We knew the job numbers would be bad, but they ended up being positively apocalyptic … and more pain is on the way. Comrade capitalist aerospace giant Boeing laid off more than 1,100 employees in taxpayer-subsidized North Charleston, South Carolina, last year – primarily due to the consequences of the collapse of the air travel industry amid the coronavirus pandemic.
The news of job losses was first reported by Emily Williams of The (Charleston, SC) Post and Courier.
Specifically, Boeing eliminated a total of 1,163 North Charleston jobs – or 17 percent of the entire South Carolina workforce.
Eight months ago, we reported on these impending job losses – which came in the wake of the company’s offering voluntary acquisitions to its employees in an effort to anticipate layoffs.
More job losses are likely in the coming months, with Boeing – which received more than $ 1 billion in taxpayer-funded incentives to locate its Dreamliner production facility in the state of Palmetto for more than a decade – continues to stagger with the continuing slowdown in air travel.
Last month, the company posted an impressive $ 11.9 billion annual loss – with its executive director David Calhoun warning investors that the company was “still in the middle” of its “very challenging” period.
Is it worth remembering? Boeing was already slowing production of its 787 Dreamliner in response to reduced demand previous for Covid-19 to hit.
While seeking to recover from the pandemic, the company also continues to deal with numerous reports of poor quality manufacturing at its North Charleston facility – not to mention the consequences of two fatal accidents that led to the grounding of its 737 Max fleet.
The stranding of the 737 Max was suspended just over a month ago – despite the objection of the families of the crash victims, who continue to insist that the plane’s safety problems have not been resolved.
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As for the 787 Dreamliner, production has effectively stalled in the past three months due to a defect in the fuselage that Boeing has not yet resolved. According to the aerospace reporter Dominic Gates of The Seattle Times, the defect “can create gaps that could weaken the fuselage structure”.
Quality concerns at the Boeing plant in South Carolina are nothing new. John Barnett – a former Boeing quality control manager – said the reporter Nadia Daly Australian Broadcasting Corporation last January, which witnessed “serious problems” with labor at the Palmetto state plant.
“I still haven’t seen a plane leaving Charleston that I consider safe and navigable,” said Barnett.
A 787 customer – Qatar Airways – went so far as to refuse to accept any 787 Dreamliners made in South Carolina, requiring Boeing to supply Dreamliners made in Everett, Washington.
That will no longer be an option, however, as Boeing is consolidating all production of the 787 Dreamliner in the state of Palmetto this year. Unfortunately, the move will not create any new jobs, as the South Carolina unit (which has already suffered a round of layoffs) will still make fewer planes after absorbing the new Washington line.
Good, assuming it fixes the 787 fuselage defect …
This media was vehemently opposed to taxpayer-funded incentives provided to Boeing by state lawmakers – arguing that such crony capitalist agreements distort the market by unfairly shifting the tax burden onto the shoulders of small businesses and individuals with individual income / owners.
In addition, as we have documented extensively, these corporate donations have materially failed to promote jobs and raise income levels in Palmetto State. Consequently, this medium of communication will continue to oppose such offers and, instead, will pressure lawmakers to enact a broad tax reduction aimed at individual citizens and small businesses, which are responsible for the majority of jobs created in our country. state.
-FITSNews
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