The crisis that has enveloped Boeing over the grounded Dreamliner, at a cost of billions of dollars in losses in addition to what has already been “invested” in it-- voluntarily by its owner/investors and coercively from taxpayers – exemplifies perhaps more than any other redistributionist corporatism scheme why government intervention is more headache than help.
Seemingly endless government subsidies and the impetus to “go green” have made a mockery yet again of those who direct their business toward pleasing politicians and activist groups rather than delivering quality products built upon a proven history of performance.
Such is the case with Boeing’s troubled – and now grounded – Dreamliner.
Unions for many years have been a highly reliable segment of the Democratic Party Left. Yet this perhaps no more was this true than in 2011 - and with good reason. The year began with the Republicans holding a nearly 50-seat edge in the House of Representatives following the GOP's smashing wins in the November 2010 midterm elections. Avoiding legislative process became a top priority for organized labor.
When Boeing Co. two years ago announced plans to open a plant in South Carolina to assemble many of its 787 Dreamliner commercial jets, the decision triggered an outcry by the International Association of Machinists. The IAM's unofficial partner, the National Labor Relations Board (NLRB), filed a complaint against the company this April to block its opening of the facility, located in a Right to Work state. Last Friday, December 9, the board dropped its action. With the plant up and running for a half year, Boeing won a "victory" -- so says CNN. Or did it?
The decision last month by the National Labor Relations Board (NLRB) to side with a union trying to block Boeing Co. from operating in South Carolina has entered a new stage: the U.S. Senate. And the implications extend far beyond South Carolina. Last week, on May 12, Senators Jim DeMint, R-S.C., Lindsey Graham, R-S.C., and Lamar Alexander, R-Tenn., introduced a bill, the Job Protection Act (S. 964), to bar the board from overriding an employer's decision to site a facility in a particular state. The measure, which has at least 34 co-sponsors, is a rebuke to NLRB Acting General Counsel Lafe Solomon's complaint against Boeing on April 20 that the company had acted unfairly against the International Association of Machinists and Aerospace Workers (IAM) in opening a facility near Charleston, S.C. to build its planned "787 Dreamliner" jet.
As someone who has sponsored "Say on Pay" shareholder proposals with companies like Boeing and Procter & Gamble, I wonder whether SEC-mandated votes on executive compensation will do any good. In fact, I worry that it may lead to a false sense of shareholder empowerment.
Yesterday, the Securities and Exchange Commission voted 3-2 to adopt a rule requiring public companies to hold an advisory vote on executive pay at least once every three years.
On Monday, Northrop Grumman Corporation announced that it would drop out of the competition with Boeing to build midair refueling tankers for the Air Force. Boeing had the original contract until NLPC exposed a scandal that sent two Boeing executives to prison.
The tankers are flying gas stations that refuel fighters and bombers on long-range missions. By exposing the scandal, NLPC saved taxpayers billions of dollars. The original plan was for the Air Force to lease, rather than buy, a hundred 767s to be used as tankers from Boeing. The new contract will be for the outright purchase of the planes.