By Molly Parker
mparker@scbiznews.com
Published Oct. 21, 2009

Boeing Co. CEO Jim McNerney said any modest inefficiencies the company might face by building a second Dreamliner assembly line in Charleston would be “more than overcome by strikes happening every three or four years in Puget Sound.”

During an earnings’ report conference call, McNerney said a decision on where to locate the second line is expected in the next few weeks.

Though the company started with a “pretty broad playing field,” McNerney said the possible sites have been winnowed to either North Charleston or Everett, Wash., where the current Dreamliner factory is located.  

McNerney acknowledged there would be administrative challenges with building a second assembly line on a polar opposite coast from its main facility in Everett. There, Boeing builds four airplane models inside the world’s largest building by volume. Boeing employs thousands of workers in the Seattle area, where the company was born and grew up. It moved its headquarters to Chicago in 2001, but the majority of factory and support work remains there.

“There would be execution challenges associated with that choice, but keep in mind that we have a pretty good size operation down in Charleston today,” McNerney said. “There would be some duplication. We would obviously work to minimize that, but I think having said all of that, diversifying our labor pool and labor relationships has some benefits.”

Boeing announced in July that it was taking over the former aft fuselage assembly plant that supplier Vought Aircraft Industries had previously owned in North Charleston. Boeing also owns a 50% share in Global Aeronautica, which is adjacent to the former Vought plant.

The company and the Machinists Union “have had trouble figuring it out between themselves over the last few contract discussions,” McNerney said. “I’ve got to find a way to reduce that risk.”

In Everett, the International Association of Machinists and Aerospace Workers walked off the job for eight weeks last year, costing the company millions.

“Our balance sheet would have been a lot stronger today had we not had a strike last year, our customers would be a lot happier today had we not had a strike last year and the 787 program would be in better shape,” McNerney said.

Until recently, workers at the former Vought facility were also represented by the Machinist union. After Boeing purchased the plant, workers voted to decertify the Local 787 and became a non-union work force.

Reach Molly Parker at 843-849-3144.