Wed, Jan 16, 2008
Says Deal Would Amount To Outsourcing Of US Jobs
On Tuesday, the International
Association of Machinists and Aerospace Workers (IAMAW) threw its
support behind Boeing's bid to win a US Air Force contract to build
new aerial refueling tankers, over the proposal backed by EADS and
Northrop Grumman:
"No one disputes that our military needs a state-of-the-art
aerial refueling tanker aircraft that will give our troops more
flexibility, a longer reach, and will enable them to meet new
threats around the world," the union's statement reads. "Further,
we at the International Association of Machinists and Aerospace
Workers (IAMAW) believe that Boeing's KC-767 is the most
technologically advanced and qualified aircraft to meet these
needs. The KC-767 also will support over 44,000 critically-needed
jobs in the US.
"The issue raised today at the EADS/Northrop Grumman press
conference is whether their competing aircraft can credibly compete
with the widely acknowledged as state-of-the-art aircraft offered
by Boeing, and whether the competitive bidding process will best
advance our national security and economic interests," IAMAW
continued. "The IAM fundamentally believes in fair competition in
government contracting. But fair competition means that all vendors
must play by the rules. Yet all available evidence -- including a
consistent bipartisan chorus from the Congress and our US Trade
Representative -- indicates that Northrop's majority partner, EADS,
continues to skirt the rules of fair play at the expense of US
jobs."
IAMAW cited three additional reasons it feels the USAF should
pass on the Northrop/EADS deal:
- "First, the US Trade Representative, with strong bipartisan
support from Congress, has alleged in the largest suit ever filed
before the WTO that EADS has accepted some $100 billion in
government subsidies, which the company has used to develop the
airframe for their tanker aircraft. These subsidies have already
helped EADS export tens of thousands of US jobs to foreign
countries.
- "Second, the EADS/Northrop tanker will be constructed primarily
in Europe. While some suppliers and finishing work will be done in
the US, the main production lines are in Europe, and this would
effectively send tens of thousands more US jobs overseas.
- "Third, recent scandals have cast doubt on EADS' corporate
ethics: the French and German governments have both opened
investigations into insider-trading allegations against senior
company officials. The US Department of Justice is currently
investigating alleged bribes and violations of the Foreign Corrupt
Practices Act involving EADS' partner, BAE, and foreign government
officials, which may be linked to dubious government purchases of
Eurofighter aircraft.

"The US Department of Defense is right to want a competitive
process," IAMAW states. "But fair competition means that everyone
must first play by the same rules. It also requires a level of
candor. The truth is that EADS not Northrop is the lead, majority
vendor for the tanker bid, and has a very checkered past of
activities that our own government has said violate the basic rules
of fair play. Congress and the Department of Defense should award
the Air Force's tanker contract to the company with the best
aircraft that also plays fairly."
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