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."

FMI: www.goiam.org