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National Labor Relations Board Creating Controversy with Boeing Suit

The National Labor Relations Board (NLRB) General Counsel filed a complaint April 20 against Boeing, claiming that Boeing violated federal labor law by building a second production line for its Dreamliner at a non-union factory in South Carolina in retaliation against past strikes by the unions.  The complaint also claims that Boeing failed to negotiate with the union on the decision to move the work. On the other side, Boeing is saying that this is a new facility they are opening in South Carolina that will not take jobs from those in Washington and that the decision was made to open the new plant for solely business reasons.  Boeing also has said that as they ramp up for this new production, jobs will be added in Washington as well as in South Carolina. Boeing made the decision to open a plant in South Carolina in 2009. The construction of the new facility is almost complete and production had been expected to start this summer.  It has long been the prerogative of business to decide where to choose to do business and there are many who believe this is an effort by the NLRB to make the decision of where and how a company operates.   In addition, some view this as an attempt by the NLRB to help pay back the unions for the failure of Congress to pass the Employee Free Choice Act when both the House and the Senate were under Democratic control. A hearing in front of an administrative law judge is expected in June.   That decision can be appealed to the full NLRB Board and the Board’s decision can be appealed in federal court.  The case will hinge on what the law judge and the Board feel was Boeing’s intent by opening a facility in South Carolina. Republican members of Congress in both the House and the Senate have written the president and the NLRB General Counsel of their concern over this matter.  The same is true of a group of state attorneys general.  Legislation is expected to be introduced this week in the Senate that would guarantee that employers have the right to decide where to do business within the United States. AGC is closely watching developments in this case as it could have an impact on construction if companies react to the case by limiting the amount of construction needed to expand or refurbish buildings. AGC will also review the legislation to evaluate how it affects current labor law. For more information, contact Kelly Knott at (202) 547-4685 or knottk@agc.org.