Labor board ruling hurts employment

By Cindy Golding

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On Thursday evening, President Obama told the nation: “We should have no more regulation than the health, safety and security of the American people require. Every rule should meet that common-sense test.” This message should be relayed to the National Labor Relations Board to discourage the precedent its members are trying to implement.

Over the course of the past year, a decision was made in Washington regarding a West Coast business moving some of its operations to the East Coast, with potentially negative consequences for us here in the Heartland. Boeing, an international leader in the production of airliners, was told by the NLRB that it was being denied the opportunity to build a new production line in South Carolina.

The dispute arose when a labor union in the Puget Sound Region of Washington State filed a complaint against the company, alleging unfair labor practices. Some union members charged that the company threatened to move operations to South Carolina because of the high cost of doing business in Washington.

In fact, Boeing was planning to maintain and grow employment in Washington while at the same time creating new jobs in South Carolina. Regardless of these facts, the NLRB ruled that Boeing could not expand operations into South Carolina.

Boeing was not proposing to move operations out of Washington state, or to eliminate a single job in Washington. The move was precipitated by increased demand for the Dreamliner 787 aircraft, and the necessity to create an additional production line. This move was not displacing workers; it was creating new jobs.

The NLRB's decision, and the timing of the decision, is particularly problematic. At a time when the nation is struggling to recover from this recession, the NLRB should not prevent economic development. This NLRB regulatory roadblock is making Boeing less competitive and, in doing so, is jeopardizing thousands of American jobs.

Aside from the obvious issues of fairness and global competitiveness, this decision also carries some heavy implications for states' rights in general, and Iowa specifically.

This type of behavior could have prevented Go Daddy from opening an operation in Hiawatha, forcing them to expand only in its home state of Arizona. Even worse, imagine the impact this behavior could have on Rockwell Collins, John Deere, Pella, Vermeer, or any Iowa company wishing to grow, increase production, and remain globally competitive.

Fortunately, Congress has chosen to take action to prevent these types of rulings in the future. This week, the House will consider HR 2587, titled the “Protecting Jobs from Government Interference Act.” This legislation would prevent the NLRB from blocking economic development projects simply because a state enjoys a competitive advantage over another.

I would urge Iowa's delegation in Congress to vote in the affirmative on this bill. I hope to see HR 2587 enacted, and suggest that all Eastern Iowans join me in contacting your representatives to ask them to support the bill.

Cindy Golding owns several companies in Eastern Iowa, including Differentiation Strategies, Advancement Resources, and CNJ Investments Company. She is active in the Cedar Rapids business community. Comments: Cgolding@diffstrat.com