With US corporations sitting on record profits, US workers
seeing their standard of living continue to sink, and governments straining
under the weight of budget deficits, one might think that corporations would
take a short break from their rapacious behavior. But some deeply engrained
habits are tough to quit. Boeing has now set the new standard by extracting
$8.7 billion in tax breaks from the state of Washington as a condition to keep
production on a new aircraft in the Puget Sound region. This is the largest
such subsidy in US history.
But, as reported, this is an old practice for Boeing. A
decade ago Boeing received $3.2 billion in tax breaks as an incentive to
manufacture the Dreamliner aircraft in Washington State. Boeing still opened up
a production facility for the aircraft in South Carolina. Rather than viewing this past violation of
trust as a reason to refuse to negotiate with Boeing, Washington legislators
probably view it as a potent example of how easy it would be for Boeing to move
its production, thus strengthening Boeing’s extortion capabilities.
If all this were not bad enough, at the same time Boeing has
given its workers – who are represented by the Machinists union – a
take-it-or-leave-it contract that would “require the workers to pay higher health-care premiums, scrap the current
pension plan for a defined benefit contribution plan, and put in place a new
wage structure. Starting workers would need to be on the job for 16 years
before reaching the top pay scale, up from six years in the current contract.”
This is the thanks the workers of Washington State get for
providing billions to Boeing in corporate welfare.
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