Boeing is opening a facility in South Carolina to build the 787. A US company creating high-paying jobs inside the United States. Should be great, right? Wrong. The National Labor Relations Board is not happy.
The labor board's complaint filed earlier this month alleges Boeing decided to build a $750 million aircraft assembly plant in South Carolina because it was concerned about strikes by union workers in the state of Washington. Associated Press
Ah. South Carolina is a right to work state. The Washington unions will suffer if production moves. Can't have that. So, the NATIONAL Labor Relation Board has decided to come down on the side of Washington over South Carolina. Playing favorites? The question then becomes this: What incentives is the NLRB creating? Well, if NLRB gets its way, Boeing won't open a facility in SC. The WA unions will benefit, right? Not necessarily. The NLRB can only complain within the US. Boeing might instead escape union strikes by locating overseas, which will benefit neither SC nor WA.
Manufacturing has been fleeing the US because of things like this. Every job that has fled overseas is because it is cheaper to produce there. Even with the shipping costs, it is still cheaper. Unlike the service economy which must be close to its clients, manufacturing can escape overbearing government by leaving the jurisdiction. Businesses can, like people, vote with their feet.
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