Tuesday, May 1, 2012

Obama Rips Right-to-Work States in Speech to Big Labor, Ignores Recent Jobs Created in Those Very States

Speaking before Union leaders in Washington DC for the AFL-CIO's Building and Construction Trades Department Legislative Conference, President Obama took the time to attack right-to-work states before his Big Labor audience.
"I believe when folks try and take collective bargaining rights away by passing so-called 'right to work' laws that might also be called 'right to work for less,' laws, that’s not about economics, that’s about politics," Obama told the AFL-CIO today. "That’s about politics." He then credited the AFL-CIO for creating American prosperity, saying "unions like yours made sure that everybody had a fair shake, everybody had a fair shot."
The speech comes about a year after the National Labor Relations Board blocked Boeing [NYSE- BA] from shifting production of components for their 787 Dreamliner from Washington state to a facility outside of Charleston, SC. The NLRB's move was applauded by AFL-CIO president Richard Trumka along with the Obama Administration and senior Democrats even though such actions would stifle further development.

While it might play well for an audience that includes Trumka or Jimmy Hoffa Jr, it seems to ignore the harsh reality for unions and the Obama Administration that the new industrial and manufactuing jobs that have been cropping up recently have done so in right-to-work states.

For instance, with international demand skyrocketing, American locomotive manufatcurers Caterpillar [NYSE- CAT] and General Electric [NYSE- GE] have either retrenched or expanded to right-to-work states. Caterpillar subsidiary EMD recently shuttered their London, Ontario plant in Canada after a protracted labor dispute with the Canadian Auto Workers union, shifting production to their recently opened Muncie, IN facility earlier this year. In 2011, General Electric announced that they would expand production to a 500,000 sqare foot facility outside of Ft Worth, TX slated to open up later on this year. This is in addition to their current facility in Erie, PA- although curiously this move by General Electric's Jeffery Immelt [as well as the Obama Administration's jobs czar- NANESB!] was not challenged by the NLRB like Boeing's similar expansion from Washington State to South Carolina.

And locomotives aren't the only thing General Electric will be manufacturing in a right-to-work state. In late October 2011, GE Aviation broke ground on an Auburn, AL plant that will make jet aircraft components. Production scheduled to begin in 2013 and the Auburn plant is expected to employ anywhere from 300 to 400 people. Meanwhile, Volkswagen continued a recently-established tradition of foreign automakers setting up shop in the deep south with the 2011 opening of their Chattanooga, TN plant which will primarily make Passats for the North American market. Right up the I-24 and outside of Nashville is Nissan's Smyrna, TN plant which was among the first foreign automaker to set up shop in the USA nearly 30 years ago.

Although construction was halted due to the international economic crisis in 2008, Toyota resumed work on a massive new facility in Blue Springs, MS in 2010 that is expected to go into full production later on this year, rolling out an estimated 150,000 Corollas annually. In 2009, KIA begain rolling out cars from a newly-opened factory in West Point, GA- a down on its luck former textile mill town.

Some enterprising individuals in right to work states like Georiga have even begun marketing chopsticks to overseas markets in Asia, where there is a shortage of wood to manufacture them locally in any significant numbers.
And these are some of the most recent examples I can cite- since the late 1990s, foreign automakers like BMW, Hyundai, Mercedes-Benz and Honda have set up shop throughout Dixie- all right to work states. I just figured I would point out some of the jobs created by manufacturers setting up facilities in right-to-work states since President Obama has been in office, since he made it clear in his speech to big labor this week that he washes his hands of anything having to do with right-to-work. However, I have absolutely no doubt that Obama would try to take credit for every last job created in a right to work state over the last 3 years while he's campaigning.
However, perhaps the biggest headache for Democrats in right-to-work states doesn't come from the industrial or manufacturing sector, but rather the upcoming 2012 Democrat Party Convention in Charoltte, NC. Apparently to be awarded the convention, Obama ally and Charlotte's Democrat mayor reportedly had to agree to terms that union workers would be brought in from out of state, leaving local businesses in the lurch after Foxx promised his constituents the convention would be an economic boom. Although Foxx denied steering contracts to out-of-state union businesses, a number of local companies were told by the DNC to look elsewhere for business if they were non-union while as many as 3000 union workers from a Maryland company called Hargove were expected to show up in Charlotte this summer in prepeartion for the convention.

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