Japanese will get key 7E7 work (Boeing outsourcing bigtime)

[baby_bear]

From above-the-fold-front-page of today's Seattle P-I:

http://seattlepi.nwsource.com/business/148285_boeingjapan14.html

<snip>
Having others make wings is seen as huge shift by Boeing

Friday, November 14, 2003

By JAMES WALLACE
SEATTLE POST-INTELLIGENCER AEROSPACE REPORTER

Taking a bold new step toward the development of its next new jetliner, The Boeing Co. will award the critical 7E7 wing work to Japanese industry.

The move is unprecedented for Boeing and represents one of its most important airplane manufacturing decisions ever. The aerospace giant has never before allowed a supplier or partner to take the lead in manufacturing the wings of its jetliners.
...
Union officials say the wing and fuselage work on the 7E7 represents about 1,000 new jobs that now appear headed elsewhere. And while a dozen years ago, engineering professionals couldn't have imagined sending wing work somewhere else, many employees say this latest move is just the continuation of a trend.

"The company doesn't even view it (the 7E7) as an American-made product," said Bill Barrett, who works at Boeing's Auburn plant.

</snip>

There is also a companion article about impact on jobs and technology locally.
http://seattlepi.nwsource.com/business/148304_wingwork14.html

<snip>
... The engineering union estimates wing and fuselage work on the 7E7 represents about 1,000 jobs that now appear headed elsewhere.

When SPEEA President Jennifer MacKay joined Boeing 13 years ago she couldn't imagine Boeing would give away its wing work.

Now "we are willing to give up, especially in the aerospace base, some of the top jobs, these are the coveted jobs," said MacKay, who left Boeing last year.

Where once an engineer assigned to a dying jet line could transfer to Boeing's latest jet model, that door is closing, Sorscher said.

"Morale for the last two years now has absolutely sucked. It doesn't seem like it can get any lower," said Dave Baine, who has worked as a Boeing engineer for the past 25 years.

Boeing counters if it doesn't change there may be no jobs left to protect. (Boeing V.P. Hank) Queen understands change will be painful for rank-and-file workers, but he says it's a necessary pain.

</snip>

*sigh*

s_m

[GAspnes]

1. they're selling the *wings*?

Jeebus fscking whomever. That's the crown jewel of aircraft engineering. It's the core of the business.

I wonder if Boeing wants to shift from engineering to integration? In five years, the Japanese will be able to build wings that are as good as Boeing's, and that's the ballgame.

Bizarre business decision.

[ET Awful]

2. Yup, outsourcing the wing is HUGE.

That's the most intricate structure in the whole thing.

[area51]

3. Boeing V.P.

The Boeing V.P. said:

"Boeing counters if it doesn't change there may be no jobs left to protect. (Boeing V.P. Hank) Queen understands change will be painful for rank-and-file workers, but he says it's a necessary pain."

Okay, how about the amount of money the V.P. and Boeing prez make ... what about their taking on some of that painful change? Cutting their salaries would save the co. a lot more money than cutting worker jobs.

[Ernesto]

4. Immediate gratification aka profits now, screw the future!

This is a NATIONAL SECURITY issue! Boeing is sending the only All American industry left to China. Who needs Russain technology when corporate out-sourcing will show China how to build an AIR FORCE?

[robcon]

5. "All-American" work?

Boeing hnas outsourced about 25% of their airplane manufacturing offshore for deades. There's nothing "all-american" about planes.

[Media_Lies_Daily]

6. Okay, let me see if I understand this...

...Japanese workers will get paid less than American workers, and benefits will be paid by Japanese businesses. When the Japanese spend money it will be on domestic Japanese goods and services.

In the meantime, skilled Boeing workers will, for the most part, be unable to find similar work elsewhere unless they're willing to relocate. Most will end up taking lower-paying jobs in other industries. There will also be a net loss to the local economy because those 1,000 workers will no longer be able to spend at the rate they were. And surprise, suprise! They will no longer be taxed at the higher rates they were before. Another hit to the economy because this kind of thing is happening all across the country.

Gee, I thought the tax cuts were supposed to stimulate American businesses to start hiring American workers who were in turn supposed to spend their money on American goods and services.

Don't tell me the Chimpster lied again. I'm totally shocked.