Aircraft manufacturer Boeing – already the recipient of the largest corporate handout in South Carolina history – is reportedly preparing to dip into the pockets of Palmetto State taxpayers once again.
“Boeing is preparing to come back to (South Carolina) for more incentive money,” a source familiar with the company’s plans tells FITS. “The arrangements are being made now in hushed tones.”
How much money are we talking about? How soon? And for what?
Those details aren’t yet available, but as for the ‘ask’ itself we’re told “they are planning it now.”
Boeing’s original deal added up to $900 million in taxpayer-funded incentives – so it’s hard to imagine the company needing more money (especially after they sought – and received – an extension of lending authorization for the U.S. Export-Import Bank).
Of course it’s been a disastrous year for the Chicago-based company – as its signature next generation passenger jet, the 787 Dreamliner, has been grounded for more than two months due to a variety of problems.
Even before the grounding, Boeing was facing immense pressure to turn a profit on the plane. Originally scheduled for delivery in May of 2008, numerous design, supply and delivery problems pushed Dreamliner’s deadline back more than three years – causing numerous cancellations.
Last week, Boeing announced it was laying off 800 workers at its Everett, Washington location. Earlier this month it announced up to 1,200 layoffs at its South Carolina facility, although company officials claim those job losses were part of a ramp down from “surge activities” associated with the launching of the facility.
Hmmmmm …
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46 comments
We already have them here, no need to give them more incentives.
The mechanics in SC should at least attempt to get the benefits all other Boeing mechanics get like $35/hr(pretty much the bottom of the pay scale elsewhere in Boeing), essentially free “Cadillac” health insurance, pensions, and a 401k to boot now that you got them there. There is no way Boeing would move out after the investment they made in Charleston; I see a $60 union due charge per month worth the aforementioned now that they are “stuck”. My guess is share holders would loose their minds if Boeing did anything other than make good on its expenditures @Charleston, even if the labor costs go up
Live Better!
WORK UNION!
We already have them here, no need to give them more incentives.
The mechanics in SC should at least attempt to get the benefits all other Boeing mechanics get like $35/hr(pretty much the bottom of the pay scale elsewhere in Boeing), essentially free “Cadillac” health insurance, pensions, and a 401k to boot now that you got them there. There is no way Boeing would move out after the investment they made in Charleston; I see a $60 union due charge per month worth the aforementioned now that they are “stuck”. My guess is share holders would loose their minds if Boeing did anything other than make good on its expenditures @Charleston, even if the labor costs go up
Live Better!
WORK UNION!
Is it too late to make lemonade?
Is it too late to make lemonade?
Earlier report: “Boeing is broadening its footprint in South Carolina after winning approval to buy 585 acres of land at its factory site in North Charleston, and first right of refusal on another 488 acres.
Does anyone think for a moment Boeing is going to spend “their money” on this purchase
Hell no, the sons of bitches are going to get the cockroaches to give them taxpayer’s money to buy land already own by the taxpayers, then when they close up shop(which should be right after the land deal since that piece of shit airplane is still parked) and leave the State the cockroaches will use taxpayer’s money to buy the land back from Boeing since they have been such a good friend to the citizens of South Carolina.
Hell, they gave BMW everything but a big wet kiss on their right butt-cheek. They gave them the property, and then bought them the old TNS mill next door when they asked for it. BMW doesn’t even register the cars they lease to their employees in SC, therefore cheating SC out of many thousands of dollars.
I guess that SC didn’t learn squat from the past since Boeing is screwing the state now.
Earlier report: “Boeing is broadening its footprint in South Carolina after winning approval to buy 585 acres of land at its factory site in North Charleston, and first right of refusal on another 488 acres.
Does anyone think for a moment Boeing is going to spend “their money” on this purchase
Hell no, the sons of bitches are going to get the cockroaches to give them taxpayer’s money to buy land already own by the taxpayers, then when they close up shop(which should be right after the land deal since that piece of shit airplane is still parked) and leave the State the cockroaches will use taxpayer’s money to buy the land back from Boeing since they have been such a good friend to the citizens of South Carolina.
Hell, they gave BMW everything but a big wet kiss on their right butt-cheek. They gave them the property, and then bought them the old TNS mill next door when they asked for it. BMW doesn’t even register the cars they lease to their employees in SC, therefore cheating SC out of many thousands of dollars.
I guess that SC didn’t learn squat from the past since Boeing is screwing the state now.
Another handout should be refused for all the standard reasons (corporate welfare, et al) but also for negotiation strategy. With their battery problems they have to slow down on deliveries, they have lost orders but once the battery problems are over they will ramp up production once again. In the meantime they are using the Democrat tactic of not wasting a crisis. Their next “leak” will be layoffs, “can’t afford to pay people while slowing down production”. The “leak” after that will be financial distress, “can’t afford to keep the company going this way”, when all is said and done taxpayers will have paid for Boeing’s piss poor management decision on the battery issue.
Boeing has too good of a deal here to cut and run. They will threaten to lay off folks and probably will lay off some people to show the taxpayers they mean business (or even a month long furlough) but if we maintain our position and say “NO!” they will hire those folks back and more to try and catch up on production. They can’t pull their horns in (back to Oregon) the unions will roast them over an open fire. Even if Boeing does have to go into bankruptcy it will actually be good for them as they could renegotiate their union contracts in more favorable terms (Boeing would never liquidate). Worst case, Boeing gets bought out by Northrop/Grumman or General Dynamics.
Why would Boeing avoid bankruptcy and a chance to renegotiate their union contracts? Remember when Boeing first opened up here and the unions filed the lawsuit? Unions were actually about to lose the lawsuit but Boeing caved. There had to have been some funny business going on with the current administration in DC for them to have gone along with the goofy settlement they went for, this would be an attempt to preserve that. I’m sure there are also some sweetheart deals for Boeing management that would be lost too in a bankruptcy so there is winning options for Boeing on all fronts if they can sucker us into such a boondoggle. They need to compete in the open markets and that means paying for their own bad decisions.
Boeing moved to Oregon?
My bad, Washington
To say you are clueless would be kind in difference to your total ignorance.
What would be your take on the issue genius? Use a name you use regularly so we can discuss further when this plays out.
As a past employee in one (edit: multiple) of the giants, a long term tech partner with Boeing engineers, and former fed employee, involved in both sides of technical and contractual development in commercial, military aviation and other products of these companies, I ditto EJB’s request for more information. As a first hand witness to some ‘funny business’, how is EJB ‘totally ignorant’?
“using the Democrat tactic of not wasting a crisis.”
Yeah, right. Saudis attack NYC and GOPers use it as an excuse to invade Iraq.
Another handout should be refused for all the standard reasons (corporate welfare, et al) but also for negotiation strategy. With their battery problems they have to slow down on deliveries, they have lost orders but once the battery problems are over they will ramp up production once again. In the meantime they are using the Democrat tactic of not wasting a crisis. Their next “leak” will be layoffs, “can’t afford to pay people while slowing down production”. The “leak” after that will be financial distress, “can’t afford to keep the company going this way”, when all is said and done taxpayers will have paid for Boeing’s piss poor management decision on the battery issue.
Boeing has too good of a deal here to cut and run. They will threaten to lay off folks and probably will lay off some people to show the taxpayers they mean business (or even a month long furlough) but if we maintain our position and say “NO!” they will hire those folks back and more to try and catch up on production. They can’t pull their horns in (back to Oregon) the unions will roast them over an open fire. Even if Boeing does have to go into bankruptcy it will actually be good for them as they could renegotiate their union contracts in more favorable terms (Boeing would never liquidate). Worst case, Boeing gets bought out by Northrop/Grumman or General Dynamics.
Why would Boeing avoid bankruptcy and a chance to renegotiate their union contracts? Remember when Boeing first opened up here and the unions filed the lawsuit? Unions were actually about to lose the lawsuit but Boeing caved. There had to have been some funny business going on with the current administration in DC for them to have gone along with the goofy settlement they went for, this would be an attempt to preserve that. I’m sure there are also some sweetheart deals for Boeing management that would be lost too in a bankruptcy so there is winning options for Boeing on all fronts if they can sucker us into such a boondoggle. They need to compete in the open markets and that means paying for their own bad decisions.
Boeing moved to Oregon?
My bad, Washington
To say you are clueless would be kind in difference to your total ignorance.
What would be your take on the issue genius? Use a name you use regularly so we can discuss further when this plays out.
As a past employee in one (edit: multiple) of the giants, a long term tech partner with Boeing engineers, and former fed employee, involved in both sides of technical and contractual development in commercial, military aviation and other products of these companies, I ditto EJB’s request for more information. As a first hand witness to some ‘funny business’, how is EJB ‘totally ignorant’?
“using the Democrat tactic of not wasting a crisis.”
Yeah, right. Saudis attack NYC and GOPers use it as an excuse to invade Iraq.
“Earlier this month it announced up to 1,200 layoffs at its South Carolina facility”
Ole Sic Willie just can’t bring himself to say that these were temp workers whose demise had been planned since day one. Sorry Sic Willie, Boeing is not going to close up and move to your beloved Lexington-Richland. So get over it.
Actually, the temp employees are mostly already gone. My step-brother was one of those temps and he was told 4 mos ago he and most of the other temps would be laid off because Boeing had not followed through with their promise to use the temp agency employees for at least two years. Boeing cut most of the temps in December.
“Earlier this month it announced up to 1,200 layoffs at its South Carolina facility”
Ole Sic Willie just can’t bring himself to say that these were temp workers whose demise had been planned since day one. Sorry Sic Willie, Boeing is not going to close up and move to your beloved Lexington-Richland. So get over it.
Actually, the temp employees are mostly already gone. My step-brother was one of those temps and he was told 4 mos ago he and most of the other temps would be laid off because Boeing had not followed through with their promise to use the temp agency employees for at least two years. Boeing cut most of the temps in December.
The executives have already secured their golden parachutes with the sweetheart deal for the Charleston Airport land. Boeing executives bet the company on solving the battery and carbon fiber problems with the 787. South Carolina bet its survival on Boeing. Time to double down.
The executives have already secured their golden parachutes with the sweetheart deal for the Charleston Airport land. Boeing executives bet the company on solving the battery and carbon fiber problems with the 787. South Carolina bet its survival on Boeing. Time to double down.
Here’s an incentive for Boeing: if it can’t manage to get by in a right-to-work state, occupying a facility largely underwritten by SC taxpayers, then let the state lease the plant to one of Boeing’s competitors. I believe that the leasing of state property is partly overseen by the office of state treasurer. If hard-headed Treasurer Loftis has anything to say about it, the taxpayers can be sure their interests will be protected.
PREACH,BROTHER,PREACH!
and who is this competitor? Airbus? A foreign government owned operation.
Here’s an incentive for Boeing: if it can’t manage to get by in a right-to-work state, occupying a facility largely underwritten by SC taxpayers, then let the state lease the plant to one of Boeing’s competitors. I believe that the leasing of state property is partly overseen by the office of state treasurer. If hard-headed Treasurer Loftis has anything to say about it, the taxpayers can be sure their interests will be protected.
PREACH,BROTHER,PREACH!
and who is this competitor? Airbus? A foreign government owned operation.
Shit, is it a great day in South Carloina or what? Anyone think they’ll ever complete those orders?
Shit, is it a great day in South Carloina or what? Anyone think they’ll ever complete those orders?
I hear at Leath one member of the board may block this. Perhaps the long touted but seldom seen threesome of Haley.loftis.Eckstrom will raise its head and vote no.
I hear at Leath one member of the board may block this. Perhaps the long touted but seldom seen threesome of Haley.loftis.Eckstrom will raise its head and vote no.
“it’s been a disastrous year”? Record profits, record backlog orders, 737 program ramping up production to sell even more planes?
The 787 is a new plane, the problems get solved. The stock went up 10 points last week.
They opened SC because they had gotten all the incentives they could from WA, SC was needy enough to make a deal. Plus they could avoid the union in SC.
“it’s been a disastrous year”? Record profits, record backlog orders, 737 program ramping up production to sell even more planes?
The 787 is a new plane, the problems get solved. The stock went up 10 points last week.
They opened SC because they had gotten all the incentives they could from WA, SC was needy enough to make a deal. Plus they could avoid the union in SC.
The tax breaks SC gives to Boeing, the labor savings all help to pay the pensions of Boeing employees pretty much everywhere but the state that gave them such a sweetheart deal. Pity the pensions are going away but thanks for helping to pay for someone else’s retirement, I suppose.
The tax breaks SC gives to Boeing, the labor savings all help to pay the pensions of Boeing employees pretty much everywhere but the state that gave them such a sweetheart deal. Pity the pensions are going away but thanks for helping to pay for someone else’s retirement, I suppose.