Virginia Jobs NLRB’s Next Target?

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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