Yahoo Finance Boeing workers in South Carolina vote on union
Boeing hourly workers in South Carolina headed to the polls Wednesday to determine whether to unionize in a region of the United States historically hostile to organized labor.
About 3,000 Boeing manufacturing and maintenance employees were eligible to vote in the referendum, which will determine whether they will be represented by the International Association of Machinists and Aerospace Workers.
The vote comes just two days before President Donald Trump is scheduled to visit the Boeing facility in North Charleston, South Carolina, for the debut of its 787-10 Dreamliner, its latest version of the fuel-efficient midsized aircraft. The plane is scheduled to begin commercial delivery in 2018.
Boeing's investment in South Carolina was cemented with the $1 billion purchase in 2009 of Vought Aircraft Industries, which had been a supplier to Boeing on the 787 program. Analysts say the state's anti-union history was a factor in Boeing's investment decisions in the state.
A "yes" vote by workers "could raise costs at a time when Boeing needs to get costs down," said Morningstar analyst Chris Higgins.
The machinists union have argued that unionization is a key to protecting jobs and boosting pay so that South Carolina closes the wage gap with Boeing workers in similar jobs in the state of Washington.
"We think people are ready to get the respect and dignity they deserve through a union contract," union spokesman Jonathan Battaglia said.
Boeing has countered that organized labor is overpromising and shifting the manufacturing operations into a union shop runs the risk of a crippling strike. The company has publicized video testimonials from employees thanking the company for making South Carolina a manufacturing center.
"A union is not in the best interests of our teammates, our business or our community," said Boeing spokeswoman Elizabeth Merida.
Higgins said it was unlikely a vote to unionize would affect Boeing's plans for the building of the 787-10 given the status of the production. But a "yes" vote could affect future investment decisions, such as where to station the building of a midsized commercial aircraft that has been discussed.
An announcement of the vote outcome was expected early Wednesday evening. The proceedings are being overseen by officials from the National Labor Relations Board.
