airbus, amouong other participants are accusing the US and Boeing of unfair trade practices with goverment subsidies. The actual number will play very well into the accusation that South Carolina is providing a subsidy to Boeing while the USA is contesting the same with countries producing the Airbus.
By No Way! January 21, 2010 at 9:29 pm
News story of the day: JAL files for record bankruptcy!