Virginia Jobs NLRB’s Next Target?
By | Saturday, April 30th, 2011 | Policy

The National Labor Relations Board (NLRB), driven by Obama appointees, is suing Boeing.

Why?

Because Boeing – one of the nation’s largest manufacturing sector employers – wants to create more American jobs.

What’s wrong with that, you ask?

Well, they aren’t creating the jobs where the NRLB thinks they should.

Apparently, Boeing has had it with the stop-work tactics of the International Association of Machinists and Aerospace Workers at its plant in Washington state. So, instead of building their new plant in Washington state, they decided to locate their 787 Dreamliner manufacturing facility in South Carolina.

South Carolina is a right-to-work state. Washington state allows forced unionization.

The NLRB’s lawsuit claims that the location of Boeing’s new plant is “retaliatory” against the union workers in Washington state. Yet no Washington jobs are being lost and the claim that Washington is entitled to new manufacturing jobs from Boeing’s expansion is novel, to say the least.

Why does NLRB’s action matter for Virginia? It sets a dangerous precedent when an “independent” federal government board uses legal action to coerce a private company into locating jobs in one state rather than another.

States are constantly competing for jobs and businesses. In Virginia, LG Bill Bolling serves as “chief jobs creation officer,” working to attract businesses to the Commonwealth, where they will create jobs and expand the tax base. All other things being equal, companies will be attracted to states where it is easy to do business. States with lower taxes, good transportation networks, and a favorable legal and regulatory climate are particularly attractive to job creators.

States are supposed to be laboratories for democracy. Sound policies make for prosperous states. Both businesses and residents vote with their feet and the states with the most favorable polices tend to be the winners.

Like South Carolina, Virginia is a “right-to-work” state. All other things being equal, we are an attractive location for many employers. But when the federal government uses legal action to tip the scales, all other things are not equal anymore. And if the NLRB decides to make a practice of suing employers who decide to grow in the “wrong” places, then future Virginia jobs could be at risk.


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About the author

E M Barner

E M Barner, the blogger formerly known as DCH / De Civitate Hominis (“concerning the city of man”), writes from a Northern Virginia perspective. Barner has been active in Republican politics and policy since 1994 – as a grassroots volunteer, party leader, and professional.

Comments

6 Responses to "Virginia Jobs NLRB’s Next Target?"
  1. JR Hoeft April 30, 2011 16:43 pm

    Great post, DCH. Folks also ought to read how the Detroit News is responding.

  2. valentinus April 30, 2011 18:26 pm

    Actually people need to visit Detroit to see how its responding. Obama is making Hugo Chavez very proud of him or at least he should be.

  3. William Bailey April 30, 2011 18:37 pm

    Spend a week in South Carolina and you will find the armpit of the east coast… Nasty place and not one that should ever be used as an example of success.

    JMO: I used to live there for several years. I got out as fast as I could.

  4. valentinus April 30, 2011 19:03 pm

    William,

    Why didn’t you land in Detroit etc rather than another right to work state?

  5. J.R. Hoeft April 30, 2011 22:12 pm

    All that I am saying guys is that there are those in Michigan, home of the labor movement, that are recognizing that the labor movement hasn’t been all it’s promised.

    NLRB is yet another organization that has moved well beyond its basic principles to help the worker.

  6. Jay D April 30, 2011 23:22 pm

    Former NLRB Chairman Peter Schaumber gave an interview this week; he doesn’t think this action will have legs and says Boeing is moving ahead with plant construction.
    http://www.youtube.com/watch?v=85wQJUis7wM

    Also a related article, with an interesting Ben Bernanke twist:
    http://online.barrons.com/article/SB50001424052970204903104576290043125290016.html?mod=BOL_hpp_highlight_bottom

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