Вы находитесь на странице: 1из 3635

Microsoft Outlook

From:
Sent:
To:
Subject:
Attachments:

Cleeland, Nancy

Monday, April 18, 2011 3:44 PM

Solomon, Lafe E.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Abruzzo, Jennifer; Mattina,

Celeste J.

new draft

Boeingrelease.doc

Thanks for all your suggestions. Here is the latest draft of the release. Feel free to make suggestions, particularly
Exemption 5

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

NLRB-FOIA-00009257

Exemption 5

NLRB-FOIA-00009258

Microsoft Outlook

Abruzzo, Jennifer

Monday, April 18, 2011 4:31 PM

Cleeland, Nancy; Solomon, Lafe E.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Mattina,

Celeste J.

Re: new draft

From:
Sent:
To:
Subject:

Exemption 5
--------------------------

Sent from my BlackBerry Wireless Handheld

From: Abruzzo, Jennifer

To: Cleeland, Nancy; Solomon, Lafe E.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Mattina, Celeste J.

Sent: Mon Apr 18 16:16:20 2011

Subject: Re: new draft

Sorry, I'm on my BB, a few suggestions:

The paragraph starting with

Exemption 5

In the paragraph starting with


--------------------------

Exemption 5

Sent from my BlackBerry Wireless Handheld

From: Cleeland, Nancy

To: Solomon, Lafe E.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Abruzzo, Jennifer; Mattina, Celeste J.

Sent: Mon Apr 18 15:44:07 2011

Subject: new draft

Thanks for all your suggestions. Here is the latest draft of the release. Feel free to make suggestions, particularly
Exemption 5

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

NLRB-FOIA-00009259

Microsoft Outlook

From:
Sent:
To:
Subject:

Mattina, Celeste J.

Tuesday, April 19, 2011 9:15 AM

Cleeland, Nancy; Solomon, Lafe E.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Abruzzo,

Jennifer

RE: new draft

Should we add also,


Exemption 5

From: Cleeland, Nancy

Sent: Monday, April 18, 2011 3:44 PM

To: Solomon, Lafe E.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Abruzzo, Jennifer; Mattina, Celeste J.

Subject: new draft

Thanks for all your suggestions. Here is the latest draft of the release. Feel free to make suggestions, particularly
Exemption 5

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

NLRB-FOIA-00009260

Microsoft Outlook

From:
Sent:
To:
Subject:

Cleeland, Nancy

Tuesday, April 19, 2011 9:46 AM

Mattina, Celeste J.; Solomon, Lafe E.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme;

Abruzzo, Jennifer

RE: new draft

Exemption 5

Exemption 5

________________________________________

From: Mattina, Celeste J.

Sent: Tuesday, April 19, 2011 9:14 AM

To: Cleeland, Nancy; Solomon, Lafe E.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme;

Abruzzo, Jennifer

Subject: RE: new draft

Should we add also,


Exemption 5

________________________________

From: Cleeland, Nancy

Sent: Monday, April 18, 2011 3:44 PM

To: Solomon, Lafe E.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Abruzzo, Jennifer;

Mattina, Celeste J.

Subject: new draft

Thanks for all your suggestions. Here is the latest draft of the release. Feel free to make

suggestions, particularly

Exemption 5

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

NLRB-FOIA-00009261

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:

Mattina, Celeste J.

Tuesday, April 19, 2011 10:21 AM

Cleeland, Nancy; Solomon, Lafe E.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Abruzzo,

Jennifer

Ahearn, Richard L.

RE: new draft

Sorry to jump in after the fact.

What do you think,

Exemption 5

-----Original Message-----

From: Cleeland, Nancy

Sent: Tuesday, April 19, 2011 9:46 AM

To: Mattina, Celeste J.; Solomon, Lafe E.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme;

Abruzzo, Jennifer

Subject: RE: new draft

Exemption 5

Exemption 5

________________________________________

From: Mattina, Celeste J.

Sent: Tuesday, April 19, 2011 9:14 AM

To: Cleeland, Nancy; Solomon, Lafe E.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme;

Abruzzo, Jennifer

Subject: RE: new draft

Should we add also,


Exemption 5

________________________________

From: Cleeland, Nancy

Sent: Monday, April 18, 2011 3:44 PM

To: Solomon, Lafe E.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Abruzzo, Jennifer;

Mattina, Celeste J.

Subject: new draft

Thanks for all your suggestions. Here is the latest draft of the release. Feel free to make

suggestions, particularly

Exemption 5

Nancy Cleeland

NLRB-FOIA-00009262

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

NLRB-FOIA-00009263

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:

Cleeland, Nancy

Tuesday, April 19, 2011 10:30 AM

Mattina, Celeste J.; Solomon, Lafe E.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme;

Abruzzo, Jennifer

Ahearn, Richard L.

RE: new draft

Hi all, It would be very helpful to see a draft of the complaint for purposes of writing the

fact sheet. Could someone forward to me? Thanks ________________________________________

From: Mattina, Celeste J.

Sent: Tuesday, April 19, 2011 10:20 AM

To: Cleeland, Nancy; Solomon, Lafe E.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme;

Abruzzo, Jennifer

Cc: Ahearn, Richard L.

Subject: RE: new draft

Sorry to jump in after the fact.

What do you think,

Exemption 5

-----Original Message-----

From: Cleeland, Nancy

Sent: Tuesday, April 19, 2011 9:46 AM

To: Mattina, Celeste J.; Solomon, Lafe E.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme;

Abruzzo, Jennifer

Subject: RE: new draft

Exemption 5

Exemption 5

________________________________________

From: Mattina, Celeste J.

Sent: Tuesday, April 19, 2011 9:14 AM

To: Cleeland, Nancy; Solomon, Lafe E.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme;

Abruzzo, Jennifer

Subject: RE: new draft

Should we add also,


Exemption 5

________________________________

From: Cleeland, Nancy

Sent: Monday, April 18, 2011 3:44 PM

To: Solomon, Lafe E.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Abruzzo, Jennifer;

Mattina, Celeste J.

NLRB-FOIA-00009264

Subject: new draft

Thanks for all your suggestions. Here is the latest draft of the release. Feel free to make

suggestions, particularly

Exemption 5

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

NLRB-FOIA-00009265

Microsoft Outlook

From:
Sent:
To:
Subject:

Ahearn, Richard L.

Tuesday, April 19, 2011 10:34 AM

Cleeland, Nancy; Mattina, Celeste J.; Solomon, Lafe E.; Kearney, Barry J.; Farrell, Ellen;

Sophir, Jayme; Abruzzo, Jennifer

Re: new draft

I will shortly; a couple tweaks remain.

Rich

--------------------------

Sent from my BlackBerry Wireless Handheld

----- Original Message -----

From: Cleeland, Nancy

To: Mattina, Celeste J.; Solomon, Lafe E.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme;

Abruzzo, Jennifer

Cc: Ahearn, Richard L.

Sent: Tue Apr 19 10:29:49 2011

Subject: RE: new draft

Hi all, It would be very helpful to see a draft of the complaint for purposes of writing the

fact sheet. Could someone forward to me? Thanks ________________________________________

From: Mattina, Celeste J.

Sent: Tuesday, April 19, 2011 10:20 AM

To: Cleeland, Nancy; Solomon, Lafe E.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme;

Abruzzo, Jennifer

Cc: Ahearn, Richard L.

Subject: RE: new draft

Sorry to jump in after the fact.

What do you think,

Exemption 5

-----Original Message-----

From: Cleeland, Nancy

Sent: Tuesday, April 19, 2011 9:46 AM

To: Mattina, Celeste J.; Solomon, Lafe E.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme;

Abruzzo, Jennifer

Subject: RE: new draft

Exemption 5

Exemption 5

________________________________________

From: Mattina, Celeste J.

Sent: Tuesday, April 19, 2011 9:14 AM

NLRB-FOIA-00009266

To: Cleeland, Nancy; Solomon, Lafe E.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme;

Abruzzo, Jennifer

Subject: RE: new draft

Should we add also,


Exemption 5

________________________________

From: Cleeland, Nancy

Sent: Monday, April 18, 2011 3:44 PM

To: Solomon, Lafe E.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Abruzzo, Jennifer;

Mattina, Celeste J.

Subject: new draft

Thanks for all your suggestions. Here is the latest draft of the release. Feel free to make

suggestions, particularly

Exemption 5

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

NLRB-FOIA-00009267

Microsoft Outlook

From:

Cleeland, Nancy

Sent:

Tuesday, April 19, 2011 1:56 PM

To:

Ahearn, Richard L.; Mattina, Celeste J.; Solomon, Lafe E.; Kearney, Barry J.; Farrell, Ellen;

Subject:

part of fact sheet

Sophir, Jayme; Abruzzo, Jennifer

Hi everyone,

I'm working on the fact sheet and am struggling to condense the case law mentioned in the Advice memo
Exemption 5

Exemption 5

NLRB-FOIA-00009268

NLRB-FOIA-00009269

Microsoft Outlook

From:

Cleeland, Nancy

Sent:

Wednesday, April 20, 2011 9:50 AM

To:

Mattina, Celeste J.; Garza, Jose; Ahearn, Richard L.; Abruzzo, Jennifer; Kearney, Barry J.;

Cc:

Cleeland, Nancy

Subject:

fact sheet

Attachments:

NLRB Fact Sheet.doc

Farrell, Ellen; Sophir, Jayme; Solomon, Lafe E.

Hi all,

Here's a draft of the Fact Sheet. I will add the links later. Please take a look when you can. Thanks.

NLRB-FOIA-00009270

Exemption 5

NLRB-FOIA-00009271

Exemption 5

NLRB-FOIA-00009272

Exemption 5

NLRB-FOIA-00009273

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:
Attachments:

Mattina, Celeste J.

Thursday, May 05, 2011 12:07 PM

Schiff, Robert; Garza, Jose; Cleeland, Nancy; Abruzzo, Jennifer; Solomon, Lafe E.

Kearney, Barry J.

FW : Boeing -- revised draft response to state AGs

AGs letter.pdf; GC Response to State AG's.doc

Barry and his people drafted a very good response. I made some minor edits; I

Exemption 5

From: Kearney, Barry J.

Sent: Wednesday, May 04, 2011 2:28 PM

To: Solomon, Lafe E.; Mattina, Celeste J.

Subject: FW: Boeing -- revised draft response to state AGs

Draft response from you to State AGs

From: Willen, Debra L

Sent: Wednesday, May 04, 2011 2:24 PM

To: Kearney, Barry J.; Sophir, Jayme; Farrell, Ellen; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: RE: Boeing -- revised draft response to state AGs

clean draft and AGs' letter attached

From: Kearney, Barry J.

Sent: Wednesday, May 04, 2011 2:10 PM

To: Sophir, Jayme; Farrell, Ellen; Willen, Debra L; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: RE: Boeing -- revised draft response to state AGs

I agree with all the revisions. Please send me a clean draft along with the AG letter to send on to Lafe

From: Sophir, Jayme

Sent: Wednesday, May 04, 2011 12:18 PM

To: Farrell, Ellen; Kearney, Barry J.; Willen, Debra L; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: RE: Boeing -- revised draft response to state AGs

Notwithstanding that this case is about retaliation for striking in other states, they seem

Exemption 5

But, regardless of what theyre saying, Ellens

modification is definitely better.

From: Farrell, Ellen

Sent: Wednesday, May 04, 2011 12:07 PM

NLRB-FOIA-00009274

To: Kearney, Barry J.; Willen, Debra L; Sophir, Jayme; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: FW: Boeing -- revised draft response to state AGs

See my modification

Exemption 5

Ellen

Ellen Farrell

Deputy Associate General Counsel

Division of Advice, NLRB

202-273-3810

Ellen.Farrell@nlrb.gov

From: Sophir, Jayme

Sent: Wednesday, May 04, 2011 11:33 AM

To: Kearney, Barry J.; Farrell, Ellen; Szapiro, Miriam; Willen, Debra L

Cc: Dodds, Amy L.

Subject: FW: Boeing -- revised draft response to state AGs

Exemption 5

From: Willen, Debra L

Sent: Wednesday, May 04, 2011 10:58 AM

To: Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: Boeing -- revised draft response to state AGs

As Barry requested, I've incorporated his changes and am attaching the new version along with the AG's letter.

Jayme -- I have not addressed your concern -- please discuss it with Barry and let me know if what you all want me to

do.

Thanks, Deb

NLRB-FOIA-00009275

Exemption 5

NLRB-FOIA-00009276

Exemption 5

NLRB-FOIA-00009277

Exemption 5

NLRB-FOIA-00009278

ALANWILSON

ATTORNEY GENERAL

April 28, 2011

Lafe E. Solomon, Esquire

Acting General Counsel

National Labor Relations Board

1099 14 th Street, NW, Suite 8600

Washington, DC 20570

Dear Mr. Solomon:

As Attorneys General of our respective states, we call upon you, as Acting General

Counsel of the National Labor Relations Board (NLRB), to withdraw immediately the

complaint numbered 19-CA-32431 against Boeing. This complaint represents an assault upon the

constitutional right of free speech, and the ability of our states to create jobs and recruit industry.

Your ill-conceived retaliatory action seeks to destroy our citizens right to work. It is South

Carolina and Boeing today, but will be any of our states, with our right to work guarantees,

tomorrow.

The right to work, uninhibited by compulsory unionism, is a precious right and is

constitutionally enforceable through our states right to work laws. See Retail Clerks Intl v.

Schermerhorn, 375 U.S. 96 (1963). Such laws are designed to eliminate union affiliation as a

criterion for employment. However, the NLRB, through this single proceeding, attempts to

sound the death knell of the right to work. Additionally, this tenuous complaint will reverberate

throughout union and non-union states alike, as international companies will question the

wisdom of locating in a country where the federal government interferes in industry without

cause or justification.

Furthermore, this complaint disrupts, and may well eliminate, the production of Boeing

787 Dreamliners in South Carolina. In fact, Boeing has expanded its operations to meet product

demand in South Carolina, while adding new jobs in Washington State. The complaint charges

Boeing with the commission of an unfair labor practice, but appears to do so without legal and

factual foundation. This unparalleled and overreaching action seeks to drive a stake through the

heart of the free enterprise system. The statements of Boeing officials cited in your complaint are

the innocent exercise of the companys right of free speech. The Supreme Court long ago made

it clear that the NLRA does not limit, and the First Amendment protects, the employer's right to

express views on labor policies or problems. N.L.R.B. v. Va. Electric and Power, 314 US 469,

NLRB-FOIA-00009279

Hon. Lafe E. Solomon

April 27, 2011

Page 2

477 (1941). As the Court recently reiterated in Citizens United v. FEC, 130 S. Ct. 876, 899-90

(2010), a corporation is not a second class citizen in terms of First Amendment protection.

Our states are struggling to emerge from one of the worst economic collapses since the

Depression. Your complaint further impairs an economic recovery. Intrusion by the federal

bureaucracy on behalf of unions will not create a single new job or put one unemployed person

back to work.

The only justification for the NLRBs unprecedented retaliatory action is to aid union

survival. Your action seriously undermines our citizens right to work as well as their ability to

compete globally. Therefore, as Attorneys General, we will protect our citizens from union

bullying and federal coercion. We thus call upon you to cease this attack on our right to work,

our states economies, and our jobs.

We look forward to your immediate response.

Sincerely,

Alan Wilson

Attorney General

[Signatures continue next page]

Cc: Respective Congressional Delegations

NLRB-FOIA-00009280

Hon. Lafe E. Solomon

April 27, 2011

Page 3

Ken Cuccinelli

Attorney General
Commonwealth of Virginia

Jon C. Bruning

Attorney General
State of Nebraska

Greg Abbott

Attorney General

State of Texas

Samuel S. Olens
Attorney General
State of Georgia

E. Scott Pruitt
Attorney General
State of Oklahoma

Pam Bondi
Attorney General
State of Florida

Tom Horne

Attorney General

State of Arizona

Luther Strange

Attorney General

State of Alabama

NLRB-FOIA-00009281

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:

Cleeland, Nancy

Thursday, May 05, 2011 1:35 PM

Mattina, Celeste J.; Schiff, Robert; Garza, Jose; Abruzzo, Jennifer; Solomon, Lafe E.

Kearney, Barry J.

RE: Boeing -- revised draft response to state AGs

Exemption 5

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

From: Mattina, Celeste J.

Sent: Thursday, May 05, 2011 12:07 PM

To: Schiff, Robert; Garza, Jose; Cleeland, Nancy; Abruzzo, Jennifer; Solomon, Lafe E.

Cc: Kearney, Barry J.

Subject: FW: Boeing -- revised draft response to state AGs

Barry and his people drafted a very good response. I made some minor edits; I

Exemption 5

From: Kearney, Barry J.

Sent: Wednesday, May 04, 2011 2:28 PM

To: Solomon, Lafe E.; Mattina, Celeste J.

Subject: FW: Boeing -- revised draft response to state AGs

Draft response from you to State AGs

From: Willen, Debra L

Sent: Wednesday, May 04, 2011 2:24 PM

To: Kearney, Barry J.; Sophir, Jayme; Farrell, Ellen; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: RE: Boeing -- revised draft response to state AGs

clean draft and AGs' letter attached

From: Kearney, Barry J.

Sent: Wednesday, May 04, 2011 2:10 PM

To: Sophir, Jayme; Farrell, Ellen; Willen, Debra L; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: RE: Boeing -- revised draft response to state AGs

I agree with all the revisions. Please send me a clean draft along with the AG letter to send on to Lafe

NLRB-FOIA-00009282

From: Sophir, Jayme

Sent: Wednesday, May 04, 2011 12:18 PM

To: Farrell, Ellen; Kearney, Barry J.; Willen, Debra L; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: RE: Boeing -- revised draft response to state AGs

Notwithstanding that this case is about retaliation for striking in other states, they seem

Exemption 5

But, regardless of what theyre saying, Ellens

modification is definitely better.

From: Farrell, Ellen

Sent: Wednesday, May 04, 2011 12:07 PM

To: Kearney, Barry J.; Willen, Debra L; Sophir, Jayme; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: FW: Boeing -- revised draft response to state AGs

See my modification

Exemption 5

Ellen

Ellen Farrell

Deputy Associate General Counsel

Division of Advice, NLRB

202-273-3810

Ellen.Farrell@nlrb.gov

From: Sophir, Jayme

Sent: Wednesday, May 04, 2011 11:33 AM

To: Kearney, Barry J.; Farrell, Ellen; Szapiro, Miriam; Willen, Debra L

Cc: Dodds, Amy L.

Subject: FW: Boeing -- revised draft response to state AGs

Exemption 5

From: Willen, Debra L

Sent: Wednesday, May 04, 2011 10:58 AM

To: Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: Boeing -- revised draft response to state AGs

As Barry requested, I've incorporated his changes and am attaching the new version along with the AG's letter.

Jayme -- I have not addressed your concern -- please discuss it with Barry and let me know if what you all want me to

do.

Thanks, Deb

NLRB-FOIA-00009283

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:

Garza, Jose

Thursday, May 05, 2011 1:38 PM

Cleeland, Nancy; Mattina, Celeste J.; Schiff, Robert; Abruzzo, Jennifer; Solomon, Lafe E.

Kearney, Barry J.

RE: Boeing -- revised draft response to state AGs

To the extent it is possible, I think it would be best to have this conversation in person.

From: Cleeland, Nancy

Sent: Thursday, May 05, 2011 1:35 PM

To: Mattina, Celeste J.; Schiff, Robert; Garza, Jose; Abruzzo, Jennifer; Solomon, Lafe E.

Cc: Kearney, Barry J.

Subject: RE: Boeing -- revised draft response to state AGs

Exemption 5

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

From: Mattina, Celeste J.

Sent: Thursday, May 05, 2011 12:07 PM

To: Schiff, Robert; Garza, Jose; Cleeland, Nancy; Abruzzo, Jennifer; Solomon, Lafe E.

Cc: Kearney, Barry J.

Subject: FW: Boeing -- revised draft response to state AGs

Barry and his people drafted a very good response. I made some minor edits; I

Exemption 5

From: Kearney, Barry J.

Sent: Wednesday, May 04, 2011 2:28 PM

To: Solomon, Lafe E.; Mattina, Celeste J.

Subject: FW: Boeing -- revised draft response to state AGs

Draft response from you to State AGs

From: Willen, Debra L

Sent: Wednesday, May 04, 2011 2:24 PM

To: Kearney, Barry J.; Sophir, Jayme; Farrell, Ellen; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: RE: Boeing -- revised draft response to state AGs

NLRB-FOIA-00009284

clean draft and AGs' letter attached

From: Kearney, Barry J.

Sent: Wednesday, May 04, 2011 2:10 PM

To: Sophir, Jayme; Farrell, Ellen; Willen, Debra L; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: RE: Boeing -- revised draft response to state AGs

I agree with all the revisions. Please send me a clean draft along with the AG letter to send on to Lafe

From: Sophir, Jayme

Sent: Wednesday, May 04, 2011 12:18 PM

To: Farrell, Ellen; Kearney, Barry J.; Willen, Debra L; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: RE: Boeing -- revised draft response to state AGs

Notwithstanding that this case is about retaliation for striking in other states, they seem

Exemption 5

But, regardless of what theyre saying, Ellens

modification is definitely better.

From: Farrell, Ellen

Sent: Wednesday, May 04, 2011 12:07 PM

To: Kearney, Barry J.; Willen, Debra L; Sophir, Jayme; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: FW: Boeing -- revised draft response to state AGs

See my modification

Exemption 5

Ellen

Ellen Farrell

Deputy Associate General Counsel

Division of Advice, NLRB

202-273-3810

Ellen.Farrell@nlrb.gov

From: Sophir, Jayme

Sent: Wednesday, May 04, 2011 11:33 AM

To: Kearney, Barry J.; Farrell, Ellen; Szapiro, Miriam; Willen, Debra L

Cc: Dodds, Amy L.

Subject: FW: Boeing -- revised draft response to state AGs

Exemption 5

From: Willen, Debra L

Sent: Wednesday, May 04, 2011 10:58 AM

To: Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: Boeing -- revised draft response to state AGs

NLRB-FOIA-00009285

As Barry requested, I've incorporated his changes and am attaching the new version along with the AG's letter.

Jayme -- I have not addressed your concern -- please discuss it with Barry and let me know if what you all want me to

do.

Thanks, Deb

NLRB-FOIA-00009286

Microsoft Outlook

From:
Sent:
To:
Subject:
Attachments:

Mattina, Celeste J.

Tuesday, June 07, 2011 9:55 AM

Garza, Jose; Solomon, Lafe E.; Abruzzo, Jennifer

FW : Boeing -- revised draft response to state AGs

AGs letter.pdf; GC Response to State AG's.doc

We have no record of having sent this response out and I seem to recall
Exemption 5
I am just sending this message out

in case somebody has a different recollection, although I am pretty sure this is what

happened.

From: Mattina, Celeste J.

Sent: Tuesday, June 07, 2011 9:11 AM

To: MotonBostick, Sylvia; Contee, Ernestine R.

Subject: FW: Boeing -- revised draft response to state AGs

I am pretty sure we decided not to send this response, but can you please check and

get back to me on this? Thank you!

From: Farrell, Ellen

Sent: Tuesday, June 07, 2011 9:07 AM

To: Mattina, Celeste J.

Subject: FW: Boeing -- revised draft response to state AGs

Heres both the AGs letter and our draft response

Ellen

Ellen Farrell

Deputy Associate General Counsel

Division of Advice, NLRB

202-273-3810

Ellen.Farrell@nlrb.gov

From: Kearney, Barry J.

Sent: Thursday, May 05, 2011 1:25 PM

To: Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam; Willen, Debra L

Subject: FW: Boeing -- revised draft response to state AGs

From: Mattina, Celeste J.

Sent: Thursday, May 05, 2011 12:07 PM

To: Schiff, Robert; Garza, Jose; Cleeland, Nancy; Abruzzo, Jennifer; Solomon, Lafe E.

Cc: Kearney, Barry J.

Subject: FW: Boeing -- revised draft response to state AGs

NLRB-FOIA-00009287

Barry and his people drafted a very good response. I made some minor edits; I

Exemption 5

From: Kearney, Barry J.

Sent: Wednesday, May 04, 2011 2:28 PM

To: Solomon, Lafe E.; Mattina, Celeste J.

Subject: FW: Boeing -- revised draft response to state AGs

Draft response from you to State AGs

From: Willen, Debra L

Sent: Wednesday, May 04, 2011 2:24 PM

To: Kearney, Barry J.; Sophir, Jayme; Farrell, Ellen; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: RE: Boeing -- revised draft response to state AGs

clean draft and AGs' letter attached

From: Kearney, Barry J.

Sent: Wednesday, May 04, 2011 2:10 PM

To: Sophir, Jayme; Farrell, Ellen; Willen, Debra L; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: RE: Boeing -- revised draft response to state AGs

I agree with all the revisions. Please send me a clean draft along with the AG letter to send on to Lafe

From: Sophir, Jayme

Sent: Wednesday, May 04, 2011 12:18 PM

To: Farrell, Ellen; Kearney, Barry J.; Willen, Debra L; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: RE: Boeing -- revised draft response to state AGs

Notwithstanding that this case is about retaliation for striking in other states, they seem

Exemption 5

But, regardless of what theyre saying, Ellens

modification is definitely better.

From: Farrell, Ellen

Sent: Wednesday, May 04, 2011 12:07 PM

To: Kearney, Barry J.; Willen, Debra L; Sophir, Jayme; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: FW: Boeing -- revised draft response to state AGs

See my modification

Exemption 5

Ellen

Ellen Farrell

NLRB-FOIA-00009288

Deputy Associate General Counsel

Division of Advice, NLRB

202-273-3810

Ellen.Farrell@nlrb.gov

From: Sophir, Jayme

Sent: Wednesday, May 04, 2011 11:33 AM

To: Kearney, Barry J.; Farrell, Ellen; Szapiro, Miriam; Willen, Debra L

Cc: Dodds, Amy L.

Subject: FW: Boeing -- revised draft response to state AGs

Exemption 5

From: Willen, Debra L

Sent: Wednesday, May 04, 2011 10:58 AM

To: Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: Boeing -- revised draft response to state AGs

As Barry requested, I've incorporated his changes and am attaching the new version along with the AG's letter.

Jayme -- I have not addressed your concern -- please discuss it with Barry and let me know if what you all want me to

do.

Thanks, Deb

NLRB-FOIA-00009289

Exemption 5

NLRB-FOIA-00009290

Exemption 5

NLRB-FOIA-00009291

Exemption 5

NLRB-FOIA-00009292

ALANWILSON

ATTORNEY GENERAL

April 28, 2011

Lafe E. Solomon, Esquire

Acting General Counsel

National Labor Relations Board

1099 14 th Street, NW, Suite 8600

Washington, DC 20570

Dear Mr. Solomon:

As Attorneys General of our respective states, we call upon you, as Acting General

Counsel of the National Labor Relations Board (NLRB), to withdraw immediately the

complaint numbered 19-CA-32431 against Boeing. This complaint represents an assault upon the

constitutional right of free speech, and the ability of our states to create jobs and recruit industry.

Your ill-conceived retaliatory action seeks to destroy our citizens right to work. It is South

Carolina and Boeing today, but will be any of our states, with our right to work guarantees,

tomorrow.

The right to work, uninhibited by compulsory unionism, is a precious right and is

constitutionally enforceable through our states right to work laws. See Retail Clerks Intl v.

Schermerhorn, 375 U.S. 96 (1963). Such laws are designed to eliminate union affiliation as a

criterion for employment. However, the NLRB, through this single proceeding, attempts to

sound the death knell of the right to work. Additionally, this tenuous complaint will reverberate

throughout union and non-union states alike, as international companies will question the

wisdom of locating in a country where the federal government interferes in industry without

cause or justification.

Furthermore, this complaint disrupts, and may well eliminate, the production of Boeing

787 Dreamliners in South Carolina. In fact, Boeing has expanded its operations to meet product

demand in South Carolina, while adding new jobs in Washington State. The complaint charges

Boeing with the commission of an unfair labor practice, but appears to do so without legal and

factual foundation. This unparalleled and overreaching action seeks to drive a stake through the

heart of the free enterprise system. The statements of Boeing officials cited in your complaint are

the innocent exercise of the companys right of free speech. The Supreme Court long ago made

it clear that the NLRA does not limit, and the First Amendment protects, the employer's right to

express views on labor policies or problems. N.L.R.B. v. Va. Electric and Power, 314 US 469,

NLRB-FOIA-00009293

Hon. Lafe E. Solomon

April 27, 2011

Page 2

477 (1941). As the Court recently reiterated in Citizens United v. FEC, 130 S. Ct. 876, 899-90

(2010), a corporation is not a second class citizen in terms of First Amendment protection.

Our states are struggling to emerge from one of the worst economic collapses since the

Depression. Your complaint further impairs an economic recovery. Intrusion by the federal

bureaucracy on behalf of unions will not create a single new job or put one unemployed person

back to work.

The only justification for the NLRBs unprecedented retaliatory action is to aid union

survival. Your action seriously undermines our citizens right to work as well as their ability to

compete globally. Therefore, as Attorneys General, we will protect our citizens from union

bullying and federal coercion. We thus call upon you to cease this attack on our right to work,

our states economies, and our jobs.

We look forward to your immediate response.

Sincerely,

Alan Wilson

Attorney General

[Signatures continue next page]

Cc: Respective Congressional Delegations

NLRB-FOIA-00009294

Hon. Lafe E. Solomon

April 27, 2011

Page 3

Ken Cuccinelli

Attorney General
Commonwealth of Virginia

Jon C. Bruning

Attorney General
State of Nebraska

Greg Abbott

Attorney General

State of Texas

Samuel S. Olens
Attorney General
State of Georgia

E. Scott Pruitt
Attorney General
State of Oklahoma

Pam Bondi
Attorney General
State of Florida

Tom Horne

Attorney General

State of Arizona

Luther Strange

Attorney General

State of Alabama

NLRB-FOIA-00009295

Microsoft Outlook

From:
Sent:
To:
Subject:
Attachments:

Graham, David

Friday, June 10, 2011 10:47 AM

Abruzzo, Jennifer

Statement of W ork

Legal Services SOW 061011.doc

Jennifer,

Attached is the draft SOW . Please review and suggest any changes at all. Please understand Im not an attorney, so

dont be shy about any suggestions since you understand the legal profession much better than I. I also sent it to Joe

Davis and Kathy James, who is an outstanding writer, for review. Delfina is the contracting officer because I have to free

myself up for approvals required above the contracting officer.

I am writing the sole source justification next and will provide it to you for signature.

NLRB-FOIA-00009296

Exemption 5

NLRB-FOIA-00009297

Exemption 5

NLRB-FOIA-00009298

Exemption 5

NLRB-FOIA-00009299

Microsoft Outlook

From:
Sent:
To:
Subject:
Attachments:

Abruzzo, Jennifer

Friday, June 10, 2011 11:40 AM

Graham, David; James, Kathleen

FW : Statement of W ork

Legal Services SOW 061011.doc

See attached. Ive made a few changes, i.e.


. Thanks.

Exemption 5

From: Graham, David

Sent: Friday, June 10, 2011 10:47 AM

To: Abruzzo, Jennifer

Subject: Statement of Work

Jennifer,

Attached is the draft SOW . Please review and suggest any changes at all. Please understand Im not an attorney, so

dont be shy about any suggestions since you understand the legal profession much better than I. I also sent it to Joe

Davis and Kathy James, who is an outstanding writer, for review.

Delfina is the contracting officer because I have to free

myself up for approvals required above the contracting officer.

I am writing the sole source justification next and will provide it to you for signature.

NLRB-FOIA-00009300

STATEMENT OF WORK

LEGAL SERVICES

BACKGROUND

The National Labor Relations Board (NLRB) is an independent Federal Agency created by

Congress in 1935 to administer the National Labor Relations Act, the primary law governing

relations between and among unions, employees, and employers in the private sector. The

statute guarantees the right of employees to organize and to bargain collectively with their

employers or to refrain from all such activity. Generally applying to all employers involved in

interstate commerce other than airlines, railroads, agriculture, and government the Act

implements the national labor policy of assuring free choice and encouraging collective

bargaining as a means of maintaining industrial peace. Through the years, Congress has

amended the Act and the Board and courts have developed a body of law drawn from the statute.

In its statutory assignment, the NLRB has two principal functions: (1) to determine, through

secret-ballot elections, the free democratic choice by employees whether they wish to be

represented by a union in dealing with their employers and if so, by which union; and (2) to

prevent and remedy unlawful acts, called unfair labor practices, by either employers or unions.

The NLRB does not act on its own motion in either function. It processes only those charges of

unfair labor practices and petitions for employee elections that are filed with the NLRB in one of

its fifty-two Regional, Sub-regional, or Resident Offices.

PURPOSE

The NLRB is in need of independent counsel (contractor) to advise and represent the General

Counsel and/or the NLRB on any and all matters in relation to activities regarding Congressional

inquiries and testimony. Contractor shall provide legal services, as needed, to support and

protect the interests of the General Counsel and the NLRB. Contractor must have specialized

experience in all related matters of law.

Legal services may include, but are not limited to, the

following subject areas and similar related work:

(1) Legal advice about Congressional inquiries and about testifying before a Congressional

Committee and/or Subcommittee;

(2) Assistance in drafting documents in response to Congressional inquiries, including

talking points for oral presentation;

(3) Representation as legal counsel during any Congressional testimony or questioning, and

advance preparation for such matters as needed to represent the interests of the General

Counsel and the NLRB;

(4) Any area of legal expertise or support that may arise due to the nature of this contract for

legal services.

SOW: NxGen Advisory Services

11/21/2011

NLRB-FOIA-00009301

COMMUNICATIONS:

Contractor shall be accessible by telephone at all times or as necessary under the terms of this

contract. Contractor shall have capacity to submit and receive documents to and from the NLRB

in Microsoft Word 2003 format and/or pdf. file format as required. All communications shall be

secure from disclosure to any outside sources. All secure communications shall be protected

under attorney-client privilege and shall be marked as such when necessary to protect the

interests of the NLRB.

EXPENSES:

The NLRB agrees to reimburse contractor for reasonable expenses allocable to and necessary for

legal services within the scope of this contract, and allowable under the Federal Acquisition

Regulation (48 CFR Part 31). Expenses may include, but are not limited to photocopying, long

distance telephone charges, travel, computerized legal research, messenger services and mailing

expenses, investigators, secretarial overtime as necessary for timeliness matters.

All travel, including transportation, lodging, meals and incidental expenses shall be in

accordance with the Federal Travel Regulation, and may be based on actual expenses, Federal

per diem rates including IRS reimbursement rates, or any combination thereof, provided the

method used results in a reasonable charge.

Costs incurred for transportation may be based on

mileage rates, actual costs incurred, or a combination provided the method used results in a

reasonable charge. Air travel shall be at the lowest available rates at the time of travel. Any

charges in question may be brought to the attention of the Contracting Officer for advisement

and approval.

PERIOD OF PERFORMANCE

The period of performance shall be from date of award up to one calendar year from date of

award.

POINTS OF CONTACT

Jennifer Abruzzo, Deputy Assistant General Counsel shall be the point of contact for all

technical information and questions. In this capacity, she will monitor the performance of the

contract on behalf of the Government. The POC is located at National Labor Relations Board,

1099 14

th

Street, NW, Washington, D.C. 20570, Suite 10102. The telephone number is 202-273-

3704.

Delfina St. Clair, Contracting Officer, shall be the Contracting Officer for award and

administration of this contract. The Contacting Officer or designee is the sole authority for

authorizing changes to this contract. The Contracting Officer is located at National Labor

th

Relations Board, 1099 14


Street, NW, Washington, D.C. 20570, Suite 7750. The telephone

number is 202-273-4210.

INVOICES AND PAYMENT

SOW: NxGen Advisory Services

11/21/2011

NLRB-FOIA-00009302

In compliance with the Prompt Payment Act, invoices shall be paid within 30 days of receiving a

proper invoice, and pays interest at established Treasury rates on all late payments.

SOW: NxGen Advisory Services

11/21/2011

NLRB-FOIA-00009303

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:
Attachments:

Graham, David

Friday, June 10, 2011 12:01 PM

Abruzzo, Jennifer

Davis, Joseph M.; James, Kathleen

RE: Statement of W ork

JOFOC Boeing Legal Svcs.htm

Yes, it looks good.

Exemption 5

Attached is the Justification for Other Than Full and Open Competition for your signature. Let me know if you

prefer any changes here as well.

From: Abruzzo, Jennifer

Sent: Friday, June 10, 2011 11:40 AM

To: Graham, David; James, Kathleen

Subject: FW: Statement of Work

See attached. Ive made a few changes, i.e.


. Thanks.

Exemption 5

From: Graham, David

Sent: Friday, June 10, 2011 10:47 AM

To: Abruzzo, Jennifer

Subject: Statement of Work

Jennifer,

Attached is the draft SOW . Please review and suggest any changes at all. Please understand Im not an attorney, so

dont be shy about any suggestions since you understand the legal profession much better than I.
Davis and Kathy James, who is an outstanding writer, for review.

I also sent it to Joe

Delfina is the contracting officer because I have to free

myself up for approvals required above the contracting officer.

I am writing the sole source justification next and will provide it to you for signature.

NLRB-FOIA-00009304

Exemption 5

NLRB-FOIA-00009305

Exemption 5

NLRB-FOIA-00009306

Exemption 5

NLRB-FOIA-00009307

Exemption 5

NLRB-FOIA-00009308

Exemption 5

NLRB-FOIA-00009309

Exemption 5

NLRB-FOIA-00009310

Exemption 5

NLRB-FOIA-00009311

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:
Attachments:

Abruzzo, Jennifer

Friday, June 10, 2011 12:41 PM

Graham, David; James, Kathleen

Mattina, Celeste J.

FW : Statement of W ork

Legal Services SOW 061011.doc

See attached edited version of SOW.

Exemption 5

NLRB-FOIA-00009312

Exemption 5

Give a call or stop by if we need to further discuss.

NLRB-FOIA-00009313

STATEMENT OF WORK

LEGAL SERVICES

BACKGROUND

The National Labor Relations Board (NLRB) is an independent Federal Agency created by

Congress in 1935 to administer the National Labor Relations Act, the primary law governing

relations between and among unions, employees, and employers in the private sector. The

statute guarantees the right of employees to organize and to bargain collectively with their

employers or to refrain from all such activity. Generally applying to all employers involved in

interstate commerce other than airlines, railroads, agriculture, and government the Act

implements the national labor policy of assuring free choice and encouraging collective

bargaining as a means of maintaining industrial peace. Through the years, Congress has

amended the Act and the Board and courts have developed a body of law drawn from the statute.

In its statutory assignment, the NLRB has two principal functions: (1) to determine, through

secret-ballot elections, the free democratic choice by employees whether they wish to be

represented by a union in dealing with their employers and if so, by which union; and (2) to

prevent and remedy unlawful acts, called unfair labor practices, by either employers or unions.

The NLRB does not act on its own motion in either function. It processes only those charges of

unfair labor practices and petitions for employee elections that are filed with the NLRB in one of

its fifty-two Regional, Sub-regional, or Resident Offices.

PURPOSE

The NLRB is in need of independent counsel (contractor) to advise and represent the General

Counsel and the NLRB on any and all matters in relation to activities regarding Congressional

inquiries and testimony. Contractor shall provide legal services, as needed, to support and

protect the interests of the General Counsel and the NLRB. Contractor must have specialized

experience in all related matters of law.

Legal services may include, but are not limited to, the

following subject areas and similar related work:

(1) Legal advice about Congressional inquiries and about testifying before a Congressional

Committee and/or Subcommittee;

(2) Assistance in drafting documents in response to Congressional inquiries, including

talking points for oral presentation;

(3) Representation as legal counsel during any Congressional testimony or questioning, and

advance preparation for such matters as needed to represent the interests of the General

Counsel and the NLRB;

(4) Any area of legal expertise or support that may arise due to the nature of this contract for

legal services.

SOW: NxGen Advisory Services

11/21/2011

NLRB-FOIA-00009314

COMMUNICATIONS:

Contractor shall be accessible by telephone at all times or as necessary under the terms of this

contract. Contractor shall have capacity to submit and receive documents to and from the NLRB

in Microsoft Word 2003 format and/or pdf. file format as required. All communications shall be

secure from disclosure to any outside sources. All secure communications shall be protected

under attorney-client privilege and shall be marked as such when necessary to protect the

interests of the NLRB.

EXPENSES:

The NLRB agrees to reimburse contractor for reasonable expenses allocable to and necessary for

legal services within the scope of this contract, and allowable under the Federal Acquisition

Regulation (48 CFR Part 31). Expenses may include, but are not limited to photocopying, long

distance telephone charges, travel, computerized legal research, messenger services and mailing

expenses, investigators, secretarial overtime as necessary for timeliness matters.

All travel, including transportation, lodging, meals and incidental expenses shall be in

accordance with the Federal Travel Regulation, and may be based on actual expenses, Federal

per diem rates including IRS reimbursement rates, or any combination thereof, provided the

method used results in a reasonable charge.

Costs incurred for transportation may be based on

mileage rates, actual costs incurred, or a combination provided the method used results in a

reasonable charge. Air travel shall be at the lowest available rates at the time of travel. Any

charges in question may be brought to the attention of the Contracting Officer for advisement

and approval.

PERIOD OF PERFORMANCE

The period of performance shall be from date of award up to one calendar year from date of

award.

POINTS OF CONTACT

Jennifer Abruzzo, Deputy Assistant General Counsel shall be the point of contact for all

technical information and questions. In this capacity, she will monitor the performance of the

contract on behalf of the Government. The POC is located at National Labor Relations Board,

1099 14

th

Street, NW, Washington, D.C. 20570, Suite 10102. The telephone number is 202-273-

3704.

Delfina St. Clair, Contracting Officer, shall be the Contracting Officer for award and

administration of this contract. The Contacting Officer or designee is the sole authority for

authorizing changes to this contract. The Contracting Officer is located at National Labor

th

Relations Board, 1099 14


Street, NW, Washington, D.C. 20570, Suite 7750. The telephone

number is 202-273-4210.

INVOICES AND PAYMENT

SOW: NxGen Advisory Services

11/21/2011

NLRB-FOIA-00009315

In compliance with the Prompt Payment Act, invoices shall be paid within 30 days of receiving a

proper invoice, and pays interest at established Treasury rates on all late payments.

SOW: NxGen Advisory Services

11/21/2011

NLRB-FOIA-00009316

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:

Graham, David

Friday, June 10, 2011 12:46 PM

Abruzzo, Jennifer; James, Kathleen

Mattina, Celeste J.

RE: Statement of W ork

This looks fine. I see

Exemption 5

Ill send

the final edition back for signature.

From: Abruzzo, Jennifer

Sent: Friday, June 10, 2011 12:41 PM

To: Graham, David; James, Kathleen

Cc: Mattina, Celeste J.

Subject: FW: Statement of Work

See attached edited version of SOW.

Exemption 5

NLRB-FOIA-00009317

Exemption 5

Give a call or stop by if we need to further discuss.

NLRB-FOIA-00009318

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:

Abruzzo, Jennifer

Friday, June 10, 2011 12:59 PM

Graham, David; James, Kathleen

Mattina, Celeste J.

RE: Statement of W ork

Thanks.

From: Graham, David

Sent: Friday, June 10, 2011 12:46 PM

To: Abruzzo, Jennifer; James, Kathleen

Cc: Mattina, Celeste J.

Subject: RE: Statement of Work

This looks fine. I see


the final edition back for signature.

Exemption 5

Ill send

From: Abruzzo, Jennifer

Sent: Friday, June 10, 2011 12:41 PM

To: Graham, David; James, Kathleen

Cc: Mattina, Celeste J.

Subject: FW: Statement of Work

See attached edited version of SOW.

Exemption 5

NLRB-FOIA-00009319

Exemption 5

Give a call or stop by if we need to further discuss.

NLRB-FOIA-00009320

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:
Attachments:

Graham, David

Friday, June 10, 2011 1:10 PM

Abruzzo, Jennifer

Mattina, Celeste J.; James, Kathleen

RE: Statement of W ork

JOFOC Boeing Legal Svcs.htm.doc

Jennifer, attached is the Justification with your changes. Please sign and return. Thanks

From: Abruzzo, Jennifer

Sent: Friday, June 10, 2011 12:59 PM

To: Graham, David; James, Kathleen

Cc: Mattina, Celeste J.

Subject: RE: Statement of Work

Thanks.

From: Graham, David

Sent: Friday, June 10, 2011 12:46 PM

To: Abruzzo, Jennifer; James, Kathleen

Cc: Mattina, Celeste J.

Subject: RE: Statement of Work

This looks fine.

Exemption 5

Ill send

the final edition back for signature.

From: Abruzzo, Jennifer

Sent: Friday, June 10, 2011 12:41 PM

To: Graham, David; James, Kathleen

Cc: Mattina, Celeste J.

Subject: FW: Statement of Work

See attached edited version of SOW.

Exemption 5

NLRB-FOIA-00009321

Exemption 5

Give a call or stop by if we need to further discuss.

NLRB-FOIA-00009322

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

In accordance with FAR 6.303, each Justification for Other Than Full and Open Competition shall contain

sufficient facts and rationale to justify the use of the specific authority cited. As a minimum, each

justification shall include the following information, and be approved in accordance with FAR 6.304.

(1) Identification of the agency and the contracting activity, and specific identification of the

document as a Justification for other than full and open competition.

Program Office - National Labor Relations Board, Operations Division

Contracting Office Acquisitions Management Branch

(2) Nature and/or description of the action being approved.

Independent Counsel is needed for legal services to advise and represent the General Counsel and the

NLRB on any and all matters in relation to activities regarding Congressional inquiries and testimony.

(3) A description of the supplies or services required to meet the agencys needs (including the

estimated value).

Legal services may include preparation for and representation at Congressional hearings or

questioning, reviewing and drafting documents, legal research and review, copying, travel, or other

administrative expenses. No purchase of supplies is anticipated.

(4) An identification of the statutory authority permitting other than full and open competition.

41USC 253(c) and 10 USC 2304 (c).

(5) A demonstration that the proposed contractors unique qualifications or the nature of the

acquisition requires use of the authority cited.

Contractor has skills and experience in specific matters related to legal services in connection with

congressional hearings of the type needed for this contract action.

Authority to contract with

independent counsel is illustrated in Comp. Gen. 194496 1984, B-210518.

(6) A description of efforts made to ensure that offers are solicited from as many potential sources as

is practicable, including whether a notice was or will be publicized as required by Subpart 5.2 and, if

not, which exception under 5.202 applies.

This is an unusual and compelling urgency since there is an immediate need for advice about

Congressional inquiries and about testimony before Congressional Committees and Subcommittees.

This is not a typical situation where any firm has the experience and expertise to advise on this type

of matter. The law firm was located through contacts with the knowledge of the firms

qualifications. There is no time to advertise.

(7) A determination that the anticipated cost to the Government will be fair and reasonable.

The price is based on established rates and is determined to be fair and reasonable for the services

rendered. The estimate is established through discussions with the firm, and a not-to-exceed (NTE)

amount will protect the Government, where the Contracting Officer must authorized amounts above

the NTE amount

NLRB-FOIA-00009323

(8) A description of the market research conducted (see Part 10) and the results or a statement of the

reason market research was not conducted.

Several law firms were looked at to determine the types of firms available. None indicated that the

specific type of experience needed could be located in the amount of time available. Therefore, it

was also difficult to determine the pricing of a specialized law firm. Rates were found at many

different levels, so it is difficult to surmise a typical price of an atypical expertise. However, there is

no indication that the acquisition is unreasonable. In fact, some of the prices proposed were actually

below the Federal rates for travel and interest for unpaid balances, so it appears the firm is being

reasonable in pricing elements. The firm is a small business and considered to be commercial items

procured at an hourly rate with expenses, which appears to be the normal method of billing for legal

representation.

(9) Any other facts supporting the use of other than full and open competition (See 6.303-

2(9)(i)(ii)(iii):

The urgent and compelling nature of this acquisition at this time is due to escalating Congressional

intervention into decisions made by the General Counsel and the NLRB. In accordance with FAR

6.302-2, to allow undue influence would undermine the integrity of decision making authority.

(10) A listing of the sources, if any, that expressed, in writing, an interest in the acquisition.

There are no sources that have expressed interest in writing in this acquisition.

(11) A statement of the actions, if any, the agency may take to remove or overcome any barriers to

competition before any subsequent acquisition for the supplies or services required.

When time allows the

NLRB to properly compete such contact actions in the future, it will do so in accordance with the FAR.

I certify that this Justification for Other Than Full and Open Competition is accurate and complete to the

best of my knowledge and belief.

____________________________________________
Program Manager Signature

_____________________________________________
Contracting Officer Signature

_________________________

Date

_________________________

Date

NLRB-FOIA-00009324

Microsoft Outlook

From:
Sent:
To:
Subject:

Graham, David

Friday, June 10, 2011 1:16 PM

Abruzzo, Jennifer

RE: Statement of W ork

Jennifer,

I see where you state on this form that you state See attached edited version of SOW. You dont mean there are

additional changes since the first review do you? If so, it wasnt attached to this.

From: Abruzzo, Jennifer

Sent: Friday, June 10, 2011 12:41 PM

To: Graham, David; James, Kathleen

Cc: Mattina, Celeste J.

Subject: FW: Statement of Work

See attached edited version of SOW.

Exemption 5

NLRB-FOIA-00009325

Exemption 5

Give a call or stop by if we need to further discuss.

NLRB-FOIA-00009326

Microsoft Outlook

From:
Sent:
To:
Subject:
Attachments:

Abruzzo, Jennifer

Friday, June 10, 2011 1:19 PM

Graham, David

FW : Statement of W ork

Legal Services SOW 061011.doc

David,

This is the one to use.

Thanks,

Jennifer

From: Abruzzo, Jennifer

Sent: Friday, June 10, 2011 12:41 PM

To: Graham, David; James, Kathleen

Cc: Mattina, Celeste J.

Subject: FW: Statement of Work

See attached edited version of SOW.

Exemption 5

NLRB-FOIA-00009327

Exemption 5

Give a call or stop by if we need to further discuss.

NLRB-FOIA-00009328

STATEMENT OF WORK

LEGAL SERVICES

BACKGROUND

The National Labor Relations Board (NLRB) is an independent Federal Agency created by

Congress in 1935 to administer the National Labor Relations Act, the primary law governing

relations between and among unions, employees, and employers in the private sector. The

statute guarantees the right of employees to organize and to bargain collectively with their

employers or to refrain from all such activity. Generally applying to all employers involved in

interstate commerce other than airlines, railroads, agriculture, and government the Act

implements the national labor policy of assuring free choice and encouraging collective

bargaining as a means of maintaining industrial peace. Through the years, Congress has

amended the Act and the Board and courts have developed a body of law drawn from the statute.

In its statutory assignment, the NLRB has two principal functions: (1) to determine, through

secret-ballot elections, the free democratic choice by employees whether they wish to be

represented by a union in dealing with their employers and if so, by which union; and (2) to

prevent and remedy unlawful acts, called unfair labor practices, by either employers or unions.

The NLRB does not act on its own motion in either function. It processes only those charges of

unfair labor practices and petitions for employee elections that are filed with the NLRB in one of

its fifty-two Regional, Sub-regional, or Resident Offices.

PURPOSE

The NLRB is in need of independent counsel (contractor) to advise and represent the General

Counsel and the NLRB on any and all matters in relation to activities regarding Congressional

inquiries and testimony. Contractor shall provide legal services, as needed, to support and

protect the interests of the General Counsel and the NLRB. Contractor must have specialized

experience in all related matters of law.

Legal services may include, but are not limited to, the

following subject areas and similar related work:

(1) Legal advice about Congressional inquiries and about testifying before a Congressional

Committee and/or Subcommittee;

(2) Assistance in drafting documents in response to Congressional inquiries, including

talking points for oral presentation;

(3) Representation as legal counsel during any Congressional testimony or questioning, and

advance preparation for such matters as needed to represent the interests of the General

Counsel and the NLRB;

(4) Any area of legal expertise or support that may arise due to the nature of this contract for

legal services.

SOW: NxGen Advisory Services

11/21/2011

NLRB-FOIA-00009329

COMMUNICATIONS:

Contractor shall be accessible by telephone at all times or as necessary under the terms of this

contract. Contractor shall have capacity to submit and receive documents to and from the NLRB

in Microsoft Word 2003 format and/or pdf. file format as required. All communications shall be

secure from disclosure to any outside sources. All secure communications shall be protected

under attorney-client privilege and shall be marked as such when necessary to protect the

interests of the NLRB.

EXPENSES:

The NLRB agrees to reimburse contractor for reasonable expenses allocable to and necessary for

legal services within the scope of this contract, and allowable under the Federal Acquisition

Regulation (48 CFR Part 31). Expenses may include, but are not limited to photocopying, long

distance telephone charges, travel, computerized legal research, messenger services and mailing

expenses, investigators, secretarial overtime as necessary for timeliness matters.

All travel, including transportation, lodging, meals and incidental expenses shall be in

accordance with the Federal Travel Regulation, and may be based on actual expenses, Federal

per diem rates including IRS reimbursement rates, or any combination thereof, provided the

method used results in a reasonable charge.

Costs incurred for transportation may be based on

mileage rates, actual costs incurred, or a combination provided the method used results in a

reasonable charge. Air travel shall be at the lowest available rates at the time of travel. Any

charges in question may be brought to the attention of the Contracting Officer for advisement

and approval.

PERIOD OF PERFORMANCE

The period of performance shall be from date of award up to one calendar year from date of

award.

POINTS OF CONTACT

Jennifer Abruzzo, Deputy Assistant General Counsel shall be the point of contact for all

technical information and questions. In this capacity, she will monitor the performance of the

contract on behalf of the Government. The POC is located at National Labor Relations Board,

1099 14

th

Street, NW, Washington, D.C. 20570, Suite 10102. The telephone number is 202-273-

3704.

Delfina St. Clair, Contracting Officer, shall be the Contracting Officer for award and

administration of this contract. The Contacting Officer or designee is the sole authority for

authorizing changes to this contract. The Contracting Officer is located at National Labor

th

Relations Board, 1099 14


Street, NW, Washington, D.C. 20570, Suite 7750. The telephone

number is 202-273-4210.

INVOICES AND PAYMENT

SOW: NxGen Advisory Services

11/21/2011

NLRB-FOIA-00009330

In compliance with the Prompt Payment Act, invoices shall be paid within 30 days of receiving a

proper invoice, and pays interest at established Treasury rates on all late payments.

SOW: NxGen Advisory Services

11/21/2011

NLRB-FOIA-00009331

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:
Attachments:

Graham, David

Friday, June 10, 2011 3:55 PM

'lkiernan@zuckerman.com'

James, Kathleen; Mattina, Celeste J.; Abruzzo, Jennifer; St. Clair, Delfina

Contract Needs

SOW Legal Services Boeing 061011.doc; CCR Registration Instructions.doc

Leslie,

Per our conversation today, the following are items we discussed and/or need to address in order to prepare the contract

for signature:

Tax ID number;

CCR Registration Contractors are required to be registered in the Central Contractor Register in order to work

for the Federal Government. Attached are instructions on how to do that. You only have to register one time, and

would need a DUNS number (Dunn & Bradstreet) which the attachment describes. Let me or Delfina know if you

have questions about this;

The Federal Government pays interest on all debts over 30 days from receiving a proper invoice at the published

Treasury rate. That rate is 2.625% per annum until June 30, 2011, and new rates will be published in the Federal

Register beyond that period. Also, the Government has an automated payment system, so you wont likely see

anything over 60 days late as your engagement addresses. The Government usually pays on time now, and is

required to pay interest if it does not. If there are any issues with payment or any other claims, the Disputes Act in

the contract protects contractors with rights and procedures for resolving disputes or issues;

The Federal Government also publishes mileage rates, the same as IRS mileage which I believe is $.51 per mile,

The Federal Government does not award open ended contracts, so we need specific rates for specific positions

lieu of attorneys range from $250 to $900 per hour, and the same for paralegals;

I will have to place a not-to-exceed amount in the contract. This is only to protect the Government from

so that should not be an issue;

and the estimated number of hours for each so we can come up with an estimated contract amount. This is in

contractors who take advantage of an open checkbook as you probably can understand. That amount, just like

the estimate, can be changed by the Contracting Officer as determined necessary;

The Federal Government may terminate a contract at any time with the Termination clauses in the contract, so

Delfina St. Clair will be the Contracting Officer. I have to stay out of that role so I can authorize matters that have

to go above the Contracting Officer. She will do a good job. You are welcome to contact her at any time as well.

that is in place already;

Her number is 202-273-4212 and email is delfina.st.clair@nlrb.gov

Attached is the Statement of Work for your advance review, which will be part of the contract that describes the services

under contract. I believe we have covered everything in your engagement letter, so we would like to use the contract in

lieu of the letter if thats OK. Once we get all of these issues behind us we should be able to get a contract to you for

signature. Please let me know if you have any questions or concerns.

David

David L. Graham, Chief

Acquisitions Management Branch

National Labor Relations Board

202-273-4047

NLRB-FOIA-00009332

NOTICE:

Contractors who have not registered with Central Contractor

Registration (CCR) should do so as soon as possible. Contractors bidding on

the new BPA must have a DUNS number and be registered with CCR to be

considered.

To obtain a Dun & Bradstreet (DUNS) number:

Call Duns and Bradstreet at 1-866-705-5711, and ask to be assigned a DUNS

number (the process takes about 5 minutes).

After receiving a DUNS number, you must wait 24 hours before registering

with CCR.

To register with the CCR

Log on to the CCR website (http://www.ccr.gov) and click on Start New

Registration located on the upper left hand side of the homepage. From there,

follow the prompts and fill in the information requested. The information that

will be requested in the required fields has been summarized on the attached

sheet.

NLRB-FOIA-00009333

Required information for CCR Registration

REQUIRED FIELDS are marked with an *. Unmarked fields are optional.

Legal Business Name: This is your name (unless you have a business)

Physical Street Address: Your home address (unless you have a business address)

Business Start Date: When you began (or expect to begin) the service you are

providing for the School of Language Studies (SLS).

Number of Employees: If only you, enter 1

Fiscal Year End: You may enter 12/31, for December 31, unless you have a

company that has a separate fiscal year

Annual Revenue: What you earn or expect to earn from this type of work (can be

an estimate)

Type of Organization: for most of you that will be Sole Proprietorship and your

name will be the Sole Proprietor.

Business Type: As an individual, you are a small business. Of course if you fit

one of the other categories, you may select that category.

Goods/Services: The sample page provided lists codes that refer to training.

For North American Industry Classification System the code related to

training (611630)

For Standard Industrial Classification, the training code is 8299.

Electronic Funds Transfer: This is your banking information

Automated Clearing House: At least one method of contact must be entered for

your financial institution.

ACH US Phone Number

ACH Non-US Phone Number THIS MAY BE LEFT BLANK

ACH FAX

ACH E-mail ________________________________

Remittance Information

This is your mailing address

Accounts Receivable Point of contact

This is your information.

NLRB-FOIA-00009334

STATEMENT OF WORK

LEGAL SERVICES

BACKGROUND

The National Labor Relations Board (NLRB) is an independent Federal Agency created by

Congress in 1935 to administer the National Labor Relations Act, the primary law governing

relations between and among unions, employees, and employers in the private sector. The

statute guarantees the right of employees to organize and to bargain collectively with their

employers or to refrain from all such activity. Generally applying to all employers involved in

interstate commerce other than airlines, railroads, agriculture, and government the Act

implements the national labor policy of assuring free choice and encouraging collective

bargaining as a means of maintaining industrial peace. Through the years, Congress has

amended the Act and the Board and courts have developed a body of law drawn from the statute.

In its statutory assignment, the NLRB has two principal functions: (1) to determine, through

secret-ballot elections, the free democratic choice by employees whether they wish to be

represented by a union in dealing with their employers and if so, by which union; and (2) to

prevent and remedy unlawful acts, called unfair labor practices, by either employers or unions.

The NLRB does not act on its own motion in either function. It processes only those charges of

unfair labor practices and petitions for employee elections that are filed with the NLRB in one of

its fifty-two Regional, Sub-regional, or Resident Offices.

PURPOSE

The NLRB is in need of independent counsel (contractor) to advise and represent the General

Counsel and the NLRB on any and all matters in relation to activities regarding Congressional

inquiries and testimony. Contractor shall provide legal services, as needed, to support and

protect the interests of the General Counsel and the NLRB. Contractor must have specialized

experience in all related matters of law.

Legal services may include, but are not limited to, the

following subject areas and similar related work:

(1) Legal advice about Congressional inquiries and about testifying before a Congressional

Committee and/or Subcommittee;

(2) Assistance in drafting documents in response to Congressional inquiries, including

talking points for oral presentation;

(3) Representation as legal counsel during any Congressional testimony or questioning, and

advance preparation for such matters as needed to represent the interests of the General

Counsel and the NLRB;

(4) Any area of legal expertise or support that may arise due to the nature of this contract for

legal services.

SOW: NxGen Advisory Services

11/21/2011

NLRB-FOIA-00009335

COMMUNICATIONS:

Contractor shall be accessible by telephone at all times or as necessary under the terms of this

contract. Contractor shall have capacity to submit and receive documents to and from the NLRB

in Microsoft Word 2003 format and/or pdf. file format as required. All communications shall be

secure from disclosure to any outside sources. All secure communications shall be protected

under attorney-client privilege and shall be marked as such when necessary to protect the

interests of the NLRB.

EXPENSES:

The NLRB agrees to reimburse contractor for reasonable expenses allocable to and necessary for

legal services within the scope of this contract, and allowable under the Federal Acquisition

Regulation (48 CFR Part 31). Expenses may include, but are not limited to photocopying, long

distance telephone charges, travel, computerized legal research, messenger services and mailing

expenses, investigators, secretarial overtime as necessary for timeliness matters.

All travel, including transportation, lodging, meals and incidental expenses shall be in

accordance with the Federal Travel Regulation, and may be based on actual expenses, Federal

per diem rates including IRS reimbursement rates, or any combination thereof, provided the

method used results in a reasonable charge.

Costs incurred for transportation may be based on

mileage rates, actual costs incurred, or a combination provided the method used results in a

reasonable charge. Air travel shall be at the lowest available rates at the time of travel. Any

charges in question may be brought to the attention of the Contracting Officer for advisement

and approval.

PERIOD OF PERFORMANCE

The period of performance shall be from date of award up to one calendar year from date of

award.

POINTS OF CONTACT

Jennifer Abruzzo, Deputy Assistant General Counsel shall be the point of contact for all

technical information and questions. In this capacity, she will monitor the performance of the

contract on behalf of the Government. The POC is located at National Labor Relations Board,

1099 14

th

Street, NW, Washington, D.C. 20570, Suite 10102. The telephone number is 202-273-

3704.

Delfina St. Clair, Contracting Officer, shall be the Contracting Officer for award and

administration of this contract. The Contacting Officer or designee is the sole authority for

authorizing changes to this contract. The Contracting Officer is located at National Labor

th

Relations Board, 1099 14


Street, NW, Washington, D.C. 20570, Suite 7750. The telephone

number is 202-273-4210.

INVOICES AND PAYMENT

SOW: NxGen Advisory Services

11/21/2011

NLRB-FOIA-00009336

In compliance with the Prompt Payment Act, invoices shall be paid within 30 days of receiving a

proper invoice, and pays interest at established Treasury rates on all late payments.

SOW: NxGen Advisory Services

11/21/2011

NLRB-FOIA-00009337

P age 1 of1

A b ru zzo, Jen n ifer

F ro m :

K earney, B arry J.

S en t:

T h u rsd a y, M a y 0 5 , 2 0 1 1 1 :4 8 P M

To:

S o lo m o n , L a fe E .; M a ttin a , C e le ste J.; G a rza , Jo se ; A b ru zzo , Je n n ife r

S u b ject:

F W :

Im p o rtan ce: H igh

D raft response to Luttig

F ro m : P erson, R obyn

S e n t: T hursd ay, M ay 0 5, 20 11 10:49 A M

T o : K earney, B arry 3.

S u b je c t:

Im p o rta n c e : H igh

Boeing Company

L9-CA-32431

Dear Mr. Luttig:

T h i s i s i n r e s p o n s e t o y o u r M a y 3rd l e t t e r t o m e c o n c e r n i n g t h e

above captioned case.

Your letter makes certain assertions and arguments concerning

statements in the press about this matter. Needless to say, I don't

agree with your contentions. There have been numerous conversations

between my office and Boeing concerning the facts and the law

surrounding the circumstances of this case so that each party is

aware of the other's position. The appropriate forum to test those

positions and the relevance and probative value of your assertions is

through the development of an evidentiary record on which an

Administrative Law Judge can make a decision which can be reviewed by

the Board and ultimately the Courts. Finally, while our earlier

efforts to resolve this matter were unsuccessful, I still remain open

to a resolution between the parties.

Sincerely yours,

5/5/2011

NLRB-FOIA-00009338

A b ru zzo , J e n n ife r

F ro m :
S en t:
To:
S u b ject:

F erguson, John H .

T hursday, June 16, 201111:08 A M

S olom on, Lafe E .; M attina, C eleste J.; A bruzzo, Jennifer; K earney, B arry J ; G arza, Jose,

C leeland, N ancy

R E : F w d:B loom berg's S olom on profile...

Ex. 5

Original Message

From: Solomon, Lafe E.

Sent: Thursday, June 16, 2011 10:35 AM

To: Mattina, Celeste J.; Abruzzo, Jennifer; Ferguson, John H.; Kearney, Barry J.; Garza,

Jose

Subject: FW: Fwd:Bloomberg's Solomon profile...

Ex. 5

Original Message

From: Cleeland, Nancy

Sent: Thursday, June 16, 2011 10:27 AM

To: Solomon, Lafe E.

Subject: Fw: Fwd:Bloomberg's Solomon profile...

Fyi

Original Message

F r o m : S T E P H A N I E A R M O U R , B L O O M B E R G / N E W S R O O M : < s a r m o u r @ b l o o m b e r g . n e t >

To: Cleeland, Nancy

Sent: Thu Jun 16 10:13:09 2011

Subject: Fwd:Bloomberg's Solomon profile...

--- Original Sender: KELLEN HENRY, BLOOMBERG/ NEWSROOM: ---

THANK you for your help! I believe its also going out the web in a
yet. SO, so, so appreciate all the time you and Lafe gave. Really,
email from me to him. He was so generous with his time and i think
show more about who he is. .And we got the laba lamp in the picture

bit, but haven't heard

please pass along this

it helps immensely to

:)

NLRB-FOIA-00009339

Stephanie

Original Message

From: LARRY LIEBERT (BLOOMBERG/ NEWSROOM:)

To: STEPHANIE ARMOUR (BLOOMBERG/ NEWSROOM:)

Cc: HOLLY ROSENKRANTZ (BLOOMBERG/ NEWSROOM:)

6/16 10:07:50

At:
Stephanie: Please forward this PDF of the Lafe Solomon profile to Mr. Solomon and Nancy

Cleeland so they can see how it's being featured (prominently) on BGOV as well as on the

Bloomberg terminal. .

NLRB-FOIA-00009340

T h e N L R B 's co m p la in t m a ke s n o se n se a s th e T im e s e d ito ria l co rre ctly e xp la in s. T h e se q u a si in d e p e n d e n t

g o ve rn m e n t a g e n cie s ca n b e d a n g e ro u s to th e n a tio n a l e co n o m y

Y e a , if th e n a tio n a l e co n o m y is so m e w h e re e lse . B u t n o t if th e n a tio n a l e co n o m y is h e re . T h e su rg e lin e in

E vere tt is likely to go aw a y w hen the S C lin e com es up to full force. T hat is 18 00 pa ychecks h ere in th e local

econ om y. T ha t is m one y spent in your a nd m y sto res if you r from aroun d here .

Isn't tha t part o f nation al econ om y too?

T h e se a re la b o r p ro te ctio n la w s th a t h a ve b e e n o n th e b o o ks fo r 6 0 o r m o re ye a rs. B o e in g b ro ke th e la w a n d

n o sp in in th e p a p e rs w ill ch a n g e th a t. E ve n B o e in g kn o w s th a t w ill lo se in co u rt. T h e y w ill lo se , th e n la te r

settle . T he o nly reaso n that B oeing does n ot w ant to settle now , is they are buying tim e for th eir S C no n-

union line.

A ll the billy-b ob s o ut there ca n't ch ang e the fact th at B oe ing broke the law and w ill lose in court. T h at is w hy

the dog a nd pon y show the cong ressm an is trying to put on to und erm ine th e court case in a real cou rt w ith

a re a l ju d g e , is h a p p e n in g . .

A C o n g re ssio n a l in ve stig a tio n sh o u ld b e co n d u cte d b y th e F B I to d e te rm in e if th e re a re w ro n g d o in g s g o in g

o n w ith in th e N L R B . T h a t a g e n cy's ru lin g is rid icu lo u s. O n e m o re re a so n to re m o ve g o ve rn m e n t fro m o u r

e ve ry d a y life . L e t's d o w n size F e d e ra l, S ta te a n d L o ca l G o ve rn m e n t b y 5 0 % a n d se e h o w w e d o .

A h, you do get th e proble m here righ t? T ha t's like saying, "Le t's ask for a su m m ary judge m ent b y the S tate

T roop ers." In this case a S um m ary Jud gem ent is decide d by a Judge in a cou rt of La w and th e S tate

T roop ers w ork in a com pletely differe nt capa city.

A s to guttin g gove rn m ent, th at has been tried. It's called S om alia. F eel free to go and live there fo r aw hile

an d te st it out. Ju st le t us know how that so ciety fu nctio ns.

It is cle ar that the R ep ublican congressm a n is afra id that B oeing is guilty a nd the ir case w ill no t stand up in

court. S o he is trying to turn th is case fro m a lega l one in a court of law , to a po litical case, of T V ca m eras

and grandstanding.

A re w e really be tter off , answ erin g this im po rtant issu e in a re al court w ith law s, o r the kan garoo court, do g

and pony show in th e cham b ers of th is congre ssm an, w h ere the rules are m ade up by him a s he go es.

I am an inde pende nt vote r. I vote , not fo r the pa rty, but the pe rson an d w hat they sta nd for o r for the issues

tha t I see b est serve this na tion or co m m unity as a w hole . T his con gressm an m eddling in this m a tter this

w ay, just be fore it is to b e a ddress in co urt is so w ron g, h e sho uld be ce nsured .

T his m a tter is alrea dy goin g in fron t of a ju dge, w ith both sides a nd the ir attorney's m akin g their ca se's the

w a y it is su p p o se to b e . T h is co n g re ssm a n is a b u sin g h is p o w e rs in tryin g to sw a y th e o u tco m e b e fo re th e

judg e has a chance to he ar from bo th sides fairly.

If a nyone should b e up o n charg es for ab use of pow er, it is the co ngressm an that is underm in ing the nation s

system of law s a nd the judiciary system that is already in m otion in this m a tter for h is political g ain.

O nce a gain w e see that co ngre ss thinks they a re abo ve the la w .

W hen I started to read this story it didn't see m terribly un re asonab le for co ngress to w ant th is law yer to

testify. but then I re ad the rest of the story and it b ecam e a pparen t that this is a w itch hunt. F irst of a ll, the

reaso ns beh ind the hearing are m urky. Is the R epublica n party sa ying th at a fe deral ag ency is a nti-busine ss

an d e ve n if th ey co uld prove that w as the case w h at w o uld th ey propo se ... d isba nding the ag ency?

S eco ndly, w h y in G od 's na m e w ould you con duct th e hearin gs in a state th at has such a vested in terest?

A nd last... is being d eem ed "an ti-business" re ally all tha t justifies this kind o f govern m ent interference ? T hey

NLRB-FOIA-00009341

m ig h t a s w e ll fo rce th is g u y to p u t h is h e a d a n d h a n d s in th e sto cks in th e to w n sq u a re . T h a t's h o w fa r b a ck

th is kin d o f co n g re ssio n a l a ctio n ta ke s u s!

S o w h e re w e re th e p e o p le h e re co m p la in in g a b o u t "d e m o cra tic o r u n io n sw a y o ve r N L R B " w h e n W . B u sh

w a s in p o w e r.

W A K E U P F O L K S , N L R B a s p e o p le a p p o in te d in a m a jo rity b y th e p re sid e n t in p o w e r a t th e tim e . U n d e r

B u sh , h is a p p o in te e ss m a d e m a n y m u ch m o re q u e stio n a b le ca lls a n d th e re w a s sile n ce b y m a n y n o w

w h in n in g so lo u d ly.

E ve n th e n yo u d id n o t h a ve H o u se D e m s in co n tro l o f h o u se b rin g B u sh 's a p p o in te e 's o n th e ca rp e t in fro n t

o f th e H o u se co m m itte e s. T h is is a sa d p re sce d e n t.

T h is is a p o litica l d o g a n d p o n y sh o w if th e re e ve r w a s o n e .

C o n g re ss h a s n o a u th o rity to a ct o n a n y o f it's fin d in g s fro m th is h e a rin g . T h e y a re ju st p la yin g to th e A n ti-

u n io n cro w d .

A lso , th e a rticle a n d m a n y o th e rs co n tin u e s to sta te th a t th e N L R B w a n ts B o e in g to "b u ild a se co n d lin e " a t

E ve re tt b u t th a t lin e a lre a d y e xists a s a te m p o ra ry lin e . T h e y ju st w a n t it to b e m a d e p e rm a n a n t, o th e rw ise

B o e in g w ill b e la yin g o ff u n io n w o rke rs in th is sta te o n ce th e y ca tch u p o n o rd e rs w h ile th e C h a rle sto n 's p la n t

w ill b e u n a ffe cte d . In p la in e n g lish , th a t m e a n s B o e in g w ill b e sh iftin g w o rk fro m a u n io n lo ca tio n to a n o n -

u n io n lo ca tio n w h e n th a t h a p p e n s. T h is is a vio la tio n o f fe d e ra l la w .

U n d e r th e N L R B 's co m p la in t, th e C h a rle sto n p la n t w ill co n tin u e to ru n e ve n if th e N L R B w in s in co u rt so a ll

Exemption 5
th e a n ti-u n io n rh e to ric th a t th is w ill co st jo b in C h a rle sto n is co m p le te B S .

Exemption 5

NLRB-FOIA-00009342

U nion W orkers C ry Foul O ver N ew S.C . B oeing Plant : N PR

Page 1 of 3

U n ion W ork ers C ry F ou l O ver N ew S .C . B oein g P lan t

by K A TH Y LO H R

June 9. 2011

A A

te xt size A

A new B oeing plant in S outh C arolina is the

subject of a legalbattle that's playing out across

the S outh and in C ongress.

T he controversy is over B oeing's decision to

assem ble its fuel-efficient 787 D ream liner in

nonunion S outh C arolina instead of in W ashington

state, w here it has built planes for decades.

E nlarge

B oeing

C o n stru ctio n cre w s w o rk to fin ish B o e in g 's n e w 7 8 7

T he com pany says S outh C arolina offered a lot of

incentives to get the plant, but the union says

B oeing broke the law and violated w orkers'rights.

D re a m lin e r a sse m b ly p la n t in N o rth C h a rle sto n , S C T h e

co m p a n y p la n s to h ire 1 ,0 0 0 n o n u n io n w o rke rs a n d sta rt

a sse m b lin g p la n e s in Ju ly

P lan t T im elin e N ot A ffected

B oeing's enorm ous assem bly plant near the

airport in N orth C harleston is alm ost finished. Inside, w orkers are installing equipm ent w here new

em ployees w illbuild the D ream liner.

C andy E slinger, a spokesw om an for B oeing in S outh C arolina, says she can't talk specifically about the

union com plaint. B ut she says it hasn't changed anything at the plant.

"O ur plans are stillgoing forw ard," E slinger says. "W e w illbe starting production here in July of 2011

and w e'lldeliver our first airplane out of S outh C arolina in 2012."

T he long-term plan is to produce three planes a m onth in S outh C arolina and seven in W ashington

state. B oeing spokesm an T im N eale says the com pany negotiated w ith the union, but failed.

"W e w ere looking to m ake a new investm ent and

new production capacity," N eale says. "O ur

current contract acknow ledges our right to locate

w ork elsew here and that's w hat w e chose to do in

this case, because w e just couldn't get the term s

from them that w e needed."

R etaliation M ove?

E nlarge

B ruce S m ith/A P

S o u th C a ro lin a R e p u b lica n S e n L in d se y G ra h a m (fro m le ft),

G o v. N ikki H a le y a n d sta te H o u se S p e a ke r B o b b y H a rre ll

liste n to C h a rle sto n M a yo r Jo se p h R ile y Jr criticize a

N a tio n a l L a b o r R e la tio n s B o a rd co m p la in t a g a in st B o e in g in

N orth C harle ston, S C , on A pril 21

B ut the m achinists union says it's not that sim ple.

T he union says B oeing built the plant in nonunion

S outh C arolina to retaliate against W ashington

w orkers for previous strikes, and it says doing so

is a violation of federallabor law . T he m achinists

http://w w w .npr.org/2011/06/09/137081954/union-w orkers-cry-foul-over-new -s-c-boeing-p.. . 6/15/2011

NLRB-FOIA-00009343

U nion W orkers C ry Foul O ver N ew S.C . B oeing Plant : N PR

Page 2 of 3

turned to the N ationalLabor R elations B oard,

w hich investigates labor disputes.

In A pril, the top law yer for the N LR B issued a form alcom plaint against B oeing. S oon after, the issue

erupted in the nation's capital. R epublican leaders introduced federallegislation and began a cam paign

against the m achinists union. S outh C arolina S en. Lindsey G raham w as one of them .

"N obody's pay w as cut. N obody's benefits w ere reduced

because they m oved to S outh C arolina, so this com plaint is

just frivolous," G raham said in a S enate floor speech.

T he N LR B says allof B oeing's w ork on the D ream liner

should be done in W ashington state. B ut G raham and

others say no one should be able to tella com pany w here it

[I]n A m erica, you d on 't

settle ju d icial law

en fo rcem en t ca ses in

p olitics. Y ou settle th em

Exemption 5

'It's A b o u t B e in g F a ir A n d H o n e st'

In N orth C harleston w here the B oeing plant is providing m ore than 1,000 nonunion jobs som e

residents at a localdiscount store say they're not sure w hat to think.

"W e need the w ork here too in C harleston but it's about being fair and being honest," says A nthony

M anuel, a m em ber of the longshorem en's union. "If you did them w rong how w e feelif you gonna do us

w rong here in C harleston too."

B ut B randy H allsays the jobs w illreally help C harleston. w hich struggled after the navalbase w as

closed in 1996. S he's not sure the union should com plain.

"T hey're not entirely m oving the plant so they stilldo have an econom y up there based around that and

it's just that I'm not sure I see w here the issue is, to tellyou the truth," she says.

T here's a hearing in S eattle on June 14 about the legalissues, but it's not likely to resolve the m atter.

B oeing officials say if they lose, they'llappealto the federalcourts, w here the case could rem ain for

years.

http://w w w .npr.org/2011/06/09/137081954/union-w orkers-cry-foul-over-new -s-c-boeing-p.. . 6/15/2011

NLRB-FOIA-00009344

U nion W orkers C ry Foul O ver N ew S.C .B oeing Plant : N PR

Page 3 of 3

R elated N P R S to ries

A ir Force P icks B oeing For M ajor M ilitary C ontract Feb. 24, 2011

B oeing To C ut 900 Jobs In Long B each, C alif. Jan, 20. 2011

W oes M ount For B oeing's M uch-A w aited D ream liner D ec. 9, 2010

http://w w w .npr.org/2011/06/09/137081954/union-w orkers-cry-foul-over-new -s-c-boeing-p.. . 6/15/2011

NLRB-FOIA-00009345

IA M / B o e in g L e a d e rs h ip M e e tin g

T h u rs d a y , A p ril 1 6 , 2 0 0 9

T h e B o e in g C o m p a n y

100 N . R iversid e, C h icago, IL 60606

C on feren ce R oom 261A 1

B o e in g A tte n d e e s :

IA M A tten d e es:

Jim M cN erney

T om B uffenbarger

C h a irm a n , P re sid e n t a n d

C h ie f E xe cu tive O ffice r,

T h e B o e in g C o m p a n y

Scott C arson

E xe cu tive V ice P re sid e n t,

T h e B o e in g C o m p a n y

P re sid e n t a n d C h ie f E xe cu tive O ffice r,

B o e in g C o m m e rcia l A irp la n e s

Jim A lbaugh

E xe cu tive V ice P re sid e n t

T h e B o e in g C o m p a n y

P re sid e n t a n d C h ie f E xe cu tive O ffice r, In te g ra te d

D efense S ystem s

R ick Stephens

In te rn a tio n a l P re sid e n t

R ich M ichalski

G e n e ra l V ice P re sid e n t H e a d q u a rte rs

B ob M artinez

G e n e ra l V ice P re sid e n t S o u th e rn T e rrito ry

P h il G ruber

G e n e ra l V ice P re sid e n t M id w e st T e rrito ry

G ary A llen

G e n e ra l V ice P re sid e n t E le ct W e ste rn T e rrito ry

N eil G ladstein

D ire cto r S tra te g ic R e so u rce s D e p a rtm e n t

M atthew M cK innon

S e n io r V ice P re sid e n t, H u m a n R e so u rce s a n d

A d m in istra tio n

D ire cto r L e g isla tive a n d P o litica l A ctio n D e p a rtm e n t

T im K eating

D istrict 7 0 D ire ctin g B u sin e ss R e p re se n ta tive

S e n io r V ice P re sid e n t, P u b lic P o licy,

T h e B o e in g C o m p a n y

G ene W oloshyn

V ice P re sid e n t, E m p lo ye e R e la tio n s

N orm B artlett

V ice P re sid e n t, H R In te g ra te d D e fe n se S yste m s

D oug K ight

V ice P re sid e n t, H R B o e in g C o m m e rcia l A irp la n e s

John V an G els

V ice P re sid e n t, O p e ra tio n s & S u p p lie r M a n a g e m e n t

S t. L o u is S e n io r S ite E xe cu tive , ID S

R ay C onner

V ice P re sid e n t, G e n e ra l M a n a g e r, S u p p ly C h a in

M a n a g e m e n t & O p e ra tio n s

B o e in g C o m m e rcia l A irp la n e s

Steve R ooney

B ob P etroff

D istrict 2 4 D ire ctin g B u sin e ss R e p re se n ta tive

G ary H olt

D istrict 7 2 5 D ire ctin g B u sin e ss R e p re se n ta tive

G ordon K ing

D istrict 8 3 7 D ire ctin g B u sin e ss R e p re se n ta tive

T om W roblew ski

D istrict 7 5 1 D ire ctin g B u sin e ss R e p re se n ta tive

M ark B londin

JA M O ve ra ll B o e in g A e ro sp a ce C o o rd in a to r

R on E ldridge

A e ro sp a ce C o o rd in a to r

F rank Santos

A e ro sp a ce C o o rd in a to r

R ay M offatt

A e ro sp a ce C o o rd in a to r

R evised 6123/2010 8:44 A M

1(a)

NLRB-FOIA-00009346

IA M / B o ein g L ead ersh ip M eetin g

A g en d a

Tim e
7:00A

Event

B reakfast

Presenter(s)

7:30A

W elcom e and Introductions

Jim M cN erney

7:45A

R em arks

T om B uffenbarger

8:00A

Integrated D efense System s (ID S) U pdate

Jim A lbaugh

8:45A

Joint Presentation ID S

John V an G els / G ordon K ing

9:10A

B reak

9:25A

B oeing C om m ercial A irplanes (B C A ) U pdate

ScottC arson

10:10A

Joint Presentation B C A

D oug K ight /T om W roblew ski

10:30A

B enefits

R ick Stephens

11:00A

W ashington D C U pdate

T im K eating/R ich M ichalski

A djourn

R evised 6/23/2010 8.44 A M

NLRB-FOIA-00009347

B O E IN G P R O P R IE T A R Y - D IS T R IB U T IO N L IM IT E D T O B O E IN G P E R S O N N E L O N L Y

A inerezA v

Arguably Ex. 4

B O E IN G is a tradem ark ofB oeing M anagem entC om pany

C opyright it+ 2009 B oeing A t rights reserved

B O E IN G P R O P R IE T A R Y - D IS T R IB U T IO N L IM IT E D T O B O E IN G P E R S O N N E L O N L Y

1(b)

NLRB-FOIA-00009348

B O E IN G P R O P R IE T A R Y - D IS T R IB U T IO N L IM IT E D T O B O E IN G P E R S O N N E L O N L Y

Arguably Ex. 4

C o p y rig h t 0 2 0 0 9 B o e in g A ll rig h ts re s e rv e d

B O E IN G P R O P R IE T A R Y - D IS T R IB U T IO N L IM IT E D T O B O E IN G P E R S O N N E L O N L Y

0 7 1 0 3 1 _ ID S E n v iro n m e n t_ E x C o 1

NLRB-FOIA-00009349

B O E IN G P R O P R IE TA R Y - D IS TR IB U TIO N LIM ITE D TO B O E IN G P E R S O N N E L O N LY

Arguably Ex. 4

C o p y rig h t (0 2 0 0 9 B o ein g M n g h ts reserv ed

B O E IN G P R O P R IE T A R Y - D IS T R IB U T IO N L IM IT E D T O B O E IN G P E R S O N N E L O N L Y

0 7 1 0 3 1 JO S E n v iro n rn en t E x C o

I3

NLRB-FOIA-00009350

B O E IN G P R O P R IE T A R Y - D IS T R IB U T IO N L IM IT E D T O B O E IN G P E R S O N N E L O N L Y

Arguably Ex. 4

C opyright @ 2009 B oeing A llnghts reserved

B O E IN G P R O P R IE T A R Y D IS T R IB U T IO N L IM IT E D T O B O E IN G P E R S O N N E L O N L Y

071031_ID S E nvironm ent E xC o I

NLRB-FOIA-00009351

B O E IN G P R O P R IE T A R Y - D IS T R IB U T IO N L IM IT E D T O B O E IN G P E R S O N N E L O N L Y

Arguably Ex. 4

C o p y rig h t 0 :t 2 0 0 9 B o ein g A ll n g h ts reserv ed

B O E IN G P R O P R IE T A R Y - D IS T R IB U T IO N L IM IT E D T O B O E IN G P E R S O N N E L O N L Y

0 7 1 0 3 1 JO S E rn n ro n rrien t_ E x C o

I5

NLRB-FOIA-00009352

B O E IN G P R O P R IE TA R Y - D IS TR IB U TIO N LIM ITE D TO B O E IN G P E R S O N N E L O N LY

Arguably Ex. 4

C opyright 0 2009 B oeing A ll nghts reserved

B O E IN G P R O P R IE T A R Y - D IS T R IB U T IO N L IM IT E D T O B O E IN G P E R S O N N E L O N L Y

071031_ID S E nvIronm ent_E xC o

I6

NLRB-FOIA-00009353

B O E IN G P R O P R IE T A R Y - D IS T R IB U T IO N L IM IT E D T O B O E IN G P E R S O N N E L O N L Y

Arguably Ex. 4

C o p y rig h t itS 2 0 0 9 B o ein g A ll n g h ts reserv ed

B O E IN G P R O P R IE T A R Y - D IS T R IB U T IO N L IM IT E D T O B O E IN G P E R S O N N E L O N L Y

0 7 1 0 3 1 _ I0 S E n v tro n m en t_ E x C o I

NLRB-FOIA-00009354

Arguably Ex. 4

A pril 2009

C o p y rig h t 2 0 0 9 B o ein g A ll n g h ts reserv ed

B O E IN G P R O P R IE T A R Y D IS T R IB U T IO N L IM IT E D T O B O E IN G P E R S O N N E L O N L Y

0 7 1 0 3 1 1 0 S E n v iro n m e n t E x C o I 8

NLRB-FOIA-00009355

B O E IN G P R O P R IE TA R Y - D IS TR IB U TIO N LIM ITE D TO B O E IN G P E R S O N N E L O N LY

Arguably Ex. 4

C opyright 0 2009 B oeing A ll nghts reserved

F ilenam e ppt I

B O E IN G P R O P R IE T A R Y - D IS T R IB U T IO N L IM IT E D T O B O E IN G P E R S O N N E L O N L Y

NLRB-FOIA-00009356

B O E IN G P R O P R IE TA R Y - D IS TR IB U TIO N LIM ITE D TO B O E IN G P E R S O N N E L O N LY

Arguably Ex. 4

C opyright 0 2009 B oeing A ll nghts reserved

B O E IN G P R O P R IE T A R Y - D IS T R IB U T IO N L IM IT E D T O B O E IN G P E R S O N N E L O N L Y

071031_113S E nvironm ent_E xC o I 1

NLRB-FOIA-00009357

Arguably Ex. 4

B O E IN G P R O P R IE T A R Y IN F O R M A T IO N

NLRB-FOIA-00009358

Arguably Ex. 4

B O E IN G P R O P R IE T A R Y IN F O R M A T IO N

NLRB-FOIA-00009359

Arguably Ex. 4

B O E IN G P R O P R IE T A R Y IN F O R M A T IO N

NLRB-FOIA-00009360

Arguably Ex. 4

B O E IN G P R O P R IE TA R Y IN FO R M A TIO N

NLRB-FOIA-00009361

Arguably Ex. 4

B O E IN G P R O P R IE T A R Y IN F O R M A T IO N

NLRB-FOIA-00009362

Arguably Ex. 4

B O E IN G P R O P R IE T A R Y IN F O R M A T IO N

NLRB-FOIA-00009363

Arguably Ex. 4

B O E IN G P R O P R IE T A R Y IN F O R M A T IO N

NLRB-FOIA-00009364

Arguably Ex. 4

B O E IN G P R O P R IE TA R Y IN FO R M A TIO N

NLRB-FOIA-00009365

Arguably Ex. 4

B O E IN G P R O P R IE T A R Y IN F O R M A T IO N

NLRB-FOIA-00009366

Arguably Ex. 4

B O E IN G PR O PR IE T A R Y IN FO R M A T IO N

10

NLRB-FOIA-00009367

Arguably Ex. 4

B O E IN G is a d acem ark at B aen a M an ag em en t C o m p an y .

C opyright ',"j- 2 0 0 9 B o ein g . A ll rip ely reserv ed .

B O E IN G P R O P R IE T A R Y

121

NLRB-FOIA-00009368

Arguably Ex. 4

C opynght @ 2009 B oetng P JI nghts reserved

I 22

NLRB-FOIA-00009369

Arguably Ex. 4

C opyright C S 2009 B oeing A ll nghts reserved

B O E IN G P R O P R IE T A R Y

123

NLRB-FOIA-00009370

Arguably Ex. 4

C o p y n g h t 0 2 0 0 9 B o ein g A ll n g h ts reserv ed
I

B O E IN G P R O P R IE T A R Y

124

NLRB-FOIA-00009371

?jL ___47474E Z A W

kg

C o p yrig h t 2 0 0 9 B o e in g . A ll rig h ts re se rve d .

NLRB-FOIA-00009372

1? 1.26FISIE 74/A /A G

Arguably Ex. 4

NLRB-FOIA-00009373

Arguably Ex. 4

C opynght 2007 B oeing A ll nghts reserved

B O E IN G P R O P R IE T A R Y

H um an R esources Leadership Team I27

NLRB-FOIA-00009374

Arguably Ex. 4

C opyright 2007 B oeing A llnghts reserved

B O E IN G P R O P R IE TA R Y

H um an R esources L eadership T eam

I 28

NLRB-FOIA-00009375

Arguably Ex. 4

C o p y n g h t 9 2 0 0 7 B o ein g A ll n g h ts reserv ed

B O E IN G P R O P R IE T A R Y

H um an R esources Leadership T eam I

29

NLRB-FOIA-00009376

Arguably Ex. 4

NLRB-FOIA-00009377

Arguably Ex. 4

C opyrighte 2007 B oeing A llrights reserved

B O E IN G P R O P R IE T A R Y

H um an R esources L eadership T eam I 31

NLRB-FOIA-00009378

Arguably Ex. 4

C opyright 10 2007 B oeing A llnghts reserved

B O E IN G P R O P R IE TA R Y

H um an R esources Leadership Team

I 32

NLRB-FOIA-00009379

Ex. 6, 7(C), 7(D)

NLRB-FOIA-00009380

10

11

INTERVIEW OF

12

JIM ALBAUGH

13

BOEING COMMERCIAL AIRCRAFT

14

BY

15

THE SEATTLE TIMES REPORTER

16

17

18

19

20

21

22

23

24

25

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009381

1
2

(Beginning of proceedings.)

But, you know, I feel impelled to ask some hard

questions on behalf of basically the community in

Washington_

Sure.

...as a result of last year. Last year, we had the

decision to locate the second 787 line in Charleston.

Uh-huh (affirmative).

And then subsequently, you announced that all 787 work

10

from the Puget Sound area would be duplicated

11

elsewhere. So I think the local community is clearly

12

worried about Boeing's future here. And that's

13

something that's followed on from, you know, you moved

14

the headquarters in 2001 and there have been repeated

15

threats that future work might not be here. So last

16

year seemed to really increase that feeling. So what

17

is Boeing's commitment to Washington state?

18

Well this is the headquarters of Boeing Commercial

19

Aircraft and it will be, I think, for probably

20

forever. The issue last fall was really about, you

21

know, how we could ensure production stability and how

22

we could ensure that we were competitive over the long

23

haul. And we had some very productive discussions with

24

the union. And unfortunately, we just didn't come to

25

an agreement where we felt we could ensure production

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009382

stability. And read that is getting away from the

frequent strikes that we were having and also could we

stop the rate of escalation of wages. And we just

could not get to a place where we both felt it was a

win for both ourselves and the union so we made the

decision to go to Charleston. Now it's my hope, and I

will tell you, Dominique, you know my preference is to

do the work here in the future. But we'll do work here

if we can make sure that we have the stability of the

10

production lines and that we can be competitive over

11

the long haul. And those are the two things that I

12

think I have to ensure, you know, our customers, and I

13

have to ensure, also, the stockholders of the Boeing

14

Company.

15

So looking out into the future, now that you have

16

decided on having this other plant in Charleston, how

17

do you see the geographic shape of Boeing and the

18

balance there between those two bicoastal plants in

19

the future?

20

Well 1 guess I don't really see it as a balance. You

21

know, clearly the center of gravity is here in Puget

22

Sound and will continue to be here in Puget Sound. And

23

I'm very hopeful as we, you know, continue to have

24

discussions with the union that, you know, we'll be

25

able to come up with ways of being competitive here,

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009383

and we can come up with ways of ensuring that we're

not going to have labor strikes. And if we can get

through those two hurdles, we're going to be doing

work here for a long, long time. And there are no

discussions of moving any work that's currently here

out of Puget Sound.

Right. But, of course, it's future work that people

are worried about. I mean what are the chances that

the next new jet, after the 787, will be built here?

1 0 A

Yeah. I'll tell you, the commitment that I can give

11

you is that the first preference is to put the work

12

here. But we have to ensure ourselves that we're going

13

to have a stable production line, and we have to

14

ensure that we can be competitive over the long haul.

15

You know, if we don't, we're not going to be selling

16

any airplanes. And I think that's the worst outcome

17

for Puget Sound, and that's the worst outcome for the

18

company.

1 9 Q

Well so when the time comes to announce the launch of

20

a new airplane program, which could come in a few

21

years, that you would say - right, you're going to

22

build the next one and announce some plan for it? Are

23

we going - are the people of this state once again

24

going to face the competition with other states in the

25

U.S. to win it?

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009384

You know, I guess I don't really view it as a

competition.

But it was last time.

I don't think it was. It was not a competition. What

it was, was - again, we've had strikes three out of

the last four times we've had a labor negotiation with

the IAM. And I'm not blaming that on the IAM. I mean

that is an issue between management, created by

management, and created by labor. You know, we need to

10

improve the relationship that we have. And we've got

11

to get to a position where we can ensure our customers

12

that every three years they're not going to have a

13

protracted shutdown. You know, we have customers right

14

now that are telling us that in contracts they don't

15

want to write in excusable delays for strikes. I mean

16

that's not a situation that's good for us. It's not a

17

good situation for them. It's not a good situation for

18

labor. And if one projects out another 15 years, we're

19

not just going to be competing against the Europeans,

20

we'll be competing against the Europeans, the

21

Brazilians, the Canadians, the Chinese, and the

22

Russians. And we have an obligation to make sure that

23

as we compete again not just one, but compete against

24

four, you know, we have got a cost structure and a

25

productivity capability that will allow us to continue

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009385

to compete.

1
2

In saying that it wasn't a competition, clearly you're

referring to the Charleson decision last year. But I

was referring to the 2003 competition when Boeing

actually had a formal competition to find out where

they were going to build the 787.

7
8

So the question is will there be another competition

like that when you build the next airplane?

9
10

Yeah. Well I wasn't involved in that one and_

I don't think I would - if I'm involved, I'm not going

11

to have, a competition like that, I can tell you that.

12

But what we are going to do is study very hard, with

13

the first option being here, is to make sure that we

14

do the right thing for the customer, which means not

15

have labor stoppages; and do the right thing for the

16

customer to give them the kind of value that they want

17

in the airplanes.

18

Just on the - to dwell on the Charleston expansion for

19

a moment. It does seem to me that the complexity and

20

expense and risk attached to doing all that there is

21

is something that's hard to justify. Does it really

22

make business sense?

23

Yeah. There's no question that whenever you go to a

24

green field site, there's risk involved. At the same

25

time, with the protracted labor stoppage that we had

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009386

back last - I guess it was the fall of 2008, I mean

that cost the company billions of dollars. And I think

if you compare, you know, what it cost because of the

stoppages versus the cost and the risk of starting a

new line in Charleston, I think the investment

certainly is the right one for us to make.

UNIDENTIFIED FEMALE:

And, Jim, the flip side of that

is all the advantages that we have right here in the Puget

Sound.

10

Yeah, absolutely. Again, my first - my first

11

preference, when I started looking at this last fall,

12

was to stay here. And we just could not get over those

13

two hurdles, you know, how do we ensure stability of

14

manufacturing and how could we ensure that labor c o s t s

15

weren't going to continue to escalate.

16

Do you think a chance was missed to - I mean you had a

17

labor problem. That was clear. You just had that

18

strike.

19

Yeah.

20

Y o u had a big relationship with the union problem.

21

Potentially, you could have fixed that and got your

22

production here and not had the expense of Charleston.

23

Yeah. You know_

24

Was a chance missed?

25

We tried. We did not get there. And you can blame both

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009387

sides for that. And over the next couple of years,

we're going to do everything we can to work with the

union to make sure that we don't have another

stoppage, and that we have a path to competitiveness

over the long haul, and that we get the kind of

relationship with the union where we don't have to

worry about labor stoppages in the future. You know,

this is a great workforce here. I mean they are

magicians. They do things that I don't think any labor

10

force in the world can do. And, you know, I feel my

11

job is to make sure they have jobs five years from

12

now, 10 years from now, 20 years from now. But we're

13

not - none of us are going to have jobs if we continue

14

to have strikes that go on for three or four months,

15

you know, every three . years.

16

So to sum up the Charleston decision - let's be clear,

17

the Charleston decision, it wasn't about W a s h i n g t o n ' s

18

business climate, right?

19

It was not.

20

It was not about trying to get lower labor costs,

going where work is cheap?

21
22

It...

23

It was about the strikes?

.24

It was about ensuring to our customers that when we

25

c o m m i t to deliver airplanes on certain dates that we

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009388

actually do deliver. And we have lost - our customers

have lost confidence in our ability to do that,

because of the strikes. The other thing is the rate of

escalation of the wages. You know, they continue to go

up in a dramatic fashion. You know, how can we flatten

that out? And those were the two things that we were

after.

Well let's just move on to talk about the union in a

little bit more detail. You know, when you came here,

9
10

I think it was last July for the rollout of the

11

Poseidon (indiscernible - interrupted)_

12

Yeah, yeah.

13

-you talked about, you praised the men and women of

Puget Sound that made this possible.

14
15

Yep. They're fabulous.

16

And you just repeated that here. And yet, you know,

17

that was in July. And then in the fall - it seemed

18

like a slap in the face to the people here to say well

19

we're going to build it somewhere - we're going to

20

take the 787 work somewhere else.

21

Yeah, you see, I guess I don't see it as a slap in the

22

face, Dominique. I mean I think that if we don't have

23

a company, nobody has jobs. And if we can't meet the

24

promises we make to our customers relative to delivery

25

of aircraft, we're not going to be in the business. If

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009389

10

we continue to have costs that go up, you know, faster

than the competition, we're not going to be selling

any airplanes. I mean this is about making our company

competitive over the long haul. By going to

Charleston, you know, I believe that we're going to

help reduce costs here. Now you say, you know, how is

'

that possible? Well the average cost of an airplane

built here and the average cost of an airplane built

in Charleston goes into our program accounting. The

10

average unit price of an airplane should go down as a

11

result of our being in Charleston. That will create

12

more demand for airplanes built here and in

13

Charleston.

14

But is - how big a component of that average cost of

15

an airplane is actually labor? It's not a big chunk of

16

it, is it?

17

It's not a big chunk. It's - and I'm not going to give

18

you the exact percentage. It's a significant

19

percentage. It's less than half, certainly. But again,

20

I think the other bigger part of it is when we commit

21

to delivering airplanes, people put together their

22

business plans based on assuming they're going to get

23

delivery on certain dates, and when they don't get

24

delivery that impacts their ability to meet their

25

business plan to make money and to buy more airplanes

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009390

11

over the long haul. And they will think twice the next

time they decide to buy an airplane from us or from

Airbus or 10 years from now from the Canadians or the

Chinese or the Brazilians. This is going to be a very

competitive world we're in, much more competitive than

it's been to date. And we've enjoyed a duopoly here.

And, you know, all the rules are going to change. And,

you know, when you're in a duopoly as we are, and

you're in second place, you're in last place. I don't

want to be in last place. I want to be in first place.

10

11

failure to reach agreement resulting in that decision_

12
13

And blame that on both of us, the fact that we didn't

get there.

14
15

So given what happened with the union last year, the

Well just forgetting about blame, I'm wondering - well

16

let me ask about - first of all, what is your attitude

17

to unions?

18

I've always gotten along great with unions. I've

19

worked with them. I've walked the concrete with them.

20

I've listened to them. I've watched them do, you know,

21

amazing things relative to productivity. I've seen

22

them, you know, work miracles out there in the

23

production line. You see that every day down in

24

Renton. You see that every day up in Everett on the

25

777 where they're making huge strides relative to

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009391

12

productivity.

1
Q

Well that's the workforce. But the union itself,

Boeing has often portrayed the union as an obstacle

between itself and its workforce.

You know, where there's a - where there is an issue

with the union, it's - that's a reflection on

management. You know, we create the environment. We

create the culture. And, you know, my hope is that we

can have good relationships at the top, you know, all

10

the way down to people on the factory floor. I was in

11

a meeting last week in Washington, D.C., you know,

12

with some of the leadership of the IAN. And we have

13

many things that we agree on. And I think as we go

14

forward, I hope there's more things we agree on,

15

because neither one of us are going to be in very good

16

shape unless we're selling airplanes.

1 7 Q

Was Mr. Buffenbarger there?

1 8 A

Mr. Buffenbarger was not.

1 9 Q

Well but given what happened last year, I mean you're

20

now the new guy in the position.

2 1 A

Yeah.

2 2 Q

And you've got all the - you've got the poison that

23

entered the relationship as a result of those failed

24

talks. How do you fix it now?

2 5 A

I think you fix it by communicating. And I think that

'

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009392

13

the IAN understands that we're entering a global

economy, global competition. It's going to be more

than just ourselves and the Europeans. And our ability

to be productive, you know, our ability to keep the

promises that we make to our customers - I mean those

are the things that are going to dictate whether or

not we have a company and whether or not we're selling

airplanes in years to come. And I think that, you

know, once we agree on where we need to go together

that we can figure out a way to get there.

10

11

Well obviously you'd like a better relationship with

12

IAN, and you would hope to achieve it. But does the

13

cost of labor here mean that Boeing is always going to

14

favor some non-union alternative, because it is going

15

to be cheaper?

16

You know, you look at the installed base that we have

17

here. You look at all the tooling that we've invested

18

here. You look at all the training and the skilled

19

workforce that we have here. You look at the ability

20

of this team to take cost out of an airplane. I mean

21

those count for a lot. Those count for just as much,

22

if not more, than just the wages. But again, the wages

23

have gone up dramatically. And, you know, we need to

24

have the knee of that curve inch over a little bit. We

25

can't continue to go up at the dramatic fashion we

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009393

14

have in the past.

1
Q

I'd also like to point to certain irony. The tanker

competition is (indiscernible) now and you've got

heavy Congressional support on that tanker.

We do.

And that support in Congress is based on the need to

protect good American jobs.

7
8

Yeah.

And when they talk about good American jobs and well

10

paying American jobs, they're contrasting it to non-

11

union jobs in Alabama. And the union delivered that

12

Congressional support largely - well not just the

13

union, but there's a big element...

1 4 A

Yeah.

15

_that they - those Democratic politicians who are

1 6 ,

union supported, that's a big element. And so the

17

union has delivered that for you. What do you give to

18

the union?

1 9 A

We've got 60,000 - no, we've got 75,000 jobs here in

20

Puget Sound. And we're going to have, you know, tens

21

of thousands of jobs for years to come. We're talking

22

about Charleston where we may have, you know, 3,000 or

23

4,000 or 5,000 people. You know, clearly the union

24

recognizes that. Certainly the politicians in the

25

state of Washington, the elected officials, understand

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009394

15

that this is the center of gravity. And that's not

going to change. Now the 767 airplane, in its

entirety, is going to built here by the workers that

have built this airplane in the past. Nothing is going

to change in that regard. And the last time I checked

in Charleston, those were U.S. citizens down there.

But again, non-union and much lower paid jobs.

Those are well paying jobs down there.

By the way, do you have any concerns, as you look at

10

the future, what we've already - you've agreed with me

11

that the business climate here wasn't a particular

12

factor in that decision last year. Of course, all the

13

states in the union right now, in the current

14

downturn, are in terrible financial trouble -

15

budgetary trouble, South Carolina as well as

16

Washington. Do you have any concerns about changes

17

ahead that might affect your future here in this state

18

in terms of.

19

Well I think you can probably say that about, you

20

know, about all the states in the country right now

21

with the economy being what it is.

22

R ig h t.

23

But again, the overriding factor was not the business

24

climate, and it was not the wages we're paying people

25

today. It was that we cannot afford to have a work

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009395

16

stoppage, you know, every three years. We cannot

afford to continue the rate of escalation of wages as

we have in the past. You know, those are the

overriding factors. And my bias was to stay here, but

we could not get those two issues done, despite the

best efforts of the union and the best efforts of the

company.

You're on the company's executive consult. There is

certainly a perception that Chief Executive McNerney

9
10

drove that Charleston decision and that some people

11

here were not too happy about it. Were you a part of

12

that decision?

13

Well I was the one that made the presentation to the

14

Board of Directors. And, you know, I went into this

15

thing feeling that if we could get it done here, we

16

could save the company a lot of money. And there were

17

two things that 1 needed, as I mentioned, and we

18

couldn't get those two things done. And not getting

19

those two things done, I made the recommendation, that

20

I thought was the right one, and that was to go to

21

Charleston.

22

last question.

23

24
25

So before we leave that subject entirely, just one

Somehow I knew you were going to talk about this one,

Dominique.

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009396

17

So there are - there has been talk here for many

years, Boeing is out of here, Boeing is leaving,

Boeing doesn't like us anymore. Can we - as a final

question on that topic, is that - put a nail in that?

You can put that one to bed. I mean we've got, you

know, a terrific workforce here. We've got, you know,

engineers who, you know, have more depth and breathe

of knowledge about building airplanes - more than any

place that I've ever been. We've got a talented

10

workforce. You know, this is where our people, you

11

know, want to live. This is where we want to be. We've

12

had a great partnership with the state of Washington

13

and I hope it's one that continues for a long, long

14

time to come. Again, I preface it by - or I caveat it

15

by saying that it is going to be a much more

16

competitive environment out there in the future. And

17

work any place is not an entitlement.

18

It sounds like if you can fix things with the

19

machinists, the outlook for here looks an awful lot

20

rosier?

21

I sure hope it does. That's - you know, I'm going to

22

be here a few years, and I would like nothing better

23

than to get a great contract with the union and, you

24

know, put to bed the concern that our customers have

25

of our ability to deliver on the promises we make.

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009397

18

You mentioned the engineers here. I want to talk about

that. And one of the things you did when you came here

in October, you established an advisory group of sort

of old-time Boeing people, people like John Roundhill,

Joe Sutter, (indiscernible - interrupted)_

6
7
8
9

Q
A

Yeah.

_people associated with the old style of Boeing. '

Yep.

And then in January, Boeing elevated nine engineering

10

leaders to - in a move that was spun as harking back

11

to the early days of - when (indiscernible) companies

12

were driven by engineering culture.

13

Yep.

14

S o I want to ask you. I mean, you're an engineer.

15

Yeah.

16

You started as an engineer. Is that a specific goal to

reinstate the primacy of engineering within B C A ?

17
18

I think decisions need to be driven more by

19

engineering and less by the - what I'll call the

20

business decision makers. I think on the 787 program,

21

we made some decisions that took on much more risk

22

than we should have taken on. Some of these

23

outsourcing decisions were - we did not consider the

24

extent - the risk that we'd take on by going outside.

25

And I think that we are, and we will, make sure that

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009398

19

the engineers and the voice of the engineers is much

more involved in the decision making as we go forward.

You know, bringing the senior advisory group in - a

lot of people left this company during the merger,

right after the merger. And a lot of people left, I

think, right after - you know, 2000, 2001, because

they didn't see us developing any new programs. And we

lost a lot of the heritage of this company. And, you

know, going into the 787 program, we didn't have a

10

large group of people that had ever been through a

11

development program before. You know, the great thing

12

about 747 and the 787 is we're training a whole new

13

generation of engineers and program managers on how to

14

do development programs. By bringing back, you know,

15

Sutter (ph) and Roundhill (ph) and Quinolivin (ph) and

16

those icons of the Boeing company, we're getting the

17

benefit of hundreds of years of knowledge and

18

experience. And they're people that I listen to.

19

They're people I want to get my team in front of so

20

they can get the benefit of their history and the

21

benefit of the things that they've done right and the

22

things that they have done wrong over the years. You

23

know, the whole issue of the iconic engineers, you

24

know, I started that with John Tracy in the old IDS

25

organization. When I grew up, the sheriff in town was

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009399

20

the chief engineer. You didn't do anything without

getting the chief engineer on board. And if you didn't

get him on board and you were wrong, it was not a good

situation. And I pushed John very hard that we needed

to elevate the iconic engineers in this company. They

needed to get more recognition. They needed to be more

involved. And with some of the changes that we made by

promoting by eight or nine vice presidents into

engineer - into engineering does that.

10

But another aspect of the relationship with your

11

engineers is your relationship with another union,

12

which is SPEEA. And it does seem to me that that

13

relationship has been adversarial for a while.

14

Yeah. Well_

15

So if you want to elevate engineers, why so

adversarial with S P E E A ?

16
17

Yeah, well, you know, I don't have all the history.

18

You probably know more about it than I do, D o m i n i q u e ,

19

but, you know, this place doesn't run without

20

engineers and it doesn't run without machinists. And I

21

think that what we need to do with our engineering

22

organization is be real clear about, you know, what

23

part of engineering do we want to do here. And, you

24

know, I think what happened on the 787 was we

25

outsourced things without explaining to the

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009400

21

engineering community why. And one of the things that

I've sat down with our new chief of engineering, you

know, Mike Delaney, is we need a strategy. What are

those things? What is that IP that we're going to do

here? What are those tasks that only the Boeing

Company understands and the things that we need to

hold close? The flight controls, you know, never

outsource that. The wings, you never outsource that.

The fuselage, the composites, don't outsource those.

10

We need to define very clearly things that we should

11

do and have to do, and those things that anybody can

12

do. And those things that we need to do to hold onto

13

our IP, we need to build the walls around those very

14

high. And I think we need to go and communicate to the

15

union of SPEEA and the IAN union, what are those

16

things that we want to hold close and hold dear. We

17

outsource too much.

18

Yeah, well that's .- I definitely want to talk about

19

that. But I mean, you just said never outsource the

20

wings. But isn't it too late? You've already

21

outsourced the wings to Japan.

2 2

Well we have. Well, we'll build other airplanes.

2 3

So Mitsubishi is not going to be building all the

wings in the future?

24
25

Well I didn't say that. I didn't say that. Those are

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009401

22

1
2

examples. Those are examples.

Okay. Well actually you and Mr. McNerney have - you've

talked repeatedly in various menus about this issue.

And what you've said is you're going to draw the lines

differently. And that's the phrase that you used.

6
7

Yeah.

And I'm wondering if you could just elaborate a little

bit on what that means. In particular, for example, I

understand it's already happening with the 787-9, the

10

second version of the 787, that you are outsourcing

11

less of it than you did on the -8. But how exactly? I

12

mean the wingsare still being made in Japan.

13

Yeah.

14

The fuselage in Italy.

15

We lost control of the design. We lost control of the

16

interface. We didn't provide enough oversight to the

17

subcontractors that were doing the various elements of

18

engineering and manufacturing. On the -9, we've pulled

19

some of that engineering back. As you know, we took

20

over the (indiscernible) facility. We took over the

21

Global Aeronautical facility.

22

Right.

23

S o w e now have control of some of the fuselage of the

24

airplane. So we have pulled some back for both the -8

25

and the -9. Those lines that we're going to have to

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009402

23

redraw, we're in the process of redrawing those right

now. If you look at a product strategy, a

manufacturing strategy, an outsourcing strategy, an

engineering strategy, all those are very interrelated.

And we're in the process of defining those strategies

right now.

One thing that you did on the 87 was you not only had

Mitsubishi build the wings in Japan, but you had them

do the detailed design of the interior of the wing.

And is that continuing on the -9?

10

11

I believe it is. It's not the same wing. The new wing

12

is - it's the same length, but it's a stiffer wing and

13

it's got - carries more load. So it's a different

14

wing. I think that they're still doing the wing design

15

on the -9. We can check that for you.

1 6 Q

But, you know, given what happened with the 87, and I

17

think if I read what you just said is, you know, an

18

admission that it didn't work very well and that you

19

did make mistakes in outsourcing the work.

2 0 A

Well we learned a lot.

2 1 Q

And you paid for it.

2 2 A

We paid for it.

23

You've had two years' delay. So isn't that an argument

24

for - there's some surprise that despite that, Boeing

25

is nevertheless insisting that the 787 supply chain

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009403

24

model is the one for the future. You'll draw the lines

slightly differently, but you'll stick to that model.

Why when it didn't work so well?

Or how do you change it to make it work?

I mean it's really easy in hindsight to second guess

decisions that were made. And I think they made a lot

of good decisions on the 787. One that they got the

airplane right. I mean this is going to be an airplane

10

that's very efficient. This is going to be an airplane

11

that I know people are going to want to buy. And this

12

is going to be an airplane that changes the way people

13

travel and changes the way that airplanes are built.

14

But I think we outsourced elements of the airplane to

15

people that didn't have a lot of experience at it. We

16

didn't provide them the kind of oversight and support

17

that was necessary. And we lost control of some of the

18

interfaces. So what do we have to do differently or

19

better going forward? Well again, we're going to

20

redraw those line. And we have to treat any

21

subcontractor in the future as an external factory, as

22

an external design team. And we need to look at them

23

as more than just a company that we throw a

24

specification over the wall to. We need to be much

25

more - but I think that if you talk to me, if you talk

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009404

25

to Jim McNerney, we'll both say that we moved up the

value chain too far and we took on too much risk.

Well I ,think that strategy is, in part, connected with

what had been a mantra at Boeing for some years,

including at IDS where you were leading, which was

that Boeing was shifting towards large scale systems

integration.

Right. It was a little different at IDS. You see, we -

yeah, complex large scale systems integration is what

9
10

this company does. At IDS, this whole idea of best of

11

industry and being the integrator was not an act of

12

inspiration, it was an act of desperation, in that we

13

didn't have any verticals. We weren't vertically

14

integrated to begin with. And that was a strategy that

15

we put together, because we had no other at our

16

disposal, other than to go out and buy a bunch of

17

companies to get vertically integrated. I think the

18

difference over here is they started off being

19

reasonably vertically integrated and moved up the

20

value chain. And I think in hindsight, we probably

21

moved up a little too far.

22

Well some people definitely saw that, if we can find

23

ourselves just speaking about BCA, saw this strategy

24

as a move away from the actual building of the

25

airplane towards a more architectural, conceptual

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009405

26

approach early in the stages, deciding the - doing the

marketing analysis, deciding on the market_

3
4

Yeah.

_and architecting it. And of course, final assembling

it, but final assembly was relegated to a snap-

together airplane in theory.

Yeah.

At least it hasn't worked out quite like that, but -

8
9

but the actual building of the airplanes here in Puget

10

Sound factories was something that was less important

11

it was work that seemed to be designated lower level

12

work that others could do. Is that the way it goes in

13

future or is that_

1 4 A

You see,

15

You know, my view is there is certain things that you

16

have to keep within your company, you know, those

17

pieces of intellectual p r o p e r t y t h a t n o b o d y e l s e i n

18

the world understands or knows how to do. And those

19

are things, both from a manufacturing and design

20

standpoint, that you need to keep inside. And then

21

there are other things, seats, galleys, some of the -

22

much of the machining, you know, anybody can do those

23

things. But, you know, why do people come to you? They

24

come to you because you understand things better than

25

anybody in the world understands about airplanes. And

I - you know, I would not subscribe to that.

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009406

27

we need to define what those things are, and we need

to hold those things very close. You know, the other

issue that I feel pretty strongly about is if all

you're doing is systems integration then how do you

train the engineers of the future to be systems

integrators? And I think engineers need to come in and

design something. They need to design a part. They

need to see how a part goes into a subsystem, how a

subsystem goes into a system, and how systems of

10

systems interact. You have to have some degree of

11

basic design so you can train the systems integrators

12

of the future.

13

And too much of out that the engineers here didn't

14

have enough to do. So the things you want to protect

15

include the wings?

16

I think that we understand how to build wings as well

17

as anybody in the world, and I think we're

18

demonstrating that on the 737 program where, you know,

19

we're building, what, I guess 62 wings a month. That's

20

pretty good production.

2 1

All right, good. Well the question about your own

22

taking over at BCA. It seems to me, looking on from

23

the outside, that you have approached your job, your

24

new job, eager to shake things up. After some months

25

of review, you had a major management shuffle of

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009407

28

putting different people in different places. You

organized your management retreat and got everybody on

the same page. So I'm just wondering, it does seem

that you are, in some sense, about change. And what

needed changing and what's ahead?

Well I guess first of all, I didn't see that - that

management shake-up that we had as being, you know,

that dramatic. You know, what did we do? We formed an

organization called, you know, Program Management to

10

ensure that we bring the program management and

11

execution discipline necessary to all the programs.

12

And we put them under Howard Chambers, somebody that's

13

been doing development programs for 40 years. I also

14

had a view that we were focused a lot on 787 and 747,

15

and appropriately so. But at the same time, I had a

16

view that we had to be thinking, you know, longer

17

term. You know, what do we need to do on the single

18

isle airplanes? What do we need to do in terms of

19

upgrading the 777 or a brand new 777-size airplanes?

20

And that's why I asked Mike Bair to go focus on the

21

new single isle airplane or an upgraded 737. And you

22

say why Mike? Well, you know, Mike got the

23

configuration of 787 correct, and he's very good at

24

that, and he's very analytical in his thinking. And I

25

know that the decision we make on the 37 will be the

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009408

29

right one. And then we took Lars Anderson and talked

him into coming out of retirement and asked Lars to

focus on the 777 next generation or a new 300 to 400

seat airplane. And Lars was good enough to come out of

retirement to do that. So I would say this

reorganization was really about finding the future,

but also bringing more discipline to how we executive

existing programs. Most of the key players and the

program managers, they didn't change. We had a couple

10

of people retire, so we moved some people around. But

11

I would not call that a major, major change in the

12

organization, other than the focus on the future and

13

the program management discipline. You know, on the

14

off-site - and I'm a new guy on the block and I felt

15

that, you know, the whole team, all the executives,

16

needed to understand what I thought was important. And

17

what I tried to achieve from that meeting was to get

18

alignment of the entire staff on where we needed to

19

go, what the challenges were, what the issues were,

20

and what we all needed to do together. And, you know,

21

there really are only four things. I try to keep

22

things pretty simple for the team. What we have to do

23

is we've got to continue to add value to our

24

customers, that's why they keep coming back. We need

25

to find the future for the Boeing Company. We need to

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009409

30

develop the leadership team of the future. And we need

to meet the plan. And those are the four things that

we talked about.

The appointment of Howard Chambers to oversee program

management that's specifically, I think, just to

manage projects - it does seem that that's the

perception is Boeing has failed in that here over a

couple of y e a r s _

_and they haven't kept control of the programs.

1 0 Q

11

You see, I_

Yeah, it's interesting. I think that B C A i s

12

extraordinary in their ability to manage production

13

programs. And I don't think anybody, you know, manages

14

a supply chain as well as they do. And just the fact

15

that we're doing 31.5 737s a month and we set a record

16

last year with 88 777s being delivered. We do a great

17

job of program management on production programs. I

18

think the issue was on the development programs, the

19

fact that we hadn't done a major development program

20

in a long, long time and the fact that a lot of the

21

people that had, had retired. And some of the

22

decisions we made on the program were business driven

23

as opposed to being driven by - you know, by the

24

engineering community. And we just took on too much

25

risk.

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009410

_ 31

UNIDENTIFIED FEMALE: Jim,

you might also want to

contrast the difference between all the many, many programs

at IDS.

Yeah.
UNIDENTIFIED FEMALE:

And the program management is

really just another function and discipline.

Yeah. At IDS, we had 300 programs. And the vast

majority of the programs are development programs. You

know, an ABL program, that's all it is, is a

10

development program. The Space Station was a

11

development program that went for 10 years. The

12

Ground-based Midcourse Missile Defense Program is a

13

test bed, became a development program, and finally

14

we're installing it. But, you know, how you do program

15

management and development programs is something that

16

Howard understands very well, and I think I understand

17

pretty well. And we're trying to bring many of those

18

disciplines to the BCA side. At the same time, we're

19

trying to bring a lot of the talents that BCA has,

20

relative to supply chain management, in over to the

21

IDS side. So, I mean, there's great synergy within

22

this company. And, you know, one of things that I hope

23

to achieve being over here is to encourage even more

24

of that.

2 5 Q

You've talked about potential competitors in the

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009411

32

future. I'd like to move on and talk about China. I

believe you're making a second trip to China or have

you just made it?

I think I'm going the last week of this month. Yeah.

That's your second trip, right?

Yeah.

6
7

So I find it interesting, Boeing, like the United

States itself, has an ambivalent view of China's

enormous growth. It's often portrayed as a potential

10

massive market. It's also portrayed as a potential

11

threat. And when you were head of the defense side of

12

Boeing, perhaps you had to view China one way. But now

13

you're head of BCA and you're making trips to China to

14

sell airplanes. So, you know, recently the U.S. sold

15

arms to Taiwan, which resulted in a threat from China

16

to boycott any companies involved, including Boeing

17

had a small part in that, the missiles.

1 8

Yeah.

1 9

Then last week there was a Wall Street Journal piece

20

saying that we should build more F-22s, which of

21

course Boeing builds a big part of here in Seattle,

22

because of the potential threat from China one day. So

23

the question is how do you, in the position you're in

24

now, how do you handle this complex relationship

25

between the U.S. and China and between Boeing and

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009412

33

1
2

China?

Well and I'll tell you, there's not a lot that the

Boeing Company can do about the relationship between

China and the United States. I mean the decision to

sell arms was country to country. It was not a

decision that the Boeing Company, in any way, you

know, got involved in. I think the only thing that I

can do is try to be the best customer to the Chinese

airlines and the best partner to some of the joint

10

ventures that we have in China that we can be. And I

11

don't worry a lot about things I can't control. What I

12

can control is the relationship that we have with the

13

airlines in China. And we're going to work very hard

14

on those. You know, China is going to have a GDP as

15

big as ours, you know, within the next 20 years. It's

16

an economy that is going to need airplanes. They're

17

developing 34 new airports right now, large airports.

18

And we're developing one here in the United States.

19

They're going to be buying about 200 airplanes a year

20
21

for the next 20 years. It's a big market for us.

They're going to be building their own airplanes. And

22

I have full confidence that they'll build a very good

23

airplane. Maybe not the first time, but eventually

24

they'll get it right. And I spent a lot of time in the

25

space business so I know that going to outer space is

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009413

34

a difficult thing. You've got to go from zero to

22,000 feet in 8.5 minutes - 22,000 feet per second in

8.5 minutes. They did it a lot faster than anybody

thought they could. They have made a national

commitment to building commercial airplanes. They're

going to invest billions of dollars in developing that

capability. They have, you know, many, many times as

many engineers coming out of their colleges as we do.

And they're going to develop a good airplane over

10

time. So, you know, we have to - we have to figure

11

out, and we're working very hard on, what kind of a

12

relationship do we want to have with industry over

13

there and what kind of relationship do we want to have

14

with the airlines in China.

15

And so how much of a threat is the C-919 narrow body

16

jetliner that they're developing? It's supposed to be,

17

I think, 180 seats approximately. It's supposed to

18

enter service in 2016. How big a threat is that to

19

B o e i n g ? ,

20

Well, they're going to put some of the new engines on

21

them and, you know, they're more efficient engines.

22

And assuming they get the airplane right, and it

23

probably won't be, you know, perfect the first time

24

through, they could have an airplane that competes

25

with the 737, yes.

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009414

35

And what do you do about that?

Well we need to do several things about it. You know,

one - you know, the Boeing Company gets a premium for

the airplanes that they sell. And we get a premium on

the airplanes that we sell, because we create value

for our customer. And that's one of the assignments

that Mike Bair has. You know, what does the next

generation 737 or the next generation single isle

airplane look like? Is it a re-engined 37 next

10

generation or is it a brand new airplane? And we are

11

actively looking at both of those options right now.

12

And we are looking at, you know, having a capability,

13

you know, towards the end of this decade. And it's not

14

just the Chinese. It's also the Canadians with the C

15

Series. It's also Embraer who will have an airplane.

16

And potentially the Russians as well.

17

So where do you stand on this? As part of the national

18

debate, I think people would be interested to know

19

what a chief executive of Boeing thinks in terms of

20

this threat or market, which is China to the U.S.? Is

21

it a military threat or is it a vast market we need to

22

tap into?

23

You're not going to get the head of commercial

24

airplanes talking about China's military threat, you

25

know, Dominique. I'll leave - again, I'll leave that

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009415

36

to the people in the Pentagon, and I'll leave that to

the policymakers in Washington, D.C. You know, you

' think about China and the United States, you know, our

economies are dependent on each other now, and will be

for the long haul. And you look at how far this

relationship has come, you know, over the last - I

guess it's 35 years since Nixon first went over there.

And I think, you know, every day, you know, we get

closer and closer together and our economies get more

10

tightly entwined. It's not to say that we don't have

11

the periodic bump in the road. And, yes, we're having

12

one of those right now. But I think there's a lot to

13

be lost on both sides if we don't have a good

14

relationship with China. And I think that China has a

15

lot of lose if they don't have a good relationship

16

with the United States.

17

You know, Bill Boeing's first engineer was Chinese

18

born, Wong Tsoo. And it's been noted before that for a

19

global company, Boeing's executive ranks don't - have

20

a surprising lack of diversity. Now I look, for

21

example, at your Indian operations and I see the

22

success Dinesh Keskar has had there, an Indian-born

23

executive and president of BCA in India. But I don't

24

see that in China. There's very few Chinese-American

25

executives, which is a little surprising given that

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009416

37

we're in Seattle, we're on the Pacific Rim_

1
2

Yeah.

_and we've got a great Asian-American community here.

And think of the cultural impact of Gary Locke, the

governor of Washington, going to China trying to help

sell Boeing airplanes. How come you don't have more

such faces?

Stay tuned. You'll be the first person we call, okay?

And it won't be long and we'll give you a call.

9
10

Okay, thanks. We're running out of time so a few

11

important topics to cover. One of them is tanker. You

12

and other Boeing executives have talked about the

13

unique Boeing advantage of building both commercial

14

platforms and the military systems and how you

15

leveraged that. You did it for the Poseidon and_

1 6 A

Yeah.

17

...(indiscernible) that's built in Renton. So you

18

installed all the military's hardware inline on

19

(indiscernible) assembly.

2 0 A

Yeah.

2 1 Q

Is that what's going to happen on tanker, if you win

22

it? Will you do that in Everett?

2 3 A

We will do as much as we can in Everett. We'll make

24

all the structural modifications that we can. We'll

25

install some of the mission-specific equipment that we

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009417

38

need to make it a tanker. But the hoses and the drogs

(ph) and the bladders, some of those things will be

installed in Wichita. But as much as we can install

up-front inline, you know, that will drive the cost of

doing business down. And that's what we plan on doing.

Well the tanker RFP that just came out, in the

estimation of outside observers, puts you in the

favored position to win that.

You know, I'm very intrigued by that. You know, it's

10

very hard to write an RFP for dissimilar airplanes.

11

And I think the U.S. Air Force did a pretty good job

12

of doing that. I mean there are things in that RFP

13

that we don't like. And, you know, I understand from

14

what I read in the paper, there are things that

15

Northrop doesn't like. But it's not a perfect RFP for

16

either one of us and they are puts and takes for both.

17

You know, I read that thing and, you know, I don't

18

read it as a lay-down hand for the Boeing Company. And

19

I'm assuming that (indiscernible) is going to bid.

20

Well is there any sense of embarrassment at the

21

company that should you win it this time, you've done

22

it by a political backlash that caused them to rerun

23

the competition?

24
25

I guess I don't understand. I don't think that there's

political backlash that caused this thing to be re-

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009418

39

competed. I think the GAO took a look at the decision

making process and felt that there were errors in how

they came to the decision they came to. I mean let's

reviefa the - let's review the tape here. We had 98

strengths, they had 30. We had one weakness, they had

five. There was no credit to be given for fuel offload

above a certain threshold level, they were given that.

And the GAO looked at the decision making process and

it was flawed. That's why they're doing the re-

10
11

compete. It has nothing to do with politics.

back as early as the early 2000s, were_

12
13

But the Congressional support that you have - you, way

You know, I appreciate Congressional support. But I

14

don't think there's been a competition that I've been

15

involved in, in my career, that has been decided by

16

people on Capitol Hill. It gets decided by the

17

procurement people in the Pentagon based on their RFP.

18

And where they don't make their decision based on the

19

RFP,

20

protest, which we did, and in which we do v e r y

21

infrequently. And they found in our favor.

22

you know, companies have the opportunity to

One political issue that's come into the whole tanker

debate is WTO, and I'd like to go to that now.

23
24

Yeah.

25

The WTO finder was guilty of taking illegal subsidies.

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009419

40

And an outcome in the European countersuit is expected

this summer, which could find you similarly liable,

maybe, maybe no. But what I want to ask you is this.

Embraer and Bombardier went through this whole thing,

suing each other at the WTO, for illegal government

loan subsidies. They were both found guilty and it

didn't change a thing. Nothing happened. And, you

know, Bombardier is making the C Series now and

they're getting government money to help do it. So

10

what's the point? Where can these WTO suits go?

11 A

Well, you know, first of all you've got to remember,

12

Dominique, that we didn't bring the WTO suit. The

13

Administration of the United States of American

14

brought that suit.

15

They wouldn't have done so if you didn't want it.

16

They brought the suit because, in their view, the

17

United States and its industries had been damaged by

18

illegal subsidies that were in violation of the W T O

19

rules. I mean that's why the lawsuit was brought. And

20

clearly the Administration feels that those subsidies

21

were illegal. And the WTO feels the same way, at least

22

that's their - the preliminary judgment that they've

23

laid down.

24

Well certainly some people see it as politics_

25

Well_

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009420

41

tanker.

2
3

_to block - in part, it helps to try to block the

So, you know, we're building the 787 the old fashioned

way. We're using our own money. On the A-330, you

know, based on the WTO case, you know, they had launch

subsidies of close to $6 billion. You know, that's a

significant advantage for them that we don't enjoy.

You know, we have to cover our own costs. And, you

know, we would have like to have seen something in the

10

RFP that accommodated the launch subsidies that they

11

got. It's not there. And we're competing. We're not

12

crying foul. We're going to do the best we can with

13

the proposal.

14

Do you have any expectation about the outcome of the

15

countersuit, which is pending this summer, where

16

B o e i n g is accused of illegal subsidies (indiscernible

17
18

interrupted)?

Based on everything I know, I feel pretty good about

19

the outcome. Of course then again, Dominique, I

20

thought we were going to win the tanker contest last

21

time. As I've told people, there's only one more - one

22

person more surprised that we lost the tanker than me

23

and that was (indiscernible) that they won.

24
25

You mentioned earlier in this conversation that being

number two in a duopoly puts you in last place and you

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009421

42

don't want to be in last place. So since we're

discussing this rivalry with Airbus, where do you see

that - how do you see that playing out in the next few

years?

When we start delivering the 787s in quantity, and

that's going to star in 2012, 2013, you know, we

should, you know, take the number one position, you

know, relative to airplane deliveries. We ought to

overtake them in 2012, 2013, that timeframe. But I

10

think, you know, longer term, it's easy to get the

11

most orders and it's easy to make the most deliveries.

12

All you have to do is just give the airplanes away.

13

We're not going to do that. If I look at, you know, 10

14

years from now, we're going to have a brand new 47;

15

we're going to have a brand new 87; we're going to

16

have a major upgrade of the 737 or a new small

17

airplane; and we're going to have a major upgrade to

18

the 777 or we're going to have a new 300 to 400

19

passenger airplane. I mean we're going to have a whole

20

new set of products in the marketplace. And these are

21

products that are going to create great value for our

22

customer. And when you create value for the customer,

23

you're going to sell airplanes. And we should be

24

number one for a long time to come. And you know why

25

we're going to be number one? It's because of those

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009422

43

75,000 people here in Puget Sound that get up in the

morning and put their badge on and walk through the

doors. I mean those are the people that make it

happen. And I could go tomorrow, and they could

replace me pretty quick. But it's the collective

knowledge of our team that allows us to do the things

that we do. And they're the ones that will make it

happen.

There's an expectation of restraint today in corporate

lo

executive bonuses. Boeing -- a lot of B o e i n g ' s m o n e y ,

11

half of its revenues, comes from the government. And

12

you're laying off thousands of people right now, but

13

you got a special $3 million bonus on top of your

14

regular bonus for staying - for switching jobs. How is

15

that justified (indiscernible - interrupted).

16

No, they didn't make me any promises when I came here.

17

And I didn't ask the Board of the Comp Committee for

18

this. And I certainly appreciate, you know, what

19

they've done, but it's not something that I asked them

20

to do. And, you know, I do intend to continue to work

21

here as long as the company will let me stay.

22

Do you understand why it doesn't look good to workers

23

getting laid off when executives get million-dollar

24

bonuses?

25

Well my job is to make sure that workers don't get

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009423

44

laid off. I mean I think that I've got an unwritten

bond with the employees that my job is to profitably

grow this place. And at the same time I'm asking them

to be more efficient, that allows us to sell our

planes for less, that allows us to sell more planes,

that allows us to create jobs or at least keep the

level of jobs at the same number that it's at today.

And that's what I think my job is.

Okay. I'm going to stop there.

10

Okay.

11

Thank you very much.

12

All right, Dominique. Thanks.

13

(End of proceeding.)

14

15

16

17

18

19

20

21

22

23

24

25

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009424

45

TRANSCRIBER'S CERTIFICATE

I, Gloria Schein, hereby certify that the foregoing

pages numbered 2 through 44 are a true, accurate and

complete transcript of Interview of Jim Albaugh, transcribed

by me from a copy of the digital sound recording to the best

of my knowledge and ability.

Date

Gloria Schein

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009425

10

11

INTERVIEW OF

12

JIM ALBAUGH

13

BOEING COMMERCIAL AIRCRAFT

14

BY

15

THE SEATTLE TIMES REPORTER

16

17

18

19

20

21

22

23

24

25

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009426

(Beg inning
of proceedin gs.)

But, y ou know, I feel impelled to ask some hard

questions on behalf of basicall y


the communit y in

Washin g ton_

Sure.

_as a result of last y ear. Last y ear, we had the

decision to locate the second 787 line in Charleston.

Uh-huh (affirmative).

And then subse quentl y , y ou announced that all 787 work

10

from the Pu get Sound area would be duplicated

11

elsewhere. So I think the local communit y


is clearl y

12

worried about Boein g 's future here. And that's

13

somethin g
that's followed on from, y ou know, y ou moved

14

the headq uarters in 2001 and there have been repeated

15

threats that future work mi ght not be here. So last

16

-y ear seemed to reall y


increase that feelin g . So what

17
18
19
20

is Boein g 's commitment to Washin g ton state?

Well this is the head quarters of Boein g


Commercial

Aircraft and it will be, I think, for probabl y

forever. T
Was reall y
about, y ou

21

en sue production stabilit'Y,and,how

22

we coli14 ensure that we wer e .competitiveover the lon g

23

haul : A n d w e h a d ' s o m e v e r y 'ProductiedisCussions With

24

the

And unfortunately ,

dn't corit6 O

an a greement wher e we f elt we could ensure


production

25

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009427

s ta b ility . A n d re a d th a t is
-
g e ttin g a w a y fro m

fre q u e n t 'strik e S ' th a t we w e re h a v in g a n d a lso C :o u ld

s to p th e ra te o f e s c a la tio n

c o u ld n o t 'g e t to a ,lilfa b e w h e re

w in fo r b o th

d e c ia iO n 'to ,.

w ill te ll y o u , D o m in iq u e , y o u k n o w m y p re fe re n c e is to

d o th e w o rk h e re in th e fu tu re . B u t

th e

of:y ag eS ".' 'A n d W e ju st

as a

'b b th fe lt

a n d th e u n io n ,-:so w e m ai

C h a re sto n 2 ; N o w it's m y h o p e , a n d I

Work h ere

e c a n m a k e su re th a t w e h a v e th e sta b ility

we

th e

10

p ro d u c tio n lin e s,a n d th a t

11

th e lo n g :h au l'. - A n d th ciae'iare th e tw o th ah 4 S 'y ,:th at

12

th in k

13

h av e

14

C om pany.

15 . Q

S o lo o k in g o u t in to th e fu tu re , n o w th a t y o u h a v e

16

d e c id e d o n h a v in g th is o th e r p la n t in C h a rle sto n , h o w

17

d o y o u se e th e g e o g ra p h ic sh a p e o f B o e in g a n d th e

18

b a la n c e th e re b e tw e e n th o se tw o b ic o a sta l p la n ts in

19

th e fu tu re ?

20

b e C o m p e titiv e ;o v e r

cu sto th era, 'arid '

O'"ensui.e,

a lso , th e sto c k h o ld e # s - o f'th e B o e in g

W e ll I g u e s s I d o n 't re a lly s e e it a s a b a la n c e . Y o u

21

k n o w , c le a rly th e c e n te r o f g ra v ity is h e re in P u g e t

22

S o u n d a n d w ill c o n tin u e to b e h e re in P u g e t S o u n d . A n d

23

I'm

24

d isc u ssio n s w ith th e u n io n th a t, y o u k n o w , w e 'll b e

25

a b le to c o m e u p w ith w a y s o f b e in g c o m p e titiv e h e re ,

v e ry h o p e fu l a s w e , y o u k n o w , c o n tin u e to h a v e

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009428

and we can come up with ways of ensuring that we're

not going to have labor strikes. And if we can get

through those two hurdles, we're going to be doing

work here for a long, long time. And there are no

discussions of moving any work that's currently here

out of Puget Sound.

Right. But, of course, it's future work that people

are worried about. I mean what are the chances that

the next new jet, after the 787, will be built here?

10

Yeah. I'll tell you, the commitment that I can give

11

you is that the first preference is to put the work

12

here. But we have to ensure ourselves that we're going

13

to have a stable production line, and we have to

14

ensure that we can be competitive over the long haul.

15

Y o u know, if we don't, we're not going to be selling

16

any airplanes. And I think that's the worst outcome

17

for Puget Sound, and that's the worst outcome for the

18

company.

19

Well so when the time comes to a n n o u n c e the launch of

20

a new airplane program, which could come in a few

21

years, that you would say - right, you're going to

22

build the next one and announce some plan for it? Are

23

we going - are the people of this state once again

24

going to face the competition with other states in the

25

U.S.

to win it?

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009429

competition.

2
3

You know, I guess I don't really view it as a

But it was last time.

I don't think it was. It was not a competition. What

it was, was - again, we've had strikes three out of

the last four times we've had a labor negotiation with

the IAM. And I'm not blaming that on the IAN. I mean

that is an issue between management, created by

management, and created by labor. You know, we need to

10

improve the relationship that we have. And we've got

11

to get to a position where we can ensure our customers

12

that every three years they're not going to have a

13

protracted shutdown. You know, we have customers right

14

now that are telling us that in contracts they don't

15

want to write in excusable delays for strikes. I mean

16

that's not a situation that's good for us. It's not a

17

good situation for them. It's not a good situation for

18

labor. And if one projects out another 15 years, we're

19

not just going to be competing against the Europeans,

20

we'll be competing against the Europeans, the

21

Brazilians, the Canadians, the Chinese, and the

22

Russians. And we have an obligation to make sure that

23

as we compete again not just one, but compete against

24

four, you know, we have got a cost structure and a

25

productivity capability that will allow us to continue

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009430

1
2

to compete.

In saying that it wasn't a competition, clearly you're

referring to the Charleston decision last year. But I

was referring to the 2003 competition when Boeing

actually had a formal competition to find out where

they were going to build the 787.

Yeah. Well I wasn't involved in that one and-

So the question is will there be another competition

like that when you build the next airplane?

10

I don't think I would - if I'm involved, I'm not going

11

to have a competition like that, I can tell you that.

12

But what we are going to do is study very hard, with

13

the first option being here, is to make sure that we

14

do the right thing for the customer, which means not

15

have labor stoppages; and do the right thing for the

16

customer to give them the kind of value that they want

17

in the airplanes.

18

Just on the - to dwell on the Charleston expansion for

19

a moment. It does seem to me that the complexity and

20

expense and risk attached to doing all that there is -

21

is something that's hard to justify. Does it really

22

make business sense?

23

Yeah. There's no question that whenever you go to a

24

green field site, there's risk involved. At the same

25

time, with the protracted labor stoppage that we had

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009431

a.

back last - I guess it was the fall of 2008, I mean

that cost the company billions of dollars. And I think

if you compare, you know, what it cost because of the

stoppages versus the cost and the risk of starting a

new line in Charleston, I think the investment

certainly is the right one for us to make.

UNIDENTIFIED FEMALE: And, Jim, the flip side of that

is all the advantages that we have right here in the Puget

9 Sound.

10

Yeah, absolutely. Again, my first - my first

11

preference, when I started looking at this last fall,

12

was to stay here. And we just could not get over those

13

two hurdles, you know, how do we ensure stability of

14

manufacturing and how could we ensure that labor costs

15

weren't going to continue to escalate.

16

Do you think a chance was missed to - I mean you had a

17

labor problem. That was clear. You just had that

18

strike.

19

Yeah.

20

You had a big relationship with the union problem.

21

Potentially, you could have fixed that and got your

22

production here and not had the expense of Charleston.

2 3

Yeah. You know_

24

Was a chance missed?

2 5

We tried. We did not get there. And you can blame both

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009432

sides for that. And over the next couple of years,

we're going to do everything we can to work with the

union to make sure that we don't have another

stoppage, and that we have a path to competitiveness

over the long haul, and that we get the kind of

relationship with the union where we don't have to

worry about labor stoppages in the future. You know,

this is a great workforce here. I mean they are

magicians. They do things that I don't think any labor

10

force in the world can do. And, you know, I feel my

11

job is to make sure they have jobs five years from

12

now, 10 years from now, 20 years from now. But we're

13

not - none of us are going to have jobs if we continue

14

to have strikes that go on for three or four months,

15

you know, every three years.

16

S o t o sum up the Charleston decision.- let's be clear,

17

the Charleston decision, it wasn't about Washington's

18

business climate, right?

19

It was not.

20

It was not about trying to get lower labor costs,

going where work is cheap?

21
22

It...

23

It was about the strikes?

24

It was about ensuring to our customers that when we

25

commit

to deliver airplanes on certain dates that we

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009433

actually do deliver. And we have lost - our customers

have lost confidence in our ability to do that,

because of the strikes. The other thing is the rate of

escalation of the wages. You know, they continue to go

up in a dramatic fashion. You know, how can we flatten

that out? And those were the two things that we were

after.

Well let's just move on to talk about the union in a

little bit more detail. You know, when you came here,

9
10

I think it was last July for the rollout of the

11

Poseidon (indiscernible - interrupted)-

12

Yeah, yeah.

13

_you talked about, you praised the men and women of

Puget Sound that made this possible.

14
15

Yep. They're fabulous.

16

And you just repeated that here. And yet, you know,

17

that was in July. And then in the fall - it seemed

18

like a slap in the face to the people here to .say well

19

we're going to build it somewhere - we're going to

20

take the 787 work somewhere else.

21

Yeah, you see, I guess I don't see it as a slap in the

22

face, Dominique. I mean I think that if we don't have

23

a company, nobody has jobs. And if we can't meet the

24

promises we make to our customers relative to delivery

25

of aircraft, we're not going to be in the business. If

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009434

10

we continue to have costs that go up, you know, faster

than the competition, we're not going to be selling

any airplanes. I mean this is about making our company

competitive over the long haul. By going to

Charleston, you know, I believe that we're going to

help reduce costs here. Now you say, you know, how is

that possible? Well the average cost of an airplane

built here and the average cost of an airplane built

in Charleston goes into our program accounting. The

10

, average unit price of an airplane should go down as a

11

result of our being in Charleston. That will create

12

more demand for airplanes built here and in

13

Charleston.

14

But is

how big a component of that average cost of

15

an airplane is actually labor? It's not a big chunk of

16

it, is it?

1 7

It's not a big chunk. It's - and I'm not going to give

18

you the exact percentage. It's a significant

19

percentage. It's less than half, certainly.

20

I think the other bigger part of it is when we commit

21

to delivering airplanes, people put together their

22

business plans based on assuming they're going to get

23

delivery on certain dates, and when they don't get

24

delivery that impacts their ability to meet their

25

business plan to make money and to buy more airplanes

But again,

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009435

11

over the long haul. And they will think twice the next

time they decide to buy an airplane from us or from

Airbus or 10 years from now from the Canadians or the

Chinese or the Brazilians. This is going to be a very

competitive world we're in, much more competitive than

it's been to date. And we've enjoyed a duopoly here.

And, you know, all the rules are going to change. And,

you know, when you're in a duopoly as we are, and

you're in second place, you're in last place. I don't

want to be in last place. I want to be in first place.

10

11

failure to reach agreement resulting in that decision_

12
13

And blame that on both of us, the fact that we didn't

get there.

14
15

So given what happened with the union last year, the

Well just forgetting about blame, I'm wondering - well

16

let me ask about - first of all, what is your attitude

17

to unions?

18

I've always gotten along great with unions. I've

19

worked with them. I've walked the concrete with them.

20

I've listened to them. I've watched them do, you know,

21

amazing things relative to productivity. I've seen

22

them, you know, work miracles out there in the

23

production line. You see that every day down in

24

Renton. You see that every day up in Everett on the

25

777 where they're making huge strides relative to

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009436

12

1
2

productivity.

Well that's the workforce. But the union itself,

Boeing has often portrayed the union as an obstacle

between itself and its workforce.

You know, where there's a - where there is an issue

with the union, it's - that's a reflection on

management. You know, we create the environment. We

create the culture. And, you know, my hope is that we

can have good relationships at the top, you know, all

10

the way down to people on the factory floor. I was in

11

a meeting last week in Washington, D.C., you know,

12

with some of the leadership of the IAN. And we have

13

many things that we agree on. And I think as we go

14

forward, I hope there's more things we agree on,

15

because neither one of us are going to be in very good

16

shape unless we're selling airplanes.

17

Was Mr. Buffenbarger there?

18

Mr. Buffenbarger was not.

19

Well but given what happened last year, I mean you're

now the new guy in the position.

20
21

Yeah.

22

And you've got all the - you've got the poison that

23

entered the relationship as a result of those failed

24

talks. How do you fix it now?

25

I think you fix it by communicating. And I think that

KRON ASSOCIATES
.

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009437

13

the IAM understands that we're entering a global

economy, global competition. It's going to be more

than just ourselves and the Europeans. And our ability

to be productive, you know, our ability to keep the

promises that we make to our customers - I mean those

are the things that are going to dictate whether or

not we have a company and whether or not we're selling

airplanes in years to come. And I think that, you

know, once we agree on where we need to go together

that we can figure out a way to get there.

10

11

Well obviously you'd like a better relationship with

12

IAM, and you would hope to achieve it. But does the

13

cost of labor here mean that Boeing is always going to

14

favor some non-union alternative, because it is going

15

to be cheaper?

16

You know, you look at the installed base that we have

17

here. You look at all the tooling that we've invested

18

here. You look at all the training and the skilled

19

workforce that we have here. You look at the ability

20

of this team to take cost out of an airplane. I mean

21

those count for a lot. Those count for just as much,

22

if not more, than just the wages. But again, the wages

23

have gone up dramatically. And, you know, we need to

24

have the knee of that curve inch over a little bit. We

25

can't continue to go up at the dramatic fashion we

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009438

14

have in the past.

I'd also like to point to certain irony. The tanker

competition is (indiscernible) now and you've got

heavy Congressional support on that tanker.

We do.

protect good American jobs.

7
8

And that support in Congress is based on the need to

Yeah.

And when they talk about good American jobs and well

10

paying American jobs, they're contrasting it to non-

11

union jobs in Alabama. And the union delivered that

12

Congressional support largely - well not just the

13

union, but there's a big element_

1 4 A

Yeah.

1 5 Q

_that they - those Democratic politicians who are

16

union supported, that's a big element. And so the

17

union has delivered that for you. What do you give to

18

the union?

1 9 A

We've got 60,000 - no, we've got 75,000 jobs here in

20

Puget Sound. And we're going to have, you know, tens

21

of thousands of jobs for years to come. we're talking

22

about Charleston where we may have, you know, 3,000 or

2 3 '

4,000 or 5,000 people. You know, clearly the union

24

recognizes that. Certainly the politicians in the

25

state of Washington, the elected officials, understand

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009439

15

that this is the center of gravity. And that's not

going to change. Now the 767 airplane, in i t s

entirety, is going to built here by the workers that

have built this airplane in the past. Nothing is going

to change in that regard. And the last time I checked

in Charleston, those were U.S. citizens down there.

But again, non-union and much lower paid jobs.

Those are well paying jobs down there.

By the way, do you have any concerns, as you look at

10

the future, what we've already - you've agreed with me

11

that the business climate here wasn't a particular

12

factor in that decision last year. Of course, all the

13

states in the union right now, in the current

14

downturn, are in terrible financial trouble

15

budgetary trouble, South Carolina as well as

16

Washington. Do you have any concerns about changes

17

ahead that might affect your future here in this state

18

in terms of...

1 9 A

Well I think you can probably say that about, you

20

know, about all the states in the country right now

21

with the economy being what it is.

22

Right.

23

B u t again, the overriding factor was not the business

24

climate, and it was not the wages we're paying people

25

today. It was that we cannot afford to have a work

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009440

16

stoppage, you know, every three years. We cannot

afford to continue the rate of escalation of wages as

we have in the past. You know, those are the

overriding factors. And my bias was to stay here, but

we could not get those two issues done, despite the

best efforts of the union and the best efforts of the

company.

You're on the company's executive consult. There is

certainly a perception that Chief Executive McNerney

9
10

drove that Charleston decision and that some people

11

here were not too happy about it. Were you a part of

12

that decision?

13

Well I was the one that made the presentation to the

14

Board of Directors. And, you know, I went into this

15

thing feeling that if we could get it done here, we

16

could save the company a lot of money. And there were

17

two things that I needed, as I mentioned, and we

18

couldn't get those two things done. And not getting

19

those two

20

I thought was the right one, and that was to go to

21

Charleston.

22

25

done, 1 made the recommendation, that

So before we leave that subject entirely, just one

last question.

23
24

th in g s

Somehow I knew you were going to talk about this one,

Dominique.

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009441

17

So there are - there has been talk here for many

years, Boeing is out of here, Boeing is leaving,

Boeing doesn't like us anymore. Can we - as a final

question on that topic, is that - put a nail in that?

You can put that one to bed. I mean we've got, you

know, a terrific workforce here. We've got, you know,

engineers who, you know, have more depth and breathe

of knowledge about building airplanes - more than any

place that I've ever been. We've got a talented

10

workforce. You know, this is where our people, you

11

know, want to live. This is where we want to be. We've

12

had a great partnership with the state of Washington

13

and I hope it's one that continues for a long, long

14

time to come. Again, I preface it by - or I caveat it

15

by saying that it is going to be a much more

16

competitive environment out there in the future. And

17

work any place is not an entitlement.

18

It sounds like if you can fix things with the

19

machinists, the outlook for here looks an awful lot

20

rosier?

21

I sure hope it does. That's - you know, I'm going to

22

be here a few years, and I would like nothing better

23

than to get a great contract with the union and, you

24

know, put to bed the concern that our customers have

25

of our ability to deliver on the promises we make.

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009442

18

You mentioned the engineers here. I want to talk about

that. And one of the things you did when you came here

in October, you established an advisory group of sort

of old-time Boeing people, people like John Roundhill,

Joe Sutter, (indiscernible - interrupted)_

Yeah.

Yep.

And then in January, Boeing elevated nine engineering

_people associated with the old style of Boeing.

10

leaders to - in a move that was spun as harking back

11

to the early days of - when (indiscernible) companies

12

were driven by engineering culture.

13

Yep.

14

SO I want to ask you. I mean, you're an engineer.

15

Yeah.

16

You started as an engineer. Is that a specific goal to

reinstate the primacy of engineering within B C A ?

17
18

I think decisions need to be driven more by

19

engineering and less by the - what I'll call the

20

business decision makers. I think on the 787 program,

21

we made some decisions that took on much more risk

22

than we should have taken on. Some of these

23

outsourcing decisions were - we did not consider the

24

extent - the risk that we'd take on by going outside.

25

And I think that we are, and we will, make sure that

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009443

19

the engineers and the voice of the engineers is much

more involved in the decision making as we go forward.

You know, bringing the senior advisory group in - a

lot of people left this company during the merger,

right after the merger. And a lot of people left, I

think, right after - you know, 2000, 2001, because

they didn't see us developing any new programs. And we

lost a lot of the heritage of this company. And, you

know, going into the 787 program, we didn't have a

10

large group of people that had ever been through a

11

development program before. You know, the great thing

12

about 747 and the 787 is we're training a whole new

13

generation of engineers and program managers on how to

14

do development programs. By bringing back, you know,

15

Sutter (ph) and Roundhill (ph) and Quinolivin (ph) and

16

those icons of the Boeing company, we're getting the

17

benefit of hundreds of years of knowledge and

18

experience. And they're people that I listen to.

19

They're people I want to get my team in front of so

20

they can get the benefit of their history and the

21

benefit of the things that they've done right and the

22

things that they have done wrong over the years. You

23

know, the whole issue of the iconic engineers, you

24

know, I started that with John Tracy in the old IDS

25

organization. When I grew up, the sheriff in town was

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009444

20

the chief engineer. You didn't do anything without

getting the chief engineer on board. And if you didn't

get him on board and you were wrong, it was not a good

situation. And I pushed John very hard that we needed

to elevate the iconic engineers in this company. They

needed to get more recognition. They needed to be more

involved. And with some of the changes that we made by

promoting by eight or nine vice presidents into

engineer - into engineering does that.

10

But another aspect of the relationship with your

11

engineers is your relationship with another union,

12

which is SPEEA. And it does seem to me that that

13

relationship has been adversarial for a while.

14

Yeah. Well_

15

So if you want to elevate engineers, why so

adversarial with

16
17

SPEEA?

Yeah, well, you know, I don't have all the history.

18

You probably know more about it than I do, Dominique,

19

but, you know, this place doesn't run without

20

engineers and it doesn't run without machinists. And I

21

think that what we need to do with our engineering

22

organization is be real clear about, you know, what

23

part of engineering do we want to do here. And, you

24

know, I think what happened on the 787 was we

25

outsourced things without explaining to the

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009445

21

engineering community why. And one of the things that

I've sat down with our new chief of engineering, you

know, Mike Delaney, is we need a strategy. What are

those things? What is that IP that we're going to do

here? What are those tasks that only the Boeing

Company understands and the things that we need to

hold close? The flight controls, you know, never

outsource that. The wings, you never outsource that.

The fuselage, the composites, don't outsource those.

10

We need to define very clearly things that we should

11

do and have to do, and those things that anybody can

12

do. And those things that we need to do to hold onto'

13

our IP, we need to build the walls around those very

14

high. And I think we need to go and communicate to the

15

union of SPEEA and the IAN union, what are those

16

things that we want to hold close and hold dear. We

17

outsource too much.

18

Yeah, well that's - I definitely want to talk about

19

that. But I mean, you just said never outsource the

20

wings. But isn't it too late? You've already

21

outsourced the wings to Japan.

22

Well we have. Well, we'll build other airplanes.

23

So Mitsubishi is not going to be building all the

wings in the future?

24
25

Well I didn't say that. I didn't say that. Those are

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009446

22

1
2

examples. Those are examples.

Okay. Well actually you and Mr. McNerney have - you've

talked repeatedly in various menus about this issue.

And what you've said is you're going to draw the lines

differently. And that's the phrase that you used.

6
7

Yeah.

And I'm wondering if you could just elaborate a little

bit on what that means. In particular, for example, I

understand it's already happening with the 787-9, the

1(:)

second version of the 787, that you are outsourcing

11

less of it than you did on the -8. But how exactly? I

12

mean the wings are still being made in Japan.

13

Yeah.

14

The fuselage in Italy.

15

We lost control of the design. We lost control of the

16

interface. We didn't provide enough oversight to the

17

subcontractors that were doing the various elements of

18

engineering and manufacturing. On the -9, we've pulled

19

some of that engineering back. As you know, we took

20

over the (indiscernible) facility. We took over the

21

Global Aeronautical facility.

22

Right.

23

So we now have control of some of the fuselage of the

24

airplane. So we have pulled some back for both the -8

25

and the -9. Those lines that we're going to have to

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009447

23

redraw, we're in the process of redrawing those right

now. If you look at a product strategy, a

manufacturing strategy, an outsourcing strategy, an

engineering strategy, all those are very interrelated.

And we're in the process of defining those strategies

right now.

One thing that you did on the 87 was you not only had

Mitsubishi build the wings in J a p a n , but you had them

do the detailed design of the interior of the wing.

10
11

And is that continuing on the -9?

I believe it is. It's not the same wing. The new wing

12

is - it's the same length, but it's a stiffer wing and

13

it's got - carries more load. So it's a different

14

wing. I think that they're still doing the wing design

15

on the -9. We can check that for you.

16

But, you know, given what happened with the 87, and I

17

think if I read what you just said is, you know, an

18

admission that it didn't work very well and that you

19

did make mistakes in outsourcing the work.

20

Well we learned a lot.

21

And you paid for it.

22

We paid for it. .

23

You've had two years' delay. So isn't that an argument

24

for - there's some surprise that despite that, Boeing

25

is nevertheless insisting that the 787 supply chain

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009448

24

model is the one for the future. You'll draw the lines

slightly differently, but you'll stick to that model.

Why when it didn't work so well?

Well_

Or how do you change it to make it work?

I mean it's really easy in hindsight to second guess

decisions that were made. And I think they made a lot

of good decisions on the 787. One that they got the

airplane right. I mean this is going to be an airplane

10

that's very efficient. This is going to be an airplane

11

that I know people are going to want to buy. And this

12

is going to be an airplane that changes the way people

13

travel and changes the way that airplanes are built.

14

But I think we outsourced elements of the airplane to

15

people that didn't have a lot of experience at it. We

16

didn't provide them the kind of oversight and support

17

that was necessary. And we lost control of some of the

18

interfaces. So what do we have to do differently or

19

better going forward? W e l l a g a i n , w e ' r e g o i n g t o

20

redraw those line. And we have to treat any

21

subcontractor in the future as an external factory, as

22

an external design team. And we need to look at them

23

as more than just a company that we throw a

24

specification over the wall to. We need to be much

25

more - but I think that if you talk to me, if you talk

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009449

25

to Jim McNerney, we'll both say that we moved up the

value chain too far and we took on too much risk.

Well I think that strategy is, in part, connected with

what had been a mantra at Boeing for some years,

including at IDS where you were leading, which was .

that Boeing was shifting towards large scale systems

integration.

Right. It was a little different at IDS. You see, we -

yeah, complex large scale systems integration is what

9
10

thiS company does. At IDS, this whole idea of best of

11

industry and being the integrator was not an act of

12

inspiration, it was an act of desperation, in that we

13

didn't have any verticals. We weren't vertically

14

integrated to begin with. And that was a strategy that

15

we put together, because we had no other at our

16

disposal, other than to go out and buy a bunch of

17

companies to get vertically integrated. I think the

18

difference over here is they started off being

19

reasonably vertically integrated and moved up the

20

value chain. And I think in hindsight, we probably

21

moved up a little too far.

22

Well some people definitely saw.that, if we can find

23

ourselves just speaking about BCA, saw this strategy

24

as a move away from the actual building of the

25

airplane towards a more architectural, conceptual

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009450

26

approach early in the stages, deciding the - doing the

marketing analysis, deciding on the market_

Yeah.

_and architecting it. And of course, final assembling

it, but final assembly was relegated to a snap-

together airplane in theory.

Yeah.

At least it hasn't worked out quite like that, but -

9
10
11

but the actual building of the airplanes here in Puget

7 ,

Sound factories was something that was less important

it was work that seemed to be designated lower level

12

work that others could do. Is that the way it goes in

13

future or is that...

1 4 A

You see, I - you know, I would not subscribe to that.

15

You know, my view is there is certain things that you

16

have to keep within your company, you know, those

17

pieces of intellectual property that nobody else in

18

the world understands or knows how to do. And those

19

are things, both from a manufacturing and design

20

standpoint, that you need to keep inside. And then

21

there are other things, seats, galleys, some of the -

22

much of the machining, you know, anybody can do those

23

things. But, you know, why do people come to you? They

24

come to you because you understand things better than

25

anybody in the world understands about airplanes. And

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009451

27

we need to define what those things are, and we need

to hold those things very close. You know, the other

issue that I feel pretty strongly about is if all

you're doing is systems integration then how do you

train the engineers of the future to be systems

integrators? And I think engineers need to come in and

design something. They need to design a part. They

need to see how a part goes into a subsystem, how a

subsystem goes into a system, and how systems of

10

systems interact. You have to have some degree of

11

basic design so you can train the systems integrators

12

of the future.

13

And too much of out that the engineers here didn't

14

have enough to do. So the things you want to protect

15

include the wings?

16

I think that we understand how to build wings as well

17

as anybody in the world, and I think we're

18

demonstrating that on the 737 program where, you know,

19

we're building, what, I guess 62 wings a m o n t h . T h a t ' s

20

pretty good production.

2 1

All right, good. Well the question about your own

22

taking over at BCA. It seems to me, looking on from

23

the outside, that you have approached your job, your

24

new job, eager to shake things up. After some months

25

of review, you had a major management shuffle of

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009452

28

putting different people in different places. You

organized your management retreat and got everybody on

the same page. So I'm just wondering, it does seem

that you are, in some sense, about change. And what

needed changing and what's ahead?

Well I guess first of all, I didn't see that - that

management shake-up that we had as being, you know,

that dramatic. You know, what did we do? We formed an

organization called, you know, Program Management to

10

ensure that we bring the program management and

11

execution discipline necessary to all the programs.

12

And we put them under Howard Chambers, somebody that's

13

been doing development programs for 40 years. I also

14

had a view that we were focused a lot on 787 and 747,

15

and appropriately so. But at the same time, I had a

16

view that we had to be thinking, you know, longer

17

term. You know, what do we need to do on the single

18

isle airplanes? What do we need to do in terms of

19

upgrading the 777 or a brand new 777 s i z e a i r p l a n e s ?

20

And that's why I asked Mike Bair to go focus on the

21

new single isle airplane or an upgraded 737. And you

22

say why Mike? Well, you know, Mike got the

23

configuration of 787 correct, and he's very good at

24

that, and he's very analytical in his thinking. And I

25

know that the decision we make on the 37 will be the

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009453

29

right one. And then we took Lars Anderson and talked

him into coming out of retirement and asked Lars to

focus on the 777 next generation or a new 300 to 400

seat airplane. And Lars was good enough to come out of

retirement to do that. So I would say this

reorganization was really about finding the future,

but also bringing more discipline to how we executive

existing programs. Most of the key players and the

program managers, they didn't change. We had a couple

10

of people retire, so we moved some people around. But

11

I would not call that a major, major change in the

12

organization, other than the focus on the future and

13

the program management discipline. You know, on the

14

off-site - and I'm a new guy on the block and I felt

15

that, you know, the whole team, all the executives,

16

needed to understand what I thought was important. And

17

what I tried to achieve from that meeting was to get

18

alignment of the entire staff on where we needed to

19

go, what the challenges were, what the issues were,

20

and what we all needed to do together. And, you know,

21

there really are only four things. I try to keep

22

things pretty simple for the team. What we have to do

23

is we've got to continue to add value to our

24

customers, that's why they keep coming back. We need

25

to find the future for the Boeing Company. We need to

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009454

30

'
1

develop the leadership team of the future. And we need

to meet the plan. And those are the four things that

we talked about.

The appointment of Howard Chambers to oversee program

management that's specifically, I think, just to

manage projects - it does seem that that's the

perception is Boeing has failed in that here over a

couple of years_

You see, I-

_and they haven't kept control of the programs.

11

Yeah, it's interesting. I think that BCA is

12

extraordinary in their ability to manage production

13

programs. And I don't think anybody, you know, manages

14

a supply chain as well as they do. And just the fact

15

that we're doing 31.5 737s a month and we set a record

16

last year with 88 777s being delivered. We do a great

17

job of program management on production programs. I

18

think the issue was on the development programs, the

19

fact that we hadn't done a major development program

20

in a long, long time and the fact that a lot of the

21

people that had, had retired. And some of the

22

decisions we made on the program were business driven

23

as opposed to being driven by - you know, by the

24

engineering community. And we just took on too much

25

risk.

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009455

31

UNIDENTIFIED FEMALE Jim,

you might also want to

contrast the difference between all the many, many programs

at IDS

Yeah

UNIDENTIFIED FEMALE

And the program management is

really just another function and discipline

Yeah At IDS, we had 300 programs And the vast

majority of the programs are development programs You

know, an A B L program, that's all it is, is a

10

development program The Space Station was a

11

development program that went for 10 years The

12

Ground-based Midcourse Missile Defense Program is a

13

test bed, became a development program, and finally

14

we're installing it But, you know, how you do program

15

management and development programs is something that

16

Howard understands very well, and I think I understand

17

pretty well And we're trying to bring many of those

18

disciplines to the BCA side At the same time,

19

trying to bring a lot of the talents that BCA has,

20

relative to supply chain management, in over to the

21

IDS side So, I mean, there's great synergy within

22

this company And, you know, one of things that I hope

23

to achieve being over here is to encourage even more

24

of that

25

we're

Y o u ' v e talked about potential competitors in the

KRON ASSOCIATES

1113 W Fireweed Lane Suite 200

Anchorage Alaska 99503

(907) 276-3554

NLRB-FOIA-00009456

32

future. I'd like to move on and talk about China. I

believe you're making a second trip to China or have

you just made i t ?

I think I'm going the last week of this month. Yeah.

That's your second trip, right?

Yeah.

So I find it interesting, Boeing, like the United

States itself, has an ambivalent view of China's

enormous growth. It's often portrayed as a potential

10

massive market. It's also portrayed as a potential

11

threat. And when you were head of the defense side of

12

Boeing, perhaps you had to view China one way. But now

13

you're head of BCA and you're making trips to China to

14

sell airplanes. So, you know, recently the U.S. sold

15

arms to Taiwan, which resulted in a threat from China

16

to boycott any companies involved, including Boeing

17

had a small part in that, the missiles.

18

Yeah.

19

Then last week there was a Wall Street Journal piece

20

saying that we should build more F-22s, which of

21

course Boeing builds a big part of here in Seattle,

22

because of the potential threat from China one day. So

23

the question is how do you, in the position you're in

24

now, how do you handle this complex relationship

25

between the U.S. and China and between Boeing and

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009457

33

1
2

China?

Well and I'll tell you, there's not a lot that the

Boeing Company can do about the relationship between

China and the United States. I mean the decision to

sell arms was country to country. It was not a

decision that the Boeing Company, in any way, you

know,

can do is try to be the best customer to the Chinese

airlines and the best partner to some of the joint

got involved in. I think the only thing that I

10

ventures that we have in China that we can be. And I

11

don't worry a lot about things I can't control. What I

12

can control is the relationship that we have with the

13

airlines in China. And we're going to work very hard

14

on those. You know, China is going to have a GDP as

15

big as ours, you know, within the next 20 years. It's

16

an economy that is going to need airplanes. They're

17

developing 34 new airports right now, large airports.

18

And we're developing one here in the United States.

19

They're going to be buying about 200 airplanes a year

20

for the next 20 years. It's a big market for us.

21

They're going to be building their own airplanes. And

22

I have full confidence that they'll build a very good

23

airplane. Maybe not the first time, but eventually

24

they'll get it right. And I spent a lot of time in the

25

space business so I know that going to outer space is

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009458

34

a difficult thing. You've got to go from zero to

22,000 feet in 8.5 minutes - 22,000 feet per second in

8.5 minutes. They did it a lot faster than anybody

thought they could. They have made a national

commitment to building commercial airplanes. They're

going to invest billions of dollars in developing that

capability. They have, you know, many, many times as

many engineers coming out of their colleges as we do.

And they're going to develop a good airplane over

10

time. So, you know, we have to - we have to figure

11

out, and we're working very hard on, what kind of a

12

relationship do we want to have with industry over

13

there and what kind of relationship do we want to have

14

with the airlines in China.

15

And so how much of a threat is the C-919 narrow body

16

jetliner that they're developing? It's supposed to be,

17

I think, 180 seats approximately. It's supposed to

18

enter service in 2016. How big a threat is that to

19

Boeing?

20

Well, they're going to put some of the new engines on

21

them and, you know, they're more efficient engines.

22

And assuming they get the airplane right, and it

23

probably won't be, you know, perfect the first time

24

through, they could have an airplane that competes

25

with the 737, yes.

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009459

35

And what do you do about that?

Well we need to do several things about it. You know,

one - you know, the Boeing Company gets a premium for

the airplanes that they sell. And we get a premium on

the airplanes that we sell, because we create value

for our customer. And that's one of the assignments

that Mike Bair has. You know, what does the next

generation 737 or the next generation single isle

airplane look like? Is it a re-engined 37 next

10

generation or is it a brand new airplane? And we are

11

actively looking at both of those options right now.

12

And we are looking at, you know, having a capability,

13

you know, towards the end of this decade. And it's not

14

just the Chinese. It's also the Canadians with the C

15

Series.

16

And potentially the Russians as well.

17

It's also Embraer who will have an airplane.

So where do you stand on this? As part of the national

18

debate, I think people would be interested to know

19

what a chief executive of Boeing thinks in terms of

20

this threat or market, which is China to the U.S.? Is

21

it a military threat or is it a vast market we need to

22

tap into?

23

You're not going to get the head of commercial

24

airplanes talking about China's military threat, you

25

know, Dominique. I'll leave - again, I'll leave that

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009460

36

to the people in the Pentagon, and I'll leave that to

the policymakers in Washington, D C You know, you

think about China and the United States, you know, our

economies are dependent on each other now, and will be

for the long haul And you look at how far this

relationship has come, you know, over the last - I

guess it's 35 years since Nixon first went over there

And I think, you know, every day, you know, we get

closer and closer together and our economies get more

10

tightly entwined It's not to say that we don't have

11

the periodic bump in the road And, yes, we're having

12

one of those right now But I think there's a lot to

13

be lost on both sides if we don't have a good

14

relationship with China And I think that China has a

15

lot of lose if they don't have a good relationship

16

with the United States

1 7 Q

You know, Bill Boeing's first engineer was Chinese

18

born, Wong Tsoo And it's been noted before that for a

19

global company, Boeing's executive ranks don't - have

20

a surprising lack of diversity

21

example, at your Indian operations and I see the

22

success Dinesh Keskar has had there, an Indian-born

23

executive and president of BCA in India But I don't

24

see that in China There's very few Chinese-American

25

executives, which is a little surprising given that

Now I look, for

KRON ASSOCIATES

1113 W Fireweed Lane Suite 200

Anchorage Alaska 99503

(907) 276-3554

NLRB-FOIA-00009461

37

1
2
3

we're in Seattle, we're on the Pacific Rim...

Yeah.

-and we've gcit a great Asian-American community here.

And think of the cultural impact of Gary Locke, the

governor of Washington, going to China trying to help

sell Boeing airplanes. How come you don't have more

such faces?

And it won't be long and we'll give you a call.

10

Stay tuned. You'll be the first person we call, okay?

Okay, thanks. We're running out of time so a few

11

important topics to cover. One of them is tanker. You

12

and other Boeing executives have talked about the

13

unique Boeing advantage of building both commercial

14

platforms and the military systems and how you

15

leveraged that. You did it for the Poseidon and-.

16

Yeah.

17

m(indiscernible) that's built in Renton. So you

18

installed all the military's hardware inline on

19

(indiscernible) assembly.

20

Yeah.

21

Is that what's going to happen on tanker, if you win

i t ? Will you do that in Everett?

22
23

We will do as much as we can in Everett. We'll make

24

all the structural modifications that we can. We'll

25

install some of the mission-specific equipment that we

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009462

38

need to make it a tanker. But the hoses and the drogs

(ph) and the bladders, some of those things will be

installed in Wichita. But as much as we can install

up-front inline, you know, that will drive the cost of

doing business down. And that's what we plan on doing.

Well the tanker RFP that just came out, in the

estimation of outside observers, puts you in the

favored position to win that.

You know, I'm very intrigued by that. You know, it's

10

very hard to write an RFP for dissimilar airplanes.

11

And I think the U.S. Air Force did a pretty good job

12

of doing that. I mean there are things in that RFP

13

that we don't like. And, you know, I understand from

14

what I read in the paper, there are things that

15

Northrop doesn't like. But it's not a perfect RFP for

16

either one of us and they are puts and takes for both.

17

You know, I read that thing and, you know, I don't

18

read it as a lay-down hand for the Boeing Company. And

19

I'm assuming that (indiscernible) is going to bid.

20

Well is there any sense of embarrassment at the

21

company that should you win it this time, you've done

22

it by a political backlash that caused them to rerun

23

the competition?

24
25

I guess I don't understand. I don't think that there's

political backlash that caused this thing to be re-

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009463

39

competed. I think the GAO took a look at the decision

making process and felt that there were errors in how

they came to the decision they came to. I mean let's

review the - let's review the tape here. We had 98

strengths, they had 30. We had one weakness, they had

five. There was no credit to be given for fuel of

above a certain threshold level, they were given that.

And the GAO looked at the decision making process and

it was flawed. That's why they're doing the re-

10
11

compete. It has nothing to do with politics.

But the Congressional support that you have - you, way

12

back as early as the early 2000s, were...

1 3 A

You know, I appreciate Congressional support. But I

14

don't think there's been a competition that I've been

15

involved in, in my career, that has been decided by

16

people on Capitol Hill. It gets decided by the

17

procurement people in the Pentagon based on their RFP.

18

And where they don't make their decision based on the

19

RFP, you know, companies have the opportunity to

20

protest, which we did, and in which we do very

21

infrequently. And they found in our favor.

22

One political issue that's come into the whole tanker

debate is WTO, and I'd like to go to that now.

23
24

Yeah.

25

The WTO finder was guilty of taking illegal subsidies.

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009464

40

And an outcome in the European countersuit is expected

this summer, which could find you similarly liable,

maybe, maybe no. But what I want to ask you is this.

Embraer and Bombardier went through this whole thing,

suing each other at the WTO, for illegal government

loan subsidies. They were both found guilty and it

didn't change a thing. Nothing happened. And, you

know, Bombardier is making the C Series now and

they're getting government money to help do it. So

what's the point? Where can these WTO suits go?

10

11

Well, you know, first of all you've got to remember,

12

Dominique, that we didn't bring the WTO suit. The

13

Administration of the United States of American

14

brought that suit.

15

They wouldn't have done so if you didn't want it.

1 6 A

They brought the suit because, in their view, the

17

United States and its industries had been damaged by

18

illegal subsidies that were in violation of the WTO

19

rules. I mean that's why the lawsuit was brought. And

20

clearly the Administration feels that those subsidies

21

were illegal. And the WTO feels the same way, at least

22

that's their - the preliminary judgment that they've

23

laid down.

2 4 Q

Well certainly some people see it as politics...

2 5 A

Well_

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009465

41

tanker.

2
3

-to block - in part, it helps to try to block the

So, you know, we're building the 787 the old fashioned

way. We're using our own money. On the A-330, you

know, based on the WTO case, you know, they had launch

subsidies of close to $6 billion. You know, that's a

significant advantage for them that we don't enjoy.

You know, we have to cover our own costs. And, you

know, we would have like to have seen something in the

lo

RFP that accommodated the launch subsidies that they

11

got. It's not there. And we're competing. We're not

12

crying foul. We're going to do the best we can with

13

the proposal.

14

Do you have any expectation about the outcome of the

15

countersuit, which is pending this summer, where

16

Boeing is accused of illegal subsidies (indiscernible

17

- interrupted)?

1 8 A

Based on everything I know, I feel pretty good about

19

the outcome. Of course then again,

20

thought we were going to win the tanker contest last

21

time. As I've told people, there's only one more - one

22

person more surprised that we lost the tanker than me

23

and that was (indiscernible) that they won.

24
25

D o m in iq u e ,

You mentioned earlier'in this conversation that being

number two in a duopoly puts you in last place and you

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009466

42

don't want to be in last place. So since we're

discussing this rivalry with Airbus, where do you see

that - how do you see that playing out in the next few

years?

When we start delivering the 787s in quantity, and

that's going to start in 2012, 2013, you know, we

should, you know, take the number one position, you

know, relative to airplane deliverie. We ought to

overtake them in 2012, 2013, that timeframe. But I

10

think, you know, longer term, it's easy to get the

11

most orders and it's easy to make the most deliveries.

12

All you have to do is just give the airplanes away.

13

We're not going to do that. If I look at, you know, 10

14

years from now, we're going to have a brand new 47;

15

we're going to have a brand new 87; we're going to

16

have a major upgrade of the 737 or a new small

17

airplane; and we're going to have a major upgrade to

18

the 777 or we're going to have a new 300 to 400

19

passenger airplane. I mean we're going to

20

new set of products in the marketplace. And these are

21

products that are going to create great value for our

22

customer. And when you create value for the customer,

23

you're going to sell airplanes. And we should be

24

number one for a long time to come. And you know why

25

we're going to be number one? It's because of those

h a v e a w h o le

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009467

43

75,000 people here in Puget Sound that get up in the

morning and put their badge on and walk through the

doors. I mean those are the people that make it

happen. And I could go tomorrow, and they could

replace me pretty quick. But it's the collective

knowledge of our team that allows us to do the things

that we do. And they're the ones that will make it

happen.

There's an expectation of restraint today in corporate

10

executive bonuses. Boeing -- a lot of Boeing's money,

11

half of its revenues, comes from the government. And

12

you're laying off thousands of people right now, but

13

you got a special $3 million bonus on top of your

14

regular bonus for staying - for switching jobs. How is

15

that justified (indiscernible - interrupted).

1 6 A

No, they didn't make me any promises when I came here.

17

And I didn't ask the Board of the Comp Committee for

18

this. And I certainly appreciate, you know, what

19

they've done, but it's not something that I asked them

20

to do. And, you know, I do intend to continue to work

21

here as long as the company will let me stay.

2 2 Q

Do you understand why it doesn't look good to workers

23

getting laid off when executives get million-dollar

24

bonuses?

2 5 A

Well my job is to make sure that workers don't get

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009468

44

laid off. I mean I think that I've got an unwritten

bond with the employees that my job is to profitably

grow this place. And at the same time I'm asking them

to be more efficient, that allows us to sell our

planes for less, that allows us to sell more planes,

that allows us to create jobs or at least keep the

level of jobs at the same number that it's at today.

And that's what I think my job is.

Okay. I'm going to stop there.

10

Okay.

1 1 Q

Thank you very much.

1 2 A

All right, Dominique. Thanks.

13

(End of proceeding.)

14

15

16

17

18

19

20

21

22

23

24

25

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009469

45

1
2

TRANSCRIBER'S CERTIFICATE

I, Gloria Schein, hereby certify that the foregoing

pages numbered 2 through 44 are a true, accurate and

complete transcript of Interview of Jim Albaugh, transcribed

by me from a copy of the digital sound recording to the best

of my knowledge and ability.

Date

Gloria Schein

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska 99503

(907) 276-3554

NLRB-FOIA-00009470

JIM A L B A U G H IN T E R V IE W B Y D O M IN IC G A T E S'

M arch 1,2010

T R A N SC R IP T

F IL E N O .1

D om inic

B ut you know I feel im pelled to ask som e hard questions on behalf of basically

the com m unity of W ashington as a result of last year's


. L ast year

w e had the decision to locate the second 787 line in C harleston. A nd then

subsequently announced that all 787 w ork for the Puget Sound area w ould be

duplicated elsew here. So I think the local com m unity is clearly w orried about

B oeing's future here. T hat's som ething that's follow ed on from you m oved

the headquarters in 01 and there have been repeated threats that future w ork

m ight not be here. So last year seem ed to really increase that feeling. So w hat

is B oeing's com m itm ent to W ashington State?

A lbaugh

W ell this is the headquarters of the B oeing C om m ercial A ircraft. A nd it w ill

be I think for probably forever. T he issue last Fall w as really about how w e

could ensure production stability and how w e could ensure that w e are

com petitive for the long haul. W e had som e very productive discussions w ith

the U nion and unfortunately w e just didn't com e to an agreem ent w here w e felt

w e could ensure production stability. A nd w e read that as getting aw ay from

the frequent strikes that w e're having. A nd also could w e stop the rate of

escalation of w ages. A nd w e just could not get to a place w here w e both felt

w as a w in for both ourselves and the U nion,so w e m ade the decision to go to

C harleston. N ow its m y hope, and I w ill tell you D om inic,m y preference is to

do the w ork here in the future. B ut w e'll do w ork here if w e can m ake sure

that w e have the stability of the production lines and that w e can be

com petitive over the long haul.A nd those are the tw o things that I think I have

to ensure our custom ers and I have to ensure also the stockholders of the

B oeing C om pany.

D om inic

So looking now into the future,now that you have decided on having this other

plant in C harleston,how do you see the geographic shift of B oeing and the

balance there betw een those tw o icoastal plants.

W ell, I guess I don't really see it as a balance. C learly the center of gravity is

here in Puget Sound and w ill continue to be here in Puget Sound. A nd I'm

very hopeful, as w e continue to have discussions w ith the U nion, that w e'll be

able to com e up w ith w ays of being com petitive here,and w e can com e up

A lbaugh

1 T his transcript w as created from video of the interview available on T he Seattle T im es w ebsite at

http //seattletim es.nw source.com /htm l/nationw orld/2011237525_albaughvideo.htm l

-I-

E x. 8 - B o ein g , Ju ly 9, 2010 (19-C A -32431)

NLRB-FOIA-00009471

w ith w ays of ensuring that w e're not gonna have labor strikes.A nd if w e can

get through those tw o hurdles,w e're gonna be doing w ork here for a long long

tim e.A nd there are no discussions of m oving any w ork that's currently here

out of Puget Sound.


D om inic

R ight,but of course its future w ork that people are w orried about.W hat are

the chances thatthe nextnew jet after the 787 w ill be built here?

A lbaugh

Y eah,I'll tell you,the com m itm ent that I can give you is that the first

preference is to put the w ork here.B ut w e have to ensure ourselves that w e're

gonna have a stable production line and w e have to ensure thatw e can be

com petitive over the long haul.If w e don't,w e're not gonna be selling any

airplanes.A nd I think that's the w orse outcom e for Puget Sound and that's the

w orse outcom e for the com pany.

D om inic

W ell,so w hen the tim e com es to announce the launch of a new airplane

program ,w hich could com e in a few years,you w ould say launch a new

airplane program and that's the plan for it.A re w e going are the people of

this State once again going to face a com petition w ith all the states in the U .S.?

A lbaugh

I guess I don't really view it as a com petition.

D om inic

B utitw as lasttim e.

A lbaugh

I don't think it w as.It w as not a com petition.W hat it w as w as,again,w e've

had strikes three out of the last four tim es w e've had a labor negotiation w ith

the JA M .A nd I'm not blam ing that on the JA M .I m ean that is an issue

betw een m anagem ent,created by m anagem ent,and created by labor.Y ou

know ,w e need to im prove the relationship that w e have.A nd w e've got to get

to a position w here w e can ensure our custom ers that every three years they're

notgonna have a protracted shutdow n. Y ou know , w e have custom ers right

now that are telling us that in contracts they don't w ant to w rite in excusable

delays for strikes.T hat's not a situation that's good for us.T hat's not a good

situation for them .It's not a good situation for labor.A nd if one projects out

another 15 years,w e're not just gonna be com peting against the E uropeans.

W e'll be com peting against the E uropeans and the B razilians,the C anadians,

and the C hinese,and the R ussians.A nd w e have an obligation to m ake sure

that as w e com pete against not just one but com pete against four,w e have got

a coststructure and productivity capability thatw ill allow us to continue to

com pete.

D om inic

In saying that it w asn't a com petition,clearly you're referring to the C harleston

decision last year.B ut I w as referring to the '03 com petition w hen B oeing

actually had a form al com petition to find out W here they w ere gonna build the

787.

-2-

NLRB-FOIA-00009472

A lbaugh

W ell I w asn't involved in that one and....

D om inic

So the question is w ill there be another com petition like that w hen you build

the next ...

A lbaugh

I don't think I w ould if I'm involved,I'm not gonna have a com petition like

that,I can tell you that.B ut w hat w e are gonna do is study very hard,w ith the

first option being here,to m ake sure that w e do the right thing for the

custom er,w hich m eans not have labor stoppages and do the right thing for the

custom er to give them the kind of value that they w ant in the airplanes.

D om inic

Just to dw ell on the C harleston expansion for a m om ent,it does seem to m e

that the com plexity and expense and risk attached to doing all that there is

som ething that's hard to justify.D oes it really m ake business sense?

A lbaugh

T here's no question that w henever you go to a greenfield site there is risk

involved.A t the sam e tim e,w ith the protracted labor stoppage that w e had

back lastI guess the Fallof 2008 I m ean thatcostthe com pany billions of

dollars.A nd I think if you com pare w hat it cost because of the stoppages

- versus the cost and the risk of starting a new line in C harleston,I think the

investm ent certainly is the right one for us to m ake.

Fem ale

[illegible too far aw ay from m icrophone]

A lbaugh

Y eah.A bsolutely.A gain,m y first preference w hen I started looking at this

last Fall w as to stay here,and w e justcould not get over those tw o hurdles.

H ow do w e ensure stability of m anufacturing and how could w e ensure that

labor costs w eren't gonna continue to escalate.

D om inic

D o you think a chance w as m issed to I m ean you have a labor problem ,that

w as clear.Y ou just had that strike.Y ou have a big relationship w ith the

U nion problem .Potentially you could have fixed that and got your production

here and not have the expensive at C harleston.W as it a chance m issed?

A lbaugh

W e tried.W e did not get there.A nd you can blam e both sides for that.A nd

over the next couple of years w e're gonna do everything w e can to w ork w ith

the U nion to m ake sure that w e don't have another stoppage and that w e have a

path to com petitiveness over the long haul,and that w e get the kind of

relationship w ith the U nion w here w e don't have to w orry about labor

stoppages in the future.Y ou know ,this is a great w ork force here.T hey are

m agicians.T hey do things that I don't think any labor force in the w orld can

do.A nd I feel m y job is to m ake sure they have jobs five years from now ,ten

years from now ,tw enty years from now .B ut w e're not none of us are gonna

have jobs if w e continue to have strikes that go on for three or four m onths,

every three years.

-3-

NLRB-FOIA-00009473

D om inic

So,to sum up the C harleston decision,let's be clear.T he C harleston decision

itw asn't aboutW ashington's business plan,right?

A lbaugh

Itw as not.

D om inic

It w as not about trying to get low er labor costs going w here w ork is cheap.It

w as about the strikes.

A lbaugh

It w as about ensuring to our custom ers that w hen w e com m it to deliver

airplanes on certain dates,thatw e actually do deliver.A nd w e have lost our

custom ers have lost confidence in our ability to do that because of the strikes.

T he other thing is the rate of escalation for the w ages.T hey continue to go up

in dram atic fashion.Y ou know ,how can w e flatten that out.T hose are the

tw o things thatw e are after.

D om inic

W ell,lets just m ove on to talk about the U nion in a little bit m ore detail.Y ou

know w hen you cam e here,I think it w as last July,for the rollout of the

Poseidon atthe subplantin R enton,you talked about you praised thatthe

m en and w om en at Puget Sound have m ade this possible.

A lbaugh

Y eah.T hey're fabulous.

D om inic

A nd you just repeated that here.A nd yet,that w as in July,and then in the Fall.

It seem ed like a slap in the face to the people here to say that w e're gonna

build itsom ew here w e're gonna take the 787 w ork som ew here else.

A lbaugh

Y eah,you see,I guess I don't see it as a slap in the face D om inic.I think that

if w e don't have a com pany nobody has jobs.A nd if w e can't m eet the

prom ises w e m ake to our custom ers relative to delivery of aircraft,w e're not

gonna be in the business.If w e continue to have costs that go up faster than

the com petition,w e're not gonna be selling any airplanes.T his is about

m aking our com pany com petitive over the long haul.B y going to C harleston,

I believe that w e're gonna help reduced costs here.N ow you say how is that

possible? W ell the average cost of an airplane built here and the average cost

of an airplane built in C harleston goes into a program accounting.T he average

unit price of an airplane should go dow n as a result of our being in C harleston.

T hat w ill create m ore dem and for airplanes built here and in C harleston.

D om inic

B ut how big a com ponent of that average cost of an airplane is actually labor.

It's not a big chunk of it,is it?

A lbaugh

Its nota big chunk.Its again I'm not gonna give you the exact percentage.

It's a significant percentage.Its less than half certainly.B ut again,I think the

other bigger part of it is w hen w e com m it to delivering an airplane,people put

together their business plans based on assum ing they're gonna get delivery on

certain dates.A nd w hen they don't get delivery it im pacts their ability to m eet

their business plan to m ake m oney and to buy m ore airplanes in the long haul.

-4-

NLRB-FOIA-00009474

A nd they w ill think tw ice the next tim e they decide to buy an airplane from us

or from A irbus or 10 years from now from the C anadians or the C hinese,or the

B razilians.T his is gonna be a very com petitive w orld w e're in,m uch m ore

com petitive than its been to date.W e've enjoyed a duopoly here.A nd all the

rules are gonna change.A nd you know w hen you're in a duopoly,as w e are

and you're in second place,you're last place.I don't w ant to be in last place.I

w antto be in firstplace.

D om inic

So given w hathappened w ith the U nion lastyear,the failure to reach

agreem ent resulting in that decision....

A lbaugh

A nd blam e that on both of us; the fact w e didn't get there.

D om inic

W ell,justforgetting aboutblam e,I'm w ondering w ellletm e ask,firstof all,

w hat is your attitude to U nions?

A lbaugh

I've alw ays gotten along great w ith U nions.I've ,w orked w ith them .I've

w alked the concrete w ith them .I've listened to them .I've w atched them do

am azing things relative to productivity.I've seen them w ork m iracles out

there in the production line.Y ou see that every day dow n in R enton.Y ou see

that every day up at E verett on the T riple 7 w here they're m aking huge strides

relative to productivity.

D om inic

W ell,that's the w ork force,but the U nion itself.B oeing has often portrayed

the U nion as an obstacle betw een itself and its w ork force.

A lbaugh

Y ou know w here there is an issue w ith the U nion that's a reflection on

m anagem ent.W e create the environm ent.W e create the culture.A nd m y

hope is that w e can have good relationships at the top,allthe w ay dow n to the

people on the factory floor.I w as in a m eeting last w eek in W ashington,D .C .

w ith som e of the leadership w ith the IA M ,and w e had m any things that w e

agree on.A nd I think as w e go forw ard I hope there are m ore things w e agree

on because neither one of us are gonna be in very good shape unless w e're

selling airplanes.

D om inic

W as M r.B uffenbarger there?

A lbaugh

M r.B uffenbarger w as not.

D om inic

W ell,but given w hat happened last year,you're now the new guy in position,

and you've got the poison that entered the relationship as a result of failed

talks.H ow do you fix it now ?

A lbaugh

I think you fix it by com m unicating.A nd I think that the IA M understands

that w e're entering a global econom y,global com petition.Its gonna be m ore

than just ourselves and the E uropeans.A nd our ability to be productive,you

know our ability to keep the prom ises that w e m ake to our custom ers,those are

-5-

NLRB-FOIA-00009475

the things that are gonna dictate w hether or not w e have a com pany and

w hether or not w e're selling airplanes in years to com e.A nd I think that once

w e agree on w here w e need to go together,w e can figure out a w ay to get

there.

D om inic

W ell,obviously you'd like a better relationship w ith JA M and you w ould hope

to achieve it.B ut does the cost of labor here m ean that B oeing is alw ays gonna

favor som e non-U nion alternative because it is gonna be cheaper?

A lbaugh

Y ou know you look at the installed base that w e have here.Y ou look at all the

tooling that w e've invested here.Y ou look at all the training and the skilled

w ork force that w e have here.Y ou look at the ability of this team to take cost

out of an airplane.T hose count for a lot.T hose count for just as m uch,if not

m ore,than just the w ages.B ut again,the w ages have gone up dram atically and

w e need to have the knee of that curve inched over a little bit.W e can't

continue to go on w ith the dram atic fashion w e have in the past.

D om inic

I'd also like to point to a certain


E N D O F FIL E 1

FIL E N O .2

and you've got heavy congressional support on that.

D om inic
A lbaugh

W e do.

D om inic

A nd that support in congress is based on the need to protect good A m erican

jobs.A nd w hen they talk about good A m erican jobs and w ell paying

A m erican jobs,they're contrasting it to non-U nion jobs in A labam a.A nd the

U nion delivered thatcongressionalsupportlargely w ellnotjustthe U nion,

but a big elem ent. T hose dem ocratic politicians w ho are U nion supported.

T hat's a big elem ent.A nd so the U nion has delivered that for you.W hat do

you give to the U nion?

A lbaugh

W e got 60,000,now w e got 75,000 jobs here in Puget Sound.A nd w e're

gonna have tens of thousands of jobs for years to com e.B ut w e're talking

about C harleston w here w e m ay have 3,or 4,or 5,000 people.Y ou know ,

clearly the U nion recognizes that,certainly the politicians in the State of

W ashington,the elected officials,understand that this is the center of gravity.

A nd that's not gonna change.T he 767 airplane in its entirety is gonna be built

here by the w orkers that have built this airplane in the past.N othing is gonna

change in that regard.A nd the last tim e I checked,in C harleston those w ere

U .S.C itizens dow n there.

D om inic

B ut again non-U nion and m uch low er paid jobs.

-6-

NLRB-FOIA-00009476

A lbaugh

T hose are w ellpaying jobs dow n there.

D om inic

B y the w ay,do you have any concerns as you look at the future? W ell you've

already,you've agreed w ith m e that the business clim ate here w asn't a

particular factor in that decision last year.O f course all the states in the U nion

in the currentdow nturn are in terrible financial trouble,budgetary trouble,

South C arolina as w ell as W ashington.D o you have any concerns about

changes ahead that m ight affect your future here in this state in term s of ....

A lbaugh

W ell I think you can probably say thataboutall the states in the country right

now w ith the econom y being w hat it is.B ut again,the overriding factor w as

not the business clim ate and it w as not the w ages w e're paying people today.

It w as that w e can't afford to have a w ork stoppage every three years.W e

can't afford to continue the rate of escalation of w ages as w e have in the past.

Y ou know ,those are the overriding factors.A nd m y bias w as to stay here but

w e could not get those tw o issues done despite the best efforts of the U nion

and the best efforts of the com pany.

D om inic

Y ou're on the com pany's executive council,so there is certainly a perception

thatchief executive M cN erney(?) drove thatC harleston decision and that som e

people here w ere not too happy about it.W ere you a part of that decision?

A lbaugh

W ell,I w as the one that m ade the presentation to the board of directors.A nd I

w ent into this thing feeling thatif w e could getit done here,w e could save the

com pany a lot of m oney.A nd there w ere tw o things that I needed,as I

m entioned.A nd w e couldn't get those tw o things done.A nd not getting those

tw o things done,I m ade the recom m endation that I thought w as the right one.

A nd that w as to go to C harleston.

D om inic

So,before w e leave that subjectentirely,there's one lastthing.

A lbaugh

Som ehow I knew you w ere gonna talk about this D om inic.

D om inic

So there are they've been talking for m any years -- B oeing is outof here,

B oeing is leaving,B oeing doesn't like us anym ore.C an w e,as a just final

question on that topic....

A lbaugh

Y ou can put that one to bed.I m ean w e've got a terrific w ork force here.

W e've got engineers w ho have m ore depth and breadth of know ledge about

building airplanes m ore than anyplace that I've ever been.W e've got a

talented w ork force.Y ou know ,this is w here our people w ant to live.T his is

w here w e w ant to be.W e've had a great partnership w ith the State of

W ashington.I hope its one that continues for a long long tim e to com e.

A gain,I preface itby or caveatitby saying thatitis gonna be a m uch m ore

com petitive environm ent out there in the future.A nd w ork anyplace is notan

entitlem ent.

-7-

NLRB-FOIA-00009477

D om inic

Sounds like if you can fix things w ith the m achinists then the outlook for here

looks an aw ful lotrosier.

A lbaugh

I sure hope it does.T hat's I'm gonna be here a few years,and I w ould like

nothing better than to get a great contract w ith the U nion and put to bed the

concern our custom ers have about our ability to deliver on the prom ises w e

m ake.

D om inic

Y ou m entioned the engineers here.I w ant to talk about that.O ne of the things

you did w hen you cam e here in O ctober,you established an advisory group.

,Joe Sutter,

T he old-tim e B oeing people.People like John


.People associated w ith the old style of B oeing.A nd then in

January B oeing elevated nine engineering leaders to the m ove that w as spun as

harking back to the early days w hen aerospace com panies w ere driven by

engineering culture.So I w ant to ask you,you are an engineer? Y ou started as

an engineer.Is that a specific goal,to reinstate the prim acy of engineering w ith

in B C A ?

A lbaugh

I think decisions need to be driven m ore by engineering and less by the,w hat

I'll call the business decision-m akers.I think on the 787 program w e m ade

som e decisions that took on m uch m ore risk than w e should have taken on.

Som e of these outsourcing decisions w ere w e did notconsider the extent

the risk that w e'd take on by going outside.A nd I think that w e are and w e

w ill m ake sure that the engineers and the voice of the engineers is m uch m ore

involved in the decision-m aking as w e go forw ard.B ringing the senior

advisory group in a lotof people leftthis com pany during the m erger,right

after the m erger.A nd a lot of people left I think right after 2000,2001 because

they didn't see us developing any new program s.A nd w e lost a lot of the

heritage of this com pany.A nd going into the 787 program ,w e didn't have a

large group of people that had ever been through a developm ent program

before.T he great thing about the 747,the 787 is w e're training a w hole new

generation of engineers and program m anagers on how to do developm ent

program s by bringing back Sutter and R oundhill and Q uim alivin(?) and those

icons in the B oeing com pany.W e're getting the benefit of hundreds of years

of know ledge and experience and they are people that I listen to,they're

people that I w ant to get m y team in front of so they can get the benefit of their

history and the benefit of the things that they've done right and the things that

they have done w rong over the years.Y ou know ,the w hole issue of the iconic

engineers.Y ou know I started that w ith John T racey in the old ID S

organization.W hen I grew up,the sheriff in tow n w as the chief engineer.Y ou

didn't do anything w ithout getting the chief engineer on board.A nd if you

didn't get him on board and you w ere w rong,it w as not a good situation.A nd

I pushed John very hard thatw e needed to elevate the iconic engineers in this

com pany.T hey needed to get m ore recognition.T hey needed to be m ore

involved.A nd w ith som e of the changes that w e m ade by prom oting the eight

or nine vice presidents into engineer,I think,into engineering does that.

-8-

NLRB-FOIA-00009478

D om inic

A nother aspect of the relationship w ith your engineers is your relationship w ith

another union w hich is SPE E A . A nd it does seem to m e that that relationship

has been adversarial for aw hile.If you w ant to elevate engineers,w hy so

adversarial w ith SPE E A .

A lbaugh

Y eah w ell,I don't have all the history.Y ou probably know m ore about it than

I do D om inic.T his place doesn't run w ithout engineers and it doesn't run

w ithout m achinists.A nd I think that w hat w e need to do w ith our engineering

organization is be realclear about w hat partof engineering do w e w ant to do

here.A nd I think w hat happened w ith the 787 w as w e outsourced things

w ithout explaining to the engineering com m unity w hy.A nd one of the things

that I sat dow n w ith our new chief of engineering,you know M ike D elaney,is

w e need a strategy w hat are those things,w hatis thatlP that w e're gonna do

here.W hat are those tasks that only the B oeing com pany understands the

things thatw e need to hold close.T he flightcontrols never outsource that.

T he w ings -- never outsource that.T he fuselage,the com posites don't

outsource those.W e need to define very clearly things that w e should do and

have to do and those things that anybody can do.A nd those things that w e

need to do to hold on to our IP,w e need to build the w alls around those very

high.A nd I think w e need to go and com m unicate to the U nion of SPE E A and

the U nion,IA M U nion.W hat are those things that w e w ant to hold close and

hold dear.W e outsourced too m uch.

D om inic

Y eah,w ell,I definitely w ant to talk about that.Y ou just said you never

outsource the w ings.Isn't it too late,you've already outsourced the w ings to

Japan.

A lbaugh

W ell w e have.W e'll build other airplanes.

D om inic

So M itsubishi is not gonna be building ....

A lbaugh

I didn't say that.I didn't say that.T hose are exam ples.T hose are exam ples.

D om inic

W ell actually you and M r.M cN erney have talked repeatedly in various venues

about this issue and w hat you said is you're gonna draw the lines differently.

T hat's the phrase that you use.A nd I'm w ondering if you could just elaborate

a little bit on w hat that m eans.In particular,for exam ple,I understand its

already happening in the 787-9,the second version of the 787 thatyou are

outsourcing less of it than you did on the dash 8.B ut how exactly,I m ean the

w ings are still being m ade in Japan,fuselage in Italy.

A lbaugh

W e lost control of the design.W e lost control of the interface.W e didn't

provide enough oversightto the subcontractors thatw ere doing the various

elem ents of engineering and m anufacturing.O n the dash 9 w e pulled som e of

that engineering back.A s you know ,w e took over the V ought facility.W e

took over the G lobal A eronautical Facility.So w e now have control of som e

of the fuselage of the airplane.So w e have pulled som e back for both the

-9-

NLRB-FOIA-00009479

D ash 8 and the D ash 9.T hose lines that w e're gonna have to redraw ,w e're in

the process of redraw ing those right now .If you look at a product strategy,the

m anufacturing strategy,an outsourcing strategy,an engineering strategy,all

those are very interrelated,and w e're in the process of defining those strategies

rightnow .

D om inic

O ne thing that you did on the 87 w as you not only had M itsubishi build the

w ings in Japan,but you had them do the detailed design of the interior of the

w ing.A nd is that continuing on the D ash 9?

A lbaugh

I believe it is.Its not the sam e w ing,the new w ing.It's the sam e length,but

it's a stiffer w ing and its got it carries m ore loads.So it's a different w ing.I

think that they're still doing the w ing design on the D ash 9.W e can check that

for you.

D om inic

B ut,you know ,given w hat happened w ith the 87,then I think I read w hat you

just said as an adm ission that it didn't w ork very w ell and that you did m ake

m istakes in outsourcing the w ork.

A lbaugh

W e learned a lot.

D om inic

A nd you paid for it.Y ou've had tw o years delay.So isn't that an argum ent

for som e surprise that despite that B oeing is nevertheless insisting that the 787

supply-chain m odel is the one for the future.Y ou draw the line slightly

differently,but you'll stick to that m odel.W hy,w hen it didn't w ork so w ell?

O r how do you change it to m ake it w ork?

A lbaugh

Its really easy in hindsight to second guess decisions that w ere m ade.A nd I

think they m ade a lot of good decisions on the 787.O ne that they got the

airplane right.I m ean this is gonna be an airplane that's very efficient.T his is

gonna be an airplane that I know people are gonna w ant to buy. A nd this is

gonna be an airplane that changes the w ay people travel and changes the w ay

that airplanes are built.B ut,I think w e outsourced elem ents of the airplane to

people that didn't have a lot of experience at it.W e didn't provide them the

kind of oversight and support that w as necessary.A nd w e lost control of som e

of the interfaces.So w hat do w e have to do differently or better going forw ard.

W ell,again,w e're gonna redraw those lines and w e have to treat any

subcontractor in the future as an external factor,as an external design team .

W e need to look at them as m ore than just a com pany that w e throw a

specification over the w all to.W e need to be m uch m ore but I think that if

you talk to m e,if you talk to Jim M cN erney,w e'll both say that w e m oved up

the value chain too far and w e took on too m uch risk.

E N D O F FIL E 2

FIL E N O .3

-10-

NLRB-FOIA-00009480

D om inic

W ell,I think thatstrategy is in part connected w ith w hathad been a m antra at

B oeing for som e years including at ID S w here you w ere m eeting w hich w as

that B oeing w as shifting tow ards large scale system s integration.

A lbaugh

W ell,actually it's a little different at ID S you see.W e,yeah,com plex large

scale system s integration is w hat this com pany does.A t ID S,this w hole idea

of best of industry and being integrator w as notan actof inspiration,it w as an

act of desperation,you know ,w e didn't have any verticals.W e w eren't

vertically integrated to begin w ith.A nd that w as a strategy that w e put

together because w e had no other atour disposalother than to go outand buy a

bunch of com panies to get vertically integrated.I think the difference over

here,is they started off being reasonably vertically integrated and m oved up

the value chain.A nd I think in hind sight,w e probably m oved up a little too

far.
.

D om inic

W ell,som e people definitely saw that,if w e confine ourselves to speaking

about B C A ,saw this strategy as a m ove aw ay from the actual building of the

airplane tow ards a m ore architectural,conceptual approach early in the stages,

doing the m arket analysis deciding the


and architecting it.A nd,of

course,final assem bling it.B ut final assem bly w as relegated to a snap-

together airplane,in theory,at least it hasn't w orked out quite like that.B ut

the actual building of the airplanes here in PugetSound factories w as

som ething that w as less im portant.It w as w ork that seem ed to be designated

low er level w ork that other could do.Is that the w ay it goes in future or is

that...

A lbaugh

See,I w ould not subscribe to that,you know ,m y view is there's certain things

that you have to keep w ithin your com pany,you know ,those pieces of

intellectual property that nobody else in the w orld understands or know s how

to do.A nd those are things both from a m anufacturing and design standpoint

that you need to keep in sight.A nd then there are other things,seats,galleys,

som e of the,m uch of the m achining,you know ,anybody can do those things.

B ut w hy do people com e to you? T hey com e to you because you understand

things better than anybody in the w orld understands about airplanes. A nd w e

need to define w hat those things are,and w e need to hold those things very

close.Y ou know ,the other issue that I feel pretty strongly about is if all

you're doing is system s integration,I m ean,how do you train the engineers of

the future to be system s integrators.I m ean,I think engineers need to com e in

and design som ething.T hey need to design a part.T hey need to see how a

part goes into a subsystem ,how a subsystem goes into a system and how

system s of system s interact.Y ou have to have som e degree of basic design so

you can train the system s integrators of the future.

D om inic

I have too m uch of that so that the engineers here didn't have enough to,so the

things you w ant to protect include the w ings?

-1 1-

NLRB-FOIA-00009481

A lbaugh

I think w e understand how to build w ings as w ell anybody in the w orld,and I

think w e're dem onstrating that.In our 737 program w e're,you know w hat? I

guess building 62 w ings a m onth.T hat's pretty good production.

D om inic
.

A lright.G ood.W ell,the question about your ow n taking over at B C A ,it

seem s to m e looking on from the outside,that you have approached your job,

your new job,eager to shake things up.A fter som e m onths of review ,you

have a m ajor m anagem ent shuffle of putting different people in different place.

Y ou organized your m anagem ent retreat and got everyone on the sam e page.

So I'm just w ondering,it does seem that you are,in som e sense,about change.

A nd w hat needed changing and w hat's ahead?

A lbaugh

W ell,I guess first of all,I didn't see that m anagem ent shake up that w e had as

being that dram atic,you know ,w hat did w e do? W e form ed an organization

called Program M anagem ent to ensure that w e bring the program m anagem ent

and execution discipline necessary to all the program s.A nd w e put them

under H ow ard C ham bers,som ebody that's been doing developm ent program s

for 40 years.I also had a view that w e w ere focused a lot on 787 and 747 and

appropriately so.B ut at the sam e tim e,I had a view that w e had to be thinking,

you know ,longer term .W hat do w e need to do on the single aisle airplanes?

W hat do w e need to do in term s of upgrading the T riple 7 or a brand new

T riple 7 size airplanes? A nd that's I asked M ike B air to go focus on the new

single aisle airplane or an upgraded 737,and you say,w hy M ike? W ell,you

know ,M ike got the configuration of 787 correct.A nd he's very good at that.

A nd he's very analytical in his thinking,and I know that the decision w e m ake

on the 37 w ill be the right one.A nd then w e took L ars A nderson and talked

him into com ing out of retirem ent and asked L ars to focus on T riple 7 next

generation or a new 300-400 seat airplane.A nd L ars w as good enough to

com e out of retirem ent to do that.So I w ould say this reorganization w as

really about finding the future,but also bringing m ore discipline to how w e

execute existing program s.M ost of the key players and the program

m anagers,they didn't change.W e had a couple of people retire,so w e m oved

som e people around.B ut I w ould not call that a m ajor change in the

organization other than to focus on the future and the program m anagem ent

discipline.Y ou know on the offsite,I'm not a new guy on the block,and I felt

the w hole team ,all the executives needed to understand w hat I felt w as

im portant.A nd w hat I tried to achieve for that m eeting w as to get alignm ent

of the entire staff on and w here w e needed to go,w hatthe challenges w ere,

w hat the issues w ere,and w hat w e all needed to do together.A nd there are

really only four things.I try to keep things pretty sim ple for the team .W hat

w e have to do is,w e've got to continue to add value to our custom ers,that's

w hy they keep com ing back.W e need to find the future for the B oeing

C om pany.W e need to develop the leadership team of the future,and w e need

to m eet the plan.A nd those are the four things that w e talked about.

D om inic

T he appointm ent of H ow ard C ham bers to oversee program m anagem ent,that's

specifically,I think,just to m anage projects.It does seem that the perception

-12-

NLRB-FOIA-00009482

is B oeing has failed in that here or over a couple of years.Y ou see,I haven't

kept control of the program .

A lbaugh

Y eah,it's interesting.I think that B C A is extraordinary in their ability to

m anage program s.A nd I don't think anybody m anages a supply chain as w ell

as they do.Just the fact that w e're doing 311/2 737s a m onth,and w e set a

record last year w ith 88 T riple 7s being delivered,do a great job of program

m anagem ent on production program s.I think the issue w as on the

developm ent program s,the fact that w e hadn't done a m ajor developm ent

program in a long,long tim e.T he fact that a lot of the people that had,had

retired.A nd som e of the decisions w e m ade on the program w ere business-

driven as opposed to being driven by the engineering com m unity.A nd w e just

took on too m uch risk.

Fem ale

program m anagem ent and ideas.T he program m anagem ent is really

an essentialfunction and discipline.

A lbaugh

Y eah,at ID S w e had 300 program s,and the vast m ajority of program s are

developm ent program s,you know ,an A B L program ,that's all it is,is a

developm ent program .I m ean,the space station w as a developm ent program

and w ent on for 10 years.T he G round-B ased M idcourse M issile D efense

program w as a test bed.It becam e a developm ent program and finally w e're

installing it.B ut how you do program m anagem ent and developm ent

program s is som ething that H ow ard understands very w ell,and I think I

understand pretty w ell.A nd w e're trying to bring m any of those disciplines to

the B C A side.A t the sam e tim e,w e're trying to bring a lot of the talents that

B C A has,relative to supply chain m anagem ent,you know ,over to the ID S

side.So,I m ean,there's great synergy w ithin in this com pany.A nd,you

know ,one of the things I hope to achieve being over here is to encourage even

m ore of that.

D om inic

Y ou talked about potential com petitors in the future.I'd like m ove on and talk

about C hina.I believe you're m aking a second trip to C hina or have you just

m ade it?

A lbaugh

I think I'm going the last w eek of this m onth,yeah.

D om inic

A nd that's your second trip,right?

A lbaugh

Y eah.

D om inic

So,I find it interesting,B oeing like the U nited States itself,has an am bivalent

view of C hina's enorm ous grow th.It's off of the trade as a potential m assive

m arket w hich also portrayed as a potential threat.A nd w hen you w ere head of

the defense side of B oeing,perhaps you had to view C hina one w ay.N ow

you're head of B C A ,you're m aking trips to C hina to sell airplanes.So

recently the U .S.sold arm s to T aiw an,w hich resulted in the threat from C hina

-13-

NLRB-FOIA-00009483

to boycott any com panies involved including,B oeing had a sm all part in that,

the m issiles.T hen the last w eek there w as a W all Street Journal piece saying

that w e should build m ore F-22s w hich of course,B oeing know s a big part of

here in Seattle because of the potential threat from C hina one day.So the

question is,how do you,in the position you're in now ,how do you handle this

com plex relationship betw een the U .S.and C hina,and betw een B oeing and

C hina?

A lbaugh

W ell,you know ,I'll tell you there's not a lot that the B oeing C om pany can do

about the relationship betw een C hina and the U nited States.I m ean,the

decision to sell arm s w as country-to-country.It w as not a decision w ith the

B oeing C om pany in any w ay got involved in.I think the only thing that I can

do is try to be the best custom er to the C hinese airlines and the best partner to

som e of the joint ventures that w e have in C hina that w e can be.I don't w orry

a lot about things I can't control.W hat I can control is the relationship that w e

have w ith the airlines in C hina.A nd w e're going to w ork very hard on those.

Y ou know ,C hina is going to have a G D P as big as ours w ithin the next 20

years.It's an econom y that's going to need airplanes.T hey're developing 34

new airports right now ,large airports.W e're developing one here in the

U nited States.T hey're going to be buying about 200 airplanes a year for the

next 20 years.It's a big m arket for us.T hey're going to building their ow n

airplanes.A nd I have full confidence that they'll build a very good airplane,

m aybe not the first tim e,but eventually they'll get it right.A nd I spent a lot of

tim e in space business,so I know that going to outer space is a difficult thing.

Y ou've go to from zero to 22,000 feetin 81/2 m inutes w ith 2,000 feetper

second in 81/2 m inutes.T hey did it a lot faster than anybody thought they

could.T hey have m ade a national com m itm ent to building com m ercial

airplanes.T hey're going to invest billions of dollars in developing that

capability.T hey have,you know ,m any,m any tim es as m any engineers

com ing out of their colleges as w e do.A nd they're going to develop a good

airplane over tim e,so,you know ,w e have to figure out and w orking very hard

on w hat kind of relationship do w e w ant to have w ith industry over there.A nd

w hat kind of relationship do w e w antto have w ith the airlines in C hina.

D om inic

So how m uch of a threat is the C 919 narrow body jetliner that they're

developing that's supposed to be,I think,180 seats,approxim ately.Suppose

to enter service a 2016.H ow big a threat is that to B oeing?

A lbaugh

W ell,they're going to put som e of the new engines on them .A nd,you know ,

they're m ore efficient engines.A nd assum ing they get the airplane right and it

probably w on't be perfect the first tim e through.T hey could have an airplane

that com petes w ith a 737,yes.

D om inic

A nd w hatdo you do aboutthat?

A lbaugh

W ell,w e need to do several things about it,one,the B oeing C om pany gets a

prem ium for the airplanes that they sell.A nd w e get a prem ium on the

-14-

NLRB-FOIA-00009484

airplanes that w e sell because w e create value for our custom er and that's one

of the assignm ents that M ike B air has,you know ,w hat does the next

generation 737 or the next generation single aisle airplane look like? Is it a re-

engined 37,next generation,or is a brand new airplane? A nd w e're actively

looking at both of those options right now .A nd w e're looking at having a

capability,you know ,tow ards the end of this decade.A nd it's not just the

C hinese; it's also the C anadians w ith the C Series.It's also,you know ,

B om bardier,it's also E m braer w ho w ill have an airplane and potentially the

R ussians as w ell.

D om inic

So w here do you stand on this as part of the national debate,I think people

w ould be interested to know w hat the C hief E xecutive of B oeing thinks in

term s of this threat or m arket w hich is C hina to the U .S.Is it a m ilitary threat

or is it a vast m arket w e need to tackle?

A lbaugh

H ey,you're not going to get the head of com m ercial airplanes talking about

C hina's m ilitary threat,you know ,D om inic.A gain,I'll leave that to the

people of the Pentagon,and I'll leave that to the policy m akers in W ashington,

D .C .Y ou know ,you think about C hina and the U nited States,our econom ies

are dependent on each other,now ,and w ill be for the long haul.Y ou looked at

how far this relationship has com e over the last,I guess it's 35 years since

N ixon first w ent over there,and I think everyday w e get closer and closer

together.O ur econom ies get m ore tightly entw ined.It's not to say that w e

don't have the periodic bum p in the road,and yes,w e're having one of those

right now .B ut I think there's a lot to be lost on both sides if w e don't have a

good relationship w ith C hina.A nd I think that C hina has a lot to lose if they

don't have a good relationship w ith the U nited States.

E N D O F FIL E 3

FIL E N O .4

D om inic

Y ou know ,B oeing's first engineer w as C hinese born W ong T soo.A nd it's

been noted before that for a global com pany,B oeing's executive ranks don't,

have a surprising lack of diversity.I look,for exam ple,at your Indian

operations,and I see the success D inesh K eskar has had there,Indian born

executive and president of B C A in India.B ut I don't see that in C hina,there's

very few C hinese A m erican executives w hich is a little surprising given that

w e're in Seattle,w e're on the Pacific rim ,w e've got a great A sian A m erican

com m unity here.A nd think of the cultural im pact of G ary L ocke,the

G overnor of W ashington,going to C hina and trying to help sell B oeing

airplanes.H ow com e you don't have m ore such faces?

A lbaugh

Stay tuned.Y ou'll be the first person w e call,okay? A nd it w on't be long and

w e'll give you a call.

-15-

NLRB-FOIA-00009485

D om inic

O kay,thanks.W e're running out of tim e,so a few im portant topics to cover,

one of them is tanker.Y ou and other B oeing execs have talked about the

unique B oeing advantage of building both com m ercial platform s and the

m ilitary system s and how you leverage that.Y ou did it for the Poseidon

that's built and rented.So you installed all the m ilitary's hardw are in

line on private assem bly.Is that w hat's gonna happen on tanker if you w in it?

W ill you do that in E verett?

A lbaugh

W e w ill do as m uch as w e can in E verett.W e'll m ake all the structural

m odifications that w e can.W e'll install som e of the m ission-specific

equipm ent that w e need to m ake it a tanker.B ut the hoses and the drogues and

the bladders,som e of those things w ill be stalled,installed in W ichita.B ut as

m uch as w e can install upfront in line,you know ,that w ill drive the cost of

doing business dow n.A nd that's w hat w e plan on doing.

D om inic

W ell,the tanker R FP that just cam e out on,in the estim ation of outside

observers puts you in the favored position to...

A lbaugh

Y ou know I'm very intrigued by that.Y ou know ,it's very hard to w rite an

R FP for dissim ilar airplanes.Y ou know ,I think the U .S.A ir Force did a pretty

good job of doing that.I m ean,there are things in that R FP that w e don't like,

and,you know ,I understand from w hat I read in the paper there are things that

N orthrop doesn't like,but it's not a perfect R FP for either one of us and there

are puts and takes for both.Y ou know ,I read that thing and,you know ,I don't

read it as a lay dow n hand for the B oeing C om pany.A nd I'm assum ing that

N orthrop G rum m an is gonna bid.

D om inic

W ell,is there any sense of an em barrassm ent at the com pany that should you

w in it this tim e you've done it by a political backlash that caused them to rerun

the com petition?

A lbaugh

I guess I don't understand.I don't think that there's political backlash that

caused this thing to be re-com peted.I think the G A O took a look at the

decision-m aking process and felt that there w ere errors in how they cam e to the

decision they cam e to.I m ean,let's review the,let's review the tape here.W e

had 98 strengths,they had 30.W e had one w eakness,they had five.T here

w as no creditto be given for fuel offload above a certain threshold level;they

w ere given that.T he G A O looked at the decision-m aking process and it w as

flaw ed.T hat's w hy they're doing the,the re-com peted has nothing to do w ith

politics.

D om inic

B ut the C ongressional support that you have,you,w ay back as early as the

early 2000s w ere...

A lbaugh

Y ou know ,I appreciate C ongressional support,but I don't think there's been a

com petition that I've been involved in in m y career that has been decided by

people on C apitol H ill.T hey get,it gets decided by the procurem ent people in

-16-

NLRB-FOIA-00009486

the Pentagon based on their R FP and w here they don't m ake their decision

based on the R FP,new com panies have the opportunity to protest,w hich w e

I did and w hich w e do very infrequently and they found in our favor.

D om inic
A lbaugh

,O ne political issue that's com e into the w hole tanker debate is W T O and I'd

'like to go to that now .


.

Y eah.

D om inic

T he W T O found A irbus guilty of taking illegal subsidies and an outcom e in the

E uropean countersuit is expected this sum m er,w hich could find sim ilarly

liable,m aybe,m aybe not.B ut w hat I w ant to ask you is this; E m braer and

B om bardier w ent through this w hole thing suing each other at the W T O for

illegal governm ent launch subsidies,they w ere both found guilty and it didn't

change a thing.N othing happened and,you know ,B om bardier's m aking the

C Series now and they're getting governm ent m oney to help do it.So w hat's

the point? W hat,w hy,w here can these W T O suits go?

A lbaugh

W ell,you know ,first of all,you got to rem em ber,D om inic,that w e didn't

bring the W T O suit.T he adm inistration of the U nited States of A m erica

broughtthat suit.

D om inic

T hey w ouldn't have done so if you didn't w ant it.

A lbaugh

T hey broughtthe suit because in their view the U nited States and its industries

have been dam aged by illegal subsidies w ho w ere in violation of the W T O

rules and that's w hy the law suit w as brought and clearly the adm inistration

feels thatthose subsidies w ere illegaland the W T O feels the sam e w ay,at least

that's their,the prelim inary judgm ent that they've laid dow n.

D om inic

W ell,certainly som e people see it as politics...

A lbaugh

W ell...

D om inic

...to block,in partithelps to try and block the tanker.

A lbaugh

So,you know ,w e're building the 787 the old-fashioned w ay; w e're using our

ow n m oney.O n the 7,on the 8330,you know ,based on the W T O case,you

know ,they had launch subsidies of close to $6 billion.Y ou know ,that's a

significant advantage for them that w e don't enjoy.Y ou know ,w e have to

cover our ow n costs.A nd,you know ,w e w ould've liked to have seen

som ething in the R FP that accom m odated the launch subsidies that they got.

It's not there and w e're com peting,w e're not crying foul,w e're gonna do the

bestw e can w ith the proposal.

D om inic

D o you have any expectation about the outcom e of the countersuit,w hich is

ending this sum m er w here B oeing w as accused of illegal subsidies?

-17-

NLRB-FOIA-00009487

A lbaugh

B ased on everything I know ,I feel pretty good about the outcom e.O f course,

then again,D om inic,I thought w e w ere gonna w in the tanker contest last tim e.

A s I've told people,there's only one m ore,one person m ore surprised that w e

lost the tanker than m e and that w as R on Sugar,that they w on.

D om inic

Y ou m entioned earlier in this conversation that being num ber tw o in a duopoly

put you in last place and you don't w ant to be in last place.So since w e're

discussing this rivalry w ith A irbus,w here do you see that,how do you see that

playing out in the next few years?

A lbaugh

W hen w e start delivering the 787s in quantity and that's gonna start in 2012,

2013.Y ou know ,w e should,you know ,take the num ber one position,you

know ,relative to airplane deliveries.W e ought to overtake them in 2012,

2013,that tim efram e.B ut I think,you know ,longer term ,it's easy to get the

m ost orders and it's easy to m ake the m ost deliveries,all you have to do is just

give the airplanes aw ay.W e're not gonna do that.If I look out,you know ,10

years from now ,w e're gonna have a brand new 47,w e're gonna have a brand

new 87,w e're gonna have a m ajor upgrade to the 737 or a new sm all airplane

and w e're gonna have a m ajor upgrade to the triple 7 or w e're gonna have a

new 300 to 400 passenger airplane.I m ean,w e're gonna have a w hole new set

of products in the m arketplace and these are products that are gonna create

great value for our custom er and w hen you create value for the custom er

you're gonna sell airplanes and w e should be num ber one for a long tim e to

com e.A nd you know w hy w e're gonna be num ber one? It's because of those

75,000 people here in Puget Sound that get up in the m orning and put their

badge on and w alk to the,through the doors.I m ean,those are the people that

m ake it happen.A nd I could go tom orrow and they could replace m e pretty

quick,but it's the collective know ledge of our team that allow s us to do the

things that w e do and they're the ones that'll m ake it happen.

D om inic

T here's an expectation of restraint today in corporate the executive bonuses,

B oeing,a lot of B oeing's m oney,half of its revenue com es from the

governm ent and your laying off thousand of people right now ,but you've got a

special $3 m illion bonus on top of your regular bonus for staying,for

sw itching jobs.H ow is that justified?

A lbaugh

N o,they didn't,they didn't m ake m e any prom ises w hen I cam e here and I

didn't ask the board of the com p com m ittee for this and I certainly appreciate,

you know ,w hat they've done,but it's not som ething that I asked them to do

and,you know ,I do intend to continue to w ork here as long as the com pany

w illletm e stay.

D om inic

D o you understand w hy it doesn't look good to w orkers getting laid off w hen

executives get m illion dollar bonuses?

A lbaugh

W ell,m y job is to m ake sure that w orkers don't get laid off and I think that

I've got an unw ritten bond w ith the em ployees that m y job is to profitably

-18-

NLRB-FOIA-00009488

grow this place.I m ean,at the sam e tim e I'm asking them to be m ore efficient,

that allow s us to sell our planes for less,that allow s us to sell m ore planes,that

allow s us to create jobs or at least keep the level of jobs at the sam e,at the

sam e num ber that it's at today and that's w hat I think m y job is.

D om inic

O kay.I'm gonna stop there.

A lbaugh

O kay.

D om inic

T hank you very m uch.

A lbaugh

A lright,D om inic.T hanks.

-19-

NLRB-FOIA-00009489

U n ite d S ta te s G o v e rn m e n t

N a tio n a l L a b o r R e la tio n s B o a rd

2,041F IC E O F T H E G E N E R A L C O U N S E L

S .A .ivA dvice M

FORBISTRIBIJIll,101

em orandum

D A TE

TO

A pril11

Richard L. Ahearn, Regional Director

Region 19

FR O M

Barry J. Kearney, Associate General Counsel

Division of Advice

S U B =

The Boeing Company

Case 19-CA-32431

512 - 5006-5062

512 - 5006-5067

512-5036-8387

512 - 5036-8389

524-0167-1033

524-5029-5037

524-0167.-1033

524-5060

())

524-8307-1600

524-8307-5300

530 - 6050-0825-3300

530 - 6067-4011-4200

530 - 6067-4011-4600

530- 60 67-4 011-77 00

530-8054-7000

775-8731

The Region submitted this case for advice on several

issues relating to the Employer's decision to place a second

assembly line at a nonunion facility rather than at the

facility where unit employees work on the original assembly

line. Specifically the Region requested advice as to whether:

(1) the Employer violated Section 8(a)(1) by threatening to

place the second assembly line at a nonunion facility unless

the Union agreed to a long-term no-strike clause and by

repeatedly stating that its decision to place the second line

elsewhere was based on the unit's strike history; (2) the

Employer violated Section 8(a)(3) by deciding to place the

second assembly line at a nonunion facility because of the

unit's strike history, even though no unit employees have yet

to lose their jobs; and (3) the Employer violated Section

8(a)(5) by failing to bargain in good faith over its decision

about where to locate the second assembly line or whether the

Union waived its right to bargain under the parties'

collective-bargaining agreement.

We conclude that the Region should issue a complaint

alleging: independent Section 8(a)(1) violations based on the

Employer's coercive and threatening statements; and a Section

8(a)(3) violation based on the Employer's decision to locate

the second line at a nonunion facility and to establish a

dual-sourcing supply program in retaliation for protected

activity. However, the Region should dismiss the Section

8(a)(5) allegations because under the contract, the Union

expressly waived its right to bargain about .the Employer's

decision to "offload" unit work to a facility not covered by

the agreement. To remedy the chilling effect of Boeing's

Section 8(a)(1) statements, the Region should request, in

addition to the traditional remedies, a notice reading by a

high-level Boeing official. To remedy the Section 8(a)(3)

NLRB-FOIA-00009490

Case 19-CA-32431

violation, the Region should seek an order that would require

Boeing to maintain the surge line in the Puget Sound area.

Specifically, Boeing intended for the second line to assemble

three aircraft each month in South Carolina, while assembling

seven planes on the first line. Thus, the Region should se -&-k

an order requiring Boeing to assemble in the Puget Sound area

the first ten 787 aircraft that it produces each month and to

maintain the supply lines for those aircraft where they

currently exist, in the Puget Sound and Portland facilities.

FACTS

The Boeing Company is an international corporation

engaged primarily in developing and producing military and

commercial aircraft. Boeing has a long-established collective-

bargaining relationship with the International Association of

Machinists and Aerospace Workers (IAM) and certain IAM

District and Local Lodges. The parties' current collective-

bargaining agreement is effective November 2, 2008 through

September 8, 2012 and covers three separate bargaining units

of production and maintenance employees in three geographical

areas, the Puget Sound area in Washington; Portland, Oregon;

and Wichita, Kansas.

Section 21.7 of that agreement, entitled

"Subcontracting," sets forth various notice periods and an

opportunity for the Union to review and recommend alternatives

to Boeing proposals to, subcontract or "offload" unit work.

"[O]ffloading work' is defined-as--"mov-ing-wo-rk-from-one-

Company facility to another Company facility not covered by

this Agreement[.]" Less stringent notice requirements apply

to subcontracting and offloading decisions affecting less than

ten employees. In addition, the notice and review process

does not cover certain work transfers listed in subsections

(a) through (d), including "[d]ecisions to subcontract or

offload work due to lack of_capability_or_capacity, or to

prevent production schedule slippage[.]" Section 21.7

concludes with the following language:

Anything in this Section 21.7 to the contrary

notwithstanding, it is agreed that ... the Company has

the right to subcontract and offload work, to make and

carry out decisions in (a) through (d) above, to enter

offsets and offset arrangements, and to designate the

work to be performed by the Company and the places where

it is to be performed, which rights shall not be subject

to arbitration. ...

NLRB-FOIA-00009491

Case 19-CA-32431

-3

Boeing Introduces the 787 "Dreamliner"

The Puget Sound unit is comprised of approximately 18,000

employees working in Washington. Historically these employees

have performed the final assembly of all Boeing planes. In

late 2003, Boeing announced that it would place the assembly

line for its new 787 "Dreamliner" airplane in Everett,

Washington after the Washington State Legislature passed a tax

and subsidy incentive package totaling more than $3.2 billion.

That line opened in May 2007, with the capacity for producing

seven planes each month.

With the 787, Boeing departed from its previous practice

of manufacturing most of the aircraft parts with its own

employees and instead outsourced parts production to other

suppliers in the southeast U.S. and abroad. For example,

Boeing contracted with Vought Aircraft Industries in North

Charleston, South Carolina for the manufacture of the aft

fuselage and with Mitsubishi Heavy Industries in Japan for the

manufacture of the wings. Boeing repeatedly has had to

postpone the delivery dates for the aircraft, due primarily to

problems with suppliers and software issues.

Starting in mid 2008, the media began reporting that

Boeing would need to add a second 787 assembly line because of

its growing order backlog. At about the same time, Boeing

entered negotiations with the Union for a successor

collective-bargaining agreement. During those negotiations,

Company_ officials noted- the-need- for---a


second -as-sembly -line --

but did not discuss the matter further.

The 2008 Strike and Its Aftermath

On September 6, 2008, the employees struck in support of

the Union's bargaining position. On October 6, 2008, Boeing's

stock dropped to a_four-year low. That_same-day,

McNerney sent a long e-mail to Boeing employees about the

strike. McNerney stated that he understood and shared "the

frustration so many of you feel when we don't have the whole

team together working'to meet the commitments we've made to

our customers and competing to win the new business that will

sustain and grow Boeing jobs[.]" McNerney went on to state,

"[t]he issue of competitiveness as it relates to this strike

is a big deal[.]" He also tied labor disputes to problems

with Boeing's customer relationships. After asserting that

the Union had recommended that its members reject contract

offers and go on strike four of the last five negotiations

going back to 1995, he wrote, "we believe this track record of

repeated union work stoppages is earning us a reputation as an

NLRB-FOIA-00009492

Case 19 - CA-32431

-4

unreliable supplier to our customers - who ultimately provide

job security by buying our airplanes."

The following day, Boeing's Vice President for Government

and Community Relations Fred Kiga spoke at an aerospace

c o n f e r e n c e i n E v e r e t t . I n a Seattle Times article, he was

quoted as stating, "We can't afford to become known as the

rike zone[.]" He reportedly also told the conference that

"labor unrest" could drive Boeing's decision on where to build

,planes in the future. In an interview after his speech, Kiga

reportedly stated that his "strike zone" comments had been

cleared by Boeing Commercial Airplanes CEO Scott Carson. Kiga

noted that he and Carson grew up in and shared a love for the

Northwest; Kiga then said that they would "hate to lose a

treasure like Boeing."

The strike lasted 57 days and ended on November 1, 2008,

when the parties signed the current contract. During the

negotiations, the Union had proposed to amend Section 21.7 to,

among other things, eliminate the "waiver" language quoted

above. Boeing refused to agree to such an amendment, and the

language remained in the contract.

In early 2009, 2 the media again began publishing reports

that Boeing needed to establish a second 787 assembly line.

On February 9, the Seattle Times reported that Washington

Senator Patty Murray had met with Boeing's Senior Vice

President of Government Operations; he had informed her that

_ the-CEO was --"s-ick- and tired" - of the union's strikes and was

looking to put the second 787 line elsewhere.

On April 16, Boeing and IAN officials held their annual

summit in Chicago. Management officials attending included

CEO McNerney, Boeing Commercial Airplanes CEO Carson,

Integrated Defense Systems CEO Jim Albaugh, and for the first

time, Vice President-and General- Manager - of- Supply Chain

Management & Operations Ray Conner. IAN representatives

included International President Tom Buffenbarger, General

Vice President Rich Michalski, and the Directing Business

Representatives who represented Boeing employees, including

District 751 DBR Tom Wroblewski. This was the first

opportunity for the parties to meet since the strike had

ended. McNerney and Buffenbarger were the lead speakers.

McNerney stated that Boeing's customers were losing confidence

1
In

his
that the
occurred
1989 (48
2

e-mail, CEO McNerney exaggerated the number of times

Union had struck. In actuality, prior strikes

in 1948 (140 days), 1965 (19 days), 1977 (45 days),

days), 1995 (69 days), and 2005 (28 days).

Dates are in 2009 unless otherwise noted.

NLRB-FOIA-00009493

Case 19 -CA-32431

-5

in the Company because of past strikes and the possibility of

future strikes. He said that the parties had to come up with

a way to stop having Labor disputes. The general theme was

that management and labor should continue to meet to find ways

to avoid the problems of the past.

As a follow-up to this summit, Wroblewski and IAM

Aerospace Coordinator Mark Blondin met on June 23 in Seattle

with Conner and Boeing's Vice President of Human Resources

Doug Kight. The parties focused on how to build a better

relationship and improve communication. While Wroblewski had

an established relationship with Kight, Conner was new to

labor relations. Wroblewski thought that one of the purposes

of the meeting_was to get to know Conner. At a subsequent

meeting on June -30 between Wroblewski and Conner, Conner

expresse 13-0-0-i-trg's concern that its customers did not have

confidence it could make timely deliveries because it had

experienced two strikes in the last five years and had

supplier issues. For the first time, Conner raised the

prospect of a long-term collective -bargaining agreement as a

way to gain the customers' confidence that they would get

their aircraft on time.

In early July, Boeing announced its intent to purchase

the Vought plant in North Charleston, South Carolina. IAM

Local Lodge 183 represented the Vought production,

maintenance, and quality employees. Boeing agreed to

recognize the Union but wanted to negotiate a new collective=

barga-ining agreement.

On July 8, the Seattle Times


reported that Boeing's CEO

had informed Washington Congressmen Norm Dicks and Jay -Inslee

that as a result of past strikes, the Company would place the

second line outside the Puget Sound area unless it could reach

a long-term contract with the Union. Boeing told the

Congressmen-that South - Carolina -was - the main competitor.

Wroblewski, Blondin, Kight, and Conner met again twice in

July, on July 7 and July 23. At each of these meetings,

Conner and Kight emphasized that strikes had to stop for

Boeing to be viable. They stated that Boeing needed a long-

term agreement with no-strike language to satisfy their

customers. At this point, Boeing was two years behind

schedule and had approximately 850 787 planes on back order as

a result of supplier and software problems.

Then, on July 30, the same date that Boeing announced

that it had purchased Vought's plant, a South Carolina

employee filed a decertification petition. During August,

Boeing denied the Union access to the employees in the North

Charleston plant and wrote a memorandum to the employees

stating that it preferred to "deal with employees directly

NLRB-FOIA-00009494

Case 19 - CA-32431

-6

without intermediaries." 3 B o e i n g a l s o i s s u e d a F A Q d o c u m e n t

to the employees stating that the mass layoffs that took place

at the Vought plant in late 2008 were due to the "unique

situation created by the Everett strike." Meanwhile, the

South Carolina press was reporting that a decertification

decision could influence where Boeing located the second 787

a s s e m b l y l i n e . F o r e x a m p l e , The Post and the Courier


reported

that South Carolina's "low unionization rate is viewed as an

advantage in the 787 chase[.]" An article in the


Business Journal asserted that Charleston might be Charleston

a better

choice in the event of decertification because of "its

potentially tamer work force" instead of the Washington

workers with a history of "walk[ing] off the jdb."

On August 26, Boeing e -mailed its managers and human

resource professionals that it had notified South Carolina

that it intended to file permits for the construction of a

second 787 line but that it had not yet made a decision as to

where to locate the second line. The following day, Boeing

and Union officials met in Portland to discuss the prospect of

a long-term agreement. Carson informed the Union that the

only way Boeing would place the second line in Washington was

ir-thu - Union agreed to a_twenty-year no-strike agreement__

BaeThg suggested a series of three-year agreements with an

overarching twenty-year no-strike pledge until 2032 and

binding interest arbitration if no agreement was reached at

the end of each of the three-year contracts. The Union said

that this was not possible, but the Union would consider a__ _

_ _longer agreement than thecurrent four- 1-year contract in return

for some sort of neutrality agreement. At the end of the

meeting, the parties agreed to schedule negotiations for a

long-term agreement.

Meanwhile, the decertification election in South Carolina

was scheduled for September 10. In reporting on Boeing's

permit filings in South - Carol-in-a-,- the- PUTe-t godfid Business

Journal characterized this vote as "[a] wild card" in Boeing's

decision about where to locate the second line. On September

2, Kight presented an hour-long video on Boeing's website

(later quoted in a September 29 article in the Seattle Times).

In regard to the second line, he stated:

What do you do with the 787 second line so that we can

build up to rate and meet our commitment to customers?

... There's a lot of issues to look at, a lot being

studied, no decision has been made. But truthfully, it

is very clear that this triennial disruption, our

3
The

Union filed a Section 8(a)(5) charge alleging that

Boeing unilaterally changed its access rules but withdrew the

charge following the election.

NLRB-FOIA-00009495

Case 19 - CA-32431

- 7 -

customers can't live with it anymore. So we've become an

unreliable supplier.... So we look at how do we become a

reliable supplier. How do we ensure production

continuity so that we can meet our commitments to our

customers in a timely way and that's what we're trying to

do.

--

The
The Union lost the election in South Carolina eight days later

and was decertified on SepterZ77-1-8-7--------..

As a follow-up to the parties' August 27 meeting in

Portland, CEO McNerney wrote to IAN International President

Buffenbarger on September 21 that Boeing planned to make a

decision on th-eg7761-1-d-IIs location by the end of October

.--and wanted the Union's input within the next three to four

w e e k s . H e s t a t e d , " I l o o k f o r w a r d t o o u r r e s p e c- t i v e- -t e-a-m-s

engaging in fruitful dialog." Two days later, Boeing filed an

application for a storm water permit with the City of North

Charleston and an overall site plan with the State of South

Carolina. On October 1, Boeing applied to North Charleston

for a site clearing permit.

L-

The Parties Meet over a Long-Term Agreement

The parties opened negotiations for a long-term agreement

on October 1. At the start of negotiations, Boeing explained

that placement of the second line in Washington depended on a

long-term agreement to insure no further disruptions_in_____


_

d e liv e rie s to - c u sto rn e fs. - T h 6 - Unionresponded that in exchange

for giving up the right to strike, the parties would need to

resolve economic issues for the long term rather than through

interest arbitration every three years.

The parties met again on October 7, 8, and 15. The Union

maintains
that Boeing never submitted a written proposal_or_

_counter- proposaly
- that- it -was - in- the- da-rk a -S--to what Boeing

wanted, and that in effect it was negotiating against itself.

For example, with respect to the length of the agreement, at

various points Boeing requested a contract ending in 2020 or

2022 but at other times, demanded a twenty-year agreement. In

terms of wages, Boeing wanted to reduce general wage increases

and move toward a profit-sharing incentive program. The Union

was not adverse to this concept but requested information to

insure that Boeing's measures of productivity were tied to

employee performance and not events beyond the employees'

control. At one point, Boeing stated that the general wage

increase and COLA could not exceed 3.5%. When a Union

negotiator asked what would happen if the cost of living

increased more than 3.5%, Boeing responded that employees

would get more. On October 15, for the first time, Boeing

said that it wanted a lower wage structure for new hires and a

NLRB-FOIA-00009496

Case 19 - CA-32431

-8

defined contribution plan for them rather than the defined

benefit pension plan that the existing employees enjoyed.

The Union repeatedly raised the issues of job security

and Employer opposition to the Union elsewhere. The Union

argued that in return for giving up the right to strike during

the long-term, employees needed enhanced job security. Also,

if the parties' relationship were to improve, the Union did

not want to face the type of anti-union conduct Boeing had

engaged in during the decertification campaign in South

Carolina.

At the October 15 session, Conner informed the Union that

the Board of Directors would be meeting on October 26 and he

wanted to give the Board a progress report on the

negotiations. The Union asserts that Boeing never described

the Board of Directors meeting as a deadline for resolving the

outstanding bargaining issues. Moreover, Boeing never

provided a concrete proposal that could be put to the unit

employees for a vote.

The parties met again on October 20 and 21. Conner

stated that Boeing was getting close to making its decision on

the location of the second line and it would be discussed at

the Board meeting on October 26. By the end of the parties'

October 21 session, the Union orally had proposed the

following: an extension of the existing contract to 2020, 3%

annual wage increases plus a 1% COLA, ratification_bonuses_for-

_ unit -employees7 - an
incentive pay program, health cost sharing

towards the end of the contract, annual increases in pension

benefits starting in 2013, and neutrality in connection with

Union organizing campaigns. In addition, the Union presented

Boeing with a two-page document entitled "Rough Draft on

Concepts" for a long-term agreement and a joint partnership

committee. This "Draft" called for retention of current unit

_work;_location- of the-second line in the P u g e t S o u n d a r e a ;


and

six-month advance notice and good-faith bargaining over any

decision to establish an assembly operation for any next

generation product. Boeing asserts that this "rough draft"

was the Union's "last and final" offer, but the Union

disagrees and also maintains that its negotiators had no idea

that this would be the parties' final session. Indeed, the

Union negotiator involved in working out the details of the

incentive pay program sent an e-mail to Kight on October 27

requesting further information. Kight responded that he would

get back to him.

Meanwhile, o
October 21, B

ing posted its quarterly

earnings conferend

on_It-s"" Intranet site for employees.

With respect to locating the


second line in South Carolina,

CEO McNerney stated:

NLRB-FOIA-00009497

Case 19 - CA-32431

-9

[T]here would be some duplication. We would obviously

work to minimize that. But I think having said all of

that, diversifying our labor pool and our labor

relationship has some benefits. ... And so some of the

modest inefficiencies, for example, associated with the

move to Charleston, are certainly more than overcome by

strikes happening every three or four years in Puget

Sound. And the very negative financial impact of [sic] '

the company, our balance sheet would be 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....

And I don't blame this totally on the union. We just

haven't figured out a way -- the mix doesn't -- isn't

working well yet. So, we've either got to satisfy

ourselves that the mix is different or we have to

diversify our labor base.

McNerney stated that a decision would be made in the "next

couple of weeks."

Two days later, IAM General Vice President Michalski

called Conner to ask about the status of the negotiations.

Conner stated that the Union's economic terms and demand for

neutrality were unacceptable to Boeing. Michalski explained

that the Union was not asking for a traditional neutrality

agreement but rather, as explained during negotiations, a code

of conduct. Michalski stated that the Union was willing to

meet at-any time for additional negotiations, but Conner did

not respond. On October 24, Michalski called Senior Vice

President of Operations Tim Keating to reiterate that the

Union was not seeking a true neutrality agreement. He wanted

to clear up any misunderstanding if that issue was blocking

the parties' ability to reach an agreement. Keating did not

respond, and no further negotiations were ever scheduled.

Meanwhile, the governmental bodies in South Carolina were

moving quickly to,,1 ,1,itate the second line's placement in

their State. OnCOctobeig, North Charleston approved

Boeing's request
water permit, and the State of

South Carolina approved Boeing's overall site plan. On

October 27, the South Carolina legislature, in a special

session, approved $170 million in taxpayer-backed bonds for

Boeing's startup costs and tax breaks totaling $450 million in

exchange for Boeing's agreement to create at least 3,800 jobs

and invest more than $750 million in the State within the next

seven years. That same day, North Charleston approved

Boeing's site clearing permit.

Boeing contends that it entered these negotiations with a

good-faith intention to reach a long-term agreement that would

have resulted in placing the second line in Washington, but

NLRB-FOIA-00009498

Case 19-CA-32431

- 1 0 -

the Union's economic demands were too costly and its

insistence upon neutrality and job security were unacceptable.

The Union asserts, however, that Boeing's failure to submit

any proposals, its rejection of the Union's serious efforts to

address Boeing's purported concerns, and then its precipitous

halting of negotiations as soon as the South Carolina

legislature awarded it a generous tax and subsidy package

demonstrate that the negotiations were in fact a sham.

Boeing Announces its Decisions to Locate the Second Line in

South Carolina and to Establish a Dual-Sourcing Program

On October 28, Boeing announced its decision to Locate

the second 787 assembly line in South Carolina. In a press

release and internal e-mails, Boeing stated that the Board of

Directors had just approved the selection of North Charleston.

Boeing also announced that it intended to build a "surge line"

in Everett -- a temporary second assembly line that would be

phased out once the South Carolina line was up and running.

Boeing issued a memo to its managers on October 28 that

provided answers to anticipated questions from employees and

talking points regarding its decision. The managers were

advised to inform employees, among other things, that the

decision to locate the second line in Charleston would

"provide economic advantages by improving our competitiveness

and reducing vulnerability to delivery disruptions due to a

host of factors, from natural disasters to homeland security_

issues - and-work stoppagef:" -


The- rEemo further stated, "In the

final analysis, this came down to ensuring our long-term

global competitiveness and diversifying the company to protect

against the risk of production disruption ... from natural

disasters, to homeland security threats, to work stoppages."

On December 3, Boeing notified its fabrication managers__

_that it -intended - to- create - a -" d u a l s o u r c i n g " - pr


m
a n d

contract separate suppliers for the South Carolina assembly

line. As a result, employees in the Puget Sound and Portland

units who produce parts for the 787 assembly line are likely

to suffer a loss of work. Articles that appeared in the

Seattle Times on December 7 and the Puget Sound Business

Journal o n D e c e m b e r 8 d i s c u s s e d t h i s a n n o u n c e m e n t . T h e

Seattle Times quoted Boeing spokesman Jim Proulx as stating,

"Repeated labor disruptions have affected our performance in

our customers' eyes. We have to show our customers we can be

a reliable supplier to them. [The second production] line has

to be able to go on regardless of what's happening over here."

The Puget Sound Business Journal quoted Conner as follows:

"Dual-sourcing and co - production will allow us to maintain

production stability and be a reliable supplier to our

customers."

NLRB-FOIA-00009499

Case 19-CA-32431

- 1 1 -

On March 2, 2010, a Seattle Times journalist conducted a

videotaped interview of Boeing's new Commercial Airplanes CEO,

Jim Albaugh. (Albaugh had moved over from his position as

Integrated Defense Systems CEO to replace Carson.) The

interviewer asked Albaugh some "hard questions" on behalf of

the Washington community about Boeing's decision to locate the

second 787 line in Charleston. In explaining Boeing's

decision, Albaugh repeatedly referenced the Union's strike

history. For example, he stated:

The issue last fall was really about, you know, how

we could ensure production stability and how we

could ensure that we were competitive over the long

haul. And we had some very productive discussions

with the union. And unfortunately, we just didn't

come to an agreement where we felt we could ensure

production stability. And read [sic] that is [sic]

getting away from the frequent strikes that we were

having and also could we stop the rate of escalation

of wages. And we just could not get to a place

where we both felt it was a win for both ourselves

and the union so we made the decision to go to

Charleston.

[W]e've had strikes three out of the last four times

we've had a labor negotiation with the IAM. ... And

we've got to get to a position where we can ensure

our customers that every three years they're_not_____

- going to have a protracted shutdown.

It was about ensuring to our customers that when we

commit to deliver airplanes on certain dates that we

actually do deliver. And we have lost - our

customers have lost confidence in our ability to do

that, because of the strikes.

When asked whether going to Charleston, in light of the

expense and risk, made business sense, he responded:

Tpere's no question that whenever you go to a green field

there's risk involved. At the same time, with the

protracted labor stoppage that we had ... the fall of

2008, I mean that cost the company billions of dollars.

And I think if you compare, you know, what it cost

because of the stoppages versus the cost and the risk of

starting a new line in Charleston, I think the investment

EFTEainly is the right one for us to make. 4

4 Once again, a Boeing CEO grossly exaggerated the burden of

the Union's strike activity. Boeing had alleged elsewhere

that the 2008 strike reduced its earnings by $1.8 million, far

NLRB-FOIA-00009500

Case 19-CA-32431

- 12 -

At one point, Albaugh summed up the basis of Boeing's

decision as follows:

[t]he overriding factor was not the business climate.

And it was not the wages we're paying today. It was that

we cannot afford to have a work stoppage, you know, every

three years. We cannot afford to continue the rate of

escalation of wages....

Albaugh also implicitly threatened the loss of additional work

because of Union strikes, stating, "[w]e'll do work here if we

can make sure that we have the stability of the production

lines and that we can be competitive over the long haul."

Production is now approximately three years behind

schedule. Approximately 2,900 Puget Sound unit employees

currently work on the 787 assembly line. Approximately 1,740

of them are working on "out - of-sequence" assembly work, away

from the main assembly line. Once supply issues are resolved

and assembly can be accomplished in sequence on the line, it

is anticipated that the number of employees will drop by

approximately'60%. BoeingrT s-8-e-t---t-s----t-h-a-tth S'au.th_C-a-rietina

plant will be ready to begin assembly work in mid 2011.

Approximately 1,000 mechanic and flight line jobs will be

added in South Carolina at that time.

ACTION

This case involves Boeing's transfer of work from an

experienced unionized workforce to a new, nonunion facility.

Boeing's decision was motivated by antiunion considerations.

From the time of the Union's strike in the fall of 2008,

Boeing made clear to its unionized workforce that it would not

co u n te n a n c e - fu rth e r ---s trik e s ----T im e d ritr -a-q a-fri,- i n e - M


-ails to

employees, on its intranet site, in the media, and in talks

with the Union, Boeing tied its ability to compete to the

avoidance of future strike activity. Then, when Boeing

purchased the Vought facility in South Carolina, its officials

denied the Union access to employees at the facility. It also

let the employees know that it preferred to deal with them

directly rather than through their Union and their receipt of

the second line hinged on their vote in a decertification

election. Simultaneously, Boeing officials told the Puget

Sound unit employees that they could retain all of the 787

assembly work only by waiving their right to strike for twenty

years. Although the Union entered negotiations with Boeing

less than the "billions of dollars" that Albaugh claimed in

this interview.

NLRB-FOIA-00009501

Case 19-CA-32431

- 13 -

and made major concessions in an effort to address its stated

concerns, once the Union was decertified in South Carolina,

Boeing courted the South Carolina legislature and applied for

the necessary permits from the South Carolina regulatory

bodies - even as it continued the motions of negotiating with

the Union. As soon as South Carolina approved the financial

incentives for Boeing, Boeing called off negotiations and

announced its decision. Boeing's CEO admitted that the

"overriding factor" for moving work to South Carolina was the

employees' strike activity. Moreover, to reinforce the

message to unit employees, he intimated that the continuation

of any work in Washington was contingent on "the stability of

the production lines," a veiled threat designed to coerce

employees to abstain from future strikes. Nor could Boeing

credibly blame the 787 production delays on employees' 2008

strike activity, which halted production for approximately two

months. Rather, the delay resulted primarily from its own

business decision to outsource the manufacture of the aircraft

components to various suppliers and from unexpected software

problems.

Further, the fact that it made little practical sense to

locate this second line in South Carolina, despite a two-and-

a-half-year delay in the production of its new 787 aircraft,

rather than its existing facilities in Washington, supports a

finding of unlawful motivation. While South Carolina would

not be ready for production for two years because of the need

for substantial capital improvements and the hiring and _

training of a ne --,;7 workforce, Washington was already up and

running, with the space, the necessary equipment, and a

significant complement of trained employees.

On these facts, we conclude that the Region should issue

a complaint alleging: independent violations of Section

8(a)(1) based upon Boeing's coercive and threatening

- - - --statements to employees on - the int-ranet and through the media;

and a violation of Section 8(a)(3) based upon Boeing's

decision to place the second line in South Carolina and to

establish a dual-sourcirir773ry program in order to retaliate

against the unit employees for engaging in protected Union

activity. We would also argue, in the alternative, that

Boeing's actions were inherently destructive of employee

rights. But the Region should dismiss the Section 8(a)(5)

allegations because the Union waived its right to bargain

about Boeing's decision to offload unit work to a facility not

covered by the parties' agreement. Finally, to remedy the

Section 8(a)(1) and (3) violations, the Region should seek: a

notice reading by a high-level Boeing official in addition to

the traditional remedies; and an order requiring Boeing to

aAsemble in the Puget Sound area the first ten 787 aircraft

that it produces each month and to maintain'77e su..ly lines

for those aircraft in the Puget Soun. .


and aci-ities.

NLRB-FOIA-00009502

Case 19 - CA-32431

- 14 -

I. T h e E m p l o y e r V i o l a t e d S e c t i o n 8 ( a ) ( 1 )

The Supreme Court long ago delineated the line between

employer speech protected under Section 8(c) of the Act and

threats of reprisals violative of Section 8(a)(1). 5 T h e C o u r t

ruled in Gissel that an employer may make "a prediction" as to

the effects of unionization but that prediction "must be

carefully phrased on the basis of objective fact to convey an

employer's belief as to demonstrably probable consequences

beyond his control[.]" 6 O n t h e o t h e r h a n d , " ' t h r e a t s o f

economic reprisal to be taken solely on [the employer's] own

volition'" violate Section 8(a)(1). 7

In General Electric Company, the Board applied the Gissel

test to set aside an election because the employer threatened

a long-term loss of work based on the possibility of a strike

at some future time. 8 F a c e d w i t h a u n i o n o r g a n i z i n g d r i v e ,

the employer gave multiple speeches touting its "two-source

supplier strategy." 9 T h e e m p l o y e r s t a t e d t h a t i t h a d

established its nonunion plant so that customers could get the

motors they needed during the seven strikes at its union

plant. The employer also made clear that the plant's nonunion

status was the reason it had experienced a rise in

employment. 10
A n d t h e e m p l o y e r c o n v e y e d t h e m e s s a g e t h a t t h e

plant remaining nonunion was "an important, if not a decisive,

factor in any company decision to choose that plant as a

second manufacturing facility" for the new motor the employer

planned to introduce_ 11 T h e B o a r d - c o n c l u d e d t h a t - although


the

employer might want to insure itself against production

interruptions caused by employee concerted activity, "no such

insurance is legally possible, for the simple reason that

employees have a federally protected right to engage in such

activity. 12 The Board expressly distinguished an employer's

right to take defensive action when threatened with an

---------

5 See NLRB v. Gissel Packing Co., ,395 U.S. 575, 618 (1969).

Ibid.

Id. at 619 (citation omitted).

See 215 NLRB 520, 522-23, fn. 6 (1974).

See id. at 520.

10

See id. at 520-21.

11

See id. at 521.

12

See id. at 522.

NLRB-FOIA-00009503

Case 19-CA-32431

- 15 -

imminent strike from threats to transfer work "merely because

of the possibility of a strike at some speculative future

date. "13

The Board repeatedly has held that an employer violates

Section 8(a) (1) by threatening to withhold work opportunities

because of the exercise of Section 7 rights. 14 T h u s , t e l l i n g

employees that they will lose their jobs if they join a strike

violates Section 8(a)(1). 15 S i m i l a r l y , i n K r o g e r C o . , t h e

employer unlawfully threatened to put its plan to build a new

freezer facility for its distribution center on hold because

of intraunion unrest and labor disputes. 16

Further, where an employer unconditionally "predicts" a

loss of customers due to unionization or strike disruptions

without any factual basis, its "predictions" amount to

unlawful threats. 17 R a t h e r , a n e m p l o y e r ' s p r e d i c t i o n s o f

customer disaffection must be based on objective facts. 18

Thus, in Curwood, Inc., an employer lawfully related its

13

See id. at 522, fn. 6.

14 See, e.g., Kroger Co., 311 NLRB 1187, 1200 (1993), affd.

mem. 50 F.3d 1037 (11 th Cir. 1995); General Electric Co., 321

NLRB 662, fn. 5 (1996), enf. denied 117 F.3d 627 (D.C. Cir.

1997).

Aelca Corp.-, 32-6-NIRB-1262-i--1265 (1998). - See -alsa- Dot8ey -

Trailers, Inc., 327 NLRB 835, 851 (1999), enfd. in pertinent

part 233 F.3d 831 (4 th Cit. 2000) (threat to close the plant if

the employees went out on strike).

16 3 1 1 N L R B a t 1 2 0 0 . S e e a l s o G e n e r a l E l e c t r i c C o . , 3 2 1 N L R B

at 662, fn. 5 (employer conveyed to employees that

unionization_could_result_in_tha_ w-ithholdtng-of-fu-rther -----

investment in the plant or its closure).

17

See, e.g., Tawas Industries, 336 NLRB 318, 321 (2001) (no

objective basis for prediction that customers, fearing

strikes, would not give their business to the employer if the

employees' independent union affiliated with the UAW);

Tradewaste Incineration, 336 NLRB 902, 907-08 (2001)

(prediction that 90% of the customers would not deal with a

union facility because of fear of a work stoppage was not

based on objective facts); Debbie Reynolds Hotel, 332 NLRB

466, 466 (2000) (no factual basis for statements about having

to move productions and equipment elsewhere because customers

would not be able to afford employer's facilities if employees

unionized).

18

Curwood, Inc., 339 NLRB 1137, 1137-38 (2003).

NLRB-FOIA-00009504

Case 19-CA-32431

- 16 -

customers' concerns about strikes, where the employer produced

written inquiries from customers seeking information about its

contingency plans in the event of a strike. 19 A n e m p l o y e r m a y

also reference the p o s s ib ility that unionization, including

strikes, might harm relationships with consumers, as opposed

t o p r e d i c t i n g " u n a v o i d a b l e c o n s e q u e n c e s . " 20

Here, the Union has alleged that several statements by

Boeing officials violated Section 8(a) (1). Some statements

were posted by Boeing on its website or intranet. Others were

reprinted in newspaper articles as direct quotes; although

such a quotation is hearsay, it would be admissible as an

admission (an exception to the hearsay rule), if the reporter

testifies. 21 B y c o n t r a s t , r e p o r t e r s u m m a r i e s c a n n o t f o r m t h e

basis for a Section 8(a)(1) violation. And statements

recounted by political figures within newspaper articles are

in effect double hearsay and inherently unreliable.

Based on these principles, we find that the following

constitute unlawful threats under the Gissel standard:

(1) Boeing posted its quarterly earnings conference call

on its intranet for employees on October 21. During the call,

CEO McNerney made an extended statement about "diversifying

our labor pool" and moving work to South Carolina because of

"strikes happening every three or four years in Puget

Sound." 22 H i s c o m m e n t s w e r e i n d i s t i n g u i s h a b l e f r o m t h e

comments regarding a "two-source supplier strategy" found

_
in_General_Electric-aviolative
- ---------

(2) Boeing's October 28 memo to managers advised them to

inform employees that it decided to locate the second line in

South Carolina in order to reduce vulnerability to delivery

disruptions caused by, among other things, strikes. The

thrust of Boeing's message to employees was that Boeing had

19

See id. 339 NLRB at 1137.

20

E.g., Miller Industries Towing Equipment, Inc., 342 NLRB

1074, 1075-76 (2004) (employer "did not predict unavoidable

consequences").

21 Cf. Sheet Metal Workers Local 15 (Brandon Regional Medical

Center), 346 NLRB 199, 201-02 (2006), enf. denied on other

grounds 491 F.3d 429 (D.C. Cir. 2007) (newspaper report of

party admission is inadmissible hearsay because the reporter

was not available for cross - examination).

22

These same comments were quoted in the

23

See 215 NLRB 520, 522-23 (1974).

S e a ttle T im e s.

NLRB-FOIA-00009505

Case 19-CA-32431

- 17 -

removed jobs from Puget Sound because employees had struck and

that they would lose work if they struck again. 24

(3) In articles that appeared in the S e a ttle T im e s and

the Puget S o u n d B u sin e ss J o u rn a l on December 7 and 8

respectively, Boeing officials attributed the plan to use a

"dual-sourcing" system and contract separate suppliers for the

South Carolina line to past strikes and implicitly threatened

the loss of future work opportunities in the event of future

strikes 25

(4) In a video-taped interview on March 2, Boeing

Commercial Airplanes CEO Albaugh expressly attributed the

Employer's decision to locate the second line in South

Carolina to employee strikes and threatened the loss of future

work opportunities in retaliation for such protected

activity. 26

The above statements, disseminated through various

channels to unionized and nonunionized employees nationwide,

drove home the message: union activity could cost them their

jobs, while a decision to reject union representation could

bring those jobs to their communities.

II.

- -

The Employer Violated Section 8(a)(3)

The Employer's decision to locate the second 787 line at

a nonunion facility and to establish a clualc_sourcing_program_______

to - sUppOrt -that line -iiiolated Section 8(a)(3) because the

Employer acted in retaliation for the employees' Union

activity and not for a legitimate business reason.

Initially, despite Boeing's assertions that its decision

to locate a second 787 assembly line in South Carolina will

not adversely impact any current unit employees, there is no_____

- question - that- the- decision- gi-Ir-diredt- wor a w a y f r o m P u g e t

Sound employees with consequent adverse effects. Instead of

The Region should insure that this message was communicated

to employees.

24

The authors of these articles will need to testify. If

they resist testifying, and it becomes necessary to seek

subpoena enforcement, the Region should contact Advice.

25

Vice President Kight's video-taped comments that Boeing's

customers could not live with "this triennial disruption" and

that Boeing was looking to insure "production continuity"

cannot be alleged as an independent violation because they

were first posted on Boeing's website on September 2, outside

the Section 10(b) period.

26

NLRB-FOIA-00009506

Case 19-CA-32431

- 18 -

assembling all of the 787 planes in Washington as originally

planned, once the second line opens in South Carolina, a

significant portion of the remaining 787 orders will be filled

by planes produced in North Charlestown. Future work

opportunities will be lost for employees on the "surge line,"

as well as unit , employees waiting to transfer into the more

desirable 787 jobs. There are likely to be transfers to

older, less desirable aircraft assembly lines, demotions, and

layoffs. Moreover, Boeing's adoption of its new "dual-

sourcing" program means that the Puget Sound and Portland unit

employees will produce parts only for planes assembled in

Washington and not for those planes assembled in South

Carolina, also causing the loss of employment opportunities

for unit employees and the likelihood of demotions and

layoffs. If no unit employees have been harmed yet, it is

merely because Boeing's retaliatory decision has not yet been

implemented.

Recently, in Pittsburg & Midway Coal Mining Co., the

Board expressly reaffirmed that an actual financial loss is

not necessary to establish a Section 8(a)(3) violation. 27 I n

that case, the employer revised its bonus policy in

retaliation for the employees' use of contractual "memorial

days" to engage in work stoppages. Even though no employees

thereafter suffered a diminution of their bonuses, the Board

found a Section 8(a)(3) violation based upon the employer's

retaliatory motive. 28

- -- MoreOVer, the Board specifically has held that an _

employer may not, for unlawfully motivated reasons, divert

unit work to a nonunion plant even where there is no immediate

impact on unit employees. 29 I n A d a i r S t a n d i s h C o r p . , t h e

employer refused to take delivery of a new press ordered for

its newly-organized Standish plant and installed it instead at

its nonunion plant. The Board noted that "diversion _o_f_the___

prasa- from- Standish - courd - reasoriEly result in diversion of

new work from Standish" and therefore violated Section 8(a)(3)

even though there was no immediate impact on the unit

employees. 30 S i m i l a r l y , i n C o l d H e a d i n g C o . , t h e e m p l o y e r

unlawfully relocated equipment to a newly-purchased nonunion

facility and changed its plans to install new equipment in its

27

See 355 NLRB No. 197, slip op. at 5, fn. 8 (2010).

28

Ibid.

29

See Adair Standish Corp., 290 NLRB 317, 318-19 (1988), enfd

in pertinent part 912 F.2d 854 (6 th Cir. 1990).

30

See id. at 319.

NLRB-FOIA-00009507

Case 19-CA-32431

- 19 -

union facility after its employees' independent union

representative sought to affiliate with the UAW. 31

Here, as in Adair Standish and Cold Heading, there is a

diversion of unit work that the unit employees otherwise would

have performed. And as in Pittsburg & Midway Coal Mining Co.,

the fact that unit employees may not yet have experienced the

financial impact of Boeing's decision is no defense to a

Section 8(a)(3) violation.

Further, Boeing made this decision for unlawful reasons.

Boeing admits that the "overriding factor" in its decision to

place the second line in a nonunion facility was the

employees' strike history. An employer's discouragement of

its employees' participation in a legitimate strike

constitutes discouragement of union membership within the

meaning of Section 8(a)(3). 32 T h i s a p p l i e s t o e m p l o y e r

'conduct designed to retaliate against employees for having

engaged in a strike in the past, 33 as well as employer conduct

designed to forestall employees from exercising their right to

strike in the future. 34 I n d e e d , t h e B o a r d r e c e n t l y r e a f f i r m e d

that an employer violates the Act when it acts to prevent

future protected activity. 35 C o m p a r i n g s u c h c o n d u c t t o t h e

31

See 332 NLRB 956, fn. 5, 975-76 (2000).


See also

Associated Constructors,3_2_5_NLRB_

sub nom. O'Dovero v. NLRB, 193 F.3d 532 (D.C. Cir. 1999)

(double-breasted employer unlawfully diverted work from its

union entity to its nonunion entity in retaliation for the

union's efforts to organize the nonunion entity and to escape

the collective -bargaining agreement). ,

32
Capehorn

Industry,
336 NLRB
_
_
364, 365 A2001)._________ _

33
See

id. at 365-67 (employer violated Section 8(a) (3) by

failing to immediately reinstate strikers upon unconditional

offer to return to work where there was no legitimate business

justification for entering into a permanent subcontract).

34
See

Century Air Freight, 284 NLRB 730, 732 (1987) (employer

violated Section 8(a)(3) by permanently subcontracting unit

work and discharging unit employees in order to forestall the

exercise of their right to strike); Westpac Electric, 321 NLRB

1322, 1374 (1996) (employer violated Section 8(a) (3) by

isolating employee in retaliation for his previous striking

activities and also in anticipation that he would participate

in a strike in the future).

35
See

Parexel International, LLC, 356 NLRB No. 82, slip op.

at 4 and cases cited therein (2011) (employer violated Section

NLRB-FOIA-00009508

Case 19-CA-32431

- 20 -

erection of "a dam at the source of supply of potential,

protected activity," the Board reasoned that, "the suppression

of future protected activity is exactly what lies at the heart

of most unlawful retaliation against past protected

activity. "36

Boeing concedes that it is removing work from the unit

employees based upon their past exercise of their right to

strike. However, Boeing relies upon the Supreme Court's

decision in NLRB v. Brown Food Store 37 to argue that it is

privileged to move work outside the unit to avoid the

disruptive consequences of future strikes and that this is a

sufficient business justification to permit its actions.

In Brown Food Store, the Court held that an employer was

privileged to lock out its employees and use temporary

replacements to carry on its business in the face of a whipsaw

strike." Specifically, the Court found that the use of a

lockout and the hiring of temporary replacements "to bring

pressure to bear" in support of its bargaining position after

an impasse in negotiations was not an unfair labor practice."

Rather than finding the use of this economic weapon

discriminatory, the Court concluded that it was a legitimate

defensive measure to preserve the multiemployer group in the

face of a whipsaw strike."

Boeing's attempt to extend the holding of Brown to

legitimatize any action that an employer takes to protect

itself-against future, wholly speculative, strikes would


--

vitiate the Section 13 right to strike. And the Board has

made it clear that an employer cannot rely upon Brown to

justify discriminatory conduct based upon the exercise of the

right to strike. Thus, in National Fabricators, the Board

expressly rejected the employer's attempt to use Brown and

other lockout cases to justify its decision to lay off those

employees who were likely to honor a union picket line in the--

8(a)(1) by discharging an employee to prevent her from

discussing wages with other employees).

36

Ibid. (citation omitted).

37

380 U.S. 278 (1965).

38

See id. at 283-85.

39

See id. at 284.

40 See ibid.

NLRB-FOIA-00009509

Case 19-CA-32431

- 21 -

future. 41 Instead, the Board found that "disfavoring employees

who were likely to engage in protected union activities" was

proscribed by Section 8(a)(3) and the employer's business

justification -- to avoid investing money in employees who

were going to cease work later -- was "neither legitimate nor

substantial. "42

Boeing's concession that choosing South Carolina will


\

result in "duplication" and economic "inefficiencies" further

demonstrates that Boeing's actions were retaliatory and not a

legitimate business decision. In addition, Commercial


Airplanes CEO Albaugh conceded that going to South Carolina,

"a green field site," involves significant risks. Boeing has

the capacity, equipment, and trained workforce to handle the

second assembly line in the Puget Sound area. The substantial

investment required to build and equip the South Carolina

facility therefore will be duplicative. In addition, Boeing

will have to recruit and train a new workforce in South

Carolina, while ultimately laying off experienced employees in

Washington. Exaggerating the disruptive effects of prior

strikes, Boeing maintains that the inefficiencies associated

with moving work to South Carolina will be counterbalanced by

the avoidance of strike disruptions in the future. However,

there are other nonretaliatory and less costly means of

dealing with the potential of relatively short disruptions

caused by employee strikes, such as concluding negotiations

with the Union for a long-term no-strike agreement. In

addition, Boeing's claim that it took this action to avoid

strik-e disruptions is 1361-i-ed by -Boeing's rejection of the

Union's efforts to negotiate a long-term no strike agreement.

Accordingly, the Region should proceed on the theory that

Boeing violated Section 8(a)(3) by retaliating against the

unit employees for engaging in the protected activity of

striking.

We also conclude that Boeing's conduct was "inherently

destructive of employee interests." 43 C o n d u c t i s " i n h e r e n t l y

destructive" when it "carries with it 'unavoidable

consequences which the employer not only foresaw but which he

must have intended' and thus bears 'its own indicia of

See 295 NLRB 1095, 1095 (1989), enfd. 903 F.2d 396 (5 th Cir.

1990), cert. denied 498 U.S. 1024 (1991).

41
42

See 295 NLRB at 1095-96.

See NLRB v. Great Dane Trailers, Inc.,


3 8 8 U . S . 2 6 , 3 3

(1967) (citation omitted).

43

NLRB-FOIA-00009510

Case 19-CA-32431

- 22 -

intent. '"44 I n I n t e r n a t i o n a l P a p e r C o . , t h e B o a r d s e t f o r t h

four "fundamental guiding principles" for determining whether

employer conduct is inherently destructive of employee

rights. 45 F i r s t , t h e B o a r d l o o k s t o t h e s e v e r i t y o f t h e h a r m

to employees' Section 7 rights. Second, the Board considers

the temporal impact of the employer's conduct, i.e. whether

the conduct merely influences the outcome of a particular

dispute or whether it has "far reaching effects which would

hinder future bargaining." Third, the Board distinguishes

between conduct intended to support an employer's bargaining

position as opposed to conduct demonstrating "hostility to the

process of collective bargaining." And finally, the Board

assesses whether the employee's conduct discourages collective

bargaining by "making it seem a futile exercise in the eyes of

the employees." 46 E v e n i f t h e e m p l o y e e ' s c o n d u c t i s

inherently destructive, the Board weighs the employer's

asserted business justification against the invasion of

employee rights. 47

Boeing's actions were inherently destructive of employee

rights under the four principles articulated in International

Paper. First, the harm to employees' Section 7 rights was

severe; employees got the distinct message that if they engage

in another strike, unit work will be moved to a nonunion

facility and unit jobs will be lost. Second, Boeing's

decision was designed to have far-reaching effects and not

just to influence the outcome of a particular dispute, namely,

to take away employee support for the Union's most effective_

econothi -d aeambei, and


the Union itself, and thereby hinder

any future collective bargaining. Third, Boeing's conduct

demonstrated hostility to the very process of collective

bargaining and riot just to support a specific bargaining

position. Finally, bargaining was made to seem a futile

_44 Ibid.,

quoting NLRB _v..._ Erie_Resistor_Corp.-3-7-3 U.S. 22-1- T -

228, 231 (1963). See also Dorsey Trailers, Inc., 327 NLRB

835,
863-64 (1999), enf. denied in pertinent part 233 F.3d 831

(4 th
Cir. 2000).

See 319 LRB 1253, 1269 (1995), enf. denied 115 F.3d 1045

(D.C. Cir. 1997).

45
46

Id. at 1269-70 (citations omitted).

Id. at 1273 (finding no justification for employer',s

"inherently destructive" conduct of permanently subcontracting

bargaining unit work during a lawful lockout). See also

Dorsey Trailers, 327 NLRB at 863-64 (employer's closing of

facility during strike and relocation of unit work to newly

purchased facility outside the union's jurisdiction was

"inherently destructive" of employee rights).

47

NLRB-FOIA-00009511

Case 19-CA-32431

- 23 -

exercise without the possibility of a strike to support the

Union's position at the bargaining table.

The unavoidable consequence of Boeing's decision to place

the second line in its newly-purchased, nonunion facility,

accompanied by official comments on the intranet and in the

media, was to severely chill its employees' exercise of

Section 7 rights in the future -- whether it be the Puget

Sound employees, the South Carolina employees, or Boeing

employees elsewhere. Employees will correctly fear that

engaging in such protected activity could cause them to lose

their jobs to nonunionized workers. Others may be encouraged

to file or support decertification petitions. And the many

unrepresented Boeing employees will be 'discouraged from

organizing or voting in support of union representation if

they believe that exercising their right to concerted activity

justifies moving commercial production elsewhere.

Moreover, even if the effect on employee rights was only

"comparatively slight," Boeing had no legitimate business

justification. Its only justification was its desire to insure

against its employees' exercise of their Section 7 rights, and

that is not a legitimate justification.

__

The Board recently held in Arc Bridges, Inc. that an

employer's conduct was inherently destructive where its stated

reason for withholding a regularly-scheduled wage increase

from represented employees was that it was in negotiations

with
the union. 48 T h e B o a r d f o u n d _ t h a t _ t h e e m p l o y e r : s _ s t a t e d _

_ _

reason -- that it wanted to enhance its bargaining position

with the union -- was an admission that it withheld the

increase because employees chose union representation. 49

Likewise, Boeing's stated reason for its decision -- that it

wanted to avoid strike disruptions -- was an admission that it

decided to locate the second line in South Carolina because

the Puget Sound employees chose union representation and the _

Sbth C d Y 8 f i n -d - e m p l o Y e e s d i d n o t . A c c o r d i n g l y , B o e i n g ' s

decision coupled with its public pronouncements emphasizing

the motivation for its decision was inherently destructive of

its employees' rights to engage in union activity and violated

Section 8(a)(3).

III. The Union Waived its Right to Bargain

The Union's allegation that Boeing failed to bargain in

good faith over its decision as to where to locate the second

787 line raises two preliminary issues: (1) whether Boeing's

decision was a mandatory subject of bargaining; and (2) if so,

48

See 355 NLRB No. 199, slip op. at 3-4 (2010).

48

See id., slip op. at 3.

NLRB-FOIA-00009512

C ase 1 9 -C A -3 2 4 3 1

- 2 4 -

w h e th e r th e U n io n w a iv e d its rig h t to b a rg a in o v e r th a t

s u b je c t. A lth o u g h w e c o n c lu d e th a t th e d e c is io n w a s a

m a n d a to ry s u b je c t o f b a rg a in in g a n d th e re is s u b s ta n tia l

e v id e n c e th a t B o e in g d id n o t b a rg a in in g o o d fa ith to a v a lid

im p a ss e , th e R e g io n s h o u ld d is m iss th e S e c tio n 8 (a )(5 )'

a lle g a tio n s o n th e g ro u n d th a t th e U n io n w a iv e d it rig h t to

b a rg a in , a p p ly in g P ro v e n a . 50

A . M a n d a t o r y S u b jec t o f B a r g a i n i n g

U n d er D u b u q u e P a c k in g C o ., a d e c is io n to re lo c a te u n it

w o rk th a t is n o t a c c o m p a n ie d b y a b a s ic c h a n g e in th e

e m p lo y e r's o p e ra tio n is a m a n d a to ry s u b je c t o f b a rg a in in g

u n le s s th e e m p lo y e r c a n e s ta b lis h th a t: th e w o rk p e rfo rm e d a t

th e n e w lo c a tio n v a rie s s ig n ific a n tly fro m th e w o rk p e rfo rm e d

a t th e p rio r lo c a tio n ; th e w o rk p e rfo rm e d a t th e fo rm e r

lo c a tio n is d is c o n tin u e d e n tire ly a n d n o t m o v e d to th e n e w

lo c a tio n ; o r th e e m p lo y e r's d e c is io n in v o lv e d a c h a n g e in th e

e n te rp ris e 's s c o p e a n d d ire c tio n . 51 A lte rn a tiv e ly , th e

e m p lo y e r c a n d e fe n d b y sh o w in g th a t: la b o r c o sts w e re n o t a

fa c to r in th e d e c is io n ; o r if la b o r c o s ts w e re a fa c to r, th e

u n io n c o u ld n o t h a v e o ffe re d s u ffic ie n t c o n c e s s io n s to c h a n g e

th e e m p lo y e r's d e c isio n . 52 A p p ly in g th e D u b u q u e te s t, th e

B o a rd re p e a te d ly h a s fo u n d re lo c a tio n d e c is io n s to c o n s titu te

a m a n d a to ry su b je c t o f b a rg a in in g . 53

In a d d itio n , th e B o a rd h a s h e ld th a t a d e c is io n m a y b e a

m a n d a to ry su b je c t e v e n th o u g h th e re is n o im m e d ia te _ lo ss_ o f_ _ _ _

u n it jb b s . 54 F o r e x a riip le , in Q u ic k w a y T ra n s p o rta tio n , In c .,

50 P ro v e n a S t. J o s e p h M e d ic a l C e n te r, 3 5 0 N L R B 8 0 8 (2 0 0 7 ).

51 3 0 3 N L R B 3 8 6 , 3 9 1 (1 9 9 1 ), e n fd . su b n o m . F o o d & C o m m ercial

W o rk ers_ L o cal_ 1 5 .0 7 A _ v _ _ _ _ N L R B ,l_ F _ .-3 d 2 4 (D .C . C ir7 -1 9 9 3 -).

52 Ib id .

53 S e e , e .g .,

T ita n T ire C o rp ., 3 3 3 N L R B 1 1 5 6 , 1 1 6 4 -6 5 (2 0 0 1 )

(d e c is io n to p e rm a n e n tly re lo c a te e q u ip m e n t a n d jo b s in

re a c tio n to s trik e ); O w e n s-B ro c k w a y P la stic P ro d u c ts, 3 1 1 N L R B

5 1 9 , 5 2 1 -2 3 (1 9 9 3 ) (d e c is io n to c lo s e p la n t a n d tra n s fe r w o rk

to o th e r fa c ilitie s ).

54 S e e , e .g .,

O v e rn ite T ra n s p o rta tio n C o ., 3 3 0 N L R B 1 2 7 5 , 1 2 7 6

(2 0 0 0 ), re v d . m e m . 2 4 8 F .3 d 1 1 3 1 (3 d C ir. 2 0 0 0 ) (" W e th in k it

p la in th a t th e b a rg a in in g u n it is a d v e rs e ly a ffe c te d w h e n e v e r

b a rg a in in g u n it w o rk is g iv e n a w a y to n o n u n io n e m p lo y e e s,

re g a rd le ss o f w h e th e r th e w o rk w o u ld o th e rw ise h a v e b e e n

p e rfo rm e d b y e m p lo y e e s a lre a d y in th e u n it o r b y n e w

e m p lo y e e s").

NLRB-FOIA-00009513

Case 19-CA-32431

- 25 -

the Board found that the employer's decision to contract with

independent owner-operators rather than expand the unit, as it

had originally planned, was mandatory because that decision

"obviously constrained the work opportunities available to the

bargaining unit." 55 L i k e w i s e , i n S p u r l i n o M a t e r i a l s , L L C , t h e

Administrative Lay Judge, in a decision adopted by the Board,

found that even though no unit employees suffered a loss of

work as a result of the employer's subcontracting, existing

employees might have otherwise been given overtime or the

employer might have hired additional unit employees, resulting

in benefits for the Union and current unit employees in having

an expanded unit. 56 A n d i n D o r s e y T r a i l e r s , I n c . , t h e B o a r d

found that subcontracting work to reduce a backlog in orders

was a mandatory subject because "the potential loss of

overtime or reasonably anticipated work opportunities poses a

detriment to unit employees" even if no employees lost their

jobs. 57

Here, the decision to locate the second 787 assembly line

in South Carolina amounted to a relocation of unit work. Even

though no unit employees have yet to lose work, as in Dorsey

Trailers the assignment of unit work to nonunit employees in

order to reduce an order backlog presents a potential loss of

overtime or reasonably anticipated work opportunities and

therefore poses a detriment to unit employees. 58 T h e w o r k

that will be performed in South Carolina is identical to that

performed on the first line and the surge line in Everett by

unit employees. The decision did not involve a basic change

-ih- Boeing's - operation - or any change Eh - the- enterprise's scope

or direction; Boeing does not intend to change its production

methods or its products. 59 B o e i n g d i d n o t d e m o n s t r a t e t h a t

labor costs were not a factor in the decision. In fact,

according to Boeing's CEO, the decision was motivated

primarily by a desire to avoid strikes and secondarily because

the Employer cannot afford the rate at which unit wages are

escalating,---Boeing also-- did--not- demonstrate - th-at - the Union -

could not have offered sufficient concessions to change its

See 355 NLRB No. 140 (2010), incorporating by reference the

rationale of 354 NLRB No. 80, slip op. at 2 (2009).

55

56 See 355 NLRB No. 77 (2010), incorporating by reference the

rational of 353 NLRB 1198, 1219 (2009).

See 321 NLRB 616, 617 (1996), enf. denied in relevant part

134 F.3d 125 (3d Cir. 1998). Accord Acme Die Casting, 315

NLRB 202, fn. 1, 209 (1994).

57

58

See 321 NLRB at 617.

59

See Owens-Brockway Plastic Products, 311 NLRB at 522.

NLRB-FOIA-00009514

Case 19-CA-32431

decision; the Union


the strike and wage
2009. Accordingly,
where to locate the
bargaining.

B.

- 26 -

was willing to make concessions on both

issues during negotiations in the fall of

we conclude that Boeing's decision as to

second 787 line was a mandatory subject of

Waiver of the Right to Bargain

The Board applies a "clear and unmistakable" waiver

standard to determine whether a union has waived its right to

bargain about a mandatory subject of bargaining during the

term of a collective-bargaining agreement. 60 T h e B o a r d w i l l

find a waiver if the contract either "expressly or by

necessary implication" confers on management a right to

unilaterally take the action in question. 61 I n i n t e r p r e t i n g

the parties' agreement, the relevant factors include: (1) the

wording of pertinent contractual provisions; (2) the parties'

bargaining history; and (3) the parties''past practice. 62

The Board has found a waiver based on contract language

where there is an express reference to the specific type of

decision that the employer has implemented unilaterally. 63

Thus, in Ingham Regional Medical Center, the Board adopted an

Administrative Law Judge's decision that the union waived its

right to bargain about a subcontracting decision where the

contractual management-rights clause expressly reserved to

management the right to "use outside assistance or engage

independent contractors to perform any of the Employer's

operations - or - pha-se-s- thereof (subcontractingi[.]


This

right was "vested exclusively in the Employer" and was not

60

See Provena St. Joseph Medical Center, 350 NLRB at 810-11.

61 S e e
-

id. at 812, fn. 19.

S e e J o h n s o n B a t e m a n C o . , 2 9 5 N L R B 1 8 0 , 1 8 4 89 (1-989) (no

waiver of right to bargain about drug/alcohol testing

requirement where the management rights clause was generally

worded, issue was not "fully discussed and consciously

explored" during negotiations, and past practice of union

acquiescence to other unilateral work rule changes did not

waive the right to bargain about such changes for all time).

63

See, e.g., Ingham Regional Medical Center, 342 NLRB 1259,

1261-62 (2004) (under the management-rights clause, the

employer expressly reserved the right to subcontract); Allison

Corp., 330 NLRB 1363, 1364-65 (2000) (management-rights clause

"specifically, precisely, and plainly" granted the employer

"the exclusive right ... to subcontract").

64

See 342 NLRB at 1260, 1261-62.

NLRB-FOIA-00009515

Case 19-CA-32431

- 27 -

subject to arbitration. 65 A l t h o u g h a n o t h e r c o n t r a c t u a l

provision required the employer to provide 60 days notice and

"discuss" with the union any subcontracting decision that

would cause unit employees to be laid off, the words "discuss"

and "bargain" were found not "synonymous" in the parties'

contract. 66

In this case, Section 21.7 of the parties' agreement

"specifically, precisely, and plainly" 67 granted Boeing the

right to offload work to a facility not covered by the

agreement. As in Ingham Regional Medical Center, the other

provisions of Section 21.7 that required Boeing to provide the

Union notice and an opportunity to review and recommend

alternatives did not require the Employer to bargain over an

offloading decision.

The Union does not dispute that Section 21.7 contains a

waiver but asserts instead that the Employer may not take

advantage of the waiver. Specifically, the Union maintains

that a contractual waiver cannot be applied to a decision that

is unlawfully motivated. But there is no authority for the

proposition that an unlawful motive negates a contractual

waiver; rather, the cases on which the Region and Union rely

hold that a contractual waiver is no defense to a Section

8(a)(3) violation. 68

The Union's other arguments against application of the

waiver are also unavailing. Thus, the Union asserts that the

c o n t r a c t u w a -iver does - n-ot app-137- 56Se the pafties entered

negotiations for a new contract. However, during those mid-

term negotiations, their existing contract -- including

'Section 21.7 -- continued in effect. The Union also contends

65

Id. at 1260.

66- 1-c17 t1 2 6 2 7

67

See Allison Corp., 330 NLRB at 1365.

68

See Reno Hilton, 326 NLRB 1421, 1430 (1998), enfd. 196 F.3d

1275 (D.C. Cir. 1999) ("merely because the Respondent has

negotiated the unfettered right in a collective-bargaining

agreement to contract out work at any time, such right ...

does not unfetter and insulate the Respondent from the

sanctions of the Act prohibiting it from discriminating"); RGC

(USA) Mineral Sands, Inc. v. NLRB, 281 F.3d 442, 450 (4 th Cir.

2002) (enforcing Board decision finding Section 8(a) (3)

violation on grounds that, even if contract authorized

employer to unilaterally alter shift assignments, "an employer

cannot exercise contractual rights to punish employees for

protected activity").

NLRB-FOIA-00009516

Case 19 -CA-32431

- 28 -

that the waiver cannot extend to work transferred after the

contract's expiration in September 2012, but Boeing made its

final decision in 2009 and expects to open the second line in

South Carolina in mid 2011. 69 T h e U n i o n ' s e s t o p p e l a r g u m e n t

also lacks merit. While Boeing took the position that the

notice and review provisions in Article 21.7 did not apply

because no employees will be laid off, Boeing is not thereby

estopped from asserting the waiver provision.

Moreover, Boeing's request to negotiate mid-term changes

to the parties' agreement did not subject it to the

traditional Section 8(a)(5) bargaining obligations. 70 A b s e n t

a contractual reopener provision, parties are under no

obligation to bargain over proposals for mid-term

modifications. 71 F o r t h i s r e a s o n , w e d o n o t r e a c h t h e

question of whether Boeing engaged in surface bargaining in

the fall of 2009, bargained to a valid impasse, or unlawfully

failed to provide information relevant to those negotiations.

IV. The Appropriate Remedy

We conclude that special remedies must be fashioned in

the unusual circumstances of this case.

First, with respect to the Section 8(a)(1) violations,

which had a particularly chilling impact upon employees, the

Region should seek a notice reading by a high-level Boeing

official, to insure that employees learn about their statutory

Thus, if there is a duty to bargain over a relocation

decision, it arises when the decision is announced and not

when it is ultimately implemented. See, e.g., Bell Atlantic

Corp., 336 NLRB 1076, 1086-89 (2001) (union waived right to

bargain over employer's decision to close facility and

transfer work to nonunion facility where,it_receive_d_notice_of_

d e c i s i o n i n - A u g u s t - ahd - d l d n O t r e q u e s t b a r g a i n i n g u n t i l

D e c e m b e r , e v e n t h o u g h n o u n i t w o r k w o u l d be relocated before

the following April).

69

See St. Barnabas Medical Center, 341 NLRB 1325, 1325 (2004)

(union did not incur traditional bargaining obligations by

requesting that employer meet to discuss feasibility of wage

reopener, and employer violated Section 8(a) (5) by

unilaterally implementing wage increases after an impasse in

those negotiations).

70

71
See

Boeing Co., 337 NLRB 758, 763 (2002) (employer did not

incur bargaining obligation by agreeing to union's request to

consider midterm modification); Connecticut Power Co., 271

NLRB 766, 766-67 (Section 8 ( d ) d o e s n o t r e q u i r e a n employer

who suggests a midterm contract change to negotiate about it).

NLRB-FOIA-00009517

Case 19-CA-32431

- 29 -

rights and gain assurance that Boeing will respect those

rights. 72 T h e n o t i c e r e a d i n g i s p a r t i c u l a r l y e f f e c t i v e i f

read by an official who personally committed some of the

violations, or read by a Board agent in his presence, in order

"to dispel the atmosphere of intimidation he created." 73

Finally, to remedy the Section 8(a)(3) violation, the

Region should seek an order requiring Boeing to maintain the

second line in Washington. At the time of the discriminatory

conduct, Boeing intended to use the second line to assemble

three 787 aircraft each month, while assembling seven 787

aircraft each month on the first line in Everett. At present,

even the first line is not producing up to capacity because of

problems with suppliers and FAA certification. Thus, the

Region should seek an order requiring that, as Boeing

production increases, the first ten aircraft assembled each

72

See, e.g., Homer D. Bronson Co., 349 NLRB 512, 515 (2007),

enfd. 273 F. App'x 32 (2d Cir. 2008) (notice reading is an

"effective but moderate way to let in a warming wind of

-- information, aTid- Mbre importdrif; --r-e d i -ance"); F e d e r a t e d

Logistics & Operations, 340 NLRB 255, 258 (2003), affd. 400

F.3d 920 (D.C. Cir. 2005) (employees will perceive that "the

Respondent and its managers are bound by the requirements of

the Act").

73

Three Sisters Sportswear Co., 312 NLRB 853, 853 (1993),

enfd. mem. 55 F3d 684 (D.C. Cir. 1995), cert. denied 516 U.S.

1093 (1996).
See also, e.g., Homer D. Bronson Co., 349 NLRB

at 515 (reading by president of manufacturing, who personally

delivered speeches threatening plant closure or relocation);

Texas Super Foods, 303 NLRB 209, 209 (1991) notice reading by

owner and president who signed unlawful letters to unit

employees, drafted unlawful speech threatening job losses, and

personally gave the speech to at least two groups of

employees).

NLRB-FOIA-00009518

Case 19 - CA-32431

- 30 -

month be assembled by the Puget Sound unit employees and that

the supply lines for these aircraft be maintained in the Puget

Sound and Portland facilities.74

B.

ROFs - 9

H:ADV.19- CA -32431 .Respon5e2.Boeing.dl


w

74

At this time, we do not reach a decision on the Union's

request for preliminary injunctive relief. The Region should

reassess whether Section 10(j) relief is warranted after the

case is tried before the Administrative Law Judge. In the

meantime, the Region should put evidence in the record

regarding the chilling impact of Boeing's violative statements

and conduct to support the notice-reading remedy. This will

facilitate use of the administrative record to demonstrate in

a subsequent Section 10(j) proceeding that preliminary

injunctive relief is just and proper.

NLRB-FOIA-00009519

9000 M achinists Place

U pper M arlboro,M aryland 20772-2687

International

A ssociation of

M achinists and

A erospace W orkers

A rea C ode 301

967-4500

461110.

O FFICE O F TH E G EN ERA L V ICE PRESID EN T

D L 751

M ay 11,2011

Subj: C om plaint and R equest for Inquiry

Select C om m ittee on E thics

U nited States Senate

SH -220 H art Senate O ffice B uilding

W ashington,D C 20510

T o the Select C om m ittee on E thics of the U nited States Senate:

I am C hristopher C orson,G eneral C ounsel of the International A ssociation of M achinists

and A erospace W orkers. T he JA M is proud to be the collective bargaining representative for

thousands of B oeing C om pany em ployees in W ashington,a highly skilled w orkforce that has for

generations built the finest com m ercial airliners in the w orld for the com pany.W e are also proud to

represent hundreds of thousands of other w orkers in diverse industries across the U nited States and

C anada.

I am filing this com plaint and request for inquiry out of concern that one or m ore m em bers

of the U nited States Senate are interfering w ith and attem pting to halt a law enforcem ent proceeding

of the N ational L abor R elations B oard,in w hich the N L R B is addressing and attem pting to rem edy

illegal retaliation by B oeing against JA M -represented em ployees.T hese w orkers deserve to have

their case heard by the law enforcem ent agency that is responsible for protecting them ,according to

the rule of law , and not to have that process skew ed or stopped by pressure or bullying from

Senators.

O n A pril 20, 2011, the N L R B issued a com plaint against B oeing, based on unfair labor

practice charges that had been filed in M arch of 2010 by IA M D istrict L odge 751 in S eattle,

W ashington. T he m atter concerns assem bly of the com pany's new 787 D ream liner by IA M -

represented em ployees in the Puget Sound area.A s the com plaint recites,B oeing announced to the

press over the course of several m onths in 2009 and 2010 that it had decided to m ove a portion of

787 assem bly w ork to South C arolina. A ccording to the com pany's statem ents at that tim e, its

principal reason w as that its unionized em ployees had engaged in concerted activity in the past and

could do so in the future.It is undisputed that such activity w as and is protected by the N ational

L abor R elations A ct.

T aking w ork aw ay from em ployees in retaliation for legally protected activity is illegal

under w ell-established N L R B and judicial precedents.T he traditional rem edy is an order that the

NLRB-FOIA-00009520

w ork not be m oved.O n the facts and the law ,this case is fairly straightforw ard,a point m ade by

the N LR B 's A cting G eneralC ounsel,Lafe Solom on,in a press release on M ay 9 th:

"C ontrary to certain public statem ents m ade in recentw eeks,there is nothing

rem arkable or unprecedented aboutthe com plaintissued againstthe B oeing

C om pany on A pril 20.T he com plaint involves m atters of fact and law that

are not unique to this case, and it w as issued only after a thorough

investigation in the field, a further careful review by our attorneys in

W ashington,and an invitation by m e to the parties to presenttheir case and

discuss the possibility of a settlem ent. O nly then did I authorize the

com plaintalleging thatcertain statem ents and decisions by B oeing officials

w ere discrim inatory under our statute.

"Itis im portantto note thatthe issuance of a com plaintis justthe beginning

of a legal process,w hich now m oves to a hearing before an adm inistrative

law judge.T hathearing,scheduled for June 14 in Seattle,is the appropriate

tim e and place to argue the m erits of the com plaint."

A s the com plaint also m akes clear, the N L R B is only seeking to address the illegal

retaliation com m itted by B oeing and to correct the coercive effect of that retaliation on the

com pany's w orkers and their rights.T he com plaintspecifically states thatB oeing is free to m ake

non-discrim inatory decisions to place its w ork in South C arolina or elsew here.T he com plaintcan

be found on the N R L B 's w ebsite.1A s noted in M r.Solom on's press release,a hearing before an

adm inistrative law judge is currently setfor June 14 th in Seattle.

I am bringing this m atter to the SelectC om m ittee on E thics,because I am concerned that

one or m ore Senators have pressured and are continuing to try to pressure the N L R B to drop this

law enforcem entproceeding in possible violation of Senate R ule 43.

I believe that prior to the N L R B 's issuance of the B oeing com plaint on A pril 20 th,Senator

Lindsey G raham com m unicated w ith N LR B A cting G eneralC ounselLafe Solom on in one or m ore

attem pts to pressure him notto do so.A fter issuance,I believe thatSenator G raham continued to

com m unicate w ith M r.Solom on in one or m ore attem pts to pressure him to w ithdraw it.I also

believe that these com m unications included threats that the Senator w ould seek to defim d or

otherw ise adversely affectthe funding of the N LR B if the B oeing com plaintw ere pursued.Senator

G raham also m ade thatthreatpublically in a press release dated A pril20 th,in w hich he said,"A s

Senator,I w illdo everything in m y pow er,including introducing legislation cutting off funding for

this w ild goose chase,to stop the N LR B 's frivolous com plaint."2

O n M ay 4th,Senator G raham joined 18 other Senators in a letter to President O bam a that

refers to the B oeing com plaint and urges the President to w ithdraw M r.Solom on's nom ination

(along w ith a nom inee to the N L R B 's B oard).T he letter goes on to state thatif the Presidentdoes

I http://w w vv .nlrb .gov/sites/default/file,s/docum ents/443/cpt_l 9-ca-032431_boeing_4-20-

2011_com plaint_and_not_hrg.pdf.

2 ttp://lgraham .senate.gov/public/index.cfm ?FuseA ction= PressR oom .PressR eleasea& C ontentR ecord_id= 74179e31-

802a-23ad-4e6e-3b1394738c8d.

NLRB-FOIA-00009521

not do so, "[w ]e w ill vigorously oppose both nom inations, vote against cloture and use all

proceduraltools available to defeattheir confirm ation in the Senate." Perhaps m ostim portantly for

Senate R ule 43,the letter m akes clear thatSenator G raham and the other Senators intend to take

these actions w ithout regard to the m erits or ultim ate disposition of the B oeing com plaint: i.e.

w hether B oeing had actually broken the law or not.3 C oupled w ith S enator G raham 's other

dem ands on M r.Solom on thathe w ithdraw the com plaint,itseem s clear thatthis letter is partof his

overalleffortto pressure M r.Solom on to stop a law enforcem entproceeding and to threaten his job,

regardless of w hether B oeing com m itted the illegalacts for w hich ithas been charged.A copy of

the M ay 4,2011 letter is attached.

T here m ay be other com m unications by Senator G raham w ith M r.Solom on,w ith other

persons in the N L R B ,or w ith persons outside of the N L R B thatshould be exam ined under Senate

R ule 43.The exam ples I have given show extraordinary politicization of a law enforcem entm atter,

and I do not believe that a Senator or any other politician should be trying to interfere w ith and

prevent a law enforcem ent trial. T his trial is the only chance for B oeing's em ployees in

W ashington to have their rights vindicated.T hey deserve to have law enforcem ent proceed

according to the rule of law ,and I am requesting thatthe SelectC om m ittee on Ethics take w hatever

action m ay be appropriate to protectthe integrity of the legalprocess.

I w ould ask the C om m ittee to consider the follow ing portions of C hapter 8 of the Senate

Ethics M anual.There m ay be other relevantsections.

"In review ing the type and nature of agency proceeding [as to w hich a M em ber is

considering intervention],the C om m ittee has recom m ended thata M em ber consider ...

the kind of agency involved and the nature of the agency proceedings....In review ing

the type and nature of agency proceeding,the C om m ittee has recom m ended that a

M em ber consider w hether the agency is perform ing a quasi-judicial,adjudicative,or

enforcem entfunction." (M anualp.178).The N LR B is the Federalagency charged w ith

enforcem entof the N ationalLabor R elations A ct.Itreceives charges from persons w ho

believe thatthey have suffered violations of thatA ct,and itw illissue a com plaint,after

investigation,w hen itfinds thatthe charge has m erit.T he com plaintis then fried to an

adm inistrative law judge in a form al adjudicatory proceeding that is on the record.

A ppeals m ay be taken to the five-m em ber N ationalLabor R elations B oard and thereafter

to a U nited States C ourt of A ppeals.T he N L R B 's processes w ith respect to D istrict

751's charge and the B oeing com plaint seem clearly to fit the "quasi-judicial,

adjudicative,or enforcem entfunction" language of the M anual.

R egarding intervention in agency proceedings,the M anualstates that"com m unications

w ith an agency w ith respectto a m atter w hich m ay be the subjectof litigation in courtis,

nevertheless,generally perm itted..w here the agency is not engaged in an on-going

enforcem ent,investigative,or other quasi-judicialproceeding w ith respectto the m atter.

..
.If (M anualp.179,em phasis added).Since the N L R B 's proceedings w ith respectto

the B oeing com plaint are clearly "an on-going enforcem ent,investigative,or other

3 The beginning

of the letter's fifth paragraph starts,"If the N LR B prevails ...," show ing thatthe w riters intend to carry

outtheir threats even if the com plaintis found to be m eritorious.

NLRB-FOIA-00009522

quasi-judicialproceeding," itw ould seem thatattem pts to pressure the agency and stop

its law enforcem entactivities should notbe perm itted.

In the portion ofthe M anualthatreprints partofthe 1991 K eating R eport,itstates on pp.

181 and 182 thatstricter standards are applied to intervention in agency proceedings that

are on-the-record adjudications as opposed to rulem akings.The M anualrecognizes that

on-the-record proceedings are,by their very nature,supposed to be conducted on a

form alrecord,and decisions are to be m ade only on that record.T hus,extraneous

influences are notsupposed to be partofthe process,and M em bers should be aw are of

that.The Boeing com plaintis an on-the-record adjudication thatw illplay outthrough

an A LT,the Board,and m ostlikely the courts.Its prosecution and the agency's decision

m aking should notbe pressured or altered extraneously.

In the M anual's discussion ofhow Senate R ule 43 m ay apply som ew hatdifferently to

agency rulem akings as opposed to adjudications,itm akes specific reference to a case in

w hich "a threatby a M em ber ofC ongress to cutfunding to an agency unless a particular

resultw as achieved in a rulem alcing w as deem ed 'extraneous'and sufficientto setaside

the agency action." (M anual,p.182).A s noted above,Senator G raham has m ade one or

m ore threats ofthis nature w ith respectto the Boeing com plaint,and the stricter ethics

standard for adjudicatory proceedings w ould indicate a fortiori thatsuch threats could be

violations ofR ule 43.

In cities and tow ns allacross A m erica,our citizens w ould cry foulifa councilm an used his

office to putpressure on a police chiefor a judge to drop a law enforcem entm atter.N o one w ould

think itacceptable for such a politician to threaten to cutfunding from the police departm entor the

courtsystem or to threaten the job ofthe police chief,in order to preventa law enforcem entm atter

from being presented to a judge.Politicalinterference in order to stop the trialof an influential

person charged w ith violating the law is w rong under the rule of law .I hope Senate R ule 43

em bodies such com m onsense restraints on m em bers ofthe -U nited States Senate.

I appreciate the SelectC om m ittee's consideration ofthis com plaintand requestfor inquiry.

I can b e reached at the address given above or by phone (301-967-4510) or em ail

(ccorsoniam aw .org).I w ould be glad to cooperate w ith the SelectC om m ittee in any w ay I can.

Sincer

O pher T.C orson

G EN ER A L C O U N SEL

InternationalA ssociation of M achinists and

A erospace W orkers

C TC /rc

A ttachm ent

NLRB-FOIA-00009523

,..

A lle n , C O n s ta n c e
F ro m :

K arsh, A aron

S en t:

W ednesday, M ay 26, 2010 7:54 A M

To:

A dvice

S u b ject:

F W : B oeing C om pany, C ase 19-C A -32431

P age 1 of 1

A ttach m en ts: A D V .19-C A -32431.B oeing.M em o to A dvice and S pecialLit. req. P erm ission to S ubpoena

V ideo T ape pdf

F ro m : K earney, B arry J.

S e n t: T uesday, M ay 25, 2010 5:27 P M

T o : S ophir, Jaym e; K arsh, A aron

S u b je c t: F w : B oeing C om pany, C ase 19-C A -32431

S ent from m y B lackB erry W ireless H andheld

F ro m : E step, S usan C .

T o : K earney, B arry J.; M oskow itz, E ric G .

C c: B aniszew ski, Joseph; A hearn, R ichard L.

S e n t: T ue M ay 25 17:11:44 2010

S u b je c t: B oeing C om pany, C ase 19-C A -32431

P er R egionalD irector A hearn's instructions, attached is a m em o requesting guidance in the above case.

S usan C . E step, S ecretary to the R egionalD irector

N LR B , R egion 19, S eattle

206.220.6333; F A X 206. 220.6305

5/26/2010

NLRB-FOIA-00009524

U N IT E D S T A T E S G O V E R N M E N T

N atio n al L ab o r R elatio n s B o ard

M em orandum

B arry J.K earney,A ssociate G eneralC ounsel

D ivision ofA dvice

TO .

D A TE :

M ay 25,2010

r-1

Eric G .M oskow itz,A ssistant G eneralC ounsel

SpecialLitigation B ranch

R ichard L.A heam ,R egionalD irector

R egion 19,S eattle,W A

FR O M :

S U B JE C T:

22

(.1 1

'1)

B oeing C om pany

C ase 19-C A -32431

This R egion is currently investigating charge 19-C A -32431 filed by the IA M & A W against

T h e B o ein g C o m p an y. A s p art o f th e in vestig atio n , th e assig n ed B o ard A g en t is

seekin g a vid eo tap e fro m th e S eattle T im es n ew sp ap er. A s C H M 11770.4 req u ires

clearance from H eadquarters prior to the issuance of an investigative subpoena w here

"the subpoena seeks evidence from a m em ber of the press to elicit testim ony relating to

inform ation g ained in h is or her profession al cap acity or requirin g the pro duction of

m aterials secured as a result of new s gathering activities," Iam subm itting this request.

The E m ployer,a m anufacturer of airplanes,announced in O ctober 2009 that it w ould be

p lacin g a seco n d assem b ly lin e fo r th e 787 D ream lin er in S o u th C aro lin a at its n o n -

union facility instead of at its union-represented facility in E verett,W ashington w here the

first assem b ly lin e is lo cated . T h e ch arg e alleg es, am o n g o th er item s, th at th e

E m ployer placed the second line in S outh C arolina in retaliation for the unit em ployees

engaging in strikes in 2008 and prior years.

In M arch 2010, a lo cal rep o rter fo r th e S eattle T im es new spaper video-taped his

interview w ith Jim A lb aug h, C E O of B o eing C om m ercial A irplanes. In that three-p art

in terview , M r. A lb au g h states B o ein g 's reaso n s fo r p lacin g th e seco n d lin e in S o u th

C arolina labor strife and increased w ages.Thus,the R egion seeks possession of the

video as it contains direct statem ents from a B oeing officialregarding B oeing's reasons

for placing the second line in S .C arolina.

W e requested the video from the S eattle Tim es, w hich is available for purchase at $35

for each of three tapes,but the follow ing restrictions w ere placed on the use of the video

under those circum stances.

Purchase ofvideo does nottransfer copyrightand is for personaluse only.

N o m odelor property release exists.

O nly Seattle Tim es staffproduced video is for purchase.

Videos are digitalform at,burned on a D VD atleast840 resolution or m ore

NLRB-FOIA-00009525

C ase 19-C A -32431

-2-

M ay 25,2010

N o posting online,w ebsite or use in blogs.

Video is intended for editorialuse and notto be used for prom otion or advertisem ent.

Video is provided to you as is for your personaluse only and m ay not be copied,reproduced,disbibuted,broadcast,displayed,

sold,licensed or otherw ise exploited for any other purpose w hatsoever.

Ifyou are interested In licensing video contentfor com m ercialuse,please contactus at eedenseseattletIm es.com .

A s su ch , w e w ish to su b p o en a th e vid eo tap e in o rd er to n o t b e lim ited b y th e

new spaper's use restrictions.

Please advise.

R .L.A .

cc: Jo e B an iszew ski, D ep u ty A G C

D ivision of O perations M anagem ent

NLRB-FOIA-00009526

t.

P age 1 of1

A lle n , C o n s ta n c e

F ro m :

K arsh, A aron

S en t:

W edn esday, M a y 26, 2 010 7:54 A M

To:

A d vice

S u b ject:

F W : B oeing C om pany, C ase 19-C A -32431

A ttach m en ts: A D V .1 9-C A -324 31.B oe ing.M em o to A dvice and S pecial L it. req. P erm ission to S ubp oena

V id e o T a p e .p d f

F ro m : K earney, B arry J.

S e n t: T uesday, M ay 25, 2010 5:27 P M

T o : S ophir, Jaym e; K arsh, A aron

S u b je c t: F w : B oeing C om pany, C ase 19-C A -32431

S ent from m y B lackB erry W ireless H andheld

F ro m : E step, S usan C .

T o : K earney, B arry J.; M oskow itz, E ric G .

C c: B aniszew ski, Joseph; A hearn, R ichard L.

S e n t: T ue M ay 25 1 7:11:4 4 201 0

S u b je c t: B oeing C om pany, C ase 19-C A -32431

P er R e gional D ire ctor A he arn's instruction s, attached is a m em o req uesting guidan ce in the above case.

S usan C . E ste p, S ecre tary to the R egion al D ire ctor

N LR B , R egion 19, S eattle

2 06 .2 20 .6 33 3; F A X 20 6. 22 0 .63 0 5

5/26/2010

NLRB-FOIA-00009527

U N IT E D S T A T E S G O V E R N M E N T

N atio n al L ab o r R elatio n s B o ard

M em orandum

TO

B arry J. K earney, A ssociate G eneralC ounsel

D ivision of A dvice

E ric G . M oskow itz, A ssistant G eneralC ounsel

S pecialLitigation B ranch

......

D A TE :

M ay 25,2010

..ec...

-:

*.:

....
-.7.cr.i

S U B JE C T :

R ichard L. A hearn, R egionalD irector

R egion 19, S eattle, W A

C ")C D

......

....6.

N .)

Cr

1->
F R O M :

CA 7.-

c9
N .)
0

.....---rim n

C -,

r...)'.4:

c)i-7)

Lia r i

.I

c..-.)

B oeing C om pany

C ase 19-C A -32431

T his R egion is currently investigating charge 19-C A -32431 filed by the IA M & A W against

T h e B o e in g C o m p a n y. A s p a rt o f th e in ve stig a tio n , th e a ssig n e d B o a rd A g e n t is

se e kin g a vid e o ta p e fro m th e S eattle T im es n e w sp a p e r. A s C H M 1 1 7 7 0 .4 re q u ire s

clearance from H eadquarters prior to the issuance of an investigative subpoena w here

"the subpoena seeks evidence from a m em ber of the press to elicit testim ony relating to

in fo rm a tio n g a in e d in h is o r h e r p ro fe ssio n a l ca p a city o r re q u irin g th e p ro d u ctio n o f

m aterials secured as a result of new s gathering activities," I am subm itting this request.

T he E m ployer, a m anufacturer of airplanes, announced in O ctober 2009 that it w ould be

p la cin g a se co n d a sse m b ly lin e fo r th e 7 8 7 D re a m lin e r in S o u th C a ro lin a a t its n o n -

union facility instead of at its union-represented facility in E verett, W ashington w here the

first a sse m b ly lin e is lo ca te d . T h e ch a rg e a lle g e s, a m o n g o th e r ite m s, th a t th e

E m ployer placed the second line in S outh C arolina in retaliation for the unit em ployees

engaging in strikes in 2008 and prior years.

In M a rch 2 0 1 0 , a lo ca l re p o rte r fo r th e S ea ttle T im es n e w sp a p e r vid e o -ta p e d h is

in te rvie w w ith Jim A lb a u g h , C E O o f B o e in g C o m m e rcia l A irp la n e s. In th a t th re e -p a rt

in te rvie w , M r. A lb a u g h sta te s B o e in g 's re a so n s fo r p la cin g th e se co n d lin e in S o u th

C arolina labor strife and increased w ages. T hus, the R egion seeks possession of the

video as it contains direct statem ents from a B oeing officialregarding B oeing's reasons

for placing the second line in S . C arolina.

W e requested the video from the S eattle T im es, w hich is available for purchase at $35

for each of three tapes, but the follow ing restrictions w ere placed on the use of the video

under those circum stances.

P urchase of video does not transfer copyright and is for personaluse only.

N o m odelor property release exists.

O nly S eattle T im es staff produced video is for purchase.

V ideos are digitalform at, burned on a D V D at least 640 resolution or m ore

NLRB-FOIA-00009528


C ase 19-C A -32431

-2-

M ay 25,2010

N o posting online,w ebsite or use in blogs.

Video is intended for editorialuse and notto be used for prom otion or advertisem ent.

Video is provided to you as is for your personaluse only and m ay not be copied,reproduced,distributed,broadcast,displayed,

sold,licensed or otherw ise exploited for any other purpose w hatsoever.

Ifyou are interested in licensing video contentfor com m ercialuse,please contactus at eedensatseattlellm es corn.

A s su ch , w e w ish to su b p o en a th e vid eo tap e in o rd er to n o t b e lim ited b y th e

new spaper's use restrictions.

Please advise.

._...e.e."......................

...............

......-..

R .L.A .

cc: Jo e B an iszew ski, D ep u ty A G C

D ivision of O perations M anagem ent

NLRB-FOIA-00009529

Microsoft Outlook

From:

Estep, Susan C.

Sent:

Tuesday, May 25, 2010 3:57 PM

To:

Ahearn, Richard L.

Subject:

Sub. Req. for Boeing Draft

Attachments:

ADV.19-CA-32431.Boeing.Memo to Advice and Special Lit. req. Permission to Subpoena

Video Tape.doc

See attached.

Susan C. Estep, Secretary to the Regional Director

NLRB, Region 19, Seattle

206.220.6333; FAX 206. 220.6305

NLRB-FOIA-00009530

UNITED STATES GOVERNMENT

National Labor Relations Board

Memorandum

TO:

Barry J. Kearney, Associate General Counsel


Division of Advice

DATE:

May 25, 2010

Eric G. Moskowitz, Assistant General Counsel

Special Litigation Branch

FROM:

Richard L. Ahearn, Regional Director

Region 19, Seattle, WA

SUBJECT:

Boeing Company

Case 19-CA-32431

This Region is currently investigating charge 19-CA-32431 filed by the IAM&AW against

The Boeing Company. As part of the investigation, the assigned Board Agent is

seeking a video tape from the Seattle Times newspaper. As CHM 11770.4 requires

clearance from Headquarters prior to the issuance of an investigative subpoena where

the subpoena seeks evidence from a member of the press to elicit testimony relating to

information gained in his or her professional capacity or requiring the production of

materials secured as a result of news gathering activities, I am submitting this request.

The Employer, a manufacturer of airplanes, announced in October 2009 that it would be

placing a second assembly line for the 787 Dreamliner in South Carolina at its non-

union facility instead of at its union-represented facility in Everett, Washington where the

first assembly line is located. The charge alleges, among other items, that the

Employer placed the second line in South Carolina in retaliation for the unit employees

engaging in strikes in 2008 and prior years.

In March 2010, a local reporter for the Seattle Times newspaper video-taped his

interview with Jim Albaugh, CEO of Boeing Commercial Airplanes. In that three-part

interview, Mr. Albaugh states Boeings reasons for placing the second line in South

Carolina labor strife and increased wages. Thus, the Region seeks possession of the

video as it contains direct statements from a Boeing official regarding Boeings reasons

for placing the second line in S. Carolina.

We requested the video from the Seattle Times, which is available for purchase at $35

for each of three tapes, but the following restrictions were placed on the use of the video

under those circumstances.

Purchase of video does not transfer copyright and is for personal use only.

No model or property release exists.

Only Seattle Times staff produced video is for purchase.

Videos are digital format, burned on a DVD at least 640 resolution or more.

NLRB-FOIA-00009531

Case 19-CA-32431

-2-

May 25, 2010

No posting online, website or use in blogs.

Video is intended for editorial use and not to be used for promotion or advertisement.

Video is provided to you as is for your personal use only and may not be copied, reproduced, distributed. broadcast, displayed,

sold, licensed or otherwise exploited for any other purpose whatsoever.

If you are interested in licensing video content for commercial use, please contact us at eedens@seattletimes.com.

As such, we wish to subpoena the video tape in order to not be limited by the

newspapers use restrictions.

Please advise.

R. L. A.

cc:

Joe Baniszewski, Deputy AGC

Division of Operations Management

NLRB-FOIA-00009532

Microsoft Outlook

From:
Sent:
To:
Subject:
Attachments:

Moskowitz, Eric G.

Tuesday, May 25, 2010 5:36 PM

Ahearn, Richard L.

FW : Boeing Company, Case 19-CA-32431

ADV.19-CA-32431.Boeing.Memo to Advice and Special Lit. req. Permission to Subpoena

Video Tape.pdf

Rich:

Question: Has anyone in the Region determined from the Seattle Times what they mean by

Exemption 5

Eric

From: Estep, Susan C.

Sent: Tuesday, May 25, 2010 5:12 PM

To: Kearney, Barry J.; Moskowitz, Eric G.

Cc: Baniszewski, Joseph; Ahearn, Richard L.

Subject: Boeing Company, Case 19-CA-32431

Per Regional Director Ahearns instructions, attached is a memo requesting guidance in the above case.

Susan C. Estep, Secretary to the Regional Director

NLRB, Region 19, Seattle

206.220.6333; FAX 206. 220.6305

NLRB-FOIA-00009533

U N IT E D S T A T E S G O V E R N M E N T

N a tio n a lLa b o r R elations B o a rd

M em orandum

B arry J. K earney, A ssociate G eneral C ounsel

D ivision of A dvice

TO :

DATE:

M a y 25, 2 010

E ric G . M oskow itz, A ssistan t G eneral C ounsel

S pecial Litigation B ranch

FR O M :

R ichard L. A hearn, R egional D irector

R egion 1 9, S eattle, W A

S U B JE C T :

B oeing C om pany

C ase 1 9-C A -32431

T his R egion is currently investigating charge 1 9-C A -32431 filed b y the IA M & A W a gainst

T he B oeing C om pany. A s part of the investigation, the assigned B oard A gent is

seeking a v ideo tape from the S eattle T im es new spaper. A s C H M 11770.4 requires

clearance from H eadquarters p rior to the issuance o f an investigative s ubpoena w here

"the subpoena s eeks e vidence from a m em ber of the p ress to e licit testim ony relating to

inform ation gained in his or h er p rofessional capacity o r requiring the production of

m aterials secured a s a result of new s g athering a ctivities," I am subm itting this request.

T he E m ployer, a m anufacturer of airplanes, a nnounced in O ctober 2009 that it w ould be

placing a s econd assem bly line for the 787 D ream liner in S outh C arolina a t its non-

union facility instead of at its u nion-represented facility in E verett, W ashington w here the

first assem bly line is located. T he charge alleges, am ong other item s, that the

E m ployer p laced the s econd line in S outh C arolina in retaliation for the u nit e m ployees

engaging in strikes in 2008 a nd p rior years.

In M arch 2010, a local reporter for the S eattle T im es new spaper video-taped his

interview w ith Jim A lbaugh, C E O of B oeing C om m ercial A irplanes. In that three-part

interview , M r. A lbaugh states B oeing's reasons for placing the second line in S outh

C arolina - labor strife a nd increased w ages. T hus, the R egion s eeks p ossession o f the

video as it contains d irect statem ents from a B oeing o fficialregarding B oeing's reasons

for placing the s econd line in S . C arolina.

W e requested the v ideo from the S eattle T im es, w hich is available for p urchase a t$ 35

for each o f three tapes, b ut the follow ing restrictions w ere p laced on the u se o f the video

under those circum stances.

P urchase of video d o e s n o t transfer copyright and is fo r personalu se o nly.

N o m odelo r property release e xists.

O nly S eattle T im es sta ff produced video is fo r purchase.

V ideos a re d igitalfon nat, b urned on a D V D a t least 640 resolution or m ore.

NLRB-FOIA-00009534

C ase 1 9-C A -32431

M ay 25 ,2 0 1 0

-2-

N o posting online, w ebsite or use in blogs.

V ideo is intended for editorialu se and n ot to b e u sed for prom otion or advertisem ent.

V ideo is p rovided to you a s is for your personalu se o nly a nd m ay not b e c opied, reproduced, d istributed. b roadcast, d isplayed,

sold, licensed or otherw ise e xploited for any other purpose w hatsoever.

Ifyou a re interested in licensing video content for com m ercialu se, please contact us at eedens@ seattletim es.com .

A s such, w e w ish to subpoena the video tape in order to not be lim ited by the

new spaper's use restrictions.

P lease advise.

R . L. A .

cc:

Joe B aniszew ski, D eputy A G e

D ivision o f O perations M anagem ent

NLRB-FOIA-00009535

Microsoft Outlook

From:
Sent:
To:
Subject:
Attachments:

Karsh, Aaron

W ednesday, May 26, 2010 7:54 AM

Estep, Susan C.; Ahearn, Richard L.

FW : Boeing Company, Case 19-CA-32431

ADV.19-CA-32431.Boeing.Memo to Advice and Special Lit. req. Permission to Subpoena

Video Tape.pdf

Thanks for the submission. In the future, please send Requests for Advice directly to the Advice Inbox, rather than to

Barry Kearney or any other individual.

Aaron Karsh

DAGC, Advice

From: Kearney, Barry J.

Sent: Tuesday, May 25, 2010 5:27 PM

To: Sophir, Jayme; Karsh, Aaron

Subject: Fw: Boeing Company, Case 19-CA-32431

--------------------------

Sent from my BlackBerry Wireless Handheld

From: Estep, Susan C.

To: Kearney, Barry J.; Moskowitz, Eric G.

Cc: Baniszewski, Joseph; Ahearn, Richard L.

Sent: Tue May 25 17:11:44 2010

Subject: Boeing Company, Case 19-CA-32431

Per Regional Director Ahearns instructions, attached is a memo requesting guidance in the above case.

Susan C. Estep, Secretary to the Regional Director

NLRB, Region 19, Seattle

206.220.6333; FAX 206. 220.6305

NLRB-FOIA-00009536

U N IT E D S T A T E S G O V E R N M E N T

N a tio n a lLa b o r R elations B o a rd

M em orandum

B arry J. K earney, A ssociate G eneral C ounsel

D ivision of A dvice

TO :

DATE:

M a y 25, 2 010

E ric G . M oskow itz, A ssistan t G eneral C ounsel

S pecial Litigation B ranch

FR O M :

R ichard L. A hearn, R egional D irector

R egion 1 9, S eattle, W A

S U B JE C T :

B oeing C om pany

C ase 1 9-C A -32431

T his R egion is currently investigating charge 1 9-C A -32431 filed b y the IA M & A W a gainst

T he B oeing C om pany. A s part of the investigation, the assigned B oard A gent is

seeking a v ideo tape from the S eattle T im es new spaper. A s C H M 11770.4 requires

clearance from H eadquarters p rior to the issuance o f an investigative s ubpoena w here

"the subpoena s eeks e vidence from a m em ber of the p ress to e licit testim ony relating to

inform ation gained in his or h er p rofessional capacity o r requiring the production of

m aterials secured a s a result of new s g athering a ctivities," I am subm itting this request.

T he E m ployer, a m anufacturer of airplanes, a nnounced in O ctober 2009 that it w ould be

placing a s econd assem bly line for the 787 D ream liner in S outh C arolina a t its non-

union facility instead of at its u nion-represented facility in E verett, W ashington w here the

first assem bly line is located. T he charge alleges, am ong other item s, that the

E m ployer p laced the s econd line in S outh C arolina in retaliation for the u nit e m ployees

engaging in strikes in 2008 a nd p rior years.

In M arch 2010, a local reporter for the S eattle T im es new spaper video-taped his

interview w ith Jim A lbaugh, C E O of B oeing C om m ercial A irplanes. In that three-part

interview , M r. A lbaugh states B oeing's reasons for placing the second line in S outh

C arolina - labor strife a nd increased w ages. T hus, the R egion s eeks p ossession o f the

video as it contains d irect statem ents from a B oeing o fficialregarding B oeing's reasons

for placing the s econd line in S . C arolina.

W e requested the v ideo from the S eattle T im es, w hich is available for p urchase a t$ 35

for each o f three tapes, b ut the follow ing restrictions w ere p laced on the u se o f the video

under those circum stances.

P urchase of video d o e s n o t transfer copyright and is fo r personalu se o nly.

N o m odelo r property release e xists.

O nly S eattle T im es sta ff produced video is fo r purchase.

V ideos a re d igitalfon nat, b urned on a D V D a t least 640 resolution or m ore.

NLRB-FOIA-00009537

C ase 1 9-C A -32431

M ay 25 ,2 0 1 0

-2-

N o posting online, w ebsite or use in blogs.

V ideo is intended for editorialu se and n ot to b e u sed for prom otion or advertisem ent.

V ideo is p rovided to you a s is for your personalu se o nly a nd m ay not b e c opied, reproduced, d istributed. b roadcast, d isplayed,

sold, licensed or otherw ise e xploited for any other purpose w hatsoever.

Ifyou a re interested in licensing video content for com m ercialu se, please contact us at eedens@ seattletim es.com .

A s such, w e w ish to subpoena the video tape in order to not be lim ited by the

new spaper's use restrictions.

P lease advise.

R . L. A .

cc:

Joe B aniszew ski, D eputy A G e

D ivision o f O perations M anagem ent

NLRB-FOIA-00009538

Microsoft Outlook

From:
Sent:
To:
Subject:

Pomerantz, Anne

Tuesday, June 01, 2010 5:47 PM

Ahearn, Richard L.

RE: Extended Interview with Boeing CEO Jim Albaugh

OK I assume r-case hearing?

From: Ahearn, Richard L.

Sent: Tuesday, June 01, 2010 2:41 PM

To: Pomerantz, Anne

Subject: FW: Extended Interview with Boeing CEO Jim Albaugh

Lets discuss please.

From: Flanagan, Kevin P.

Sent: Tuesday, June 01, 2010 2:29 PM

To: Ahearn, Richard L.

Cc: Moskowitz, Eric G.; Platt, Nancy

Subject: FW: Extended Interview with Boeing CEO Jim Albaugh

Rich We received the following response from the Seattle Times. They seem willing to work with us,

but we need to clarify a few things.

Exemption 5

I plan on contacting Edens again to make sure the Times understands this process. Before I do, it would

be helpful to know what is the minimum number of copies you think we will need (assuming the case

goes to hearing)? Also, you mentioned in our last conversation that the Region would make a transcript

from the videos. How many copies of the transcript would need to be made?

Thanks,

Kevin

From: Evelyn Edens [mailto:eedens@seattletimes.com]

Sent: Tuesday, June 01, 2010 2:41 PM

To: Flanagan, Kevin P.

Subject: RE: Extended Interview with Boeing CEO Jim Albaugh

Hello Kevin,

Thank you for your inquiry. We would be willing to burn the video interviews as they appear on our website for your limited

use. W e would require no duplication, no posting on any website and for the exclusive purpose of internal use and

possible entering into evidence. W e would charge the fee of $35.00 per disc ( 3 discs). Let me know if that will work for

your focused request.

NLRB-FOIA-00009539

Regards,

Evelyn Edens

News Business Development Manager

The Seattle Times

206-464-2299

From: Flanagan, Kevin P. [mailto:Kevin.Flanagan@nlrb.gov]

Sent: Friday, May 28, 2010 6:23 AM

To: Evelyn Edens

Subject: Extended Interview with Boeing CEO Jim Albaugh

Dear Ms. Edens: The National Labor Relations Board (NLRB) is interested in acquiring copies of the extended video

interview Dominic Gates conducted with Boeing CEO Jim Albaugh. The video is available online at the following

URL: http://seattletimes.nwsource.com/html/businesstechnology/2011673748_video%20_albaugh.html. You

previously referred our law librarian, Andrew Martin, to a website containing terms and conditions for personal use.

The NLRB intends to use these videos as part of an ongoing investigation. Furthermore, if necessary, the NLRB intends

to introduce copies of the videos into evidence during a potential hearing involving alleged violations of the National

Labor Relations Act. As such, the terms and conditions for personal use do not appear to contemplate the NLRBs

intended uses. Please let me know whether the Seattle Times would agree to these uses of the videos--that is, whether

the NLRB may acquire the videos without the restrictions for personal use.

Thanks,

Kevin

__

Kevin Flanagan

National Labor Relations Board

Special Litigation Branch

1099 14th Street, NW

Washington, DC 20570

Phone: (202) 273-2938 Fax: (202) 273-1799

Kevin.Flanagan@nlrb.gov

NLRB-FOIA-00009540

Microsoft Outlook

Snook, Dennis

Tuesday, June 08, 2010 4:27 PM

'Evelyn Edens'

Ahearn, Richard L.

Extended Interview with Boeing CEO Jim Albaugh

From:
Sent:
To:
Cc:
Subject:

Hi Ms. Edens:

This will confirm our conversation today that the NLRB will purchase 3 CDs regarding the

interview of Boeing CEO Jim Albaugh. When the CDs are ready, please call me @ 206-220-6317

and I will make arrangements for pick up. Our preferred payment of payment is via MasterCard credit

card.

Thanks for your assistance in this matter.

Dennis Snook, Office Manager

National Labor Relations Board

Region 19 Seattle, WA

From: Flanagan, Kevin P.

Sent: Tuesday, June 08, 2010 12:35 PM

To: 'Evelyn Edens'

Cc: Ahearn, Richard L.; Snook, Dennis

Subject: RE: Extended Interview with Boeing CEO Jim Albaugh

Evelyn I have confirmed that the terms you outlined on June 1st will work. At this time, the NLRB

intends to purchase only one copy of the videos but may purchase additional copies as the investigation

proceeds. Dennis Snook in our Seattle regional office will contact you to arrange for payment and

acquisition of the videos.

Thanks,

Kevin

From: Evelyn Edens [mailto:eedens@seattletimes.com]

Sent: Tuesday, June 01, 2010 2:41 PM

To: Flanagan, Kevin P.

Subject: RE: Extended Interview with Boeing CEO Jim Albaugh

Hello Kevin,

Thank you for your inquiry. We would be willing to burn the video interviews as they appear on our website for your limited

use. W e would require no duplication, no posting on any website and for the exclusive purpose of internal use and

possible entering into evidence. W e would charge the fee of $35.00 per disc ( 3 discs). Let me know if that will work for

your focused request.

Regards,

Evelyn Edens

News Business Development Manager

The Seattle Times

206-464-2299

NLRB-FOIA-00009541

From: Flanagan, Kevin P. [mailto:Kevin.Flanagan@nlrb.gov]

Sent: Friday, May 28, 2010 6:23 AM

To: Evelyn Edens

Subject: Extended Interview with Boeing CEO Jim Albaugh

Dear Ms. Edens: The National Labor Relations Board (NLRB) is interested in acquiring copies of the extended video

interview Dominic Gates conducted with Boeing CEO Jim Albaugh. The video is available online at the following

URL: http://seattletimes.nwsource.com/html/businesstechnology/2011673748_video%20_albaugh.html. You

previously referred our law librarian, Andrew Martin, to a website containing terms and conditions for personal use.

The NLRB intends to use these videos as part of an ongoing investigation. Furthermore, if necessary, the NLRB intends

to introduce copies of the videos into evidence during a potential hearing involving alleged violations of the National

Labor Relations Act. As such, the terms and conditions for personal use do not appear to contemplate the NLRBs

intended uses. Please let me know whether the Seattle Times would agree to these uses of the videos--that is, whether

the NLRB may acquire the videos without the restrictions for personal use.

Thanks,

Kevin

__

Kevin Flanagan

National Labor Relations Board

Special Litigation Branch

1099 14th Street, NW

Washington, DC 20570

Phone: (202) 273-2938 Fax: (202) 273-1799

Kevin.Flanagan@nlrb.gov

NLRB-FOIA-00009542

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:

Jablonski, Colleen G.

W ednesday, June 16, 2010 6:45 PM

Ahearn, Richard L.

Todd, Dianne

Boeing

Dianne and I thought it might be a good idea to have a mini preliminary agenda in Boeing at the start of next week. The

thought is that Dianne can give us a general, verbal description of the evidence and we can discuss how to proceed.

Your view?

NLRB-FOIA-00009543

Microsoft Outlook

From:
Sent:
To:
Subject:

Todd, Dianne

Thursday, August 19, 2010 1:18 PM

Ahearn, Richard L.

Assembly line

Rich,

There is an assembly line! It moves at 2 inches per minute. Heres a video.

http://www.reliableplant.com/View/6659/lean-moving-line-at-boeing's-737-plant

Dianne

NLRB-FOIA-00009544

Microsoft Outlook

From:

David Campbell <campbell@workerlaw.com>

Sent:

Monday, August 23, 2010 1:07 PM

To:

Todd, Dianne; Ahearn, Richard L.

Cc:

Carson Glickman-Flora; Jude Bryan

Subject:

Position Statements

Director Ahearn and Ms. Todd, Thank you again for the opportunity to discuss this case last Wednesday. Since then I

have been working on position statements regarding 8(C) issues, and a statement regarding other defenses Boeing is

apparently raising. I am hoping that these can be considered before this case goes to Advice. I can definitely provide

them by Wednesday, but will provide them sooner if needed. Thank you for your consideration of this request.

Thanks, Dave

Sincerely, David Campbell

campbell@workerlaw.com

Schwerin Campbell Barnard Iglitzin & Lavitt

18 W Mercer Suite 400

Seattle, W ashington 98119-3971

Phone (206)285-2828: FAX (206)378-4132

This communication is protected by the attorney client and attorney work-product privileges. Please do not copy, forward

or append.

NLRB-FOIA-00009545

Microsoft Outlook

From:
Sent:
To:
Subject:

Newman, Clinton M.

Thursday, August 26, 2010 2:03 PM

Todd, Dianne; Ahearn, Richard L.

Boeing

From Bloomberg.com:

Incentives offered by the state, including exemptions on sales tax and fuel used in test flights, may be $250

million to a little more than $400 million, depending on how you cut the apple, Sanford [Governor of SC]

said after Boeings groundbreaking ceremony for the new assembly plant in North Charleston.

Clinton Newman

National Labor Relations Board, Region 19

2948 Jackson Federal Building

915 Second Avenue

Seattle, W A 98174

Telephone: (206) 220-6283

Fax: (206) 220-6305

NLRB-FOIA-00009546

Microsoft Outlook

Todd, Dianne

Friday, August 27, 2010 7:39 PM

Ahearn, Richard L.; Pomerantz, Anne; Jablonski, Colleen G.

'
Pomerantz personal email
RE: memo in Boeing

From:
Sent:
To:
Cc:
Subject:

See you then.

From: Ahearn, Richard L.

Sent: Friday, August 27, 2010 4:22 PM

To: Todd, Dianne; Pomerantz, Anne; Jablonski, Colleen G.

Cc:

'

Pomerantz personal email

Subject: RE: memo in Boeing

Monday 9 am?

From: Todd, Dianne

Sent: Friday, August 27, 2010 4:21 PM

To: Pomerantz, Anne; Jablonski, Colleen G.

Cc: Ahearn, Richard L.;

Pomerantz personal email

'

Subject: RE: memo in Boeing

Colleen also brought up some concerns she had regarding the language of the proposed order that I

would like to discuss. Will there be time on Monday? Here is the draft proposed order language.

Anne, Ive also attached the memo.

Thanks,

Dianne

Proposed Order

Ex. 5 Deliberative

NLRB-FOIA-00009547

Ex. 5 Deliberative

From: Pomerantz, Anne

Sent: Friday, August 27, 2010 4:12 PM

NLRB-FOIA-00009548

To: Todd, Dianne; Jablonski, Colleen G.

Cc: Ahearn, Richard L.

Subject: memo in Boeing

Dianne/Colleen,

When you send me the Boeing memo to edit, please also send it to my home email, in case I have trouble accessing this

remotely this weekend:


Pomerantz personal email
Thanks much.

Anne

Anne P. Pomerantz

Regional Attorney | National Labor Relations Board | Region 19

2948 Jackson Federal Building, 915 Second Ave., Seattle, WA 98174

anne.pomerantz@nlrb.gov | (206) 220-6311 | (206) 220-6305

Please consider the environment before printing this email

NLRB-FOIA-00009549

Microsoft Outlook

From:
Sent:
To:
Subject:
Attachments:

Kobe, James

Tuesday, August 31, 2010 4:30 PM

Ahearn, Richard L.

RE: Reports needed for managing in NxGen

RCASES.DOC; INVESTIGATIONS by AGENT.xls

Non-Responsive

NLRB-FOIA-00009550

non-responsive

NLRB-FOIA-00009551

Case #

Case Name

Filed

Cat

10(j)

non-responsive

NLRB-FOIA-00009552

non-responsive

NLRB-FOIA-00009553

non-responsive

NLRB-FOIA-00009554

non-responsive

NLRB-FOIA-00009555

non-responsive

NLRB-FOIA-00009556

non-responsive

19-CA-32431-001 Boeing Company

3/26/2010

non-responsive

NLRB-FOIA-00009557

non-responsive

NLRB-FOIA-00009558

non-responsive

NLRB-FOIA-00009559

non-responsive

NLRB-FOIA-00009560

non-responsive

NLRB-FOIA-00009561

non-responsive

NLRB-FOIA-00009562

non-responsive

NLRB-FOIA-00009563

non-responsive

NLRB-FOIA-00009564

non-responsive

NLRB-FOIA-00009565

non-responsive

NLRB-FOIA-00009566

non-responsive

NLRB-FOIA-00009567

non-responsive

NLRB-FOIA-00009568

Microsoft Outlook

From:
Sent:
To:
Subject:

Todd, Dianne

Tuesday, August 31, 2010 5:57 PM

Pomerantz, Anne; Ahearn, Richard L.

Intro to Boeing memo.

Ive included Annes language into the beginning of the memo as follows:

REQUEST FOR ADVICE

and

AUTHORIZATION TO SEEK 10(j) INJUNCTIVE RELIEF

Exemption 5

Any changes needed?

From: Pomerantz, Anne

Sent: Tuesday, August 31, 2010 2:48 PM

To: Todd, Dianne

Subject: intro

Exemption 5

Anne P. Pomerantz

Regional Attorney | National Labor Relations Board | Region 19

2948 Jackson Federal Building, 915 Second Ave., Seattle, WA 98174

anne.pomerantz@nlrb.gov | (206) 220-6311 | (206) 220-6305

Please consider the environment before printing this email

NLRB-FOIA-00009569

Microsoft Outlook

From:

Baniszewski, Joseph

Sent:

Wednesday, October 06, 2010 10:41 AM

To:

Ahearn, Richard L.

Subject:

FW: UNION CITY! 10/06/2010

Boeing 2008 strike

From: Metro Washington Council AFL-CIO [mailto:streetheat@dclabor.org]

Sent: Wednesday, October 06, 2010 6:01 AM

To: Baniszewski, Joseph

Subject: UNION CITY! 10/06/2010

NLRB-FOIA-00009570

TODAY'S LABOR NEWS

Capitol Visitor Center

Workers Testify

In Congress

Local Unions Sponsor

Weekday Walks

For O'Malley

LABOR ON THE MOVE:

APALA'S Uno Moves to

DOL, Allan In As Interim

Deputy Director

Today's Labor History

ON THE LINE

Wednesday, October 6:

MD/DC AFL-CIO Get-OutThe-Vote Activities

Wednesday, October 6:

AFL-CIO Labor 2010 Phone Bank

Thursday, October 7 5:30p:

DC Labor FilmFest: Who Killed

Chea Vichea? (Special Preview)

NLRB-FOIA-00009571

Wednesday, October 6, 2010

THIS JUST

IN: On Thursday, October 7,

President

Barack Obama will be at Bowie State

University

to support Governor O'Malley and

Maryland's

Democratic agenda. Doors open at 1p

-- 14000

Jericho Park Road, Bowie, Maryland

20715 --

and tickets are not required. Wear

your union

colors and bring a photo ID!

CAPITOL

VISITOR

CENTER

WORKERS TESTIFY IN CONGRESS: Capitol

Visitor Center (CVC) guides really know their

way around Congress. The newly-unionized

CVC workers wasted no time exercising their

voice at work, testifying last week about

workplace safety issues at the Capitol. Megan

Burger, a CVC tour guide and member of

AFSCME

Local

658,

testified

that

since the

union formed, CVC management has been much

more responsive to employees' needs, which

include better inclement-weather uniforms and the

ability to bring water bottles outside. Burger

testified at a September 30 hearing of the House

Transpor

tation

and

Infrastru

cture Subcommittee on Economic

Development, Public Buildings and Emergency

Management, chaired by DC Del. Eleanor

Holmes Norton. Norton berated the Architect of

the Capitol for workplace safety issues and

called for studies into ways to make the Capitol

complex safer for visitors and employees,

reported Daniel Newhauser last week in Roll

Call. The hearing was called to

examine the safety of the Capitol

complex after an Office of

Compliance report estimated that

there are about 6,300 hazards

around legislative branch

buildings. The hearing marked

the first time that a

representative from the newly

formed Capitol Visitor Center union, AFSCME

Local 658, testified before Congress. In

another improvement, CVC workers will be

given permanent pagers next month in an

effort to improve communication within the

NLRB-FOIA-00009572

Capitol in the event of an emergency such as a terrorist attack.

- photo: Megan Burger, AFSCME

Local 658 (CVC), testifies in Congress last week; next to her is Wally Reed, President of AFSCME Local 626

(Architect of the Capitol)

FILMFEST TIX ON SALE NOW!: Tickets for the 10th annual DC Labor FilmFest - set for

October 15-19 at the American Film Insitute -- have just gone on sale. Click here to

reserve yours now and guarantee a seat at the best show in town!

LOCAL UNIONS SPONSOR WEEKDAY

WALKS FOR O'MALLEY: With less than a

month to go before Election Day, labor is

ramping up its door-to-door efforts for

Maryland Governor Martin O'Malley (center) in

Prince George's County. Local unions are now

sponsoring weekday labor-to-labor walks,

including UFCW Local 400, which has been

turning out dozens of its members Thursday

and Friday evenings over the past few

weeks. "We're making sure that there's a

strong union vote on November 2," Tony Perez

(at left), Local 400's Government

Affairs Coordinator. "If all the

unions in Prince George's County

follow suit, Bob Ehrlich won't stand a chance," adds Metro Council Assistant

Political Coordinator Alya Solomon. CLICK HERE for the latest listing of

political activities in the area.

- photo by Adam Wright

LABOR ON THE MOVE: APALA'S Uno Moves to DOL, Allan In As Interim

Deputy Director: Asian Pacific American Labor Alliance (APALA) Executive

Director Malcolm Amado Uno joined the Department of Labor as a Special Assistant to the

Secretary with the Office of Public Engagement on Monday. "As a product of APALA and

the labor movement, I always considered it a privilege to work in this capacity to advance

worker, immigrant and civil rights," said Uno.

"In my new capacity, it is my hope to

increase access to the Department of Labor

for Asian Americans and Pacific Islanders,

and all low-wage workers, to ensure that the

federal government is meeting their

obligation to improve working conditions for

all workers and assure that workers' rights

are respected and protected." Gregory Allan

Cendana, former President of the United

States Student Association, has taken

over as Interim Deputy Director at

APALA; reach him at 202-508-3733 or

gcendana@apalanet.org

TODAY'S LABOR HISTORY: First National Conference of Trade Union

Women (1918); 1,700 female flight attendants win 18-year, $37 million suit against

United Airlines. They had been fired for getting married (1986); Thirty-two thousand

machinists begin what is to be a successful 69-day strike against the Boeing Co. featuring

pay increase that averaged an estimated $19,200 in wages and benefits over four years

and safeguards against job cutbacks (1995); More info & ammo for unionists is available

online from Union Communication Services.

- photo: Boeing machinist Philip Bennett waves to a

passing vehicle as he pickets in front of a Boeing administrative building during a strike in 2008; photo courtesy

AP

NLRB-FOIA-00009573

Follow DC Labor on Twitter!

Material published in UNION CITY may be freely reproduced by any recipient; please

credit the Council as the source.

Published by the Metropolitan Washington Council, an AFL-CIO "Union City" Central Labor

Council whose 200 affiliated union locals represent 150,000 area union members. JOSLYN

N. WILLIAMS, PRESIDENT.

Story suggestions, event announcements, campaign reports, Letters to the Editor and

other material are welcome, subject to editing for clarity and space, and should be

directed to:

Editor: Chris Garlock

Assistant Editor: Adam Wright

streetheat@dclabor.org

Voice: 202-974-8153

Fax: 202-974-8152

Forward UNION CITY! to all your friends and colleagues or click here to spread the word!

If you received this message from a friend, you can sign up for UNION CITY!.

This message was sent to joseph.baniszewski@nlrb.gov. Visit your Subscription

Management Page to modify your email communication preferences or update your

personal profile. To stop ALL email from UNION CITY!, click to Unsubscribe yourself from

our lists (or reply via email with "remove or unsubscribe" in the subject line).

Privacy Policy

NLRB-FOIA-00009574

Microsoft Outlook

From:
Sent:
To:
Subject:

Farrell, Ellen

W ednesday, October 06, 2010 1:44 PM

Ahearn, Richard L.

RE: letter to CIS

I havent been in on the Boeing discussions; I think

Exemption 5

but dont know the details.

Ellen

Ellen Farrell

Deputy Associate General Counsel

Division of Advice, NLRB

202-273-3810

Ellen.Farrell@nlrb.gov

From: Ahearn, Richard L.

Sent: Wednesday, October 06, 2010 12:47 PM

To: Farrell, Ellen

Subject: RE: letter to CIS

Gracias! Hope you feel much better.

BTWI heard meeting on Boeing about to happenrecommendation?

Non-responsive

Non-responsive

NLRB-FOIA-00009575

NLRB-FOIA-00009575

Non-responsive

Non-responsive

Non-responsive

NLRB-FOIA-00009576

Microsoft Outlook

Mattina, Celeste

Monday, October 18, 2010 10:22 AM

Ahearn, Richard L.

RE: Boeing

From:
Sent:
To:
Subject:

Thank, Rich; I will keep you posted.

-----Original Message-----

From: Ahearn, Richard L.

Sent: Monday, October 18, 2010 10:21 AM

To: Mattina, Celeste

Subject: Boeing

Celeste,

One thought; because of the high sensitivity of

might want to

a decision in this case , Lafe

Exemption 5

Good luck!

Rich

--------------------------

Sent from my BlackBerry Wireless Handheld

NLRB-FOIA-00009577

Microsoft Outlook

From:

Estep, Susan C.

Sent:

Friday, October 22, 2010 5:50 PM

To:

Ahearn, Richard L.

Subject:

Boeing Company, Case 19-CA-32431

Attachments:

ADV.19-CA-32431.Boeing Request for Advice and 10(j) relief.PDF

See attached.

Susan C. Estep, Secretary to the Regional Director

NLRB, Region 19, Seattle

206.220.6333; FAX 206. 220.6305

NLRB-FOIA-00009578

Exemption 5

NLRB-FOIA-00009579

Exemption 5

NLRB-FOIA-00009580

Exemption 5

NLRB-FOIA-00009581

Exemption 5

NLRB-FOIA-00009582

Exemption 5

NLRB-FOIA-00009583

Exemption 5

NLRB-FOIA-00009584

Exemption 5

NLRB-FOIA-00009585

Exemption 5

NLRB-FOIA-00009586

Exemption 5

NLRB-FOIA-00009587

Exemption 5

NLRB-FOIA-00009588

Exemption 5

NLRB-FOIA-00009589

Exemption 5

NLRB-FOIA-00009590

Exemption 5

NLRB-FOIA-00009591

Exemption 5

NLRB-FOIA-00009592

Exemption 5

NLRB-FOIA-00009593

Exemption 5

NLRB-FOIA-00009594

Exemption 5

NLRB-FOIA-00009595

Exemption 5

NLRB-FOIA-00009596

Exemption 5

NLRB-FOIA-00009597

Exemption 5

NLRB-FOIA-00009598

Exemption 5

NLRB-FOIA-00009599

Exemption 5

NLRB-FOIA-00009600

Exemption 5

NLRB-FOIA-00009601

Exemption 5

NLRB-FOIA-00009602

Exemption 5

NLRB-FOIA-00009603

Exemption 5

NLRB-FOIA-00009604

Exemption 5

NLRB-FOIA-00009605

Exemption 5

NLRB-FOIA-00009606

Exemption 5

NLRB-FOIA-00009607

Exemption 5

NLRB-FOIA-00009608

Exemption 5

NLRB-FOIA-00009609

Exemption 5

NLRB-FOIA-00009610

Exemption 5

NLRB-FOIA-00009611

Exemption 5

NLRB-FOIA-00009612

Exemption 5

NLRB-FOIA-00009613

Exemption 5

NLRB-FOIA-00009614

Exemption 5

NLRB-FOIA-00009615

Exemption 5

NLRB-FOIA-00009616

Exemption 5

NLRB-FOIA-00009617

Exemption 5

NLRB-FOIA-00009618

Exemption 5

NLRB-FOIA-00009619

Exemption 5

NLRB-FOIA-00009620

Exemption 5

NLRB-FOIA-00009621

Exemption 5

NLRB-FOIA-00009622

Exemption 5

NLRB-FOIA-00009623

Exemption 5

NLRB-FOIA-00009624

Exemption 5

NLRB-FOIA-00009625

Exemption 5

NLRB-FOIA-00009626

Exemption 5

NLRB-FOIA-00009627

Exemption 5

NLRB-FOIA-00009628

Exemption 5

NLRB-FOIA-00009629

Exemption 5

NLRB-FOIA-00009630

Exemption 5

NLRB-FOIA-00009631

Exemption 5

NLRB-FOIA-00009632

Exemption 5

NLRB-FOIA-00009633

Exemption 5

NLRB-FOIA-00009634

Exemption 5

NLRB-FOIA-00009635

Exemption 5

NLRB-FOIA-00009636

Exemption 5

NLRB-FOIA-00009637

Exemption 5

NLRB-FOIA-00009638

Exemption 5

NLRB-FOIA-00009639

Exemption 5

NLRB-FOIA-00009640

Exemption 5

NLRB-FOIA-00009641

Exemption 5

NLRB-FOIA-00009642

Exemption 5

NLRB-FOIA-00009643

Exemption 5

NLRB-FOIA-00009644

Exemption 5

NLRB-FOIA-00009645

Exemption 5

NLRB-FOIA-00009646

Exemption 5

NLRB-FOIA-00009647

Exemption 5

NLRB-FOIA-00009648

Exemption 5

NLRB-FOIA-00009649

Exemption 5

NLRB-FOIA-00009650

Exemption 5

NLRB-FOIA-00009651

Exemption 5

NLRB-FOIA-00009652

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:
Attachments:

Pomerantz, Anne

Monday, December 06, 2010 6:10 PM

Posner, Charles

Ahearn, Richard L.; Davidson, Linda L.

RE: Request for Information about Use of Investigative Subpoenas

Investigatory subpoena log FY 2010 (read only).doc

Nonresponsive

From: Posner, Charles

Sent: Wednesday, November 17, 2010 9:11 AM

To: ML-Regional Directors (R)

Cc: ML-HQ-GC Field RA's/ARD's; ML-HQ-Ops District 1; ML-HQ-Ops District 2; ML-HQ-Ops District 3; ML-HQ-Ops District

4; Siegel, Richard A.; Purcell, Anne G.; Davidson, Linda L.; Vance, Will J.; Cestare, Thomas W.

Subject: Request for Information about Use of Investigative Subpoenas

Nonresponsive

NLRB-FOIA-00009653

Region 19

Investigatory Subpoena Log

Fiscal Year 2010

Case Name and

Number

Name of

Witness

Evidence Sought

Date

issued

Brief description of basis for

issuance

Any petition to

revoke and/or

enforcement

proceedings

Case in

Compliance

Status (Yes

or No)

Regional

Determination

(If one has

been reached)

Sub enfmt

action

initiated /

successful

Nonresponsive

NLRB-FOIA-00009654

Case Name and

Number

Name of
Witness

Evidence Sought

Date

issued

Brief description of basis for

issuance

Any petition to

revoke and/or

enforcement

proceedings

Case in

Compliance

Status (Yes

or No)

Regional

Determination

(If one has

been reached)

Sub enfmt

action

initiated /

successful

Nonresponsive

C:\IGCShared\in\499\1.doc

11/4/2011

Page 2

NLRB-FOIA-00009655

Case Name and

Number

Name of
Witness

Evidence Sought

Date

issued

Brief description of basis for

issuance

Any petition to

revoke and/or

enforcement

proceedings

Case in

Compliance

Status (Yes

or No)

Regional

Determination

(If one has

been reached)

Sub enfmt

action

initiated /

successful

No

No

Advice

No

Nonresponsive

Boeing Company

CA-32431

Cust. of

Records

Information regarding second


7/28/10

(1) Sub-DT (Todd/Jablonski)

787 assembly and surge lines

Nonresponsive

C:\IGCShared\in\499\1.doc

11/4/2011

Page 3

NLRB-FOIA-00009656

Nonresponsive

C:\IGCShared\in\499\1.doc

11/4/2011

Page 4

NLRB-FOIA-00009657

Microsoft Outlook

From:

Todd, Dianne

Sent:

Tuesday, December 14, 2010 6:59 PM

To:

Ahearn, Richard L.

Subject:

FW: Boeing NLRB charge - re subpoenaed documents request #1

From: Lunt, Drew [mailto:dlunt@mckennalong.com]

Sent: Friday, August 20, 2010 12:28 PM

To: Todd, Dianne

Cc: Hankins, Richard

Subject: RE: Boeing NLRB charge

Dianne,

We should have clarified earlier, the parties agreed not to take notes during negotiations regarding the location of the

second final assembly line. Thus, no bargaining notes were taken by the Company's representative at any of the

negotiations.

Thanks,

Drew E. Lunt | Associate

McKenna Long & Aldridge LLP

303 Peachtree Street | Suite 5300 Atlanta, GA 30308

Tel: 404.527.8498 | Fax: 404.527.4198 | dlunt@mckennalong.com

From: Todd, Dianne [mailto:Dianne.Todd@nlrb.gov]

Sent: Thursday, August 19, 2010 8:04 PM

To: Lunt, Drew

Subject: RE: Boeing NLRB charge

Drew,

I just wanted to confirm my understanding regarding the documents supplied in response to the first

subpoenaed item. Based on what has been submitted, am I correct in understanding that there are

no bargaining notes which were taken or used by any of the officials in any of the listed meetings?

Thanks

From: Todd, Dianne

Sent: Thursday, August 19, 2010 4:37 PM

To: 'Lunt, Drew'

Subject: RE: Boeing NLRB charge

Oh, Im sorry, I didnt realize that my assistant had separated the package. I have found the

documents. Thanks.

NLRB-FOIA-00009658

From: Lunt, Drew [mailto:dlunt@mckennalong.com]

Sent: Thursday, August 19, 2010 4:20 PM

To: Todd, Dianne

Subject: Re: Boeing NLRB charge

Dianne,

The subpoena response and supporting documents should have been in the same package as the waiver-issue

response. I will check with my secretary tomorrow to see what happened to it. W e will FedEx a copy tomorrow. If you

would like me to send it via email of fax as well, let me know.

Thanks,

Drew

From: Todd, Dianne <Dianne.Todd@nlrb.gov>

To: Lunt, Drew

Sent: Thu Aug 19 19:10:28 2010

Subject: Boeing NLRB charge

Drew,

I just wanted to inform you that although I received the Employers position statement on the waiver

issue and information regarding the surge line, I have still not received the requested subpoenaed

information. Will, or have you, forwarded this information to me?

Thanks,

Dianne Todd

Board Agent

NLRB, Region 19

Ph: 206-220-6319

Fax: 206-220-6305

CONFIDENTIALITY NOTICE:

This e-mail and any attachments contain information from

the law firm of McKenna Long & Aldridge LLP, and are

intended solely for the use of the named recipient or

recipients. This e-mail may contain privileged

attorney/client communications or work product. Any

dissemination of this e-mail by anyone other than an

intended recipient is strictly prohibited. If you are not a

named recipient, you are prohibited from any further

viewing of the e-mail or any attachments or from making any

use of the e-mail or attachments. If you believe you have

received this e-mail in error, notify the sender

immediately and permanently delete the e-mail, any

attachments, and all copies thereof from any drives or

storage media and destroy any printouts of the e-mail or

attachments.

NLRB-FOIA-00009659

Microsoft Outlook

From:
Sent:
To:
Subject:

W illen, Debra L

Tuesday, January 11, 2011 1:48 PM

Ahearn, Richard L.

RE: IAM meeting with AGC, Jan. 19

Thanks Rich Im glad you told me that so I can review

affidavits again before they come in.

From: Ahearn, Richard L.

Sent: Tuesday, January 11, 2011 1:32 PM

To: Willen, Debra L

Subject: RE: IAM meeting with AGC, Jan. 19

Debra, Thx.

BTW, as you undoubtedly know,

Exemption 6, 7(C) and 7(D)

Rich

From: Willen, Debra L

Sent: Tuesday, January 11, 2011 10:23 AM

To: Contee, Ernestine R.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam; Katz, Judy; Omberg, Bob;

Ahearn, Richard L.

Subject: FW: IAM meeting with AGC, Jan. 19

From: Jude Bryan [mailto:bryan@workerlaw.com]

Sent: Tuesday, January 11, 2011 11:54 AM

To: Willen, Debra L

Cc: David Campbell

Subject: IAM meeting with AGC

Ms. W illen,

In response to your email to Dave Campbell, the following people will be attending the meeting with AGC Lafe Solomon

next week.

Richard P. Michalski, General Vice President, IAMAW

Christopher Corson, General Counsel, IAMAW

Neil Gladstein, Director Strategic Resources, IAMAW

Mark Blondin, IAM Aerospace Coordinator

Tom Wroblewski, President, IAM District Lodge 751

David Campbell, Attorney

Carson Glickman-Flora, Attorney

Jude Bryan, Paralegal

Please let us know if there is any more information you need.

Sincerely,

Jude Bryan, Paralegal

Schwerin Campbell Barnard Iglitzin & Lavitt LLP

18 West Mercer Street, Ste. 400

Seattle, W A 98119

NLRB-FOIA-00009660

206-285-2828

NLRB-FOIA-00009661

Microsoft Outlook

From:

Todd, Dianne

Sent:

Thursday, January 20, 2011 3:22 PM

To:

Ahearn, Richard L.

Subject:

Boeing Document

Rich,

I have looked through the file and do not believe that we have emails from 2008. As far as I can see,

we only have the emails and memos issued after the placement decision was made in October 2009.

Sorry.

Dianne

NLRB-FOIA-00009662

Microsoft Outlook

From:

Baniszewski, Joseph

Sent:

Thursday, January 27, 2011 8:15 PM

To:

Willen, Debra L

Cc:

Ahearn, Richard L.

Subject:

RE: IAM 751 v. Boeing, Case No. 19-CA-32431

Debra,

Thanks for the two E Mails re Boeing,

Regards,

Joe

From: Willen, Debra L

Sent: Thursday, January 27, 2011 3:21 PM

To: Solomon, Lafe E.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam; Katz, Judy; Omberg, Bob;

Baniszewski, Joseph

Cc: Ahearn, Richard L.; Willen, Debra L; 'Jude Bryan'

Subject: FW: IAM 751 v. Boeing, Case No. 19-CA-32431

From: Jude Bryan [mailto:bryan@workerlaw.com]

Sent: Thursday, January 27, 2011 3:13 PM

To: Willen, Debra L; Ahearn, Richard L.

Cc: ccorson@iamaw.org; rmichalski@iamaw.org; Blondin Mark; tomw@iam751.org; David Campbell; Kathy Barnard;

Carson Glickman-Flora

Subject: IAM 751 v. Boeing, Case No. 19-CA-32431

Dear General Counsel Solomon and Regional Director Ahearn:

The following exchange occurred during Boeings Fourth Quarter Conference Call with Boeing CEO

McNerney yesterday. As you can see, he affirms that the Surge Line is still called the Surge line and is

temporary. He confirms that the 787 assembly work is being moved to South Carolina. He confirms they are

still in the hiring/training phase in South Carolina.

The conference call is available in full at

http://seekingalpha.com/article/248873-boein-ceo-discusses-q4-2010-earnings-call-transcript.

Operator

(Next question is) from the line of Mike Mecham with Aviation Week.

Michael Mecham

One thing you haven't talked about in quite some detail is just how productivity is there, how your development

for your production lines is going. You're working on Charleston, you're a slowly developing a backup line for

787 there in Everett, and of course, 767 lines coming on. Can you just go through how Charleston's coming

along and your whole outlook on your production lines?

W. McNerney

NLRB-FOIA-00009663

Well, Charleston is going along well. The final assembly capability we're building there for the 787 is actually

ahead of schedule. We're feeling good about its construction and the hiring of the people that we are currently

training to work in that facility. You're right, we have a surge line in Everett, which is a temporary line to give

us the flexibility to make sure we move the work properly to Charleston that we're going to move. So that's all

working well. The 767 line is, I guess, that really depends on tanker, yes or no. I think in either case, we have a

plan for that line to either morphed into a tanker line, and as you can imagine, spent a fair amount of time

planning on how we would do that and feel very confident of that move. And if we do not end up winning the

tanker competition, we think there's commercial demand that can keep that line open for a somewhat longer.

But I think everything's sort of in front of us. I think the bigger question is implementing all these rate increases

that really are a tremendous economic opportunity for the Boeing Co. over the next two or three years. And we

feel equally confident there. So production plan, you're on an important issue, production planning and

execution. We're spending a lot of time on it and we feel great about the opportunity in front of us.

Sincerely, David Campbell

campbell@workerlaw.com

Schwerin Campbell Barnard Iglitzin & Lavitt

18 W Mercer Suite 400

Seattle, W ashington 98119-3971

Phone (206)285-2828: FAX (206)378-4132

This communication is protected by the attorney client and attorney work-product privileges. Please do not copy, forward

or append.

cc:

Barry Kearney, Associate General Counsel

Ellen Farrell, Deputy Associate General Counsel

Jayme Sophir, Assistant General Counsel, Advice Branch

Miriam Szapiro, Supervisory Attorney, Advice Branch

Debra Willen, Senior Attorney, Advice Branch

Judy Katz, Assistant General Counsel, Injunction Litigation Branch

Robert Omberg, Deputy Assistant General Counsel, Injunction Litigation Branch

Joseph Baniszewski, Deputy Assistant General Counsel, Division of Operations-Management

Christopher Corson, General Counsel, IAMAW

Richard P. Michalski, General Vice President, IAMAW

Tom Wroblewski, President, IAMAW District 751

Mark Blondin, Aerospace Coordinator, IAMAW

Jude Bryan, Paralegal | Schwerin Campbell Barnard Iglitzin & Lavitt LLP | 18 West Mercer Street, Ste. 400, Seattle, WA 98119-3971; Phone:

206.285.2828 Ext. 21; Fax: 206-378-4132 | www.workerlaw.com

This communication is intended for a specific recipient and may be protected by the attorney client and work-product privilege.

If you receive this message in error, please permanently delete it and notify the sender.

NLRB-FOIA-00009664

Microsoft Outlook

From:

Kearney, Barry J.

Sent:

Thursday, February 17, 2011 2:25 PM

To:

Ahearn, Richard L.

Subject:

FW: Boeing

Sorry I forgot you

From: Kearney, Barry J.

Sent: Thursday, February 17, 2011 11:55 AM

To: Solomon, Lafe E.; Mattina, Celeste J.

Cc: Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam; Willen, Debra L

Subject: FW: Boeing

fyi

From: Kilberg P.C., William [mailto:WKilberg@gibsondunn.com]

Sent: Thursday, February 17, 2011 11:26 AM

To: Kearney, Barry J.

Cc: Blankenstein, Paul; McGill, Matthew D.

Subject: Boeing

Barry: I will give you a call tomorrow to follow up on our discussions regarding the ULP charge against

Boeing. In the meantime, I have looked at the five cases you cited to me that you believe provide legal support

for a potential complaint. I have given these cases a very careful review and do not believe that they support the

issuance of a complaint against Boeing. I ask that you share this with Lafe.

In my December 7 letter, I explained several independent reasons why the law does not support a

Section 8(a)(3) complaint in this case. First among those reasons was the absence of any adverse employment

action: no current employees at the Puget Sound plant have been harmed by Boeings decision, because there

will be no layoffs, work transfers, or any other change in their employment because of Boeings decision to

expand production at a new facility in Charleston.

You have suggested that the following cases could support a conclusion that Boeings employees have

suffered an adverse employment action: (1) Pittsburg & Midway Coal Mining Co. and United Mine Workers

of Am., 355 N.L.R.B. No. 197, 2010 WL 3813246 (Sept. 29, 2010); (2) Cold Heading Co. and International

Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW), AFL-CIO, 332

N.L.R.B. 956 (2000); and (3) Peter ODovero d/b/a Associated Constructors and ODovero Construction, Inc.

and International Union of Operating Engineers, Local 324, 325 N.L.R.B. 998 (1998), enfd, ODovero v.

NLRB, 193 F.3d 532 (D.C. Cir. 1999). But these cases do not support an adverse employment action finding

in Boeings case.

The Pittsburg & Midway case involved the employers modification of an existing bonus plan in retaliation

against employees use of memorial (non-work) days to exert economic pressure, as they were contractually

allowed to do. Modifying an existing compensation plan to the employees detriment was plainly an adverse

employment action in that case. But in Boeings case, there was no plan that Boeing changed in response to

employee activity. Boeings selection of Charleston was an initial decision and did not violate or modify any

pre-existing plan. The Pittsburg & Midway case is also of dubious weight because it was issued after Boeings

NLRB-FOIA-00009665

Charleston decision (raising retroactivity problems), and also because the Boards decision is currently on

petition for review before the D.C. Circuit and has at least a reasonable chance of being reversed or modified.

The Cold Heading case is not on point. It was a straightforward runaway shop case where the employer rerouted and transferred equipment from a union worksite to a non-union worksite, because of union

activity. Those transfers were likely to result in layoffs at the union shop. In contrast, Boeing has not

transferred any work or equipment, and has no plans to do so. There will be no layoffs and no reduction in 787

production in Puget Sound now or in the future.

The ODovero case is another straightforward work transfer case, and is also not on point. The single employer

transferred work covered by the scope of the collective bargaining agreement away from union employees and

assigned it to non-union employees, because of union activity, leading to less union employment. Here, Boeing

is not transferring any work from the IAM. 787 production at the first final assembly line in Puget Sound will

not go down as a result of Boeings decision; indeed, the number of IAM employees will increase because of

Boeings surge line plans. No layoffs will occur either in the near term or long term.

You suggested that a fourth case, the Fifth Circuits decision in National Fabricators, Inc. v. NLRB, 903

F.3d 396 (5th Cir. 1990) (enforcing National Fabricators, Inc. and United Association of Journeymen and

Apprentices of the Plumbing and Pipefitting Industry of the United States and Canada, AFL-CIO, Local 198,

295 N.L.R.B. 1095 (1989)) somehow limits the Supreme Courts statements in NLRB v. Brown Food Store, 380

U.S. 278 (1965) that recognized a broad scope of permissible employer actions and motivations to blunt the

economic impact of a potential future strike. The employer in National Fabricators committed an adverse

employment actionlaying off employeesin a plainly discriminatory way, by selecting only union

employees for the layoffs, violating its usual seniority rules. The employers discrimination against union

activity was so apparent that the Fifth Circuit and Board agreed it fit into the rarely-seen category of inherently

destructive conduct. National Fabricators was a simple application of the non-discrimination principle; it says

nothing about the ability of an employer to blunt the effectiveness of possible future strikes through nondiscriminatory capital investment decisionsa right recognized by the Supreme Court in Brown and again in

Charles D. Bonanno Linen Service, Inc. v. NLRB, 454 U.S. 404, 416 n.9 (1982). Indeed, the Fifth Circuit's

decision does not even mention Brown.

Finally, you suggested that a fifth case, Dorsey Trailers, Inc. Northumberland, PA Plant and United

Auto Workers International Union and its Local 1868, International Union, AFL-CIO, CLC, 327 N.L.R.B. 835

(1999), supports a broad view of the Boards remedial powers should a Section 8(a)(3) violation be found. This

case, you indicated, would support the remedy sought here: ordering Boeing to permanently expand 787

production in Puget Sound to ten airplanes per month. Although you mentioned only the Board decision in

Dorsey Trailers, that decision was later reversed, in the parts most relevant to Boeings case, by the Fourth

Circuit. The Fourth Circuit held that the employers relocation decision was justified by valid economic

considerations (including labor costs), and that ordering the closed plant re-opened was therefore beyond the

scope of the Boards power. The Fourth Circuits reversal on the relocation point and the re-opening order

gives the Boards decision below no effective precedential weight. In any event, unlike the employer in Dorsey

Trailers, Boeing is not reducing work in Puget Sound or planning any work transfers or layoffs, much less

shutting down the Puget Sound assembly line. The Boards decision Dorsey Trailers does not support the

proposed remedy here.

Best, Bill

William J. Kilberg

GIBSON DUNN

NLRB-FOIA-00009666

Gibson, Dunn & Crutcher LLP

1050 Connecticut Avenue, N.W., Washington, DC 20036-5306

Tel +1 202.955.8573 Fax +1 202.530.9559

WKilberg@gibsondunn.com www.gibsondunn.com

NLRB-FOIA-00009667

Microsoft Outlook

From:
Sent:
To:
Subject:

Kearney, Barry J.

Tuesday, March 15, 2011 7:49 AM

Ahearn, Richard L.

RE: Boeing Co.

Kilberg called yesterday and send no to the Union's offer. In Boeings view bargaining to

resolve the ulp would poison next tear's contract negotiations. However before Lafe finally

decides Ludig wants to talk to him on the telephone. They are not happy he changed his mind

on the no layoff pledge. Lafe is ready to pull the trigger but the drama continues.

-----Original Message-----

From: Ahearn, Richard L.

Sent: Monday, March 14, 2011 11:00 PM

To: Kearney, Barry J.

Subject: Fw: Boeing Co.

B,

I'm in Portland tonight...what prompted this?

Cheers,

--------------------------

Sent from my BlackBerry Wireless Handheld

----- Original Message -----

From: Ahearn, Richard L.

To: Baniszewski, Joseph

Sent: Mon Mar 14 21:14:26 2011

Subject: Re: Boeing Co.

Let's talk Wed.

--------------------------

Sent from my BlackBerry Wireless Handheld

----- Original Message -----

From: Ahearn, Richard L.

To: Baniszewski, Joseph

Sent: Mon Mar 14 21:13:33 2011

Subject: Re: Boeing Co.

--------------------------

Sent from my BlackBerry Wireless Handheld

----- Original Message -----

From: Baniszewski, Joseph

To: Ahearn, Richard L.; Kelly, David A.

Sent: Mon Mar 14 19:53:00 2011

Subject: Fw: Boeing Co.

Rich,

FYI, any idea when they expect to issue this?

NLRB-FOIA-00009668

Joe

------Original Message------

From: Willen, Debra L

To: Lafe Solomon

Cc: Celeste Mattina

Cc: Barry Kearney

Cc: Ellen Farrell

Cc: Jayme Sophir

Cc: Judy Katz

Cc: Miriam Szapiro

Cc: Omberg, Bob

Cc: Joseph Baniszewski

Subject: Boeing Co.

Sent: Mar 14, 2011 2:58 PM

I am attaching our Fact Sheet and the latest version of our Advice Memorandum
Exemption 5

Please let me know if there is anything else you need.

Thanks,

Deb Willen

--------------------------

Sent from my BlackBerry Wireless Handheld

NLRB-FOIA-00009669

Microsoft Outlook

From:

Kearney, Barry J.

Sent:

Monday, April 04, 2011 7:56 AM

To:

Ahearn, Richard L.

Subject:

FW: Call from Boeing

-----Original Message----From: Corson Christopher [mailto:ccorson@iamaw.org]

Sent: Friday, April 01, 2011 7:29 PM

To: Kearney, Barry J.

Cc: David Campbell; Canter Robin

Subject: Call from Boeing

Barry,

Thank you for talking to Dave Campbell and me earlier today.

Boeing's lawyer, Brett Gerry, called me at 5:00 pm. He said he is the lead lawyer for Boeing's commercial division.

His proposal was as follows. Since Joe Albaugh and Tom Buffenbarger are currently scheduled to have dinner in May,

Albaugh thinks that would be a good time to talk about these issues. I asked if the company had a proposal at this time,

and he said that there isn't one -- at least nothing that he would tell me about.

I talked with Tom Buffenbarger after Gerry called. Tom's recollection is that the dinner is set for May 16th or 17th. As

you can imagine, the thought of putting off any attempt to have a serious discussion with us for another month and a

half -- and even then just over dinner -- is simply unacceptable. The company is not being serious.

Frankly, I hope you as offended by this suggestion as we are. You and Lafe have worked very hard to bring about

discussions that could lead to a more comprehensive and tailored solution than we are likely to get from Board

processes and remedies. We have shown ourselves time and again to be serious about meeting in good faith with the

company. But you and we can't do it without Boeing, and it is crystal clear that Boeing is only interested in stringing us

all along.

Boeing made a commitment to you on Monday to contact us and then to tell you by the end of the week whether they

thought there were fruitful discussions with us to be had. I don't think that a company lawyer calling me at 5:00 on

Friday to say that the company has no proposal at all except that Albaugh and Tom Buffenbarger could discuss things

over an already-scheduled dinner in a month and a half comes close to satisfying what they promised you to do.

By mid-May the company will be much farther along in South Carolina, and our members in Puget Sound will, by that

time, know for sure that protected activity has become meaningless for them. Boeing hammers its retaliatory message

every day, and every day shows that the company is getting away with it. The Act means something, or it really doesn't.

The IAM sincerely appreciates all that Lafe and you have been trying to do, and we know that this case will be big. But

given what Boeing's chief officers have signaled to companies all across the country about how to retaliate against

organized workers for what the statute says is protected activity, this case needs to be big. You would like Boeing to talk

to us in good faith, and so would we, but it is crystal clear that such discussions are a false choice. The last three and a

half months (since the company met with Lafe and you in mid-December) show that they have no intention of engaging

NLRB-FOIA-00009670

with us. They have had months to call us and didn't, and they will shamelessly tell you anything to just keep playing for

more time.

The IAM hopes that time is up.

Thank you for all that we hope the Board will do, Chris Corson

Sent from my iPad

Christopher Corson

General Counsel

International Association of Machinists & Aerospace Workers

9000 Machinists Place

Upper Marlboro, MD 20772

301-967-4510 (office)

301-967-4594 (fax)

202-368-6484 (cell)

_____________________________________________________________

Notice: This message is intended for the addressee only and may contain privileged and/or confidential information. Use

or dissemination by anyone other than the intended recipient is prohibited.

____________________________________________________________

NLRB-FOIA-00009671

Microsoft Outlook

From:

rich ahearn <richahearn@gmail.com>

Sent:

Saturday, April 16, 2011 9:54 PM

To:

Ahearn, Richard L.

Subject:

Complaint Revised

Attachments:

Boeing complaint revised

NLRB-FOIA-00009672

Ex. 5 Deliberative

NLRB-FOIA-00009673

Ex. 5 Deliberative

NLRB-FOIA-00009674

Ex. 5 Deliberative

NLRB-FOIA-00009675

Ex. 5 Deliberative

NLRB-FOIA-00009676

Ex. 5 Deliberative

NLRB-FOIA-00009677

Ex. 5 Deliberative

NLRB-FOIA-00009678

Ex. 5 Deliberative

NLRB-FOIA-00009679

Ex. 5 Deliberative

NLRB-FOIA-00009680

Ex. 5 Deliberative

NLRB-FOIA-00009681

Ex. 5 Deliberative

NLRB-FOIA-00009682

Ex. 5 Deliberative

NLRB-FOIA-00009683

Ex. 5 Deliberative

NLRB-FOIA-00009684

Ex. 5 Deliberative

NLRB-FOIA-00009685

Microsoft Outlook

From:

Pomerantz, Anne

Sent:

Monday, April 18, 2011 7:15 PM

To:

Ahearn, Richard L.

Subject:

Draft for submission to Advice

Attachments:

CPT.19-CA-32431.Boeing 4-18-11 at 4-14pm.doc

Importance:

High

Assuming you are alright with it.

Anne P. Pomerantz

Regional Attorney | National Labor Relations Board | Region 19

2948 Jackson Federal Building, 915 Second Ave., Seattle, WA 98174

anne.pomerantz@nlrb.gov | (206) 220-6311 | (206) 220-6305

Please consider the environment before printing this email

NLRB-FOIA-00009686

e Ch

Exemption 5

e Ch

NLRB-FOIA-00009687

Exemption 5

NLRB-FOIA-00009688

Exemption 5

NLRB-FOIA-00009689

Exemption 5

NLRB-FOIA-00009690

Exemption 5

NLRB-FOIA-00009691

Exemption 5

NLRB-FOIA-00009692

Exemption 5

NLRB-FOIA-00009693

Exemption 5

NLRB-FOIA-00009694

Exemption 5

NLRB-FOIA-00009695

Exemption 5

NLRB-FOIA-00009696

Microsoft Outlook

From:
Sent:
To:
Subject:

Gottschalk, Irving E.

Thursday, April 21, 2011 5:06 PM

Pye, Rosemary; Lightner, J. Michael; Kinard, Martha E.; Chester, Robert W .; Ahearn, Richard

L.

Non-Responsive

Then, yesterdays announcement of the Boeing complaint came, and he today

received angry inquiries from two Congressmen from South Carolina (where the Boeing plant in issue would be located).

He predicted a losing PR war, where we will be painted as job killers because Boeing is our countrys biggest exporter,

and the argument, rightly or not, will be that we are favoring the union at the expense of jobs in the U.S. generally and in

South Carolina particularly.

Non-Responsive

NLRB-FOIA-000096

NLRB-FOIA-00009697

Non-Responsive

NLRB-FOIA-000096

NLRB-FOIA-00009698

Non-Responsive

NLRB-FOIA-0000969

NLRB-FOIA-00009699

Non-Responsive

NLRB-FOIA-00009

NLRB-FOIA-00009700

Non-Responsive

NLRB-FOIA-00009701

NLRB-FOIA-00009701

Non-Responsive

From: Gottschalk, Irving E.

To: Pye, Rosemary; Lightner, J. Michael; Kinard, Martha E.; Chester, Robert W.; Ahearn, Richard L.

Sent: Thu Apr 21 17:05:30 2011

Subject:

Non-Responsive

Non-Responsive

yesterdays announcement of the Boeing complaint came, and he today

received angry inquiries from two Congressmen from South Carolina (where the Boeing plant in issue would be located).

He predicted a losing PR war, where we will be painted as job killers because Boeing is our countrys biggest exporter,

and the argument, rightly or not, will be that we are favoring the union at the expense of jobs in the U.S. generally and in

South Carolina particularly.

Non-Responsive

NLRB-FOIA-0

NLRB-FOIA-00009702

Non-Responsive

Non-Responsive

NLRB-FOIA-00009703

Non-Responsive

NLRB-FOIA-0000970

NLRB-FOIA-00009704

Non-Responsive

NLRB-FOIA-000

NLRB-FOIA-00009705

Non-Responsive

NLRB-FOIA-00009706

Non-Responsive

NLRB-FOIA-00009707

Non-Responsive

From: Gottschalk, Irving E.

To: Pye, Rosemary; Lightner, J. Michael; Kinard, Martha E.; Chester, Robert W.; Ahearn, Richard L.

Sent: Thu Apr 21 17:05:30 2011

Subject:

Non-Responsive

Non-Responsive

Non-Responsive

Then, yesterdays announcement of the Boeing complaint came, and he today

received angry inquiries from two Congressmen from South Carolina (where the Boeing plant in issue would be located).

He predicted a losing PR war, where we will be painted as job killers because Boeing is our countrys biggest exporter,

and the argument, rightly or not, will be that we are favoring the union at the expense of jobs in the U.S. generally and in

South Carolina particularly.

Non-Responsive

NLRB-FOIA-00009708

Non-Responsive

NLRB-FOIA-00009709

Non-Responsive

Non-Responsive

NLRB-FOIA-0000

NLRB-FOIA-00009710

Non-Responsive

NLRB-FOIA-00009711

Non-Responsive

NLRB-FOIA-

NLRB-FOIA-00009712

Non-Responsive

NLRB-FOIA-00009713

Microsoft Outlook

From:
Sent:
To:
Subject:

Pye, Rosemary

W ednesday, May 04, 2011 1:48 PM

Ahearn, Richard L.

RE: Field Footprint Committee

Hard to believe Boeing gets more strikes than Airbus.

From: Ahearn, Richard L.

Sent: Wednesday, May 04, 2011 11:54 AM

To: Pye, Rosemary

Subject: RE: Field Footprint Committee

Airbus is the only present serious competitor; although Brazil, Canada and in the future China are getting in the game.

From: Pye, Rosemary

Sent: Wednesday, May 04, 2011 8:31 AM

To: Ahearn, Richard L.

Subject: RE: Field Footprint Committee

Non-Responsive

On Boeing, I spoke about it in RI, where they have 11% unemployment. They empathized with Charleston and were

amazed that Boeing couldnt come up with a better explanation. Is Airbus their only competitor? Is there another

domestic airplane manufacturer? Given all those strikes, they dont seem to have lost business as a result.

Rosemary

From: Ahearn, Richard L.

Sent: Wednesday, May 04, 2011 10:57 AM

To: Pye, Rosemary

Subject: RE: Field Footprint Committee

Rosemary,

Non-Responsive

Also, thanks for the kind words about Boeing; I am astonished at the level of rancor, politics it has generated.

Rich

Non-Responsive

NLRB-FOIA-00009714

Non-Responsive

NLRB-FOIA-00009715

Microsoft Outlook

Pye, Rosemary

W ednesday, May 04, 2011 1:49 PM

Ahearn, Richard L.

RE: Field Footprint Committee

From:
Sent:
To:
Subject:

Non-Responsive
Rosemary

From: Ahearn, Richard L.

Sent: Wednesday, May 04, 2011 11:57 AM

To: Pye, Rosemary

Subject: RE: Field Footprint Committee

As to the training programs, I d be willing to serve (a relief to get out from Boeing!!) as long as no other conflicts (not

knowing exact dates).

Cheers,

rich

From: Pye, Rosemary

Sent: Wednesday, May 04, 2011 8:31 AM

To: Ahearn, Richard L.

Subject: RE: Field Footprint Committee

Non-Responsive

On Boeing, I spoke about it in RI, where they have 11% unemployment. They empathized with Charleston and were

amazed that Boeing couldnt come up with a better explanation. Is Airbus their only competitor? Is there another

domestic airplane manufacturer? Given all those strikes, they dont seem to have lost business as a result.

Rosemary

From: Ahearn, Richard L.

Sent: Wednesday, May 04, 2011 10:57 AM

To: Pye, Rosemary

Subject: RE: Field Footprint Committee

Rosemary,
Non-Responsive
Also, thanks for the kind words about Boeing; I am astonished at the level of rancor, politics it has generated.

Rich

Non-Responsive

NLRB-FOIA-00009716

Non-Responsive

NLRB-FOIA-00009717

Microsoft Outlook

From:
Sent:
To:
Subject:
Attachments:

Mattina, Celeste J.

W ednesday, May 04, 2011 3:36 PM

Ahearn, Richard L.

FW : Boeing -- revised draft response to state AGs

AGs letter.pdf; GC Response to State AG's.doc

From: Kearney, Barry J.

Sent: Wednesday, May 04, 2011 2:28 PM

To: Solomon, Lafe E.; Mattina, Celeste J.

Subject: FW: Boeing -- revised draft response to state AGs

Draft response from you to State AGs

From: Willen, Debra L

Sent: Wednesday, May 04, 2011 2:24 PM

To: Kearney, Barry J.; Sophir, Jayme; Farrell, Ellen; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: RE: Boeing -- revised draft response to state AGs

clean draft and AGs' letter attached

From: Kearney, Barry J.

Sent: Wednesday, May 04, 2011 2:10 PM

To: Sophir, Jayme; Farrell, Ellen; Willen, Debra L; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: RE: Boeing -- revised draft response to state AGs

I agree with all the revisions. Please send me a clean draft along with the AG letter to send on to Lafe

From: Sophir, Jayme

Sent: Wednesday, May 04, 2011 12:18 PM

To: Farrell, Ellen; Kearney, Barry J.; Willen, Debra L; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: RE: Boeing -- revised draft response to state AGs

Notwithstanding that this case is about retaliation for striking in other states, they seem

Exemption 5

But, regardless of what theyre saying, Ellens

modification is definitely better.

From: Farrell, Ellen

Sent: Wednesday, May 04, 2011 12:07 PM

To: Kearney, Barry J.; Willen, Debra L; Sophir, Jayme; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: FW: Boeing -- revised draft response to state AGs

NLRB-FOIA-00009718

See my modification

Exemption 5

Ellen

Ellen Farrell

Deputy Associate General Counsel

Division of Advice, NLRB

202-273-3810

Ellen.Farrell@nlrb.gov

From: Sophir, Jayme

Sent: Wednesday, May 04, 2011 11:33 AM

To: Kearney, Barry J.; Farrell, Ellen; Szapiro, Miriam; Willen, Debra L

Cc: Dodds, Amy L.

Subject: FW: Boeing -- revised draft response to state AGs

Exemption 5

From: Willen, Debra L

Sent: Wednesday, May 04, 2011 10:58 AM

To: Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: Boeing -- revised draft response to state AGs

As Barry requested, I've incorporated his changes and am attaching the new version along with the AG's letter.

Jayme -- I have not addressed your concern -- please discuss it with Barry and let me know if what you all want me to

do.

Thanks, Deb

NLRB-FOIA-00009719

Exemption 5

NLRB-FOIA-00009720

Exemption 5

NLRB-FOIA-00009721

Exemption 5

NLRB-FOIA-00009722

ALANWILSON

ATTORNEY GENERAL

April 28, 2011

Lafe E. Solomon, Esquire

Acting General Counsel

National Labor Relations Board

1099 14 th Street, NW, Suite 8600

Washington, DC 20570

Dear Mr. Solomon:

As Attorneys General of our respective states, we call upon you, as Acting General

Counsel of the National Labor Relations Board (NLRB), to withdraw immediately the

complaint numbered 19-CA-32431 against Boeing. This complaint represents an assault upon the

constitutional right of free speech, and the ability of our states to create jobs and recruit industry.

Your ill-conceived retaliatory action seeks to destroy our citizens right to work. It is South

Carolina and Boeing today, but will be any of our states, with our right to work guarantees,

tomorrow.

The right to work, uninhibited by compulsory unionism, is a precious right and is

constitutionally enforceable through our states right to work laws. See Retail Clerks Intl v.

Schermerhorn, 375 U.S. 96 (1963). Such laws are designed to eliminate union affiliation as a

criterion for employment. However, the NLRB, through this single proceeding, attempts to

sound the death knell of the right to work. Additionally, this tenuous complaint will reverberate

throughout union and non-union states alike, as international companies will question the

wisdom of locating in a country where the federal government interferes in industry without

cause or justification.

Furthermore, this complaint disrupts, and may well eliminate, the production of Boeing

787 Dreamliners in South Carolina. In fact, Boeing has expanded its operations to meet product

demand in South Carolina, while adding new jobs in Washington State. The complaint charges

Boeing with the commission of an unfair labor practice, but appears to do so without legal and

factual foundation. This unparalleled and overreaching action seeks to drive a stake through the

heart of the free enterprise system. The statements of Boeing officials cited in your complaint are

the innocent exercise of the companys right of free speech. The Supreme Court long ago made

it clear that the NLRA does not limit, and the First Amendment protects, the employer's right to

express views on labor policies or problems. N.L.R.B. v. Va. Electric and Power, 314 US 469,

NLRB-FOIA-00009723

Hon. Lafe E. Solomon

April 27, 2011

Page 2

477 (1941). As the Court recently reiterated in Citizens United v. FEC, 130 S. Ct. 876, 899-90

(2010), a corporation is not a second class citizen in terms of First Amendment protection.

Our states are struggling to emerge from one of the worst economic collapses since the

Depression. Your complaint further impairs an economic recovery. Intrusion by the federal

bureaucracy on behalf of unions will not create a single new job or put one unemployed person

back to work.

The only justification for the NLRBs unprecedented retaliatory action is to aid union

survival. Your action seriously undermines our citizens right to work as well as their ability to

compete globally. Therefore, as Attorneys General, we will protect our citizens from union

bullying and federal coercion. We thus call upon you to cease this attack on our right to work,

our states economies, and our jobs.

We look forward to your immediate response.

Sincerely,

Alan Wilson

Attorney General

[Signatures continue next page]

Cc: Respective Congressional Delegations

NLRB-FOIA-00009724

Hon. Lafe E. Solomon

April 27, 2011

Page 3

Ken Cuccinelli

Attorney General
Commonwealth of Virginia

Jon C. Bruning

Attorney General
State of Nebraska

Greg Abbott

Attorney General

State of Texas

Samuel S. Olens
Attorney General
State of Georgia

E. Scott Pruitt
Attorney General
State of Oklahoma

Pam Bondi
Attorney General
State of Florida

Tom Horne

Attorney General

State of Arizona

Luther Strange

Attorney General

State of Alabama

NLRB-FOIA-00009725

Microsoft Outlook

From:

Todd, Dianne

Sent:

Monday, May 09, 2011 1:47 PM

To:

Ahearn, Richard L.

Subject:

Boeing timeline

Rich,

Here are the dates we talked about regarding the Boeing investigation. Let me know if you need

more.

Boeing was given a deadline of June 25, 2010, to provide documents I believe the documents were

submitted by the end of June.

Boeing filed its initial brief position statement on April 23, 2010, its substantive position statement on

July 9, and its 10(j) position statement on August 25.

The case was submitted to Advice on August 31.

Thanks,

Dianne

NLRB-FOIA-00009726

Microsoft Outlook

From:

Todd, Dianne

Sent:

Monday, May 09, 2011 2:37 PM

To:

Ahearn, Richard L.

Subject:

FW: Boeing timeline

Rich,

Just to be clear, one of the two submissions by Boeing on Aug. 13 was a response to our subpoena,

the other was a short position statement on a discrete issue.

Thanks

From: Todd, Dianne

Sent: Monday, May 09, 2011 10:47 AM

To: Ahearn, Richard L.

Subject: Boeing timeline

Rich,

Here are the dates we talked about regarding the Boeing investigation. Let me know if you need

more.

Boeing was given a deadline of June 25, 2010, to provide documents I believe the documents were

submitted by the end of June.

Boeing filed its initial brief position statement on April 23, 2010, its substantive position statement on

July 9, and its 10(j) position statement on August 25.

The case was submitted to Advice on August 31.

Thanks,

Dianne

NLRB-FOIA-00009727

Microsoft Outlook

Finch, Peter G.

W ednesday, May 25, 2011 10:52 AM

Ahearn, Richard L.

RE: seattletimes.com: Boeing will build next 787's first horizontal tails in Seattle

From:
Sent:
To:
Subject:

I saw this last night.


IAM.

It's a very interesting development, and I wonder how it plays with

Speaking of which, I think that whatever the Union wants to convey/have conveyed to

Boeing
Exemption 5

Just my $.02.

Peter G. Finch, Field Attorney

National Labor Relations Board - Region 19

2948 Jackson Federal Building

915 Second Avenue

Seattle, Washington 98174

Tel.: 206.220.6285

Fax: 206.220.6305

e-mail: peter.finch@nlrb.gov

-----Original Message-----

From: Ahearn, Richard L.

Sent: Wednesday, May 25, 2011 7:49 AM

To: Pomerantz, Anne; Anzalone, Mara-Louise; Finch, Peter G.; Harvey, Rachel

Subject: Fw: seattletimes.com: Boeing will build next 787's first horizontal tails in Seattle

--------------------------

Sent from my BlackBerry Wireless Handheld

----- Original Message -----

From:

Ahearn Personal Email

To: Ahearn, Richard L.

Sent: Wed May 25 07:42:42 2011

Subject: seattletimes.com: Boeing will build next 787's first horizontal tails in Seattle

This message was sent to you by

Ahearn Personal Email

as a service of The Seattle Times

http://www.seattletimes.com.

----------------------------------------------------------------------

Boeing will build next 787's first horizontal tails in Seattle

Boeing Commercial Airplanes chief Jim Albaugh confirmed for the first time Tuesday that the

company intends to do initial production work...

http://seattletimes.nwsource.com/html/businesstechnology/2015138417_boeing25.html

======================================================================

TO SUBSCRIBE TO THE SEATTLE TIMES PRINT EDITION

Call (206) 464-2121 or 1-800-542-0820, or go to http://seattletimes.com/subscribe

NLRB-FOIA-00009728

HOW TO ADVERTISE WITH THE SEATTLE TIMES COMPANY ONLINE For information on advertising in this

e-mail newsletter, or other online marketing platforms with The Seattle Times Company, call

(206) 464-3237 or e-mail websales@seattletimes.com

TO ADVERTISE IN THE SEATTLE TIMES PRINT EDITION Please go to

http://www.seattletimescompany.com/advertise

for information.

======================================================================

Copyright (c) 2009 The Seattle Times Company

www.seattletimes.com

NLRB-FOIA-00009729

Microsoft Outlook

Pomerantz, Anne

Monday, June 27, 2011 1:23 PM

Ahearn, Richard L.

greatest hits ??

From:
Sent:
To:
Subject:

(1)

(2)

(3)

(4)

(5)
(6)

Nonresponsive
(7)

(8)
(9)
(10)

(11)
(12)
(13)

(14)
(15)

(16)I have acted as the liaison with the Court of Appeals for the Boeing matter; procuring and facilitating use of

the space.

Anne P. Pomerantz

Regional Attorney | National Labor Relations Board | Region 19

2948 Jackson Federal Building, 915 Second Ave., Seattle, WA 98174

anne.pomerantz@nlrb.gov | (206) 220-6311 | (206) 220-6305

NLRB-FOIA-00009730

Please consider the environment before printing this email

NLRB-FOIA-00009731

United States Government

National Labor Relations Board

OFFICE OF THE GENERAL COUNSEL

Advice Memorandum

DATE:

April 11, 2011

S.A.M.

TO:

Richard L. Ahearn, Regional Director

Region 19

FROM:

Barry J. Kearney, Associate General Counsel

Division of Advice

SUBJECT:

The Boeing Company


Case 19-CA-32431

512-5006-5062
512-5006-5067
512-5036-8387
512-5036-8389
524-0167-1033
524-5029-5037
524-0167-1033
524-506

524-8307-1600

524-8307-5300

530-6050-0825-3300

530-6067-4011-4200

530-6067-4011-4600

530-6067-4011-7700

530-8054-7000

775-8731

The Region submitted this case for advice on several

issues relating to the Employers decision to place a second

assembly line at a nonunion facility rather than at the

facility where unit employees work on the original assembly

line.
Specifically the Region requested advice as to whether:

(1) the Employer violated Section 8(a)(1) by threatening to

place the second assembly line at a nonunion facility unless

the Union agreed to a long-term no-strike clause and by

repeatedly stating that its decision to place the second line

elsewhere was based on the units strike history; (2) the

Employer violated Section 8(a)(3) by deciding to place the

second assembly line at a nonunion facility because of the

units strike history, even though no unit employees have yet

to lose their jobs; and (3) the Employer violated Section

8(a)(5) by failing to bargain in good faith over its decision

about where to locate the second assembly line or whether the

Union waived its right to bargain under the parties

collective-bargaining agreement.

We conclude that the Region should issue a complaint

alleging: independent Section 8(a)(1) violations based on the

Employers coercive and threatening statements; and a Section

8(a)(3) violation based on the Employers decision to locate

the second line at a nonunion facility and to establish a

dual-sourcing supply program in retaliation for protected

activity.
However, the Region should dismiss the Section

8(a)(5) allegations because under the contract, the Union

expressly waived its right to bargain about the Employers

decision to offload unit work to a facility not covered by

the agreement.
To remedy the chilling effect of Boeings

Section 8(a)(1) statements, the Region should request, in

addition to the traditional remedies,


a notice reading by a

NLRB-FOIA-00009732

Case 19-CA-32431

- 2 -

high-level Boeing official.


To remedy the Section 8(a)(3)

violation, the Region should seek an order that would require

Boeing to maintain the surge line in the Puget Sound area.

Specifically, Boeing intended for the second line to assemble

three aircraft each month in South Carolina, while assembling

seven planes on the first line.


Thus, the Region should seek

an order requiring Boeing to assemble in the Puget Sound area

the first ten 787 aircraft that it produces each month and to

maintain the supply lines for those aircraft where they

currently exist, in the Puget Sound and Portland facilities.

FACTS

The Boeing Company is an international corporation

engaged primarily in developing and producing military and

commercial aircraft. Boeing has a long-established collective-

bargaining relationship with the International Association of

Machinists and Aerospace Workers (IAM) and certain IAM

District and Local Lodges.


The parties current collective-

bargaining agreement is effective November 2, 2008 through

September 8, 2012 and covers three separate bargaining units

of production and maintenance employees in three geographical

areas, the Puget Sound area in Washington; Portland, Oregon;

and Wichita, Kansas.

Section 21.7 of that agreement, entitled

Subcontracting, sets forth various notice periods and an

opportunity for the Union to review and recommend alternatives

to Boeing proposals to subcontract or offload unit work.

[O]ffloading work is defined as moving work from one

Company facility to another Company facility not covered by

this Agreement[.]
Less stringent notice requirements apply

to subcontracting and offloading decisions affecting less than

ten employees.
In addition, the notice and review process

does not cover certain work transfers listed in subsections

(a) through (d), including [d]ecisions to subcontract or

offload work due to lack of capability or capacity, or to

prevent production schedule slippage[.]


Section 21.7

concludes with the following language:

Anything in this Section 21.7 to the contrary

notwithstanding, it is agreed that ... the Company has

the right to subcontract and offload work, to make and

carry out decisions in (a) through (d) above, to enter

offsets and offset arrangements, and to designate the

work to be performed by the Company and the places where

it is to be performed, which rights shall not be subject

to arbitration. ...

NLRB-FOIA-00009733

Case 19-CA-32431

- 3 -

Boeing Introduces the 787 Dreamliner

The Puget Sound unit is comprised of approximately 18,000

employees working in Washington.


Historically these employees

have performed the final assembly of all Boeing planes.


In

late 2003, Boeing announced that it would place the assembly

line for its new 787 Dreamliner airplane in Everett,

Washington after the Washington State Legislature passed a tax

and subsidy incentive package totaling more than $3.2 billion.

That line opened in May 2007, with the capacity for producing

seven planes each month.

With the 787, Boeing departed from its previous practice

of manufacturing most of the aircraft parts with its own

employees and instead outsourced parts production to other

suppliers in the southeast U.S. and abroad.


For example,

Boeing contracted with Vought Aircraft Industries in North

Charleston, South Carolina for the manufacture of the aft

fuselage and with Mitsubishi Heavy Industries in Japan for the

manufacture of the wings.


Boeing repeatedly has had to

postpone the delivery dates for the aircraft, due primarily to

problems with suppliers and software issues.

Starting in mid 2008, the media began reporting that

Boeing would need to add a second 787 assembly line because of

its growing order backlog.


At about the same time, Boeing

entered negotiations with the Union for a successor

collective-bargaining agreement.
During those negotiations,

Company officials noted the need for a second assembly line

but did not discuss the matter further.

The 2008 Strike and Its Aftermath

On September 6, 2008, the employees struck in support of

the Unions bargaining position.


On October 6, 2008, Boeings

stock dropped to a four-year low.


That same day, CEO Jim

McNerney sent a long e-mail to Boeing employees about the

strike.
McNerney stated that he understood and shared the

frustration so many of you feel when we dont have the whole

team together working to meet the commitments weve made to

our customers and competing to win the new business that will

sustain and grow Boeing jobs[.]


McNerney went on to state,

[t]he issue of competitiveness as it relates to this strike

is a big deal[.]
He also tied labor disputes to problems

with Boeings customer relationships.


After asserting that

the Union had recommended that its members reject contract

offers and go on strike four of the last five negotiations

going back to 1995, he wrote, we believe this track record of

repeated union work stoppages is earning us a reputation as an

NLRB-FOIA-00009734

Case 19-CA-32431

- 4 -

unreliable supplier to our customers who ultimately provide

job security by buying our airplanes.1

The following day, Boeings Vice President for Government

and Community Relations Fred Kiga spoke at an aerospace

conference in Everett.
In a Seattle Times article, he was

quoted as stating, We cant afford to become known as the

strike zone[.]
He reportedly also told the conference that

labor unrest could drive Boeings decision on where to build

planes in the future.


In an interview after his speech, Kiga

reportedly stated that his strike zone comments had been

cleared by Boeing Commercial Airplanes CEO Scott Carson.


Kiga

noted that he and Carson grew up in and shared a love for the

Northwest; Kiga then said that they would hate to lose a

treasure like Boeing.

The strike lasted 57 days and ended on November 1, 2008,

when the parties signed the current contract. During the

negotiations, the Union had proposed to amend Section 21.7 to,

among other things, eliminate the waiver language quoted

above.
Boeing refused to agree to such an amendment, and the

language remained in the contract.

In early 2009,2 the media again began publishing reports

that Boeing needed to establish a second 787 assembly line.

On February 9, the Seattle Times reported that Washington

Senator Patty Murray had met with Boeings Senior Vice

President of Government Operations; he had informed her that

the CEO was sick and tired of the unions strikes and was

looking to put the second 787 line elsewhere.

On April 16, Boeing and IAM officials held their annual

summit in Chicago.
Management officials attending included

CEO McNerney, Boeing Commercial Airplanes CEO Carson,

Integrated Defense Systems CEO Jim Albaugh, and for the first

time, Vice President and General Manager of Supply Chain

Management & Operations Ray Conner.


IAM representatives

included International President Tom Buffenbarger, General

Vice President Rich Michalski, and the Directing Business

Representatives who represented Boeing employees, including

District 751 DBR Tom Wroblewski.


This was the first

opportunity for the parties to meet since the strike had

ended.
McNerney and Buffenbarger were the lead speakers.

McNerney stated that Boeings customers were losing confidence

1 In his
that the
occurred
1989 (48
2

e-mail, CEO McNerney exaggerated the number of times

Union had struck.


In actuality, prior strikes

in 1948 (140 days), 1965 (19 days), 1977 (45 days),

days), 1995 (69 days), and 2005 (28 days).

Dates are in 2009 unless otherwise noted.

NLRB-FOIA-00009735

Case 19-CA-32431

- 5 -

in the Company because of past strikes and the possibility of

future strikes.
He said that the parties had to come up with

a way to stop having labor disputes.


The general theme was

that management and labor should continue to meet to find ways

to avoid the problems of the past.

As a follow-up to this summit, Wroblewski and IAM

Aerospace Coordinator Mark Blondin met on June 23 in Seattle

with Conner and Boeings Vice President of Human Resources

Doug Kight.
The parties focused on how to build a better

relationship and improve communication. While Wroblewski had

an established relationship with Kight, Conner was new to

labor relations.
Wroblewski thought that one of the purposes

of the meeting was to get to know Conner.


At a subsequent

meeting on June 30 between Wroblewski and Conner, Conner

expressed Boeings concern that its customers did not have

confidence it could make timely deliveries because it had

experienced two strikes in the last five years and had

supplier issues.
For the first time, Conner raised the

prospect of a long-term collective-bargaining agreement as a

way to gain the customers confidence that they would get

their aircraft on time.

In early July, Boeing announced its intent to purchase

the Vought plant in North Charleston, South Carolina.


IAM

Local Lodge 183 represented the Vought production,

maintenance, and quality employees.


Boeing agreed to

recognize the Union but wanted to negotiate a new collective-

bargaining agreement.

On July 8, the Seattle Times reported that Boeings CEO

had informed Washington Congressmen Norm Dicks and Jay Inslee

that as a result of past strikes, the Company would place the

second line outside the Puget Sound area unless it could reach

a long-term contract with the Union. Boeing told the

Congressmen that South Carolina was the main competitor.

Wroblewski, Blondin, Kight, and Conner met again twice in

July, on July 7 and July 23.


At each of these meetings,

Conner and Kight emphasized that strikes had to stop for

Boeing to be viable.
They stated that Boeing needed a long-

term agreement with no-strike language to satisfy their

customers.
At this point, Boeing was two years behind

schedule and had approximately 850 787 planes on back order as

a result of supplier and software problems.

Then, on July 30, the same date that Boeing announced

that it had purchased Voughts plant, a South Carolina

employee filed a decertification petition.


During August,

Boeing denied the Union access to the employees in the North

Charleston plant and wrote a memorandum to the employees

stating that it preferred to deal with employees directly

NLRB-FOIA-00009736

Case 19-CA-32431

- 6 -

without intermediaries.3
Boeing also issued a FAQ document

to the employees stating that the mass layoffs that took place

at the Vought plant in late 2008 were due to the unique

situation created by the Everett strike.


Meanwhile, the

South Carolina press was reporting that a decertification

decision could influence where Boeing located the second 787

assembly line.
For example, The Post and the Courier reported

that South Carolinas low unionization rate is viewed as an

advantage in the 787 chase[.]


An article in the Charleston

Business Journal asserted that Charleston might be a better

choice in the event of decertification because of its

potentially tamer work force instead of the Washington

workers with a history of walk[ing] off the job.

On August 26, Boeing e-mailed its managers and human

resource professionals that it had notified South Carolina

that it intended to file permits for the construction of a

second 787 line but that it had not yet made a decision as to

where to locate the second line.


The following day, Boeing

and Union officials met in Portland to discuss the prospect of

a long-term agreement.
Carson informed the Union that the

only way Boeing would place the second line in Washington was

if the Union agreed to a twenty-year no-strike agreement.

Boeing suggested a series of three-year agreements with an

overarching twenty-year no-strike pledge until 2032 and

binding interest arbitration if no agreement was reached at

the end of each of the three-year contracts.


The Union said

that this was not possible, but the Union would consider a

longer agreement than the current four-year contract in return

for some sort of neutrality agreement.


At the end of the

meeting, the parties agreed to schedule negotiations for a

long-term agreement.

Meanwhile, the decertification election in South Carolina

was scheduled for September 10.


In reporting on Boeings

permit filings in South Carolina, the Puget Sound Business

Journal characterized this vote as [a] wild card in Boeings

decision about where to locate the second line.


On September

2, Kight presented an hour-long video on Boeings website

(later quoted in a September 29 article in the Seattle Times).

In regard to the second line, he stated:

What do you do with the 787 second line so that we can

build up to rate and meet our commitment to customers?

... Theres a lot of issues to look at, a lot being

studied, no decision has been made.


But truthfully, it

is very clear that this triennial disruption, our

The Union filed a Section 8(a)(5) charge alleging that

Boeing unilaterally changed its access rules but withdrew the

charge following the election.

NLRB-FOIA-00009737

Case 19-CA-32431

- 7 -

customers cant live with it anymore.


So weve become an

unreliable supplier....
So we look at how do we become a

reliable supplier.
How do we ensure production

continuity so that we can meet our commitments to our

customers in a timely way and thats what were trying to

do.

The Union lost the election in South Carolina eight days later

and was decertified on September 18.

As a follow-up to the parties August 27 meeting in

Portland, CEO McNerney wrote to IAM International President

Buffenbarger on September 21 that Boeing planned to make a

decision on the second lines location by the end of October

and wanted the Unions input within the next three to four

weeks.
He stated, I look forward to our respective teams

engaging in fruitful dialog.


Two days later, Boeing filed an

application for a storm water permit with the City of North

Charleston and an overall site plan with the State of South

Carolina.
On October 1, Boeing applied to North Charleston

for a site clearing permit.

The Parties Meet over a Long-Term Agreement

The parties opened negotiations for a long-term agreement

on October 1.
At the start of negotiations, Boeing explained

that placement of the second line in Washington depended on a

long-term agreement to insure no further disruptions in

deliveries to customers.
The Union responded that in exchange

for giving up the right to strike, the parties would need to

resolve economic issues for the long term rather than through

interest arbitration every three years.

The parties met again on October 7, 8, and 15.


The Union

maintains that Boeing never submitted a written proposal or

counter-proposal, that it was in the dark as to what Boeing

wanted, and that in effect it was negotiating against itself.

For example, with respect to the length of the agreement, at

various points Boeing requested a contract ending in 2020 or

2022 but at other times, demanded a twenty-year agreement.


In

terms of wages, Boeing wanted to reduce general wage increases

and move toward a profit-sharing incentive program.


The Union

was not adverse to this concept but requested information to

insure that Boeings measures of productivity were tied to

employee performance and not events beyond the employees

control.
At one point, Boeing stated that the general wage

increase and COLA could not exceed 3.5%.


When a Union

negotiator asked what would happen if the cost of living

increased more than 3.5%, Boeing responded that employees

would get more.


On October 15, for the first time, Boeing

said that it wanted a lower wage structure for new hires and a

NLRB-FOIA-00009738

Case 19-CA-32431

- 8 -

defined contribution plan for them rather than the defined

benefit pension plan that the existing employees enjoyed.

The Union repeatedly raised the issues of job security

and Employer opposition to the Union elsewhere.


The Union

argued that in return for giving up the right to strike during

the long-term, employees needed enhanced job security.


Also,

if the parties relationship were to improve, the Union did

not want to face the type of anti-union conduct Boeing had

engaged in during the decertification campaign in South

Carolina.

At the October 15 session, Conner informed the Union that

the Board of Directors would be meeting on October 26 and he

wanted to give the Board a progress report on the

negotiations.
The Union asserts that Boeing never described

the Board of Directors meeting as a deadline for resolving the

outstanding bargaining issues.


Moreover, Boeing never

provided a concrete proposal that could be put to the unit

employees for a vote.

The parties met again on October 20 and 21.


Conner

stated that Boeing was getting close to making its decision on

the location of the second line and it would be discussed at

the Board meeting on October 26.


By the end of the parties

October 21 session, the Union orally had proposed the

following: an extension of the existing contract to 2020, 3%

annual wage increases plus a 1% COLA, ratification bonuses for

unit employees, an incentive pay program, health cost sharing

towards the end of the contract, annual increases in pension

benefits starting in 2013, and neutrality in connection with

Union organizing campaigns.


In addition, the Union presented

Boeing with a two-page document entitled Rough Draft on

Concepts for a long-term agreement and a joint partnership

committee.
This Draft called for retention of current unit

work; location of the second line in the Puget Sound area; and

six-month advance notice and good-faith bargaining over any

decision to establish an assembly operation for any next

generation product.
Boeing asserts that this rough draft

was the Unions last and final offer, but the Union

disagrees and also maintains that its negotiators had no idea

that this would be the parties final session.


Indeed, the

Union negotiator involved in working out the details of the

incentive pay program sent an e-mail to Kight on October 27

requesting further information.


Kight responded that he would

get back to him.

Meanwhile, on October 21, Boeing posted its quarterly

earnings conference call on its intranet site for employees.

With respect to locating the second line in South Carolina,

CEO McNerney stated:

NLRB-FOIA-00009739

Case 19-CA-32431

- 9 -

[T]here would be some duplication.


We would obviously

work to minimize that.


But I think having said all of

that, diversifying our labor pool and our labor

relationship has some benefits.


...
And so some of the

modest inefficiencies, for example, associated with the

move to Charleston, are certainly more than overcome by

strikes happening every three or four years in Puget

Sound.
And the very negative financial impact of [sic]

the company, our balance sheet would be 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....

And I dont blame this totally on the union. We just

havent figured out a way - the mix doesnt - isnt

working well yet. So, weve either got to satisfy

ourselves that the mix is different or we have to

diversify our labor base.

McNerney stated that a decision would be made in the next

couple of weeks.

Two days later, IAM General Vice President Michalski

called Conner to ask about the status of the negotiations.

Conner stated that the Unions economic terms and demand for

neutrality were unacceptable to Boeing.


Michalski explained

that the Union was not asking for a traditional neutrality

agreement but rather, as explained during negotiations, a code

of conduct.
Michalski stated that the Union was willing to

meet at any time for additional negotiations, but Conner did

not respond.
On October 24, Michalski called Senior Vice

President of Operations Tim Keating to reiterate that the

Union was not seeking a true neutrality agreement.


He wanted

to clear up any misunderstanding if that issue was blocking

the parties ability to reach an agreement.


Keating did not

respond, and no further negotiations were ever scheduled.

Meanwhile, the governmental bodies in South Carolina were

moving quickly to facilitate the second lines placement in

their State.
On October 23, North Charleston approved

Boeings request for a storm water permit, and the State of

South Carolina approved Boeings overall site plan.


On

October 27, the South Carolina legislature, in a special

session, approved $170 million in taxpayer-backed bonds for

Boeings startup costs and tax breaks totaling $450 million in

exchange for Boeings agreement to create at least 3,800 jobs

and invest more than $750 million in the State within the next

seven years.
That same day, North Charleston approved

Boeings site clearing permit.

Boeing contends that it entered these negotiations with a

good-faith intention to reach a long-term agreement that would

have resulted in placing the second line in Washington, but

NLRB-FOIA-00009740

Case 19-CA-32431

- 10 -

the Unions economic demands were too costly and its

insistence upon neutrality and job security were unacceptable.

The Union asserts, however, that Boeings failure to submit

any proposals, its rejection of the Unions serious efforts to

address Boeings purported concerns, and then its precipitous

halting of negotiations as soon as the South Carolina

legislature awarded it a generous tax and subsidy package

demonstrate that the negotiations were in fact a sham.

Boeing Announces its Decisions to Locate the Second Line in

South Carolina and to Establish a Dual-Sourcing Program

On October 28, Boeing announced its decision to locate

the second 787 assembly line in South Carolina.


In a press

release and internal e-mails, Boeing stated that the Board of

Directors had just approved the selection of North Charleston.

Boeing also announced that it intended to build a surge line

in Everett - a temporary second assembly line that would be

phased out once the South Carolina line was up and running.

Boeing issued a memo to its managers on October 28 that

provided answers to anticipated questions from employees and

talking points regarding its decision.


The managers were

advised to inform employees, among other things, that the

decision to locate the second line in Charleston would

provide economic advantages by improving our competitiveness

and reducing vulnerability to delivery disruptions due to a

host of factors, from natural disasters to homeland security

issues and work stoppages.


The memo further stated, In the

final analysis, this came down to ensuring our long-term

global competitiveness and diversifying the company to protect

against the risk of production disruption ... from natural

disasters, to homeland security threats, to work stoppages.

On December 3, Boeing notified its fabrication managers

that it intended to create a dual-sourcing program and

contract separate suppliers for the South Carolina assembly

line.
As a result, employees in the Puget Sound and Portland

units who produce parts for the 787 assembly line are likely

to suffer a loss of work.


Articles that appeared in the

Seattle Times on December 7 and the Puget Sound Business

Journal on December 8 discussed this announcement.


The

Seattle Times quoted Boeing spokesman Jim Proulx as stating,

Repeated labor disruptions have affected our performance in

our customers eyes.


We have to show our customers we can be

a reliable supplier to them.


[The second production] line has

to be able to go on regardless of whats happening over here.

The Puget Sound Business Journal quoted Conner as follows:

Dual-sourcing and co-production will allow us to maintain

production stability and be a reliable supplier to our

customers.

NLRB-FOIA-00009741

Case 19-CA-32431

- 11 -

On March 2, 2010, a Seattle Times journalist conducted a

videotaped interview of Boeings new Commercial Airplanes CEO,

Jim Albaugh.
(Albaugh had moved over from his position as

Integrated Defense Systems CEO to replace Carson.)


The

interviewer asked Albaugh some hard questions on behalf of

the Washington community about Boeings decision to locate the

second 787 line in Charleston.


In explaining Boeings

decision, Albaugh repeatedly referenced the Unions strike

history.
For example, he stated:

The issue last fall was really about, you know, how

we could ensure production stability and how we

could ensure that we were competitive over the long

haul.
And we had some very productive discussions

with the union.


And unfortunately, we just didnt

come to an agreement where we felt we could ensure

production stability.
And read [sic] that is [sic]

getting away from the frequent strikes that we were

having and also could we stop the rate of escalation

of wages.
And we just could not get to a place

where we both felt it was a win for both ourselves

and the union so we made the decision to go to

Charleston.

[W]eve had strikes three out of the last four times

weve had a labor negotiation with the IAM.


... And

weve got to get to a position where we can ensure

our customers that every three years theyre not

going to have a protracted shutdown.

It was about ensuring to our customers that when we

commit to deliver airplanes on certain dates that we

actually do deliver.
And we have lost our

customers have lost confidence in our ability to do

that, because of the strikes.

When asked whether going to Charleston, in light of the

expense and risk, made business sense, he responded:

Theres no question that whenever you go to a green field

site, theres risk involved.


At the same time, with the

protracted labor stoppage that we had ... the fall of

2008, I mean that cost the company billions of dollars.

And I think if you compare, you know, what it cost

because of the stoppages versus the cost and the risk of

starting a new line in Charleston, I think the investment

certainly is the right one for us to make.4

Once again, a Boeing CEO grossly exaggerated the burden of

the Unions strike activity.


Boeing had alleged elsewhere

that the 2008 strike reduced its earnings by $1.8 million, far

NLRB-FOIA-00009742

Case 19-CA-32431

- 12 -

At one point, Albaugh summed up the basis of Boeings

decision as follows:

[t]he overriding factor was not the business climate.

And it was not the wages were paying today.


It was that

we cannot afford to have a work stoppage, you know, every

three years.
We cannot afford to continue the rate of

escalation of wages....

Albaugh also implicitly threatened the loss of additional work

because of Union strikes, stating, [w]ell do work here if we

can make sure that we have the stability of the production

lines and that we can be competitive over the long haul.

Production is now approximately three years behind

schedule.
Approximately 2,900 Puget Sound unit employees

currently work on the 787 assembly line.


Approximately 1,740

of them are working on out-of-sequence assembly work, away

from the main assembly line. Once supply issues are resolved

and assembly can be accomplished in sequence on the line, it

is anticipated that the number of employees will drop by

approximately 60%.
Boeing asserts that the South Carolina

plant will be ready to begin assembly work in mid 2011.

Approximately 1,000 mechanic and flight line jobs will be

added in South Carolina at that time.

ACTION

This case involves Boeings transfer of work from an

experienced unionized workforce to a new, nonunion facility.

Boeings decision was motivated by antiunion considerations.

From the time of the Unions strike in the fall of 2008,

Boeing made clear to its unionized workforce that it would not

countenance further strikes.


Time and again, in e-mails to

employees, on its intranet site, in the media, and in talks

with the Union, Boeing tied its ability to compete to the

avoidance of future strike activity.


Then, when Boeing

purchased the Vought facility in South Carolina, its officials

denied the Union access to employees at the facility.


It also

let the employees know that it preferred to deal with them

directly rather than through their Union and their receipt of

the second line hinged on their vote in a decertification

election.
Simultaneously, Boeing officials told the Puget

Sound unit employees that they could retain all of the 787

assembly work only by waiving their right to strike for twenty

years.
Although the Union entered negotiations with Boeing

less than the billions of dollars that Albaugh claimed in

this interview.

NLRB-FOIA-00009743

Case 19-CA-32431

- 13 -

and made major concessions in an effort to address its stated

concerns, once the Union was decertified in South Carolina,

Boeing courted the South Carolina legislature and applied for

the necessary permits from the South Carolina regulatory

bodies - even as it continued the motions of negotiating with

the Union.
As soon as South Carolina approved the financial

incentives for Boeing, Boeing called off negotiations and

announced its decision.


Boeings CEO admitted that the

overriding factor for moving work to South Carolina was the

employees strike activity.


Moreover, to reinforce the

message to unit employees, he intimated that the continuation

of any work in Washington was contingent on the stability of

the production lines, a veiled threat designed to coerce

employees to abstain from future strikes.


Nor could Boeing

credibly blame the 787 production delays on employees 2008

strike activity, which halted production for approximately two

months.
Rather, the delay resulted primarily from its own

business decision to outsource the manufacture of the aircraft

components to various suppliers and from unexpected software

problems.

Further, the fact that it made little practical sense to

locate this second line in South Carolina, despite a two-and-

a-half-year delay in the production of its new 787 aircraft,

rather than its existing facilities in Washington, supports a

finding of unlawful motivation.


While South Carolina would

not be ready for production for two years because of the need

for substantial capital improvements and the hiring and

training of a new workforce, Washington was already up and

running, with the space, the necessary equipment, and a

significant complement of trained employees.

On these facts, we conclude that the Region should issue

a complaint alleging: independent violations of Section

8(a)(1) based upon Boeings coercive and threatening

statements to employees on the intranet and through the media;

and a violation of Section 8(a)(3) based upon Boeings

decision to place the second line in South Carolina and to

establish a dual-sourcing supply program in order to retaliate

against the unit employees for engaging in protected Union

activity.
We would also argue, in the alternative, that

Boeings actions were inherently destructive of employee

rights.
But the Region should dismiss the Section 8(a)(5)

allegations because the Union waived its right to bargain

about Boeings decision to offload unit work to a facility not

covered by the parties agreement.


Finally, to remedy the

Section 8(a)(1) and (3) violations, the Region should seek: a

notice reading by a high-level Boeing official in addition to

the traditional remedies; and an order requiring Boeing to

assemble in the Puget Sound area the first ten 787 aircraft

that it produces each month and to maintain the supply lines

for those aircraft in the Puget Sound and Portland facilities.

NLRB-FOIA-00009744

Case 19-CA-32431

- 14 -

I. The Employer Violated Section 8(a)(1)

The Supreme Court long ago delineated the line between

employer speech protected under Section 8(c) of the Act and

threats of reprisals violative of Section 8(a)(1).5


The Court

ruled in Gissel that an employer may make a prediction as to

the effects of unionization but that prediction must be

carefully phrased on the basis of objective fact to convey an

employers belief as to demonstrably probable consequences

beyond his control[.]6


On the other hand, threats of

economic reprisal to be taken solely on [the employers] own

volition violate Section 8(a)(1).7

In General Electric Company, the Board applied the Gissel

test to set aside an election because the employer threatened

a long-term loss of work based on the possibility of a strike

at some future time.8


Faced with a union organizing drive,

the employer gave multiple speeches touting its two-source

supplier strategy.9
The employer stated that it had

established its nonunion plant so that customers could get the

motors they needed during the seven strikes at its union

plant.
The employer also made clear that the plants nonunion

status was the reason it had experienced a rise in

employment.10
And the employer conveyed the message that the

plant remaining nonunion was an important, if not a decisive,

factor in any company decision to choose that plant as a

second manufacturing facility for the new motor the employer

planned to introduce.11
The Board concluded that although the

employer might want to insure itself against production

interruptions caused by employee concerted activity, no such

insurance is legally possible, for the simple reason that

employees have a federally protected right to engage in such

activity.12
The Board expressly distinguished an employers

right to take defensive action when threatened with an

See NLRB v. Gissel Packing Co., 395 U.S. 575, 618 (1969).

Ibid.

Id. at 619 (citation omitted).

See 215 NLRB 520, 522-23, fn. 6 (1974).

See id. at 520.

10

See id. at 520-21.

11

See id. at 521.

12

See id. at 522.

NLRB-FOIA-00009745

Case 19-CA-32431

- 15 -

imminent strike from threats to transfer work merely because

of the possibility of a strike at some speculative future

date.13

The Board repeatedly has held that an employer violates

Section 8(a)(1) by threatening to withhold work opportunities

because of the exercise of Section 7 rights.14


Thus, telling

employees that they will lose their jobs if they join a strike

violates Section 8(a)(1).15


Similarly, in Kroger Co., the

employer unlawfully threatened to put its plan to build a new

freezer facility for its distribution center on hold because

of intraunion unrest and labor disputes.16

Further, where an employer unconditionally predicts a

loss of customers due to unionization or strike disruptions

without any factual basis, its predictions amount to

unlawful threats.17
Rather, an employers predictions of

customer disaffection must be based on objective facts.18

Thus, in Curwood, Inc., an employer lawfully related its

13

See id. at 522, fn. 6.

14

See, e.g., Kroger Co., 311 NLRB 1187, 1200 (1993), affd.

th
mem. 50 F.3d 1037 (11
Cir. 1995); General Electric Co., 321

NLRB 662, fn. 5 (1996), enf. denied 117 F.3d 627 (D.C. Cir.

1997).

15

Aelco Corp., 326 NLRB 1262, 1265 (1998).


See also Dorsey

Trailers, Inc., 327 NLRB 835, 851 (1999), enfd. in pertinent

th
part 233 F.3d 831 (4
Cir. 2000) (threat to close the plant if

the employees went out on strike).

16

311 NLRB at 1200.


See also General Electric Co., 321 NLRB

at 662, fn. 5 (employer conveyed to employees that

unionization could result in the withholding of further

investment in the plant or its closure).

17

See, e.g., Tawas Industries, 336 NLRB 318, 321 (2001) (no

objective basis for prediction that customers, fearing

strikes, would not give their business to the employer if the

employees independent union affiliated with the UAW);

Tradewaste Incineration, 336 NLRB 902, 907-08 (2001)

(prediction that 90% of the customers would not deal with a

union facility because of fear of a work stoppage was not

based on objective facts); Debbie Reynolds Hotel, 332 NLRB

466, 466 (2000) (no factual basis for statements about having

to move productions and equipment elsewhere because customers

would not be able to afford employers facilities if employees

unionized).

18

Curwood, Inc., 339 NLRB 1137, 1137-38 (2003).

NLRB-FOIA-00009746

Case 19-CA-32431

- 16 -

customers concerns about strikes, where the employer produced

written inquiries from customers seeking information about its

contingency plans in the event of a strike.19


An employer may

also reference the possibility that unionization, including

strikes, might harm relationships with consumers, as opposed

to predicting
unavoidable consequences.20

Here, the Union has alleged that several statements by

Boeing officials violated Section 8(a)(1).


Some statements

were posted by Boeing on its website or intranet.


Others were

reprinted in newspaper articles as direct quotes; although

such a quotation is hearsay, it would be admissible as an

admission (an exception to the hearsay rule), if the reporter

testifies.21
By contrast, reporter summaries cannot form the

basis for a Section 8(a)(1) violation.


And statements

recounted by political figures within newspaper articles are

in effect double hearsay and inherently unreliable.

Based on these principles, we find that the following

constitute unlawful threats under the Gissel standard:

(1)
Boeing posted its quarterly earnings conference call

on its intranet for employees on October 21.


During the call,

CEO McNerney made an extended statement about diversifying

our labor pool and moving work to South Carolina because of

strikes happening every three or four years in Puget

Sound.22
His comments were indistinguishable from the

comments regarding a two-source supplier strategy found

violative in General Electric.23

(2)
Boeings October 28 memo to managers advised them to

inform employees that it decided to locate the second line in

South Carolina in order to reduce vulnerability to delivery

disruptions caused by, among other things, strikes.


The

thrust of Boeings message to employees was that Boeing had

19

See id. 339 NLRB at 1137.

20

E.g., Miller Industries Towing Equipment, Inc., 342 NLRB

1074, 1075-76 (2004) (employer did not predict unavoidable

consequences).

21

Cf. Sheet Metal Workers Local 15 (Brandon Regional Medical

Center), 346 NLRB 199, 201-02 (2006), enf. denied on other

grounds 491 F.3d 429 (D.C. Cir. 2007) (newspaper report of

party admission is inadmissible hearsay because the reporter

was not available for cross-examination).

22

These same comments were quoted in the Seattle Times.

23

See 215 NLRB 520, 522-23 (1974).

NLRB-FOIA-00009747

Case 19-CA-32431

- 17 -

removed jobs from Puget Sound because employees had struck and

that they would lose work if they struck again.24

(3)
In articles that appeared in the Seattle Times and

the Puget Sound Business Journal on December 7 and 8

respectively, Boeing officials attributed the plan to use a

dual-sourcing system and contract separate suppliers for the

South Carolina line to past strikes and implicitly threatened

the loss of future work opportunities in the event of future

strikes.25

(4)
In a video-taped interview on March 2, Boeing

Commercial Airplanes CEO Albaugh expressly attributed the

Employers decision to locate the second line in South

Carolina to employee strikes and threatened the loss of future

work opportunities in retaliation for such protected

activity.26

The above statements, disseminated through various

channels to unionized and nonunionized employees nationwide,

drove home the message: union activity could cost them their

jobs, while a decision to reject union representation could

bring those jobs to their communities.

II.

The Employer Violated Section 8(a)(3)

The Employers decision to locate the second 787 line at

a nonunion facility and to establish a dual-sourcing program

to support that line violated Section 8(a)(3) because the

Employer acted in retaliation for the employees Union

activity and not for a legitimate business reason.

Initially, despite Boeings assertions that its decision

to locate a second 787 assembly line in South Carolina will

not adversely impact any current unit employees, there is no

question that the decision will direct work away from Puget

Sound employees with consequent adverse effects.


Instead of

24

The Region should insure that this message was communicated

to employees.

25

The authors of these articles will need to testify.


If

they resist testifying, and it becomes necessary to seek

subpoena enforcement, the Region should contact Advice.

26

Vice President Kights video-taped comments that Boeings

customers could not live with this triennial disruption and

that Boeing was looking to insure production continuity

cannot be alleged as an independent violation because they

were first posted on Boeings website on September 2, outside

the Section 10(b) period.

NLRB-FOIA-00009748

Case 19-CA-32431

- 18 -

assembling all of the 787 planes in Washington as originally

planned, once the second line opens in South Carolina, a

significant portion of the remaining 787 orders will be filled

by planes produced in North Charlestown.


Future work

opportunities will be lost for employees on the surge line,

as well as unit employees waiting to transfer into the more

desirable 787 jobs.


There are likely to be transfers to

older, less desirable aircraft assembly lines, demotions, and

layoffs.
Moreover, Boeings adoption of its new dual-

sourcing program means that the Puget Sound and Portland unit

employees will produce parts only for planes assembled in

Washington and not for those planes assembled in South

Carolina, also causing the loss of employment opportunities

for unit employees and the likelihood of demotions and

layoffs.
If no unit employees have been harmed yet, it is

merely because Boeings retaliatory decision has not yet been

implemented.

Recently, in Pittsburg & Midway Coal Mining Co., the

Board expressly reaffirmed that an actual financial loss is

not necessary to establish a Section 8(a)(3) violation.27


In

that case, the employer revised its bonus policy in

retaliation for the employees use of contractual memorial

days to engage in work stoppages.


Even though no employees

thereafter suffered a diminution of their bonuses, the Board

found a Section 8(a)(3) violation based upon the employers

retaliatory motive.28

Moreover, the Board specifically has held that an

employer may not, for unlawfully motivated reasons, divert

unit work to a nonunion plant even where there is no immediate

impact on unit employees.29


In Adair Standish Corp., the

employer refused to take delivery of a new press ordered for

its newly-organized Standish plant and installed it instead at

its nonunion plant.


The Board noted that diversion of the

press from Standish could reasonably result in diversion of

new work from Standish and therefore violated Section 8(a)(3)

even though there was no immediate impact on the unit

employees.30
Similarly, in Cold Heading Co., the employer

unlawfully relocated equipment to a newly-purchased nonunion

facility and changed its plans to install new equipment in its

27

See 355 NLRB No. 197, slip op. at 5, fn. 8 (2010).

28

Ibid.

29

See Adair Standish Corp., 290 NLRB 317, 318-19 (1988), enfd

th
in pertinent part 912 F.2d 854 (6
Cir. 1990).

30

See id. at 319.

NLRB-FOIA-00009749

Case 19-CA-32431

- 19 -

union facility after its employees independent union

representative sought to affiliate with the UAW.31

Here, as in Adair Standish and Cold Heading, there is a

diversion of unit work that the unit employees otherwise would

have performed.
And as in Pittsburg & Midway Coal Mining Co.,

the fact that unit employees may not yet have experienced the

financial impact of Boeings decision is no defense to a

Section 8(a)(3) violation.

Further, Boeing made this decision for unlawful reasons.

Boeing admits that the overriding factor in its decision to

place the second line in a nonunion facility was the

employees strike history.


An employers discouragement of

its employees participation in a legitimate strike

constitutes discouragement of union membership within the

meaning of Section 8(a)(3).32


This applies to employer

conduct designed to retaliate against employees for having

engaged in a strike in the past,33 as well as employer conduct

designed to forestall employees from exercising their right to

strike in the future.34


Indeed, the Board recently reaffirmed

that an employer violates the Act when it acts to prevent

future protected activity.35


Comparing such conduct to the

31 See 332 NLRB 956, fn. 5, 975-76 (2000).


See also

Associated Constructors, 325 NLRB 998, 998-1000 (1998), enfd.

sub nom. ODovero v. NLRB, 193 F.3d 532 (D.C. Cir. 1999)

(double-breasted employer unlawfully diverted work from its

union entity to its nonunion entity in retaliation for the

unions efforts to organize the nonunion entity and to escape

the collective-bargaining agreement).

32

Capehorn Industry, 336 NLRB 364, 365 (2001).

33

See id. at 365-67 (employer violated Section 8(a)(3) by

failing to immediately reinstate strikers upon unconditional

offer to return to work where there was no legitimate business

justification for entering into a permanent subcontract).

34

See Century Air Freight, 284 NLRB 730, 732 (1987) (employer

violated Section 8(a)(3) by permanently subcontracting unit

work and discharging unit employees in order to forestall the

exercise of their right to strike); Westpac Electric, 321 NLRB

1322, 1374 (1996) (employer violated Section 8(a)(3) by

isolating employee in retaliation for his previous striking

activities and also in anticipation that he would participate

in a strike in the future).

35

See Parexel International, LLC, 356 NLRB No. 82, slip op.

at 4 and cases cited therein (2011) (employer violated Section

NLRB-FOIA-00009750

Case 19-CA-32431

- 20 -

erection of a dam at the source of supply of potential,

protected activity, the Board reasoned that, the suppression

of future protected activity is exactly what lies at the heart

of most unlawful retaliation against past protected

activity.36

Boeing concedes that it is removing work from the unit

employees based upon their past exercise of their right to

strike.
However, Boeing relies upon the Supreme Courts

decision in NLRB v. Brown Food Store37 to argue that it is

privileged to move work outside the unit to avoid the

disruptive consequences of future strikes and that this is a

sufficient business justification to permit its actions.

In Brown Food Store, the Court held that an employer was

privileged to lock out its employees and use temporary

replacements to carry on its business in the face of a whipsaw

strike.38
Specifically, the Court found that the use of a

lockout and the hiring of temporary replacements to bring

pressure to bear in support of its bargaining position after

an impasse in negotiations was not an unfair labor practice.39

Rather than finding the use of this economic weapon

discriminatory, the Court concluded that it was a legitimate

defensive measure to preserve the multiemployer group in the

face of a whipsaw strike.40

Boeings attempt to extend the holding of Brown to

legitimatize any action that an employer takes to protect

itself against future, wholly speculative, strikes would

vitiate the Section 13 right to strike.


And the Board has

made it clear that an employer cannot rely upon Brown to

justify discriminatory conduct based upon the exercise of the

right to strike.
Thus, in National Fabricators, the Board

expressly rejected the employers attempt to use Brown and

other lockout cases to justify its decision to lay off those

employees who were likely to honor a union picket line in the

8(a)(1) by discharging an employee to prevent her from

discussing wages with other employees).

36

Ibid. (citation omitted).

37

380 U.S. 278 (1965).

38

See id. at 283-85.

39

See id. at 284.

40

See ibid.

NLRB-FOIA-00009751

Case 19-CA-32431

- 21 -

future.41 Instead, the Board found that disfavoring employees

who were likely to engage in protected union activities was

proscribed by Section 8(a)(3) and the employers business

justification - to avoid investing money in employees who

were going to cease work later -- was neither legitimate nor

substantial.42

Boeings concession that choosing South Carolina will

result in duplication and economic inefficiencies further

demonstrates that Boeings actions were retaliatory and not a

legitimate business decision.


In addition, Commercial

Airplanes CEO Albaugh conceded that going to South Carolina,

a green field site, involves significant risks.


Boeing has

the capacity, equipment, and trained workforce to handle the

second assembly line in the Puget Sound area.


The substantial

investment required to build and equip the South Carolina

facility therefore will be duplicative.


In addition, Boeing

will have to recruit and train a new workforce in South

Carolina, while ultimately laying off experienced employees in

Washington.
Exaggerating the disruptive effects of prior

strikes, Boeing maintains that the inefficiencies associated

with moving work to South Carolina will be counterbalanced by

the avoidance of strike disruptions in the future. However,

there are other nonretaliatory and less costly means of

dealing with the potential of relatively short disruptions

caused by employee strikes, such as concluding negotiations

with the Union for a long-term no-strike agreement.


In

addition, Boeings claim that it took this action to avoid

strike disruptions is belied by Boeings rejection of the

Unions efforts to negotiate a long-term no strike agreement.

Accordingly, the Region should proceed on the theory that

Boeing violated Section 8(a)(3) by retaliating against the

unit employees for engaging in the protected activity of

striking.

We also conclude that Boeings conduct was inherently

destructive of employee interests.43


Conduct is inherently

destructive when it carries with it unavoidable

consequences which the employer not only foresaw but which he

must have intended and thus bears its own indicia of

th

41

See 295 NLRB 1095, 1095 (1989), enfd. 903 F.2d 396 (5

1990), cert. denied 498 U.S. 1024 (1991).

42

Cir.

See 295 NLRB at 1095-96.

43

See NLRB v. Great Dane Trailers, Inc., 388 U.S. 26, 33

(1967) (citation omitted).

NLRB-FOIA-00009752

Case 19-CA-32431

- 22 -

intent.44
In International Paper Co., the Board set forth

four fundamental guiding principles for determining whether

employer conduct is inherently destructive of employee

rights.45
First, the Board looks to the severity of the harm

to employees Section 7 rights.


Second, the Board considers

the temporal impact of the employers conduct, i.e. whether

the conduct merely influences the outcome of a particular

dispute or whether it has far reaching effects which would

hinder future bargaining.


Third, the Board distinguishes

between conduct intended to support an employers bargaining

position as opposed to conduct demonstrating hostility to the

process of collective bargaining.


And finally, the Board

assesses whether the employees conduct discourages collective

bargaining by making it seem a futile exercise in the eyes of

the employees.46
Even if the employees conduct is

inherently destructive, the Board weighs the employers

asserted business justification against the invasion of

employee rights.47

Boeings actions were inherently destructive of employee

rights under the four principles articulated in International

Paper.
First, the harm to employees Section 7 rights was

severe; employees got the distinct message that if they engage

in another strike, unit work will be moved to a nonunion

facility and unit jobs will be lost.


Second, Boeings

decision was designed to have far-reaching effects and not

just to influence the outcome of a particular dispute, namely,

to take away employee support for the Unions most effective

economic weapon, and for the Union itself, and thereby hinder

any future collective bargaining.


Third, Boeings conduct

demonstrated hostility to the very process of collective

bargaining and not just to support a specific bargaining

position.
Finally, bargaining was made to seem a futile

44

Ibid., quoting NLRB v. Erie Resistor Corp., 373 U.S. 221,

228, 231 (1963).


See also Dorsey Trailers, Inc., 327 NLRB

835, 863-64 (1999), enf. denied in pertinent part 233 F.3d 831

th
(4
Cir. 2000).

45

See 319 LRB 1253, 1269 (1995), enf. denied 115 F.3d 1045

(D.C. Cir. 1997).

46

Id. at 1269-70 (citations omitted).

47

Id. at 1273 (finding no justification for employers

inherently destructive conduct of permanently subcontracting

bargaining unit work during a lawful lockout).


See also

Dorsey Trailers, 327 NLRB at 863-64 (employers closing of

facility during strike and relocation of unit work to newly

purchased facility outside the unions jurisdiction was

inherently destructive of employee rights).

NLRB-FOIA-00009753

Case 19-CA-32431

- 23 -

exercise without the possibility of a strike to support the

Unions position at the bargaining table.

The unavoidable consequence of Boeings decision to place

the second line in its newly-purchased, nonunion facility,

accompanied by official comments on the intranet and in the

media, was to severely chill its employees exercise of

Section 7 rights in the future - whether it be the Puget

Sound employees, the South Carolina employees, or Boeing

employees elsewhere.
Employees will correctly fear that

engaging in such protected activity could cause them to lose

their jobs to nonunionized workers.


Others may be encouraged

to file or support decertification petitions.


And the many

unrepresented Boeing employees will be discouraged from

organizing or voting in support of union representation if

they believe that exercising their right to concerted activity

justifies moving commercial production elsewhere.

Moreover, even if the effect on employee rights was only

comparatively slight, Boeing had no legitimate business

justification. Its only justification was its desire to insure

against its employees exercise of their Section 7 rights, and

that is not a legitimate justification.

The Board recently held in Arc Bridges, Inc. that an

employers conduct was inherently destructive where its stated

reason for withholding a regularly-scheduled wage increase

from represented employees was that it was in negotiations

with the union.48


The Board found that the employers stated

reason - that it wanted to enhance its bargaining position

with the union -- was an admission that it withheld the

increase because employees chose union representation.49

Likewise, Boeings stated reason for its decision - that it

wanted to avoid strike disruptions - was an admission that it

decided to locate the second line in South Carolina because

the Puget Sound employees chose union representation and the

South Carolina employees did not.


Accordingly, Boeings

decision coupled with its public pronouncements emphasizing

the motivation for its decision was inherently destructive of

its employees rights to engage in union activity and violated

Section 8(a)(3).

III. The Union Waived its Right to Bargain

The Unions allegation that Boeing failed to bargain in

good faith over its decision as to where to locate the second

787 line raises two preliminary issues: (1) whether Boeings

decision was a mandatory subject of bargaining; and (2) if so,

48

See 355 NLRB No. 199, slip op. at 3-4 (2010).

49

See id., slip op. at 3.

NLRB-FOIA-00009754

Case 19-CA-32431

- 24 -

whether the Union waived its right to bargain over that

subject.
Although we conclude that the decision was a

mandatory subject of bargaining and there is substantial

evidence that Boeing did not bargain in good faith to a valid

impasse, the Region should dismiss the Section 8(a)(5)

allegations on the ground that the Union waived it right to

bargain, applying Provena.50

A.

Mandatory Subject of Bargaining

Under Dubuque Packing Co., a decision to relocate unit

work that is not accompanied by a basic change in the

employers operation is a mandatory subject of bargaining

unless the employer can establish that: the work performed at

the new location varies significantly from the work performed

at the prior location; the work performed at the former

location is discontinued entirely and not moved to the new

location; or the employers decision involved a change in the

enterprises scope and direction.51


Alternatively, the

employer can defend by showing that: labor costs were not a

factor in the decision; or if labor costs were a factor, the

union could not have offered sufficient concessions to change

the employers decision.52


Applying the Dubuque test, the

Board repeatedly has found relocation decisions to constitute

a mandatory subject of bargaining.53

In addition, the Board has held that a decision may be a

mandatory subject even though there is no immediate loss of

unit jobs.54
For example, in Quickway Transportation, Inc.,

50

Provena St. Joseph Medical Center, 350 NLRB 808 (2007).

51

303 NLRB 386, 391 (1991), enfd. sub nom. Food & Commercial

Workers Local 150-A v. NLRB, 1 F.3d 24 (D.C. Cir. 1993).

52

Ibid.

53

See, e.g., Titan Tire Corp., 333 NLRB 1156, 1164-65 (2001)

(decision to permanently relocate equipment and jobs in

reaction to strike); Owens-Brockway Plastic Products, 311 NLRB

519, 521-23 (1993) (decision to close plant and transfer work

to other facilities).

54

See, e.g., Overnite Transportation Co., 330 NLRB 1275, 1276

(2000), revd. mem. 248 F.3d 1131 (3d Cir. 2000) (We think it

plain that the bargaining unit is adversely affected whenever

bargaining unit work is given away to nonunion employees,

regardless of whether the work would otherwise have been

performed by employees already in the unit or by new

employees).

NLRB-FOIA-00009755

Case 19-CA-32431

- 25 -

the Board found that the employers decision to contract with

independent owner-operators rather than expand the unit, as it

had originally planned, was mandatory because that decision

obviously constrained the work opportunities available to the

bargaining unit.55
Likewise, in Spurlino Materials, LLC, the

Administrative Law Judge, in a decision adopted by the Board,

found that even though no unit employees suffered a loss of

work as a result of the employers subcontracting, existing

employees might have otherwise been given overtime or the

employer might have hired additional unit employees, resulting

in benefits for the Union and current unit employees in having

an expanded unit.56
And in Dorsey Trailers, Inc., the Board

found that subcontracting work to reduce a backlog in orders

was a mandatory subject because the potential loss of

overtime or reasonably anticipated work opportunities poses a

detriment to unit employees even if no employees lost their

jobs.57

Here, the decision to locate the second 787 assembly line

in South Carolina amounted to a relocation of unit work.


Even

though no unit employees have yet to lose work, as in Dorsey

Trailers the assignment of unit work to nonunit employees in

order to reduce an order backlog presents a potential loss of

overtime or reasonably anticipated work opportunities and

therefore poses a detriment to unit employees.58


The work

that will be performed in South Carolina is identical to that

performed on the first line and the surge line in Everett by

unit employees.
The decision did not involve a basic change

in Boeings operation or any change in the enterprises scope

or direction; Boeing does not intend to change its production

methods or its products.59


Boeing did not demonstrate that

labor costs were not a factor in the decision.


In fact,

according to Boeings CEO, the decision was motivated

primarily by a desire to avoid strikes and secondarily because

the Employer cannot afford the rate at which unit wages are

escalating.
Boeing also did not demonstrate that the Union

could not have offered sufficient concessions to change its

55

See 355 NLRB No. 140 (2010), incorporating by reference the

rationale of 354 NLRB No. 80, slip op. at 2 (2009).

56

See 355 NLRB No. 77 (2010), incorporating by reference the

rational of 353 NLRB 1198, 1219 (2009).

57

See 321 NLRB 616, 617 (1996), enf. denied in relevant part

134 F.3d 125 (3d Cir. 1998).


Accord Acme Die Casting, 315

NLRB 202, fn. 1, 209 (1994).

58

See 321 NLRB at 617.

59

See Owens-Brockway Plastic Products, 311 NLRB at 522.

NLRB-FOIA-00009756

Case 19-CA-32431

- 26 -

decision; the Union


the strike and wage
2009.
Accordingly,
where to locate the
bargaining.

B.

was willing to make concessions on both

issues during negotiations in the fall of

we conclude that Boeings decision as to

second 787 line was a mandatory subject of

Waiver of the Right to Bargain

The Board applies a clear and unmistakable waiver

standard to determine whether a union has waived its right to

bargain about a mandatory subject of bargaining during the

term of a collective-bargaining agreement.60


The Board will

find a waiver if the contract either expressly or by

necessary implication confers on management a right to

unilaterally take the action in question.61


In interpreting

the parties agreement, the relevant factors include: (1) the

wording of pertinent contractual provisions; (2) the parties

bargaining history; and (3) the parties past practice.62

The Board has found a waiver based on contract language

where there is an express reference to the specific type of

decision that the employer has implemented unilaterally.63

Thus, in Ingham Regional Medical Center, the Board adopted an

Administrative Law Judges decision that the union waived its

right to bargain about a subcontracting decision where the

contractual management-rights clause expressly reserved to

management the right to use outside assistance or engage

independent contractors to perform any of the Employers

operations or phases thereof (subcontracting)[.]64


This

right was vested exclusively in the Employer and was not

60

See Provena St. Joseph Medical Center, 350 NLRB at 810-11.

61

See id. at 812, fn. 19.

62

See Johnson-Bateman Co., 295 NLRB 180, 184-89 (1989) (no

waiver of right to bargain about drug/alcohol testing

requirement where the management rights clause was generally

worded, issue was not fully discussed and consciously

explored during negotiations, and past practice of union

acquiescence to other unilateral work rule changes did not

waive the right to bargain about such changes for all time).

63 See, e.g., Ingham Regional Medical Center, 342 NLRB 1259,

1261-62 (2004) (under the management-rights clause, the

employer expressly reserved the right to subcontract); Allison

Corp., 330 NLRB 1363, 1364-65 (2000) (management-rights clause

specifically, precisely, and plainly granted the employer

the exclusive right ... to subcontract).

64

See 342 NLRB at 1260, 1261-62.

NLRB-FOIA-00009757

Case 19-CA-32431

- 27 -

subject to arbitration.65
Although another contractual

provision required the employer to provide 60 days notice and

discuss with the union any subcontracting decision that

would cause unit employees to be laid off, the words discuss

and bargain were found not synonymous in the parties

contract.66

In this case, Section 21.7 of the parties agreement

specifically, precisely, and plainly67 granted Boeing the

right to offload work to a facility not covered by the

agreement.
As in Ingham Regional Medical Center, the other

provisions of Section 21.7 that required Boeing to provide the

Union notice and an opportunity to review and recommend

alternatives did not require the Employer to bargain over an

offloading decision.

The Union does not dispute that Section 21.7 contains a

waiver but asserts instead that the Employer may not take

advantage of the waiver.


Specifically, the Union maintains

that a contractual waiver cannot be applied to a decision that

is unlawfully motivated.
But there is no authority for the

proposition that an unlawful motive negates a contractual

waiver; rather, the cases on which the Region and Union rely

hold that a contractual waiver is no defense to a Section

8(a)(3) violation.68

The Unions other arguments against application of the

waiver are also unavailing.


Thus, the Union asserts that the

contractual waiver does not apply because the parties entered

negotiations for a new contract.


However, during those mid-

term negotiations, their existing contract -- including

Section 21.7 -- continued in effect.


The Union also contends

65

Id. at 1260.

66

Id. at 1262.

67

See Allison Corp., 330 NLRB at 1365.

68

See Reno Hilton, 326 NLRB 1421, 1430 (1998), enfd. 196 F.3d

1275 (D.C. Cir. 1999) (merely because the Respondent has

negotiated the unfettered right in a collective-bargaining

agreement to contract out work at any time, such right ...

does not unfetter and insulate the Respondent from the

sanctions of the Act prohibiting it from discriminating); RGC

th
(USA) Mineral Sands, Inc. v. NLRB, 281 F.3d 442, 450 (4
Cir.

2002) (enforcing Board decision finding Section 8(a)(3)

violation on grounds that, even if contract authorized

employer to unilaterally alter shift assignments, an employer

cannot exercise contractual rights to punish employees for

protected activity).

NLRB-FOIA-00009758

Case 19-CA-32431

- 28 -

that the waiver cannot extend to work transferred after the

contracts expiration in September 2012, but Boeing made its

final decision in 2009 and expects to open the second line in

South Carolina in mid 2011.69


The Unions estoppel argument

also lacks merit.


While Boeing took the position that the

notice and review provisions in Article 21.7 did not apply

because no employees will be laid off, Boeing is not thereby

estopped from asserting the waiver provision.

Moreover, Boeings request to negotiate mid-term changes

to the parties agreement did not subject it to the

traditional Section 8(a)(5) bargaining obligations.70


Absent

a contractual reopener provision, parties are under no

obligation to bargain over proposals for mid-term

modifications.71
For this reason, we do not reach the

question of whether Boeing engaged in surface bargaining in

the fall of 2009, bargained to a valid impasse, or unlawfully

failed to provide information relevant to those negotiations.

IV. The Appropriate Remedy

We conclude that special remedies must be fashioned in

the unusual circumstances of this case.

First, with respect to the Section 8(a)(1) violations,

which had a particularly chilling impact upon employees, the

Region should seek a notice reading by a high-level Boeing

official, to insure that employees learn about their statutory

69

Thus, if there is a duty to bargain over a relocation

decision, it arises when the decision is announced and not

when it is ultimately implemented.


See, e.g., Bell Atlantic

Corp., 336 NLRB 1076, 1086-89 (2001) (union waived right to

bargain over employers decision to close facility and

transfer work to nonunion facility where it received notice of

decision in August and did not request bargaining until

December, even though no unit work would be relocated before

the following April).

70

See St. Barnabas Medical Center, 341 NLRB 1325, 1325 (2004)

(union did not incur traditional bargaining obligations by

requesting that employer meet to discuss feasibility of wage

reopener, and employer violated Section 8(a)(5) by

unilaterally implementing wage increases after an impasse in

those negotiations).

71

See Boeing Co., 337 NLRB 758, 763 (2002) (employer did not

incur bargaining obligation by agreeing to unions request to

consider midterm modification); Connecticut Power Co., 271

NLRB 766, 766-67 (Section 8(d) does not require an employer

who suggests a midterm contract change to negotiate about it).

NLRB-FOIA-00009759

Case 19-CA-32431

- 29 -

rights and gain assurance that Boeing will respect those

rights.72
The notice reading is particularly effective if

read by an official who personally committed some of the

violations, or read by a Board agent in his presence, in order

to dispel the atmosphere of intimidation he created.73

Finally, to remedy the Section 8(a)(3) violation, the

Region should seek an order requiring Boeing to maintain the

second line in Washington.


At the time of the discriminatory

conduct, Boeing intended to use the second line to assemble

three 787 aircraft each month, while assembling seven 787

aircraft each month on the first line in Everett.


At present,

even the first line is not producing up to capacity because of

problems with suppliers and FAA certification.


Thus, the

Region should seek an order requiring that, as Boeing

production increases, the first ten aircraft assembled each

72

See, e.g., Homer D. Bronson Co., 349 NLRB 512, 515 (2007),

enfd. 273 F. Appx 32 (2d Cir. 2008) (notice reading is an

effective but moderate way to let in a warming wind of

information, and more important, reassurance); Federated

Logistics & Operations, 340 NLRB 255, 258 (2003), affd. 400

F.3d 920 (D.C. Cir. 2005) (employees will perceive that the

Respondent and its managers are bound by the requirements of

the Act).

73

Three Sisters Sportswear Co., 312 NLRB 853, 853 (1993),

enfd. mem. 55 F3d 684 (D.C. Cir. 1995), cert. denied 516 U.S.

1093 (1996).
See also, e.g., Homer D. Bronson Co., 349 NLRB

at 515 (reading by president of manufacturing, who personally

delivered speeches threatening plant closure or relocation);

Texas Super Foods, 303 NLRB 209, 209 (1991) notice reading by

owner and president who signed unlawful letters to unit

employees, drafted unlawful speech threatening job losses, and

personally gave the speech to at least two groups of

employees).

NLRB-FOIA-00009760

Case 19-CA-32431

- 30 -

month be assembled by the Puget Sound unit employees and that

the supply lines for these aircraft be maintained in the Puget

Sound and Portland facilities.74

B.J.K.

ROFs - 9

H:ADV.19-CA-32431.Response2.Boeing.dlw

74

At this time, we do not reach a decision on the Unions

request for preliminary injunctive relief.


The Region should

reassess whether Section 10(j) relief is warranted after the

case is tried before the Administrative Law Judge.


In the

meantime, the Region should put evidence in the record

regarding the chilling impact of Boeings violative statements

and conduct to support the notice-reading remedy.


This will

facilitate use of the administrative record to demonstrate in

a subsequent Section 10(j) proceeding that preliminary

injunctive relief is just and proper.

NLRB-FOIA-00009761

Microsoft Outlook

From:

Ahearn, Richard L.

Sent:

Thursday, April 22, 2010 7:29 PM

To:

Baniszewski, Joseph

Subject:

FW: Video - Boeing

Attachments:

2011237525_albaughvideo.html

FYI

From: Todd, Dianne

Sent: Thursday, April 22, 2010 3:56 PM

To: Ahearn, Richard L.; Jablonski, Colleen G.

Subject: Video - Boeing

From: Jude Bryan [mailto:bryan@workerlaw.com]

Sent: Tuesday, April 20, 2010 4:25 PM

To: Todd, Dianne

Cc: Carson Glickman-Flora

Subject: Case No. 19-CA-32431

Ms. Todd:

Attached is Seattle Times reporter Dominic Gates' video of his interview with Jim Albaugh. You'll need to scroll down to

get to the video.

Jude Bryan | Schwerin Campbell Barnard Iglitzin & Lavitt LLP | 206.285.2828 | www.workerlaw.com

This communication is intended for a specific recipient and may be protected by the attorney client and work-product privilege.

If you receive this message in error, please permanently delete it and notify the sender.

NLRB-FOIA-00009762

%XVLQHVV 7 HFKQRORJ \ _9 LGHR_$ QLQWHUYLHZ Z LWK%RHLQJ & ( 2 - LP $ OEDXJ KH[ WHQGHG 3 DJ HR I  

z
z

/ RZ 
J UDS K LF R UWH[ W
7 RGD\
VQHZ VLQGH[

7 KH6 HDWWOH7 LP HV& RP SDQ\


1: M
REV_1 : DXW
RV_1 : KRP HV_1 : VRXUFH_) UHH& ODVVLI LHGV_VHDWWOHWLP HVF R P

% XVLQHVV7 HFKQRORJ \

2 X UQHWZ R UN VLWHV
VHDWWOHWLP HVF R P _ $ GYDQFHG

z
z

+ RP H
/ RFDO
{ + RP H
{
{
{
{
{
{
{
{

( GX FDWLRQ
3 R OLWLF V
2 E LWX DULHV
6 S HF LDOUHS R UWV
& RUUHF WLRQV
7 UDI I LF
: HDWKHU

1 LFROH% URGHXU
- HUU\ / DUJ H
{ ' DQQ\ 
: HVW
QHDW
{ % HOOHY X H
{ , VVDT XDK
{ . LUNODQG
1 DWLRQ: RUOG
{ + RP H
{ 3 R OLWLF V
% XVLQHVV7 HFK
{ + RP H
{ %RHLQJ $ HURVSDFH
{ 0 LFURVRI W
{ 1 :
FRP SDQLHV
{ 3 HUVRQDOW
HFK QRORJ \
{ 5 H DOHVWDWH
{ 6 W
RFNP DUNHW
{

I LOH' & : 9 VFUDWFKWHP SHVDGEDWW& DFKH' LUGDWD6 WRUHBFDVHBB

       
NLRB-FOIA-00009763

%XVLQHVV 7 HFKQRORJ \ _9 LGHR_$ QLQWHUYLHZ Z LWK%RHLQJ & ( 2 - LP $ OEDXJ KH[ WHQGHG 3 DJ HR I  

% ULHU' XGOH\
5 HWDLO5 HS RUW
{ 6 RXQG
( FRQRP \
{ 6 XQGD\ 
%X] ]
6 S R UWV
{ + RP H
{ + LJ K
6 FKRRO
{ 0 DULQHUV
{ 6 HDKDZ NV
{ 6 RXQGHUV
) &
{ 6 WR UP
{ + XVNLHV
{ & RXJ DUV
{ 6 HDW
WOH8 QLY HUVLW\
{ & ROOHJ H
{ * RO
I
{ 2 O
\ P SLFV
{ 6 QRZ VS RUW
V
{ 2 W
K HUVS R UWV
{

{
{

) DQVKRS

6 WHY H. HOOH\


- HUU\ % UHZ HU
{ 6 LGHOLQH& K DW
WHU
( QWHUWDLQP HQW
{ + RP H
{ 5 HVW
DX UDQWV
{ 0 RYLHV
{ 0 XVLF
1 LJ KWOLI H
{ 7 K H$ UW
V
{ % RRNV
{ 7 9 OLVW
LQJ V
{ & DOOE R DUG
{

{
{
{
{

) LQGHY HQWV Y HQX HV


7 RGD\
VHY HQWV
6 X E P LWOLVWLQJ V

& RP LFV* DP HV
{ + RURVFRSHV
{ / RW
WHU\
/ LYLQJ
{ + RP H
{ ) RRG
: LQH
{ + RP H
* DUGHQ
{ 3 DFLI LF
1 : 0 DJ D] LQH
{ + HDOWK
{ :
LQH$ GYLVHU3 DXO* UHJ XWW
7 UDY HO
{

I LOH' & : 9 VFUDWFKWHP SHVDGEDWW& DFKH' LUGDWD6 WRUHBFDVHBB

       
NLRB-FOIA-00009764

%XVLQHVV 7 HFKQRORJ \ _9 LGHR_$ QLQWHUYLHZ Z LWK%RHLQJ & ( 2 - LP $ OEDXJ KH[ WHQGHG 3 DJ HR I  

{
{
{
{
{
{

+ RP H
6 HDWWOHJ X LGH
: DVKLQJ WRQJ XLGH
2 UHJ RQJ XLGH
% ULWLVK& ROXP ELDJ XLGH
7 UDY HOWR R OV

{
{

9 DF DWLR QUHQWDOV

7 UDYHO: LVH& DURO3 XFFL


5 LFN6 WHYHV
( XURSH
{ 7 UDLO
0 L[ 5 RQ- XGG
2 SLQLRQ
{ + RP H
{ / HW
WHUVWR WK H( G LWR U
{ 7 KH
' HP RFUDF\ 3 DSHUV
{

{
{

( G& HWHUD% ORJ

z
z
z

6 KRSSLQJ
- RE V
{ 6 HDUF K MR E OLVW
LQJ V
{ 3 RVW
DUHVX P H
{ & DUHHU& HQW
HU
{ 3 R VWDMR E
$ X WRV
{ 6 HDUF K DX W
R OLVWLQJ V
{ 5 HVHDUFK & HQW
HU
{ 6 HOODY HK LF OH
+ RP HV
{ 6 HDUFK
I RUQHZ KRP HV
{ 6 HDUF K DOOS UR S HUW
LHV
{ 2 SHQ
KRXVHV
{ 6 HOODS UR S HUW
\
5 HQ WDOV
{ 6 HDUF K DOOUHQ WDOV
{ 3 R VWDUH Q WDOOLVWLQ J
& ODVVLI LHGV
{ 3 R VWDOLVWLQ J

z
z

% X\ DGV
{ 2 QOLQHDGV
{ 1 HZ VSDSHU
DGV
{ & ODVVLI LHGDGV

4 X LF NOLQNV7 UDI I LF _0 RYLHV _5 HVWDX UDQWV _7 RGD\


VHY HQWV _9 LGHR _3 K RWRV _% ORJ V _) RUXP V _
1 HZ VSDSHUGHOLYHU\
& R QWDF WX V
2 ULJ LQDOO\ SXEOLVKHG0 DUFK     DW3 0 _3 DJ HP RGLI LHG0 DUFK     DW   3 0

I LOH' & : 9 VFUDWFKWHP SHVDGEDWW& DFKH' LUGDWD6 WRUHBFDVHBB

       
NLRB-FOIA-00009765

%XVLQHVV 7 HFKQRORJ \ _9 LGHR_$ QLQWHUYLHZ Z LWK%RHLQJ & ( 2 - LP $ OEDXJ KH[ WHQGHG 3 DJ HR I  

& RP P HQWV 

( 
P DLODUWLF OH

3 ULQ WY LHZ

6 K DUH

9 LGHR_$ QLQW
HUYLHZ Z LW
K%RHLQJ& ( 2 - LP 
$ OE DX J KH[ WHQGHGYHUVLRQ
- LP $ OEDXJ KWKH& KLHI ( [ HFXWLYH2 I I LFHURI % RHLQJ & RP P HUFLDO$ LUSODQHVWDONVZ LWK6 HDWWOH7 LP HV
DHURVS DFHUHS RUWHU' RP LQLF* DWHVDE RX WWK H' UHDP OLQHU& K DUOHVWRQDQGFRP S DQ\
VI X WX UHLQWK H3 X J HW
6 RX QGDUHD
- LP $ OEDXJ KWKH& KLHI ( [ HFXWLYH2 I I LFHURI % RHLQJ & RP P HUFLDO$ LUSODQHVWDONVZ LWK6 HDWWOH7 LP HV
DHURVS DFHUHS RUWHU' RP LQLF* DWHVDE RX WWK H' UHDP OLQHU& K DUOHVWRQDQGWK HFRP S DQ\
VI X WX UHLQWK H
3 X J HW6 RX QGDUHD: DWFK WK HLQWHUY LHZ E HORZ RUF OLF N K HUH WR VHHH[ F HUS WV

I LOH' & : 9 VFUDWFKWHP SHVDGEDWW& DFKH' LUGDWD6 WRUHBFDVHBB

       
NLRB-FOIA-00009766

%XVLQHVV 7 HFKQRORJ \ _9 LGHR_$ QLQWHUYLHZ Z LWK%RHLQJ & ( 2 - LP $ OEDXJ KH[ WHQGHG 3 DJ HR I  

I LOH' & : 9 VFUDWFKWHP SHVDGEDWW& DFKH' LUGDWD6 WRUHBFDVHBB

       
NLRB-FOIA-00009767

%XVLQHVV 7 HFKQRORJ \ _9 LGHR_$ QLQWHUYLHZ Z LWK%RHLQJ & ( 2 - LP $ OEDXJ KH[ WHQGHG 3 DJ HR I  

I LOH' & : 9 VFUDWFKWHP SHVDGEDWW& DFKH' LUGDWD6 WRUHBFDVHBB

       
NLRB-FOIA-00009768

%XVLQHVV 7 HFKQRORJ \ _9 LGHR_$ QLQWHUYLHZ Z LWK%RHLQJ & ( 2 - LP $ OEDXJ KH[ WHQGHG 3 DJ HR I  

( 
P DLODUWLF OH

3 ULQ WY LHZ

6 K DUH

0 RUH%XVLQHVV 7 HFKQRORJ \
( $ ' 6 VD\ VLWVWDQNHUE LGZ LOOE HDW% RHLQJ RQS ULFH
$ P D] RQ1 & E LGWRWUDFNWD[ HVY LRODWHVI UHHVS HHFK
3 DFFDUDQQRXQFHVLP SURYHG4 HDUQLQJ V
8 3' $ 7( 

3 0
$ SSOH4 LQFRP HXSSFWVKDUHVMXP SWRQHZ KLJ K
8 3' $ 7( 

3 0
* ROGP DQUHS RUWVK X J HS URI LWVE X WWURX E OHVP RX QW
0 RUH% XVLQHVV 7 HFKQRORJ \ KHDGOLQHV
& RP P HQW
V
1 RFRP P HQWVK DY HE HHQS RVWHGWRWK LVDUWLF OH
5 HDGDOOFRP P HQWV6 K DUH\ RX UWK RX J K WV

I LOH' & : 9 VFUDWFKWHP SHVDGEDWW& DFKH' LUGDWD6 WRUHBFDVHBB

       
NLRB-FOIA-00009769

%XVLQHVV 7 HFKQRORJ \ _9 LGHR_$ QLQWHUYLHZ Z LWK%RHLQJ & ( 2 - LP $ OEDXJ KH[ WHQGHG 3 DJ HR I  

* HWKRP HGHOLYHU\ WRGD\ 


9 LGHR

* OHH
I ODVKP RESHUI RUP DQFHV

% HOO\ GDQFLQJ I RUDFDX VH

/ LE HUW\ ) RX QGDWLRQ
V% 

7 KH/ LEHUW\ ) RXQGDWLRQ
WR X UVWK HF R X QWU\ Z LWK D
UHVWR UHG% R HLQJ % 

: : , , ERP EHU) OLJ KW
VDUH
DY DLODE OHWR WK HS X E OLF 

+ HDU$ OH[ / XSOD\ SLDQR

2 SHQLQJ GD\ DW


( P HUDOG' RZ QV

3 OD\ VWDWLRQ0 RYHGHP R

% DUHI RRW7 HG

$ QLP HI DQVDWWHQG6 DNX UD


& RQ

% HDFRQ+ LOO, QWHUQDWLRQDO6 FK RROODQJ X DJ HLP P HUVLRQ

0 DUFK) RXUWKSHUI RUP VDW+ RQN) HVW: HVW


0 RUHYLGHRV
$ GYH UWLVLQJ

$ 3 9 LGHR
( QWHUWDLQP HQW_7 RS9 LGHR_: RUOG_2 I I EHDW9 LGHR_6 FL
7 HFK
0 DUNHWS ODF H

0 R VWUHDG

I LOH' & : 9 VFUDWFKWHP SHVDGEDWW& DFKH' LUGDWD6 WRUHBFDVHBB

       
NLRB-FOIA-00009770

%XVLQHVV 7 HFKQRORJ \ _9 LGHR_$ QLQWHUYLHZ Z LWK%RHLQJ & ( 2 - LP $ OEDXJ KH[ WHQGHG 3 DJ HR I  

0 RVWFRP P HQWHG
0 R VWH
P DLOHG









) HORQDFFXVHGRI UXQQLQJ DQLP DO


VH[ I DUP LQ: KDW
FRP & RXQW
\
6 2 / ' WLQ\ WRZ QWR% RWK HOOFRX S OHI RU
+ LJ K F RX UWWRORRNDW& RVWFRVDOHRI 6 Z LVVZ DWFK HV
% HOOWRZ QK LJ K 
ULVHZ R Q
WE HLP S ORGHG
: LOO5 RVVLUXQDJ DLQVW0 XUUD\ " 2 WKHU6 HQDWHKRSHI XOVZ DQWWRNQRZ
* DUEDJ HI RXQGLQVWRP DFKRI GHDGZ KDOHRQ: HVW6 HDWWOHEHDFK
: KDW
VP RUHDP D] LQJ W
KHQHZ L3 KRQHRU$ SSOHORVLQJ RQH"  8 3 ' $ 7 ( ' Z LWKEDFNVWRU\ _% ULH U
' XGOH\
V%ORJ
  3 DQK DQGOLQJ E LOOS DVVHV
0 F* LQQY HWROLNHO\ WRK ROG_ 3 ROLWLF V1 RUWK Z HVW
  6 HDK DZ NV
OHI W
WDF NOHT X HVWLRQVX UI DF HVI RUGUDI W
   6 HDI DLUK \ GURS ODQHUDFHLQMHRS DUG\











* DP HWK UHDG0 DULQHUVY V2 ULROHV$ S ULO



& RX QFLOS RLVHGWRS DVVS DQK DQGOLQJ E LOO0 F* LQQVD\ VK H
OOY HWRQRP DWWHUZ K DW
0 RWK HUGHS RUWHGWR0 H[ LFR\ HDUVDJ RZ LQVFK DQFHWRUHWX UQ

7 K HWHD
SDUW\ P RYHP HQWP XFKDGRDERXWQRWYHU\ P XFK

5 HQWRQZ RP DQGLHVDI WHUE HLQJ VWUX FNE \ E LF\ FOLVW   
6 HDWWOHS DQK DQGOLQJ E LOOS DVVHVODF N VY R WHVWR R Y HUULGHP D\ R UDOY HWR

) RJ HUVRQVD\ VKH
VKDSS\ Z KHUHKHLV

& OLI I / HHVXVSHQVLRQDQGI LQHDUHGURSSHGFRP SOHWHO\

6 HDI DLUK \ GURS ODQHUDFHLQMHRS DUG\

* DUEDJ HLQVWRP DFKRI GHDGZ KDOH













) HORQDFFXVHGRI UXQQLQJ DQLP DO


VH[ I DUP LQ: KDW
FRP & RXQW
\
6 2 / ' WLQ\ WRZ QWR% RWK HOOFRX S OHI RU
& KDWHDX6 WH0 LFKHOOHDQQRXQFHVVXP P HUFRQFHUWVFKHGXOH
, UDQLDQFOHULF3 URP LVFXRXVZ RP HQFDXVHT XDNHV
* DUEDJ HI RXQGLQVWRP DFKRI GHDGZ KDOHRQ: HVW6 HDWWOHEHDFK
( GX FDWLQJ FUHDWLY HWK LQNHUVLVJ RRGI RUWK HHFRQRP \ _* XHVWFROXP QLVW
% HOOWRZ QK LJ K 
ULVHZ R Q
WE HLP S ORGHG
5 HGP RQG+ LJ KHQYLURQP HQWDO
VFLHQFHWHDFKHUZ LQV* UHHQ3 UL] H
0 DX L
VK LJ K OLI H
( [ S HQVLY HWLF NHWNHHS VUHVWRUHG) O\ LQJ ) RUWUHVVLQWK HDLU



0 RVWYLHZ HGLP DJ HV
$

6 LWHP DS








2 X UQHWZ R UN VLWHV

I LOH' & : 9 VFUDWFKWHP SHVDGEDWW& DFKH' LUGDWD6 WRUHBFDVHBB

       
NLRB-FOIA-00009771

%XVLQHVV 7 HFKQRORJ \ _9 LGHR_$ QLQWHUYLHZ Z LWK%RHLQJ & ( 2 - LP $ OEDXJ KH[ WHQGH 3 DJ H  R I  








VHDWWOHWLP HVF R P _$ GYDQFHG

7 KH6 HDWWOH7 LP HV& RP SDQ\

z
z
z
z
z

$ ERXWWKHFRP SDQ\
( P SOR\ P HQWRSSRUWXQLWLHV
6 HDWWOH7 LP HVVWR UH
$ GY HUWLVHZ LWK X V
1 HZ VSDSHUVLQ( GXFDWLRQ

6 HUYLFHV

z
z
z
z
z
z

< RX UDFFRX QW/ RJ LQ


(
P DLOQHZ VOHWWHUV
& R QWDF WX V
) HHGEDFNDQGT XHVWLRQV
6 X E P LWOLVWLQJ V
6 HQGX VQHZ VWLS V

1 HZ V

z
z
z
z
z
z
z
z
z
z
z

+ RP H
/ RFDO
1 DWLRQ: RUOG
% XVLQHVV7 HFK
( QWHUWDLQP HQW
/ LYLQJ
7 UDY HO
6 S R UWV
2 SLQLRQ
( [ WUDV
7 RGD\
VQHZ VLQGH[

0 DUNHWS ODFH

z
z
z
z
z
z
z
z
z

- RE V
$ X WRV
+ RP HV
5 HQ WDOV
& ODVVLI LHGV
6 KRSSLQJ
1 : VRXUFH
3 HUVRQDOV
3 R VWDQ DG

* HWWLQJ < RXU1 HZ VSDSHU

z
z
z

+ RP HGHOLYHU\
7 HP SRUDU\ VWRSV
6 X E VFULE HUVHUY LFHV

I LOH' & : 9 VFUDWFKWHP SHVDGEDWW& DFKH' LUGDWD6 WRUHBFDVHBB

       
NLRB-FOIA-00009772

%XVLQHVV 7 HFKQRORJ \ _9 LGHR_$ QLQWHUYLHZ Z LWK%RHLQJ & ( 2 - LP $ OEDXJ KH[ WHQGH 3 DJ H  R I  

2 WK HUHG LWLRQ V

z
z
z
z
z
z

1 HZ VE\ H
P DLO
0 RELOH
5 6 6 I HHGV
H
( GLWLR Q
/ RZ 
J UDS K LF
7 Z LWWHU

0 DOZ DUHDWWDFNVDUHDJ URZ LQJ S URE OHP RQDOO: HE VLWHV5 HDGP RUHDE R X WZ K DWWR GR LI \ R X VHH
VRP HWKLQJ VXVSLFLRXV

3 ULY DF\ VWDWHP HQW_7 HUP VRI VHUYLFH


& RS\ ULJ KW     7 KH6 HDWWOH7 LP HV& RP SDQ\

I LOH' & : 9 VFUDWFKWHP SHVDGEDWW& DFKH' LUGDWD6 WRUHBFDVHBB

       
NLRB-FOIA-00009773

Microsoft Outlook

From:

Baniszewski, Joseph

Sent:

Wednesday, October 06, 2010 10:41 AM

To:

Ahearn, Richard L.

Subject:

FW: UNION CITY! 10/06/2010

Boeing 2008 strike

From: Metro Washington Council AFL-CIO [mailto:streetheat@dclabor.org]

Sent: Wednesday, October 06, 2010 6:01 AM

To: Baniszewski, Joseph

Subject: UNION CITY! 10/06/2010

NLRB-FOIA-00009774

TODAY'S LABOR NEWS

Capitol Visitor Center

Workers Testify

In Congress

Local Unions Sponsor

Weekday Walks

For O'Malley

LABOR ON THE MOVE:

APALA'S Uno Moves to

DOL, Allan In As Interim

Deputy Director

Today's Labor History

ON THE LINE

Wednesday, October 6:

MD/DC AFL-CIO Get-OutThe-Vote Activities

Wednesday, October 6:

AFL-CIO Labor 2010 Phone Bank

Thursday, October 7 5:30p:

DC Labor FilmFest: Who Killed

Chea Vichea? (Special Preview)

NLRB-FOIA-00009775

Wednesday, October 6, 2010

THIS JUST

IN: On Thursday, October 7,

President

Barack Obama will be at Bowie State

University

to support Governor O'Malley and

Maryland's

Democratic agenda. Doors open at 1p

-- 14000

Jericho Park Road, Bowie, Maryland

20715 --

and tickets are not required. Wear

your union

colors and bring a photo ID!

CAPITOL

VISITOR

CENTER

WORKERS TESTIFY IN CONGRESS: Capitol

Visitor Center (CVC) guides really know their

way around Congress. The newly-unionized

CVC workers wasted no time exercising their

voice at work, testifying last week about

workplace safety issues at the Capitol. Megan

Burger, a CVC tour guide and member of

AFSCME

Local

658,

testified

that

since the

union formed, CVC management has been much

more responsive to employees' needs, which

include better inclement-weather uniforms and the

ability to bring water bottles outside. Burger

testified at a September 30 hearing of the House

Transpor

tation

and

Infrastru

cture Subcommittee on Economic

Development, Public Buildings and Emergency

Management, chaired by DC Del. Eleanor

Holmes Norton. Norton berated the Architect of

the Capitol for workplace safety issues and

called for studies into ways to make the Capitol

complex safer for visitors and employees,

reported Daniel Newhauser last week in Roll

Call. The hearing was called to

examine the safety of the Capitol

complex after an Office of

Compliance report estimated that

there are about 6,300 hazards

around legislative branch

buildings. The hearing marked

the first time that a

representative from the newly

formed Capitol Visitor Center union, AFSCME

Local 658, testified before Congress. In

another improvement, CVC workers will be

given permanent pagers next month in an

effort to improve communication within the

NLRB-FOIA-00009776

Capitol in the event of an emergency such as a terrorist attack.

- photo: Megan Burger, AFSCME

Local 658 (CVC), testifies in Congress last week; next to her is Wally Reed, President of AFSCME Local 626

(Architect of the Capitol)

FILMFEST TIX ON SALE NOW!: Tickets for the 10th annual DC Labor FilmFest - set for

October 15-19 at the American Film Insitute -- have just gone on sale. Click here to

reserve yours now and guarantee a seat at the best show in town!

LOCAL UNIONS SPONSOR WEEKDAY

WALKS FOR O'MALLEY: With less than a

month to go before Election Day, labor is

ramping up its door-to-door efforts for

Maryland Governor Martin O'Malley (center) in

Prince George's County. Local unions are now

sponsoring weekday labor-to-labor walks,

including UFCW Local 400, which has been

turning out dozens of its members Thursday

and Friday evenings over the past few

weeks. "We're making sure that there's a

strong union vote on November 2," Tony Perez

(at left), Local 400's Government

Affairs Coordinator. "If all the

unions in Prince George's County

follow suit, Bob Ehrlich won't stand a chance," adds Metro Council Assistant

Political Coordinator Alya Solomon. CLICK HERE for the latest listing of

political activities in the area.

- photo by Adam Wright

LABOR ON THE MOVE: APALA'S Uno Moves to DOL, Allan In As Interim

Deputy Director: Asian Pacific American Labor Alliance (APALA) Executive

Director Malcolm Amado Uno joined the Department of Labor as a Special Assistant to the

Secretary with the Office of Public Engagement on Monday. "As a product of APALA and

the labor movement, I always considered it a privilege to work in this capacity to advance

worker, immigrant and civil rights," said Uno.

"In my new capacity, it is my hope to

increase access to the Department of Labor

for Asian Americans and Pacific Islanders,

and all low-wage workers, to ensure that the

federal government is meeting their

obligation to improve working conditions for

all workers and assure that workers' rights

are respected and protected." Gregory Allan

Cendana, former President of the United

States Student Association, has taken

over as Interim Deputy Director at

APALA; reach him at 202-508-3733 or

gcendana@apalanet.org

TODAY'S LABOR HISTORY: First National Conference of Trade Union

Women (1918); 1,700 female flight attendants win 18-year, $37 million suit against

United Airlines. They had been fired for getting married (1986); Thirty-two thousand

machinists begin what is to be a successful 69-day strike against the Boeing Co. featuring

pay increase that averaged an estimated $19,200 in wages and benefits over four years

and safeguards against job cutbacks (1995); More info & ammo for unionists is available

online from Union Communication Services.

- photo: Boeing machinist Philip Bennett waves to a

passing vehicle as he pickets in front of a Boeing administrative building during a strike in 2008; photo courtesy

AP

NLRB-FOIA-00009777

Follow DC Labor on Twitter!

Material published in UNION CITY may be freely reproduced by any recipient; please

credit the Council as the source.

Published by the Metropolitan Washington Council, an AFL-CIO "Union City" Central Labor

Council whose 200 affiliated union locals represent 150,000 area union members. JOSLYN

N. WILLIAMS, PRESIDENT.

Story suggestions, event announcements, campaign reports, Letters to the Editor and

other material are welcome, subject to editing for clarity and space, and should be

directed to:

Editor: Chris Garlock

Assistant Editor: Adam Wright

streetheat@dclabor.org

Voice: 202-974-8153

Fax: 202-974-8152

Forward UNION CITY! to all your friends and colleagues or click here to spread the word!

If you received this message from a friend, you can sign up for UNION CITY!.

This message was sent to joseph.baniszewski@nlrb.gov. Visit your Subscription

Management Page to modify your email communication preferences or update your

personal profile. To stop ALL email from UNION CITY!, click to Unsubscribe yourself from

our lists (or reply via email with "remove or unsubscribe" in the subject line).

Privacy Policy

NLRB-FOIA-00009778

Microsoft Outlook

Baniszewski, Joseph

Monday, March 14, 2011 7:53 PM

Ahearn, Richard L.; Kelly, David A.

Fw: Boeing Co.

From:
Sent:
To:
Subject:

Rich,

FYI, any idea when they expect to issue this?

E...

Joe

------Original Message------

From: Willen, Debra L

To: Lafe Solomon

Cc: Celeste Mattina

Cc: Barry Kearney

Cc: Ellen Farrell

Cc: Jayme Sophir

Cc: Judy Katz

Cc: Miriam Szapiro

Cc: Omberg, Bob

Cc: Joseph Baniszewski

Subject: Boeing Co.

Sent: Mar 14, 2011 2:58 PM

I am attaching our Fact Sheet and the latest version of our Advice Memorandum
Exemption 5

Please let me know if there is anything else you need.

Thanks,

Deb Willen

--------------------------

Sent from my BlackBerry Wireless Handheld

NLRB-FOIA-00009779

Microsoft Outlook

From:

Bush, Lynn

Sent:

Monday, April 11, 2011 4:46 PM

To:

Region 19, Seattle; Ahearn, Richard L.

Subject:

Advice Memorandum - Case 19-CA-32431

Attachments:

ADV.19-CA-32431.Response2.Boeing.dlw.doc

Please see the attached closed Advice memorandum.

Lynn

NLRB-FOIA-00009780

NLRB-FOIA-00009781

NLRB-FOIA-00009782

United States Government

National Labor Relations Board

OFFICE OF THE GENERAL COUNSEL

Advice Memorandum

DATE:

April 11, 2011

S.A.M.

TO:

Richard L. Ahearn, Regional Director

Region 19

FROM:

Barry J. Kearney, Associate General Counsel

Division of Advice

SUBJECT:

The Boeing Company


Case 19-CA-32431

512-5006-5062
512-5006-5067
512-5036-8387
512-5036-8389
524-0167-1033
524-5029-5037
524-0167-1033
524-506

524-8307-1600

524-8307-5300

530-6050-0825-3300

530-6067-4011-4200

530-6067-4011-4600

530-6067-4011-7700

530-8054-7000

775-8731

The Region submitted this case for advice on several

issues relating to the Employers decision to place a second

assembly line at a nonunion facility rather than at the

facility where unit employees work on the original assembly

line.
Specifically the Region requested advice as to whether:

(1) the Employer violated Section 8(a)(1) by threatening to

place the second assembly line at a nonunion facility unless

the Union agreed to a long-term no-strike clause and by

repeatedly stating that its decision to place the second line

elsewhere was based on the units strike history; (2) the

Employer violated Section 8(a)(3) by deciding to place the

second assembly line at a nonunion facility because of the

units strike history, even though no unit employees have yet

to lose their jobs; and (3) the Employer violated Section

8(a)(5) by failing to bargain in good faith over its decision

about where to locate the second assembly line or whether the

Union waived its right to bargain under the parties

collective-bargaining agreement.

We conclude that the Region should issue a complaint

alleging: independent Section 8(a)(1) violations based on the

Employers coercive and threatening statements; and a Section

8(a)(3) violation based on the Employers decision to locate

the second line at a nonunion facility and to establish a

dual-sourcing supply program in retaliation for protected

activity.
However, the Region should dismiss the Section

8(a)(5) allegations because under the contract, the Union

expressly waived its right to bargain about the Employers

decision to offload unit work to a facility not covered by

the agreement.
To remedy the chilling effect of Boeings

Section 8(a)(1) statements, the Region should request, in

addition to the traditional remedies,


a notice reading by a

NLRB-FOIA-00009783

Case 19-CA-32431

- 2 -

high-level Boeing official.


To remedy the Section 8(a)(3)

violation, the Region should seek an order that would require

Boeing to maintain the surge line in the Puget Sound area.

Specifically, Boeing intended for the second line to assemble

three aircraft each month in South Carolina, while assembling

seven planes on the first line.


Thus, the Region should seek

an order requiring Boeing to assemble in the Puget Sound area

the first ten 787 aircraft that it produces each month and to

maintain the supply lines for those aircraft where they

currently exist, in the Puget Sound and Portland facilities.

FACTS

The Boeing Company is an international corporation

engaged primarily in developing and producing military and

commercial aircraft. Boeing has a long-established collective-

bargaining relationship with the International Association of

Machinists and Aerospace Workers (IAM) and certain IAM

District and Local Lodges.


The parties current collective-

bargaining agreement is effective November 2, 2008 through

September 8, 2012 and covers three separate bargaining units

of production and maintenance employees in three geographical

areas, the Puget Sound area in Washington; Portland, Oregon;

and Wichita, Kansas.

Section 21.7 of that agreement, entitled

Subcontracting, sets forth various notice periods and an

opportunity for the Union to review and recommend alternatives

to Boeing proposals to subcontract or offload unit work.

[O]ffloading work is defined as moving work from one

Company facility to another Company facility not covered by

this Agreement[.]
Less stringent notice requirements apply

to subcontracting and offloading decisions affecting less than

ten employees.
In addition, the notice and review process

does not cover certain work transfers listed in subsections

(a) through (d), including [d]ecisions to subcontract or

offload work due to lack of capability or capacity, or to

prevent production schedule slippage[.]


Section 21.7

concludes with the following language:

Anything in this Section 21.7 to the contrary

notwithstanding, it is agreed that ... the Company has

the right to subcontract and offload work, to make and

carry out decisions in (a) through (d) above, to enter

offsets and offset arrangements, and to designate the

work to be performed by the Company and the places where

it is to be performed, which rights shall not be subject

to arbitration. ...

NLRB-FOIA-00009784

Case 19-CA-32431

- 3 -

Boeing Introduces the 787 Dreamliner

The Puget Sound unit is comprised of approximately 18,000

employees working in Washington.


Historically these employees

have performed the final assembly of all Boeing planes.


In

late 2003, Boeing announced that it would place the assembly

line for its new 787 Dreamliner airplane in Everett,

Washington after the Washington State Legislature passed a tax

and subsidy incentive package totaling more than $3.2 billion.

That line opened in May 2007, with the capacity for producing

seven planes each month.

With the 787, Boeing departed from its previous practice

of manufacturing most of the aircraft parts with its own

employees and instead outsourced parts production to other

suppliers in the southeast U.S. and abroad.


For example,

Boeing contracted with Vought Aircraft Industries in North

Charleston, South Carolina for the manufacture of the aft

fuselage and with Mitsubishi Heavy Industries in Japan for the

manufacture of the wings.


Boeing repeatedly has had to

postpone the delivery dates for the aircraft, due primarily to

problems with suppliers and software issues.

Starting in mid 2008, the media began reporting that

Boeing would need to add a second 787 assembly line because of

its growing order backlog.


At about the same time, Boeing

entered negotiations with the Union for a successor

collective-bargaining agreement.
During those negotiations,

Company officials noted the need for a second assembly line

but did not discuss the matter further.

The 2008 Strike and Its Aftermath

On September 6, 2008, the employees struck in support of

the Unions bargaining position.


On October 6, 2008, Boeings

stock dropped to a four-year low.


That same day, CEO Jim

McNerney sent a long e-mail to Boeing employees about the

strike.
McNerney stated that he understood and shared the

frustration so many of you feel when we dont have the whole

team together working to meet the commitments weve made to

our customers and competing to win the new business that will

sustain and grow Boeing jobs[.]


McNerney went on to state,

[t]he issue of competitiveness as it relates to this strike

is a big deal[.]
He also tied labor disputes to problems

with Boeings customer relationships.


After asserting that

the Union had recommended that its members reject contract

offers and go on strike four of the last five negotiations

going back to 1995, he wrote, we believe this track record of

repeated union work stoppages is earning us a reputation as an

NLRB-FOIA-00009785

Case 19-CA-32431

- 4 -

unreliable supplier to our customers who ultimately provide

job security by buying our airplanes.1

The following day, Boeings Vice President for Government

and Community Relations Fred Kiga spoke at an aerospace

conference in Everett.
In a Seattle Times article, he was

quoted as stating, We cant afford to become known as the

strike zone[.]
He reportedly also told the conference that

labor unrest could drive Boeings decision on where to build

planes in the future.


In an interview after his speech, Kiga

reportedly stated that his strike zone comments had been

cleared by Boeing Commercial Airplanes CEO Scott Carson.


Kiga

noted that he and Carson grew up in and shared a love for the

Northwest; Kiga then said that they would hate to lose a

treasure like Boeing.

The strike lasted 57 days and ended on November 1, 2008,

when the parties signed the current contract. During the

negotiations, the Union had proposed to amend Section 21.7 to,

among other things, eliminate the waiver language quoted

above.
Boeing refused to agree to such an amendment, and the

language remained in the contract.

In early 2009,2 the media again began publishing reports

that Boeing needed to establish a second 787 assembly line.

On February 9, the Seattle Times reported that Washington

Senator Patty Murray had met with Boeings Senior Vice

President of Government Operations; he had informed her that

the CEO was sick and tired of the unions strikes and was

looking to put the second 787 line elsewhere.

On April 16, Boeing and IAM officials held their annual

summit in Chicago.
Management officials attending included

CEO McNerney, Boeing Commercial Airplanes CEO Carson,

Integrated Defense Systems CEO Jim Albaugh, and for the first

time, Vice President and General Manager of Supply Chain

Management & Operations Ray Conner.


IAM representatives

included International President Tom Buffenbarger, General

Vice President Rich Michalski, and the Directing Business

Representatives who represented Boeing employees, including

District 751 DBR Tom Wroblewski.


This was the first

opportunity for the parties to meet since the strike had

ended.
McNerney and Buffenbarger were the lead speakers.

McNerney stated that Boeings customers were losing confidence

1 In his
that the
occurred
1989 (48
2

e-mail, CEO McNerney exaggerated the number of times

Union had struck.


In actuality, prior strikes

in 1948 (140 days), 1965 (19 days), 1977 (45 days),

days), 1995 (69 days), and 2005 (28 days).

Dates are in 2009 unless otherwise noted.

NLRB-FOIA-00009786

Case 19-CA-32431

- 5 -

in the Company because of past strikes and the possibility of

future strikes.
He said that the parties had to come up with

a way to stop having labor disputes.


The general theme was

that management and labor should continue to meet to find ways

to avoid the problems of the past.

As a follow-up to this summit, Wroblewski and IAM

Aerospace Coordinator Mark Blondin met on June 23 in Seattle

with Conner and Boeings Vice President of Human Resources

Doug Kight.
The parties focused on how to build a better

relationship and improve communication. While Wroblewski had

an established relationship with Kight, Conner was new to

labor relations.
Wroblewski thought that one of the purposes

of the meeting was to get to know Conner.


At a subsequent

meeting on June 30 between Wroblewski and Conner, Conner

expressed Boeings concern that its customers did not have

confidence it could make timely deliveries because it had

experienced two strikes in the last five years and had

supplier issues.
For the first time, Conner raised the

prospect of a long-term collective-bargaining agreement as a

way to gain the customers confidence that they would get

their aircraft on time.

In early July, Boeing announced its intent to purchase

the Vought plant in North Charleston, South Carolina.


IAM

Local Lodge 183 represented the Vought production,

maintenance, and quality employees.


Boeing agreed to

recognize the Union but wanted to negotiate a new collective-

bargaining agreement.

On July 8, the Seattle Times reported that Boeings CEO

had informed Washington Congressmen Norm Dicks and Jay Inslee

that as a result of past strikes, the Company would place the

second line outside the Puget Sound area unless it could reach

a long-term contract with the Union. Boeing told the

Congressmen that South Carolina was the main competitor.

Wroblewski, Blondin, Kight, and Conner met again twice in

July, on July 7 and July 23.


At each of these meetings,

Conner and Kight emphasized that strikes had to stop for

Boeing to be viable.
They stated that Boeing needed a long-

term agreement with no-strike language to satisfy their

customers.
At this point, Boeing was two years behind

schedule and had approximately 850 787 planes on back order as

a result of supplier and software problems.

Then, on July 30, the same date that Boeing announced

that it had purchased Voughts plant, a South Carolina

employee filed a decertification petition.


During August,

Boeing denied the Union access to the employees in the North

Charleston plant and wrote a memorandum to the employees

stating that it preferred to deal with employees directly

NLRB-FOIA-00009787

Case 19-CA-32431

- 6 -

without intermediaries.3
Boeing also issued a FAQ document

to the employees stating that the mass layoffs that took place

at the Vought plant in late 2008 were due to the unique

situation created by the Everett strike.


Meanwhile, the

South Carolina press was reporting that a decertification

decision could influence where Boeing located the second 787

assembly line.
For example, The Post and the Courier reported

that South Carolinas low unionization rate is viewed as an

advantage in the 787 chase[.]


An article in the Charleston

Business Journal asserted that Charleston might be a better

choice in the event of decertification because of its

potentially tamer work force instead of the Washington

workers with a history of walk[ing] off the job.

On August 26, Boeing e-mailed its managers and human

resource professionals that it had notified South Carolina

that it intended to file permits for the construction of a

second 787 line but that it had not yet made a decision as to

where to locate the second line.


The following day, Boeing

and Union officials met in Portland to discuss the prospect of

a long-term agreement.
Carson informed the Union that the

only way Boeing would place the second line in Washington was

if the Union agreed to a twenty-year no-strike agreement.

Boeing suggested a series of three-year agreements with an

overarching twenty-year no-strike pledge until 2032 and

binding interest arbitration if no agreement was reached at

the end of each of the three-year contracts.


The Union said

that this was not possible, but the Union would consider a

longer agreement than the current four-year contract in return

for some sort of neutrality agreement.


At the end of the

meeting, the parties agreed to schedule negotiations for a

long-term agreement.

Meanwhile, the decertification election in South Carolina

was scheduled for September 10.


In reporting on Boeings

permit filings in South Carolina, the Puget Sound Business

Journal characterized this vote as [a] wild card in Boeings

decision about where to locate the second line.


On September

2, Kight presented an hour-long video on Boeings website

(later quoted in a September 29 article in the Seattle Times).

In regard to the second line, he stated:

What do you do with the 787 second line so that we can

build up to rate and meet our commitment to customers?

... Theres a lot of issues to look at, a lot being

studied, no decision has been made.


But truthfully, it

is very clear that this triennial disruption, our

The Union filed a Section 8(a)(5) charge alleging that

Boeing unilaterally changed its access rules but withdrew the

charge following the election.

NLRB-FOIA-00009788

Case 19-CA-32431

- 7 -

customers cant live with it anymore.


So weve become an

unreliable supplier....
So we look at how do we become a

reliable supplier.
How do we ensure production

continuity so that we can meet our commitments to our

customers in a timely way and thats what were trying to

do.

The Union lost the election in South Carolina eight days later

and was decertified on September 18.

As a follow-up to the parties August 27 meeting in

Portland, CEO McNerney wrote to IAM International President

Buffenbarger on September 21 that Boeing planned to make a

decision on the second lines location by the end of October

and wanted the Unions input within the next three to four

weeks.
He stated, I look forward to our respective teams

engaging in fruitful dialog.


Two days later, Boeing filed an

application for a storm water permit with the City of North

Charleston and an overall site plan with the State of South

Carolina.
On October 1, Boeing applied to North Charleston

for a site clearing permit.

The Parties Meet over a Long-Term Agreement

The parties opened negotiations for a long-term agreement

on October 1.
At the start of negotiations, Boeing explained

that placement of the second line in Washington depended on a

long-term agreement to insure no further disruptions in

deliveries to customers.
The Union responded that in exchange

for giving up the right to strike, the parties would need to

resolve economic issues for the long term rather than through

interest arbitration every three years.

The parties met again on October 7, 8, and 15.


The Union

maintains that Boeing never submitted a written proposal or

counter-proposal, that it was in the dark as to what Boeing

wanted, and that in effect it was negotiating against itself.

For example, with respect to the length of the agreement, at

various points Boeing requested a contract ending in 2020 or

2022 but at other times, demanded a twenty-year agreement.


In

terms of wages, Boeing wanted to reduce general wage increases

and move toward a profit-sharing incentive program.


The Union

was not adverse to this concept but requested information to

insure that Boeings measures of productivity were tied to

employee performance and not events beyond the employees

control.
At one point, Boeing stated that the general wage

increase and COLA could not exceed 3.5%.


When a Union

negotiator asked what would happen if the cost of living

increased more than 3.5%, Boeing responded that employees

would get more.


On October 15, for the first time, Boeing

said that it wanted a lower wage structure for new hires and a

NLRB-FOIA-00009789

Case 19-CA-32431

- 8 -

defined contribution plan for them rather than the defined

benefit pension plan that the existing employees enjoyed.

The Union repeatedly raised the issues of job security

and Employer opposition to the Union elsewhere.


The Union

argued that in return for giving up the right to strike during

the long-term, employees needed enhanced job security.


Also,

if the parties relationship were to improve, the Union did

not want to face the type of anti-union conduct Boeing had

engaged in during the decertification campaign in South

Carolina.

At the October 15 session, Conner informed the Union that

the Board of Directors would be meeting on October 26 and he

wanted to give the Board a progress report on the

negotiations.
The Union asserts that Boeing never described

the Board of Directors meeting as a deadline for resolving the

outstanding bargaining issues.


Moreover, Boeing never

provided a concrete proposal that could be put to the unit

employees for a vote.

The parties met again on October 20 and 21.


Conner

stated that Boeing was getting close to making its decision on

the location of the second line and it would be discussed at

the Board meeting on October 26.


By the end of the parties

October 21 session, the Union orally had proposed the

following: an extension of the existing contract to 2020, 3%

annual wage increases plus a 1% COLA, ratification bonuses for

unit employees, an incentive pay program, health cost sharing

towards the end of the contract, annual increases in pension

benefits starting in 2013, and neutrality in connection with

Union organizing campaigns.


In addition, the Union presented

Boeing with a two-page document entitled Rough Draft on

Concepts for a long-term agreement and a joint partnership

committee.
This Draft called for retention of current unit

work; location of the second line in the Puget Sound area; and

six-month advance notice and good-faith bargaining over any

decision to establish an assembly operation for any next

generation product.
Boeing asserts that this rough draft

was the Unions last and final offer, but the Union

disagrees and also maintains that its negotiators had no idea

that this would be the parties final session.


Indeed, the

Union negotiator involved in working out the details of the

incentive pay program sent an e-mail to Kight on October 27

requesting further information.


Kight responded that he would

get back to him.

Meanwhile, on October 21, Boeing posted its quarterly

earnings conference call on its intranet site for employees.

With respect to locating the second line in South Carolina,

CEO McNerney stated:

NLRB-FOIA-00009790

Case 19-CA-32431

- 9 -

[T]here would be some duplication.


We would obviously

work to minimize that.


But I think having said all of

that, diversifying our labor pool and our labor

relationship has some benefits.


...
And so some of the

modest inefficiencies, for example, associated with the

move to Charleston, are certainly more than overcome by

strikes happening every three or four years in Puget

Sound.
And the very negative financial impact of [sic]

the company, our balance sheet would be 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....

And I dont blame this totally on the union. We just

havent figured out a way - the mix doesnt - isnt

working well yet. So, weve either got to satisfy

ourselves that the mix is different or we have to

diversify our labor base.

McNerney stated that a decision would be made in the next

couple of weeks.

Two days later, IAM General Vice President Michalski

called Conner to ask about the status of the negotiations.

Conner stated that the Unions economic terms and demand for

neutrality were unacceptable to Boeing.


Michalski explained

that the Union was not asking for a traditional neutrality

agreement but rather, as explained during negotiations, a code

of conduct.
Michalski stated that the Union was willing to

meet at any time for additional negotiations, but Conner did

not respond.
On October 24, Michalski called Senior Vice

President of Operations Tim Keating to reiterate that the

Union was not seeking a true neutrality agreement.


He wanted

to clear up any misunderstanding if that issue was blocking

the parties ability to reach an agreement.


Keating did not

respond, and no further negotiations were ever scheduled.

Meanwhile, the governmental bodies in South Carolina were

moving quickly to facilitate the second lines placement in

their State.
On October 23, North Charleston approved

Boeings request for a storm water permit, and the State of

South Carolina approved Boeings overall site plan.


On

October 27, the South Carolina legislature, in a special

session, approved $170 million in taxpayer-backed bonds for

Boeings startup costs and tax breaks totaling $450 million in

exchange for Boeings agreement to create at least 3,800 jobs

and invest more than $750 million in the State within the next

seven years.
That same day, North Charleston approved

Boeings site clearing permit.

Boeing contends that it entered these negotiations with a

good-faith intention to reach a long-term agreement that would

have resulted in placing the second line in Washington, but

NLRB-FOIA-00009791

Case 19-CA-32431

- 10 -

the Unions economic demands were too costly and its

insistence upon neutrality and job security were unacceptable.

The Union asserts, however, that Boeings failure to submit

any proposals, its rejection of the Unions serious efforts to

address Boeings purported concerns, and then its precipitous

halting of negotiations as soon as the South Carolina

legislature awarded it a generous tax and subsidy package

demonstrate that the negotiations were in fact a sham.

Boeing Announces its Decisions to Locate the Second Line in

South Carolina and to Establish a Dual-Sourcing Program

On October 28, Boeing announced its decision to locate

the second 787 assembly line in South Carolina.


In a press

release and internal e-mails, Boeing stated that the Board of

Directors had just approved the selection of North Charleston.

Boeing also announced that it intended to build a surge line

in Everett - a temporary second assembly line that would be

phased out once the South Carolina line was up and running.

Boeing issued a memo to its managers on October 28 that

provided answers to anticipated questions from employees and

talking points regarding its decision.


The managers were

advised to inform employees, among other things, that the

decision to locate the second line in Charleston would

provide economic advantages by improving our competitiveness

and reducing vulnerability to delivery disruptions due to a

host of factors, from natural disasters to homeland security

issues and work stoppages.


The memo further stated, In the

final analysis, this came down to ensuring our long-term

global competitiveness and diversifying the company to protect

against the risk of production disruption ... from natural

disasters, to homeland security threats, to work stoppages.

On December 3, Boeing notified its fabrication managers

that it intended to create a dual-sourcing program and

contract separate suppliers for the South Carolina assembly

line.
As a result, employees in the Puget Sound and Portland

units who produce parts for the 787 assembly line are likely

to suffer a loss of work.


Articles that appeared in the

Seattle Times on December 7 and the Puget Sound Business

Journal on December 8 discussed this announcement.


The

Seattle Times quoted Boeing spokesman Jim Proulx as stating,

Repeated labor disruptions have affected our performance in

our customers eyes.


We have to show our customers we can be

a reliable supplier to them.


[The second production] line has

to be able to go on regardless of whats happening over here.

The Puget Sound Business Journal quoted Conner as follows:

Dual-sourcing and co-production will allow us to maintain

production stability and be a reliable supplier to our

customers.

NLRB-FOIA-00009792

Case 19-CA-32431

- 11 -

On March 2, 2010, a Seattle Times journalist conducted a

videotaped interview of Boeings new Commercial Airplanes CEO,

Jim Albaugh.
(Albaugh had moved over from his position as

Integrated Defense Systems CEO to replace Carson.)


The

interviewer asked Albaugh some hard questions on behalf of

the Washington community about Boeings decision to locate the

second 787 line in Charleston.


In explaining Boeings

decision, Albaugh repeatedly referenced the Unions strike

history.
For example, he stated:

The issue last fall was really about, you know, how

we could ensure production stability and how we

could ensure that we were competitive over the long

haul.
And we had some very productive discussions

with the union.


And unfortunately, we just didnt

come to an agreement where we felt we could ensure

production stability.
And read [sic] that is [sic]

getting away from the frequent strikes that we were

having and also could we stop the rate of escalation

of wages.
And we just could not get to a place

where we both felt it was a win for both ourselves

and the union so we made the decision to go to

Charleston.

[W]eve had strikes three out of the last four times

weve had a labor negotiation with the IAM.


... And

weve got to get to a position where we can ensure

our customers that every three years theyre not

going to have a protracted shutdown.

It was about ensuring to our customers that when we

commit to deliver airplanes on certain dates that we

actually do deliver.
And we have lost our

customers have lost confidence in our ability to do

that, because of the strikes.

When asked whether going to Charleston, in light of the

expense and risk, made business sense, he responded:

Theres no question that whenever you go to a green field

site, theres risk involved.


At the same time, with the

protracted labor stoppage that we had ... the fall of

2008, I mean that cost the company billions of dollars.

And I think if you compare, you know, what it cost

because of the stoppages versus the cost and the risk of

starting a new line in Charleston, I think the investment

certainly is the right one for us to make.4

Once again, a Boeing CEO grossly exaggerated the burden of

the Unions strike activity.


Boeing had alleged elsewhere

that the 2008 strike reduced its earnings by $1.8 million, far

NLRB-FOIA-00009793

Case 19-CA-32431

- 12 -

At one point, Albaugh summed up the basis of Boeings

decision as follows:

[t]he overriding factor was not the business climate.

And it was not the wages were paying today.


It was that

we cannot afford to have a work stoppage, you know, every

three years.
We cannot afford to continue the rate of

escalation of wages....

Albaugh also implicitly threatened the loss of additional work

because of Union strikes, stating, [w]ell do work here if we

can make sure that we have the stability of the production

lines and that we can be competitive over the long haul.

Production is now approximately three years behind

schedule.
Approximately 2,900 Puget Sound unit employees

currently work on the 787 assembly line.


Approximately 1,740

of them are working on out-of-sequence assembly work, away

from the main assembly line. Once supply issues are resolved

and assembly can be accomplished in sequence on the line, it

is anticipated that the number of employees will drop by

approximately 60%.
Boeing asserts that the South Carolina

plant will be ready to begin assembly work in mid 2011.

Approximately 1,000 mechanic and flight line jobs will be

added in South Carolina at that time.

ACTION

This case involves Boeings transfer of work from an

experienced unionized workforce to a new, nonunion facility.

Boeings decision was motivated by antiunion considerations.

From the time of the Unions strike in the fall of 2008,

Boeing made clear to its unionized workforce that it would not

countenance further strikes.


Time and again, in e-mails to

employees, on its intranet site, in the media, and in talks

with the Union, Boeing tied its ability to compete to the

avoidance of future strike activity.


Then, when Boeing

purchased the Vought facility in South Carolina, its officials

denied the Union access to employees at the facility.


It also

let the employees know that it preferred to deal with them

directly rather than through their Union and their receipt of

the second line hinged on their vote in a decertification

election.
Simultaneously, Boeing officials told the Puget

Sound unit employees that they could retain all of the 787

assembly work only by waiving their right to strike for twenty

years.
Although the Union entered negotiations with Boeing

less than the billions of dollars that Albaugh claimed in

this interview.

NLRB-FOIA-00009794

Case 19-CA-32431

- 13 -

and made major concessions in an effort to address its stated

concerns, once the Union was decertified in South Carolina,

Boeing courted the South Carolina legislature and applied for

the necessary permits from the South Carolina regulatory

bodies - even as it continued the motions of negotiating with

the Union.
As soon as South Carolina approved the financial

incentives for Boeing, Boeing called off negotiations and

announced its decision.


Boeings CEO admitted that the

overriding factor for moving work to South Carolina was the

employees strike activity.


Moreover, to reinforce the

message to unit employees, he intimated that the continuation

of any work in Washington was contingent on the stability of

the production lines, a veiled threat designed to coerce

employees to abstain from future strikes.


Nor could Boeing

credibly blame the 787 production delays on employees 2008

strike activity, which halted production for approximately two

months.
Rather, the delay resulted primarily from its own

business decision to outsource the manufacture of the aircraft

components to various suppliers and from unexpected software

problems.

Further, the fact that it made little practical sense to

locate this second line in South Carolina, despite a two-and-

a-half-year delay in the production of its new 787 aircraft,

rather than its existing facilities in Washington, supports a

finding of unlawful motivation.


While South Carolina would

not be ready for production for two years because of the need

for substantial capital improvements and the hiring and

training of a new workforce, Washington was already up and

running, with the space, the necessary equipment, and a

significant complement of trained employees.

On these facts, we conclude that the Region should issue

a complaint alleging: independent violations of Section

8(a)(1) based upon Boeings coercive and threatening

statements to employees on the intranet and through the media;

and a violation of Section 8(a)(3) based upon Boeings

decision to place the second line in South Carolina and to

establish a dual-sourcing supply program in order to retaliate

against the unit employees for engaging in protected Union

activity.
We would also argue, in the alternative, that

Boeings actions were inherently destructive of employee

rights.
But the Region should dismiss the Section 8(a)(5)

allegations because the Union waived its right to bargain

about Boeings decision to offload unit work to a facility not

covered by the parties agreement.


Finally, to remedy the

Section 8(a)(1) and (3) violations, the Region should seek: a

notice reading by a high-level Boeing official in addition to

the traditional remedies; and an order requiring Boeing to

assemble in the Puget Sound area the first ten 787 aircraft

that it produces each month and to maintain the supply lines

for those aircraft in the Puget Sound and Portland facilities.

NLRB-FOIA-00009795

Case 19-CA-32431

- 14 -

I. The Employer Violated Section 8(a)(1)

The Supreme Court long ago delineated the line between

employer speech protected under Section 8(c) of the Act and

threats of reprisals violative of Section 8(a)(1).5


The Court

ruled in Gissel that an employer may make a prediction as to

the effects of unionization but that prediction must be

carefully phrased on the basis of objective fact to convey an

employers belief as to demonstrably probable consequences

beyond his control[.]6


On the other hand, threats of

economic reprisal to be taken solely on [the employers] own

volition violate Section 8(a)(1).7

In General Electric Company, the Board applied the Gissel

test to set aside an election because the employer threatened

a long-term loss of work based on the possibility of a strike

at some future time.8


Faced with a union organizing drive,

the employer gave multiple speeches touting its two-source

supplier strategy.9
The employer stated that it had

established its nonunion plant so that customers could get the

motors they needed during the seven strikes at its union

plant.
The employer also made clear that the plants nonunion

status was the reason it had experienced a rise in

employment.10
And the employer conveyed the message that the

plant remaining nonunion was an important, if not a decisive,

factor in any company decision to choose that plant as a

second manufacturing facility for the new motor the employer

planned to introduce.11
The Board concluded that although the

employer might want to insure itself against production

interruptions caused by employee concerted activity, no such

insurance is legally possible, for the simple reason that

employees have a federally protected right to engage in such

activity.12
The Board expressly distinguished an employers

right to take defensive action when threatened with an

See NLRB v. Gissel Packing Co., 395 U.S. 575, 618 (1969).

Ibid.

Id. at 619 (citation omitted).

See 215 NLRB 520, 522-23, fn. 6 (1974).

See id. at 520.

10

See id. at 520-21.

11

See id. at 521.

12

See id. at 522.

NLRB-FOIA-00009796

Case 19-CA-32431

- 15 -

imminent strike from threats to transfer work merely because

of the possibility of a strike at some speculative future

date.13

The Board repeatedly has held that an employer violates

Section 8(a)(1) by threatening to withhold work opportunities

because of the exercise of Section 7 rights.14


Thus, telling

employees that they will lose their jobs if they join a strike

violates Section 8(a)(1).15


Similarly, in Kroger Co., the

employer unlawfully threatened to put its plan to build a new

freezer facility for its distribution center on hold because

of intraunion unrest and labor disputes.16

Further, where an employer unconditionally predicts a

loss of customers due to unionization or strike disruptions

without any factual basis, its predictions amount to

unlawful threats.17
Rather, an employers predictions of

customer disaffection must be based on objective facts.18

Thus, in Curwood, Inc., an employer lawfully related its

13

See id. at 522, fn. 6.

14

See, e.g., Kroger Co., 311 NLRB 1187, 1200 (1993), affd.

th
mem. 50 F.3d 1037 (11
Cir. 1995); General Electric Co., 321

NLRB 662, fn. 5 (1996), enf. denied 117 F.3d 627 (D.C. Cir.

1997).

15

Aelco Corp., 326 NLRB 1262, 1265 (1998).


See also Dorsey

Trailers, Inc., 327 NLRB 835, 851 (1999), enfd. in pertinent

th
part 233 F.3d 831 (4
Cir. 2000) (threat to close the plant if

the employees went out on strike).

16

311 NLRB at 1200.


See also General Electric Co., 321 NLRB

at 662, fn. 5 (employer conveyed to employees that

unionization could result in the withholding of further

investment in the plant or its closure).

17

See, e.g., Tawas Industries, 336 NLRB 318, 321 (2001) (no

objective basis for prediction that customers, fearing

strikes, would not give their business to the employer if the

employees independent union affiliated with the UAW);

Tradewaste Incineration, 336 NLRB 902, 907-08 (2001)

(prediction that 90% of the customers would not deal with a

union facility because of fear of a work stoppage was not

based on objective facts); Debbie Reynolds Hotel, 332 NLRB

466, 466 (2000) (no factual basis for statements about having

to move productions and equipment elsewhere because customers

would not be able to afford employers facilities if employees

unionized).

18

Curwood, Inc., 339 NLRB 1137, 1137-38 (2003).

NLRB-FOIA-00009797

Case 19-CA-32431

- 16 -

customers concerns about strikes, where the employer produced

written inquiries from customers seeking information about its

contingency plans in the event of a strike.19


An employer may

also reference the possibility that unionization, including

strikes, might harm relationships with consumers, as opposed

to predicting
unavoidable consequences.20

Here, the Union has alleged that several statements by

Boeing officials violated Section 8(a)(1).


Some statements

were posted by Boeing on its website or intranet.


Others were

reprinted in newspaper articles as direct quotes; although

such a quotation is hearsay, it would be admissible as an

admission (an exception to the hearsay rule), if the reporter

testifies.21
By contrast, reporter summaries cannot form the

basis for a Section 8(a)(1) violation.


And statements

recounted by political figures within newspaper articles are

in effect double hearsay and inherently unreliable.

Based on these principles, we find that the following

constitute unlawful threats under the Gissel standard:

(1)
Boeing posted its quarterly earnings conference call

on its intranet for employees on October 21.


During the call,

CEO McNerney made an extended statement about diversifying

our labor pool and moving work to South Carolina because of

strikes happening every three or four years in Puget

Sound.22
His comments were indistinguishable from the

comments regarding a two-source supplier strategy found

violative in General Electric.23

(2)
Boeings October 28 memo to managers advised them to

inform employees that it decided to locate the second line in

South Carolina in order to reduce vulnerability to delivery

disruptions caused by, among other things, strikes.


The

thrust of Boeings message to employees was that Boeing had

19

See id. 339 NLRB at 1137.

20

E.g., Miller Industries Towing Equipment, Inc., 342 NLRB

1074, 1075-76 (2004) (employer did not predict unavoidable

consequences).

21

Cf. Sheet Metal Workers Local 15 (Brandon Regional Medical

Center), 346 NLRB 199, 201-02 (2006), enf. denied on other

grounds 491 F.3d 429 (D.C. Cir. 2007) (newspaper report of

party admission is inadmissible hearsay because the reporter

was not available for cross-examination).

22

These same comments were quoted in the Seattle Times.

23

See 215 NLRB 520, 522-23 (1974).

NLRB-FOIA-00009798

Case 19-CA-32431

- 17 -

removed jobs from Puget Sound because employees had struck and

that they would lose work if they struck again.24

(3)
In articles that appeared in the Seattle Times and

the Puget Sound Business Journal on December 7 and 8

respectively, Boeing officials attributed the plan to use a

dual-sourcing system and contract separate suppliers for the

South Carolina line to past strikes and implicitly threatened

the loss of future work opportunities in the event of future

strikes.25

(4)
In a video-taped interview on March 2, Boeing

Commercial Airplanes CEO Albaugh expressly attributed the

Employers decision to locate the second line in South

Carolina to employee strikes and threatened the loss of future

work opportunities in retaliation for such protected

activity.26

The above statements, disseminated through various

channels to unionized and nonunionized employees nationwide,

drove home the message: union activity could cost them their

jobs, while a decision to reject union representation could

bring those jobs to their communities.

II.

The Employer Violated Section 8(a)(3)

The Employers decision to locate the second 787 line at

a nonunion facility and to establish a dual-sourcing program

to support that line violated Section 8(a)(3) because the

Employer acted in retaliation for the employees Union

activity and not for a legitimate business reason.

Initially, despite Boeings assertions that its decision

to locate a second 787 assembly line in South Carolina will

not adversely impact any current unit employees, there is no

question that the decision will direct work away from Puget

Sound employees with consequent adverse effects.


Instead of

24

The Region should insure that this message was communicated

to employees.

25

The authors of these articles will need to testify.


If

they resist testifying, and it becomes necessary to seek

subpoena enforcement, the Region should contact Advice.

26

Vice President Kights video-taped comments that Boeings

customers could not live with this triennial disruption and

that Boeing was looking to insure production continuity

cannot be alleged as an independent violation because they

were first posted on Boeings website on September 2, outside

the Section 10(b) period.

NLRB-FOIA-00009799

Case 19-CA-32431

- 18 -

assembling all of the 787 planes in Washington as originally

planned, once the second line opens in South Carolina, a

significant portion of the remaining 787 orders will be filled

by planes produced in North Charlestown.


Future work

opportunities will be lost for employees on the surge line,

as well as unit employees waiting to transfer into the more

desirable 787 jobs.


There are likely to be transfers to

older, less desirable aircraft assembly lines, demotions, and

layoffs.
Moreover, Boeings adoption of its new dual-

sourcing program means that the Puget Sound and Portland unit

employees will produce parts only for planes assembled in

Washington and not for those planes assembled in South

Carolina, also causing the loss of employment opportunities

for unit employees and the likelihood of demotions and

layoffs.
If no unit employees have been harmed yet, it is

merely because Boeings retaliatory decision has not yet been

implemented.

Recently, in Pittsburg & Midway Coal Mining Co., the

Board expressly reaffirmed that an actual financial loss is

not necessary to establish a Section 8(a)(3) violation.27


In

that case, the employer revised its bonus policy in

retaliation for the employees use of contractual memorial

days to engage in work stoppages.


Even though no employees

thereafter suffered a diminution of their bonuses, the Board

found a Section 8(a)(3) violation based upon the employers

retaliatory motive.28

Moreover, the Board specifically has held that an

employer may not, for unlawfully motivated reasons, divert

unit work to a nonunion plant even where there is no immediate

impact on unit employees.29


In Adair Standish Corp., the

employer refused to take delivery of a new press ordered for

its newly-organized Standish plant and installed it instead at

its nonunion plant.


The Board noted that diversion of the

press from Standish could reasonably result in diversion of

new work from Standish and therefore violated Section 8(a)(3)

even though there was no immediate impact on the unit

employees.30
Similarly, in Cold Heading Co., the employer

unlawfully relocated equipment to a newly-purchased nonunion

facility and changed its plans to install new equipment in its

27

See 355 NLRB No. 197, slip op. at 5, fn. 8 (2010).

28

Ibid.

29

See Adair Standish Corp., 290 NLRB 317, 318-19 (1988), enfd

th
in pertinent part 912 F.2d 854 (6
Cir. 1990).

30

See id. at 319.

NLRB-FOIA-00009800

Case 19-CA-32431

- 19 -

union facility after its employees independent union

representative sought to affiliate with the UAW.31

Here, as in Adair Standish and Cold Heading, there is a

diversion of unit work that the unit employees otherwise would

have performed.
And as in Pittsburg & Midway Coal Mining Co.,

the fact that unit employees may not yet have experienced the

financial impact of Boeings decision is no defense to a

Section 8(a)(3) violation.

Further, Boeing made this decision for unlawful reasons.

Boeing admits that the overriding factor in its decision to

place the second line in a nonunion facility was the

employees strike history.


An employers discouragement of

its employees participation in a legitimate strike

constitutes discouragement of union membership within the

meaning of Section 8(a)(3).32


This applies to employer

conduct designed to retaliate against employees for having

engaged in a strike in the past,33 as well as employer conduct

designed to forestall employees from exercising their right to

strike in the future.34


Indeed, the Board recently reaffirmed

that an employer violates the Act when it acts to prevent

future protected activity.35


Comparing such conduct to the

31 See 332 NLRB 956, fn. 5, 975-76 (2000).


See also

Associated Constructors, 325 NLRB 998, 998-1000 (1998), enfd.

sub nom. ODovero v. NLRB, 193 F.3d 532 (D.C. Cir. 1999)

(double-breasted employer unlawfully diverted work from its

union entity to its nonunion entity in retaliation for the

unions efforts to organize the nonunion entity and to escape

the collective-bargaining agreement).

32

Capehorn Industry, 336 NLRB 364, 365 (2001).

33

See id. at 365-67 (employer violated Section 8(a)(3) by

failing to immediately reinstate strikers upon unconditional

offer to return to work where there was no legitimate business

justification for entering into a permanent subcontract).

34

See Century Air Freight, 284 NLRB 730, 732 (1987) (employer

violated Section 8(a)(3) by permanently subcontracting unit

work and discharging unit employees in order to forestall the

exercise of their right to strike); Westpac Electric, 321 NLRB

1322, 1374 (1996) (employer violated Section 8(a)(3) by

isolating employee in retaliation for his previous striking

activities and also in anticipation that he would participate

in a strike in the future).

35

See Parexel International, LLC, 356 NLRB No. 82, slip op.

at 4 and cases cited therein (2011) (employer violated Section

NLRB-FOIA-00009801

Case 19-CA-32431

- 20 -

erection of a dam at the source of supply of potential,

protected activity, the Board reasoned that, the suppression

of future protected activity is exactly what lies at the heart

of most unlawful retaliation against past protected

activity.36

Boeing concedes that it is removing work from the unit

employees based upon their past exercise of their right to

strike.
However, Boeing relies upon the Supreme Courts

decision in NLRB v. Brown Food Store37 to argue that it is

privileged to move work outside the unit to avoid the

disruptive consequences of future strikes and that this is a

sufficient business justification to permit its actions.

In Brown Food Store, the Court held that an employer was

privileged to lock out its employees and use temporary

replacements to carry on its business in the face of a whipsaw

strike.38
Specifically, the Court found that the use of a

lockout and the hiring of temporary replacements to bring

pressure to bear in support of its bargaining position after

an impasse in negotiations was not an unfair labor practice.39

Rather than finding the use of this economic weapon

discriminatory, the Court concluded that it was a legitimate

defensive measure to preserve the multiemployer group in the

face of a whipsaw strike.40

Boeings attempt to extend the holding of Brown to

legitimatize any action that an employer takes to protect

itself against future, wholly speculative, strikes would

vitiate the Section 13 right to strike.


And the Board has

made it clear that an employer cannot rely upon Brown to

justify discriminatory conduct based upon the exercise of the

right to strike.
Thus, in National Fabricators, the Board

expressly rejected the employers attempt to use Brown and

other lockout cases to justify its decision to lay off those

employees who were likely to honor a union picket line in the

8(a)(1) by discharging an employee to prevent her from

discussing wages with other employees).

36

Ibid. (citation omitted).

37

380 U.S. 278 (1965).

38

See id. at 283-85.

39

See id. at 284.

40

See ibid.

NLRB-FOIA-00009802

Case 19-CA-32431

- 21 -

future.41 Instead, the Board found that disfavoring employees

who were likely to engage in protected union activities was

proscribed by Section 8(a)(3) and the employers business

justification - to avoid investing money in employees who

were going to cease work later -- was neither legitimate nor

substantial.42

Boeings concession that choosing South Carolina will

result in duplication and economic inefficiencies further

demonstrates that Boeings actions were retaliatory and not a

legitimate business decision.


In addition, Commercial

Airplanes CEO Albaugh conceded that going to South Carolina,

a green field site, involves significant risks.


Boeing has

the capacity, equipment, and trained workforce to handle the

second assembly line in the Puget Sound area.


The substantial

investment required to build and equip the South Carolina

facility therefore will be duplicative.


In addition, Boeing

will have to recruit and train a new workforce in South

Carolina, while ultimately laying off experienced employees in

Washington.
Exaggerating the disruptive effects of prior

strikes, Boeing maintains that the inefficiencies associated

with moving work to South Carolina will be counterbalanced by

the avoidance of strike disruptions in the future. However,

there are other nonretaliatory and less costly means of

dealing with the potential of relatively short disruptions

caused by employee strikes, such as concluding negotiations

with the Union for a long-term no-strike agreement.


In

addition, Boeings claim that it took this action to avoid

strike disruptions is belied by Boeings rejection of the

Unions efforts to negotiate a long-term no strike agreement.

Accordingly, the Region should proceed on the theory that

Boeing violated Section 8(a)(3) by retaliating against the

unit employees for engaging in the protected activity of

striking.

We also conclude that Boeings conduct was inherently

destructive of employee interests.43


Conduct is inherently

destructive when it carries with it unavoidable

consequences which the employer not only foresaw but which he

must have intended and thus bears its own indicia of

th

41

See 295 NLRB 1095, 1095 (1989), enfd. 903 F.2d 396 (5

1990), cert. denied 498 U.S. 1024 (1991).

42

Cir.

See 295 NLRB at 1095-96.

43

See NLRB v. Great Dane Trailers, Inc., 388 U.S. 26, 33

(1967) (citation omitted).

NLRB-FOIA-00009803

Case 19-CA-32431

- 22 -

intent.44
In International Paper Co., the Board set forth

four fundamental guiding principles for determining whether

employer conduct is inherently destructive of employee

rights.45
First, the Board looks to the severity of the harm

to employees Section 7 rights.


Second, the Board considers

the temporal impact of the employers conduct, i.e. whether

the conduct merely influences the outcome of a particular

dispute or whether it has far reaching effects which would

hinder future bargaining.


Third, the Board distinguishes

between conduct intended to support an employers bargaining

position as opposed to conduct demonstrating hostility to the

process of collective bargaining.


And finally, the Board

assesses whether the employees conduct discourages collective

bargaining by making it seem a futile exercise in the eyes of

the employees.46
Even if the employees conduct is

inherently destructive, the Board weighs the employers

asserted business justification against the invasion of

employee rights.47

Boeings actions were inherently destructive of employee

rights under the four principles articulated in International

Paper.
First, the harm to employees Section 7 rights was

severe; employees got the distinct message that if they engage

in another strike, unit work will be moved to a nonunion

facility and unit jobs will be lost.


Second, Boeings

decision was designed to have far-reaching effects and not

just to influence the outcome of a particular dispute, namely,

to take away employee support for the Unions most effective

economic weapon, and for the Union itself, and thereby hinder

any future collective bargaining.


Third, Boeings conduct

demonstrated hostility to the very process of collective

bargaining and not just to support a specific bargaining

position.
Finally, bargaining was made to seem a futile

44

Ibid., quoting NLRB v. Erie Resistor Corp., 373 U.S. 221,

228, 231 (1963).


See also Dorsey Trailers, Inc., 327 NLRB

835, 863-64 (1999), enf. denied in pertinent part 233 F.3d 831

th
(4
Cir. 2000).

45

See 319 LRB 1253, 1269 (1995), enf. denied 115 F.3d 1045

(D.C. Cir. 1997).

46

Id. at 1269-70 (citations omitted).

47

Id. at 1273 (finding no justification for employers

inherently destructive conduct of permanently subcontracting

bargaining unit work during a lawful lockout).


See also

Dorsey Trailers, 327 NLRB at 863-64 (employers closing of

facility during strike and relocation of unit work to newly

purchased facility outside the unions jurisdiction was

inherently destructive of employee rights).

NLRB-FOIA-00009804

Case 19-CA-32431

- 23 -

exercise without the possibility of a strike to support the

Unions position at the bargaining table.

The unavoidable consequence of Boeings decision to place

the second line in its newly-purchased, nonunion facility,

accompanied by official comments on the intranet and in the

media, was to severely chill its employees exercise of

Section 7 rights in the future - whether it be the Puget

Sound employees, the South Carolina employees, or Boeing

employees elsewhere.
Employees will correctly fear that

engaging in such protected activity could cause them to lose

their jobs to nonunionized workers.


Others may be encouraged

to file or support decertification petitions.


And the many

unrepresented Boeing employees will be discouraged from

organizing or voting in support of union representation if

they believe that exercising their right to concerted activity

justifies moving commercial production elsewhere.

Moreover, even if the effect on employee rights was only

comparatively slight, Boeing had no legitimate business

justification. Its only justification was its desire to insure

against its employees exercise of their Section 7 rights, and

that is not a legitimate justification.

The Board recently held in Arc Bridges, Inc. that an

employers conduct was inherently destructive where its stated

reason for withholding a regularly-scheduled wage increase

from represented employees was that it was in negotiations

with the union.48


The Board found that the employers stated

reason - that it wanted to enhance its bargaining position

with the union -- was an admission that it withheld the

increase because employees chose union representation.49

Likewise, Boeings stated reason for its decision - that it

wanted to avoid strike disruptions - was an admission that it

decided to locate the second line in South Carolina because

the Puget Sound employees chose union representation and the

South Carolina employees did not.


Accordingly, Boeings

decision coupled with its public pronouncements emphasizing

the motivation for its decision was inherently destructive of

its employees rights to engage in union activity and violated

Section 8(a)(3).

III. The Union Waived its Right to Bargain

The Unions allegation that Boeing failed to bargain in

good faith over its decision as to where to locate the second

787 line raises two preliminary issues: (1) whether Boeings

decision was a mandatory subject of bargaining; and (2) if so,

48

See 355 NLRB No. 199, slip op. at 3-4 (2010).

49

See id., slip op. at 3.

NLRB-FOIA-00009805

Case 19-CA-32431

- 24 -

whether the Union waived its right to bargain over that

subject.
Although we conclude that the decision was a

mandatory subject of bargaining and there is substantial

evidence that Boeing did not bargain in good faith to a valid

impasse, the Region should dismiss the Section 8(a)(5)

allegations on the ground that the Union waived it right to

bargain, applying Provena.50

A.

Mandatory Subject of Bargaining

Under Dubuque Packing Co., a decision to relocate unit

work that is not accompanied by a basic change in the

employers operation is a mandatory subject of bargaining

unless the employer can establish that: the work performed at

the new location varies significantly from the work performed

at the prior location; the work performed at the former

location is discontinued entirely and not moved to the new

location; or the employers decision involved a change in the

enterprises scope and direction.51


Alternatively, the

employer can defend by showing that: labor costs were not a

factor in the decision; or if labor costs were a factor, the

union could not have offered sufficient concessions to change

the employers decision.52


Applying the Dubuque test, the

Board repeatedly has found relocation decisions to constitute

a mandatory subject of bargaining.53

In addition, the Board has held that a decision may be a

mandatory subject even though there is no immediate loss of

unit jobs.54
For example, in Quickway Transportation, Inc.,

50

Provena St. Joseph Medical Center, 350 NLRB 808 (2007).

51

303 NLRB 386, 391 (1991), enfd. sub nom. Food & Commercial

Workers Local 150-A v. NLRB, 1 F.3d 24 (D.C. Cir. 1993).

52

Ibid.

53

See, e.g., Titan Tire Corp., 333 NLRB 1156, 1164-65 (2001)

(decision to permanently relocate equipment and jobs in

reaction to strike); Owens-Brockway Plastic Products, 311 NLRB

519, 521-23 (1993) (decision to close plant and transfer work

to other facilities).

54

See, e.g., Overnite Transportation Co., 330 NLRB 1275, 1276

(2000), revd. mem. 248 F.3d 1131 (3d Cir. 2000) (We think it

plain that the bargaining unit is adversely affected whenever

bargaining unit work is given away to nonunion employees,

regardless of whether the work would otherwise have been

performed by employees already in the unit or by new

employees).

NLRB-FOIA-00009806

Case 19-CA-32431

- 25 -

the Board found that the employers decision to contract with

independent owner-operators rather than expand the unit, as it

had originally planned, was mandatory because that decision

obviously constrained the work opportunities available to the

bargaining unit.55
Likewise, in Spurlino Materials, LLC, the

Administrative Law Judge, in a decision adopted by the Board,

found that even though no unit employees suffered a loss of

work as a result of the employers subcontracting, existing

employees might have otherwise been given overtime or the

employer might have hired additional unit employees, resulting

in benefits for the Union and current unit employees in having

an expanded unit.56
And in Dorsey Trailers, Inc., the Board

found that subcontracting work to reduce a backlog in orders

was a mandatory subject because the potential loss of

overtime or reasonably anticipated work opportunities poses a

detriment to unit employees even if no employees lost their

jobs.57

Here, the decision to locate the second 787 assembly line

in South Carolina amounted to a relocation of unit work.


Even

though no unit employees have yet to lose work, as in Dorsey

Trailers the assignment of unit work to nonunit employees in

order to reduce an order backlog presents a potential loss of

overtime or reasonably anticipated work opportunities and

therefore poses a detriment to unit employees.58


The work

that will be performed in South Carolina is identical to that

performed on the first line and the surge line in Everett by

unit employees.
The decision did not involve a basic change

in Boeings operation or any change in the enterprises scope

or direction; Boeing does not intend to change its production

methods or its products.59


Boeing did not demonstrate that

labor costs were not a factor in the decision.


In fact,

according to Boeings CEO, the decision was motivated

primarily by a desire to avoid strikes and secondarily because

the Employer cannot afford the rate at which unit wages are

escalating.
Boeing also did not demonstrate that the Union

could not have offered sufficient concessions to change its

55

See 355 NLRB No. 140 (2010), incorporating by reference the

rationale of 354 NLRB No. 80, slip op. at 2 (2009).

56

See 355 NLRB No. 77 (2010), incorporating by reference the

rational of 353 NLRB 1198, 1219 (2009).

57

See 321 NLRB 616, 617 (1996), enf. denied in relevant part

134 F.3d 125 (3d Cir. 1998).


Accord Acme Die Casting, 315

NLRB 202, fn. 1, 209 (1994).

58

See 321 NLRB at 617.

59

See Owens-Brockway Plastic Products, 311 NLRB at 522.

NLRB-FOIA-00009807

Case 19-CA-32431

- 26 -

decision; the Union


the strike and wage
2009.
Accordingly,
where to locate the
bargaining.

B.

was willing to make concessions on both

issues during negotiations in the fall of

we conclude that Boeings decision as to

second 787 line was a mandatory subject of

Waiver of the Right to Bargain

The Board applies a clear and unmistakable waiver

standard to determine whether a union has waived its right to

bargain about a mandatory subject of bargaining during the

term of a collective-bargaining agreement.60


The Board will

find a waiver if the contract either expressly or by

necessary implication confers on management a right to

unilaterally take the action in question.61


In interpreting

the parties agreement, the relevant factors include: (1) the

wording of pertinent contractual provisions; (2) the parties

bargaining history; and (3) the parties past practice.62

The Board has found a waiver based on contract language

where there is an express reference to the specific type of

decision that the employer has implemented unilaterally.63

Thus, in Ingham Regional Medical Center, the Board adopted an

Administrative Law Judges decision that the union waived its

right to bargain about a subcontracting decision where the

contractual management-rights clause expressly reserved to

management the right to use outside assistance or engage

independent contractors to perform any of the Employers

operations or phases thereof (subcontracting)[.]64


This

right was vested exclusively in the Employer and was not

60

See Provena St. Joseph Medical Center, 350 NLRB at 810-11.

61

See id. at 812, fn. 19.

62

See Johnson-Bateman Co., 295 NLRB 180, 184-89 (1989) (no

waiver of right to bargain about drug/alcohol testing

requirement where the management rights clause was generally

worded, issue was not fully discussed and consciously

explored during negotiations, and past practice of union

acquiescence to other unilateral work rule changes did not

waive the right to bargain about such changes for all time).

63 See, e.g., Ingham Regional Medical Center, 342 NLRB 1259,

1261-62 (2004) (under the management-rights clause, the

employer expressly reserved the right to subcontract); Allison

Corp., 330 NLRB 1363, 1364-65 (2000) (management-rights clause

specifically, precisely, and plainly granted the employer

the exclusive right ... to subcontract).

64

See 342 NLRB at 1260, 1261-62.

NLRB-FOIA-00009808

Case 19-CA-32431

- 27 -

subject to arbitration.65
Although another contractual

provision required the employer to provide 60 days notice and

discuss with the union any subcontracting decision that

would cause unit employees to be laid off, the words discuss

and bargain were found not synonymous in the parties

contract.66

In this case, Section 21.7 of the parties agreement

specifically, precisely, and plainly67 granted Boeing the

right to offload work to a facility not covered by the

agreement.
As in Ingham Regional Medical Center, the other

provisions of Section 21.7 that required Boeing to provide the

Union notice and an opportunity to review and recommend

alternatives did not require the Employer to bargain over an

offloading decision.

The Union does not dispute that Section 21.7 contains a

waiver but asserts instead that the Employer may not take

advantage of the waiver.


Specifically, the Union maintains

that a contractual waiver cannot be applied to a decision that

is unlawfully motivated.
But there is no authority for the

proposition that an unlawful motive negates a contractual

waiver; rather, the cases on which the Region and Union rely

hold that a contractual waiver is no defense to a Section

8(a)(3) violation.68

The Unions other arguments against application of the

waiver are also unavailing.


Thus, the Union asserts that the

contractual waiver does not apply because the parties entered

negotiations for a new contract.


However, during those mid-

term negotiations, their existing contract -- including

Section 21.7 -- continued in effect.


The Union also contends

65

Id. at 1260.

66

Id. at 1262.

67

See Allison Corp., 330 NLRB at 1365.

68

See Reno Hilton, 326 NLRB 1421, 1430 (1998), enfd. 196 F.3d

1275 (D.C. Cir. 1999) (merely because the Respondent has

negotiated the unfettered right in a collective-bargaining

agreement to contract out work at any time, such right ...

does not unfetter and insulate the Respondent from the

sanctions of the Act prohibiting it from discriminating); RGC

th
(USA) Mineral Sands, Inc. v. NLRB, 281 F.3d 442, 450 (4
Cir.

2002) (enforcing Board decision finding Section 8(a)(3)

violation on grounds that, even if contract authorized

employer to unilaterally alter shift assignments, an employer

cannot exercise contractual rights to punish employees for

protected activity).

NLRB-FOIA-00009809

Case 19-CA-32431

- 28 -

that the waiver cannot extend to work transferred after the

contracts expiration in September 2012, but Boeing made its

final decision in 2009 and expects to open the second line in

South Carolina in mid 2011.69


The Unions estoppel argument

also lacks merit.


While Boeing took the position that the

notice and review provisions in Article 21.7 did not apply

because no employees will be laid off, Boeing is not thereby

estopped from asserting the waiver provision.

Moreover, Boeings request to negotiate mid-term changes

to the parties agreement did not subject it to the

traditional Section 8(a)(5) bargaining obligations.70


Absent

a contractual reopener provision, parties are under no

obligation to bargain over proposals for mid-term

modifications.71
For this reason, we do not reach the

question of whether Boeing engaged in surface bargaining in

the fall of 2009, bargained to a valid impasse, or unlawfully

failed to provide information relevant to those negotiations.

IV. The Appropriate Remedy

We conclude that special remedies must be fashioned in

the unusual circumstances of this case.

First, with respect to the Section 8(a)(1) violations,

which had a particularly chilling impact upon employees, the

Region should seek a notice reading by a high-level Boeing

official, to insure that employees learn about their statutory

69

Thus, if there is a duty to bargain over a relocation

decision, it arises when the decision is announced and not

when it is ultimately implemented.


See, e.g., Bell Atlantic

Corp., 336 NLRB 1076, 1086-89 (2001) (union waived right to

bargain over employers decision to close facility and

transfer work to nonunion facility where it received notice of

decision in August and did not request bargaining until

December, even though no unit work would be relocated before

the following April).

70

See St. Barnabas Medical Center, 341 NLRB 1325, 1325 (2004)

(union did not incur traditional bargaining obligations by

requesting that employer meet to discuss feasibility of wage

reopener, and employer violated Section 8(a)(5) by

unilaterally implementing wage increases after an impasse in

those negotiations).

71

See Boeing Co., 337 NLRB 758, 763 (2002) (employer did not

incur bargaining obligation by agreeing to unions request to

consider midterm modification); Connecticut Power Co., 271

NLRB 766, 766-67 (Section 8(d) does not require an employer

who suggests a midterm contract change to negotiate about it).

NLRB-FOIA-00009810

Case 19-CA-32431

- 29 -

rights and gain assurance that Boeing will respect those

rights.72
The notice reading is particularly effective if

read by an official who personally committed some of the

violations, or read by a Board agent in his presence, in order

to dispel the atmosphere of intimidation he created.73

Finally, to remedy the Section 8(a)(3) violation, the

Region should seek an order requiring Boeing to maintain the

second line in Washington.


At the time of the discriminatory

conduct, Boeing intended to use the second line to assemble

three 787 aircraft each month, while assembling seven 787

aircraft each month on the first line in Everett.


At present,

even the first line is not producing up to capacity because of

problems with suppliers and FAA certification.


Thus, the

Region should seek an order requiring that, as Boeing

production increases, the first ten aircraft assembled each

72

See, e.g., Homer D. Bronson Co., 349 NLRB 512, 515 (2007),

enfd. 273 F. Appx 32 (2d Cir. 2008) (notice reading is an

effective but moderate way to let in a warming wind of

information, and more important, reassurance); Federated

Logistics & Operations, 340 NLRB 255, 258 (2003), affd. 400

F.3d 920 (D.C. Cir. 2005) (employees will perceive that the

Respondent and its managers are bound by the requirements of

the Act).

73

Three Sisters Sportswear Co., 312 NLRB 853, 853 (1993),

enfd. mem. 55 F3d 684 (D.C. Cir. 1995), cert. denied 516 U.S.

1093 (1996).
See also, e.g., Homer D. Bronson Co., 349 NLRB

at 515 (reading by president of manufacturing, who personally

delivered speeches threatening plant closure or relocation);

Texas Super Foods, 303 NLRB 209, 209 (1991) notice reading by

owner and president who signed unlawful letters to unit

employees, drafted unlawful speech threatening job losses, and

personally gave the speech to at least two groups of

employees).

NLRB-FOIA-00009811

Case 19-CA-32431

- 30 -

month be assembled by the Puget Sound unit employees and that

the supply lines for these aircraft be maintained in the Puget

Sound and Portland facilities.74

B.J.K.

ROFs - 9

H:ADV.19-CA-32431.Response2.Boeing.dlw

74

At this time, we do not reach a decision on the Unions

request for preliminary injunctive relief.


The Region should

reassess whether Section 10(j) relief is warranted after the

case is tried before the Administrative Law Judge.


In the

meantime, the Region should put evidence in the record

regarding the chilling impact of Boeings violative statements

and conduct to support the notice-reading remedy.


This will

facilitate use of the administrative record to demonstrate in

a subsequent Section 10(j) proceeding that preliminary

injunctive relief is just and proper.

NLRB-FOIA-00009812

Microsoft Outlook

From:
Sent:
To:
Subject:

Solomon, Lafe E.

Tuesday, April 19, 2011 11:08 AM

Cleeland, Nancy

RE: new draft

How about the following

Exemption 5

Exemption 5

-----Original Message-----

From: Cleeland, Nancy

Sent: Tuesday, April 19, 2011 10:30 AM

To: Mattina, Celeste J.; Solomon, Lafe E.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme;

Abruzzo, Jennifer

Cc: Ahearn, Richard L.

Subject: RE: new draft

Hi all, It would be very helpful to see a draft of the complaint for purposes of writing the

fact sheet. Could someone forward to me? Thanks ________________________________________

From: Mattina, Celeste J.

Sent: Tuesday, April 19, 2011 10:20 AM

To: Cleeland, Nancy; Solomon, Lafe E.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme;

Abruzzo, Jennifer

Cc: Ahearn, Richard L.

Subject: RE: new draft

Sorry to jump in after the fact.

What do you think,

Exemption 5

-----Original Message-----

From: Cleeland, Nancy

Sent: Tuesday, April 19, 2011 9:46 AM

To: Mattina, Celeste J.; Solomon, Lafe E.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme;

Abruzzo, Jennifer

Subject: RE: new draft

Exemption 5

Exemption 5

________________________________________

From: Mattina, Celeste J.

Sent: Tuesday, April 19, 2011 9:14 AM

NLRB-FOIA-00009813

To: Cleeland, Nancy; Solomon, Lafe E.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme;

Abruzzo, Jennifer

Subject: RE: new draft

Should we add also,


Exemption 5

________________________________

From: Cleeland, Nancy

Sent: Monday, April 18, 2011 3:44 PM

To: Solomon, Lafe E.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Abruzzo, Jennifer;

Mattina, Celeste J.

Subject: new draft

Thanks for all your suggestions. Here is the latest draft of the release. Feel free to make

suggestions, particularly

Exemption 5

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

NLRB-FOIA-00009814

Microsoft Outlook

From:
Sent:
To:
Subject:

Cleeland, Nancy

Thursday, April 28, 2011 3:23 PM

Schiff, Robert

FW : letter from South Carolina and 8 other state ag's about lawsuits

Hi I should have copied you

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

From: Garza, Jose

Sent: Thursday, April 28, 2011 3:23 PM

To: Cleeland, Nancy; Solomon, Lafe E.; Liebman, Wilma B.; Ferguson, John H.

Subject: RE: letter from South Carolina and 8 other state ag's about lawsuits

Thank you.

From: Cleeland, Nancy

Sent: Thursday, April 28, 2011 3:20 PM

To: Garza, Jose; Solomon, Lafe E.; Liebman, Wilma B.; Ferguson, John H.

Subject: RE: letter from South Carolina and 8 other state ag's about lawsuits

Here is their letter to congress http://www.scattorneygeneral.org/newsroom/pdf/2011/4.28.11_Letter_to_Congress_2.pdf

Here is their letter to us

http://www.scattorneygeneral.org/newsroom/pdf/2011/4.28.11_NLRB_Letter_Formatted_with_Signatures.pdf

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

From: Garza, Jose

Sent: Thursday, April 28, 2011 3:19 PM

To: Cleeland, Nancy; Solomon, Lafe E.; Liebman, Wilma B.; Ferguson, John H.

Subject: RE: letter from South Carolina and 8 other state ag's about lawsuits

The 8 states have replied to the complaint through a letter? To whom? Do we have a copy?

From: Cleeland, Nancy

Sent: Thursday, April 28, 2011 3:14 PM

To: Solomon, Lafe E.; Liebman, Wilma B.; Garza, Jose; Ferguson, John H.

Subject: letter from South Carolina and 8 other state ag's about lawsuits

NLRB-FOIA-00009815

Please see below; Now there are 9 states going after us. Bloomberg asks if we have a response.

Columbia - South Carolina Attorney General Alan Wilson and eight (8) other state attorneys general have

replied to a complaint filed against Boeing Corporation by the U.S. National Labor Relations Board (NLRB). The

complaint charges Boeing with the commission of an unfair labor practice, but appears to do so without legal

and factual foundation. The board claims Boeing is prohibited from expanding production of its planes beyond

the reach of unions currently associated with its workers in Washington State. South Carolina is a staunch right

to work state. In reality, Boeing expanded its production of 787 Dreamliners to South Carolina last year in

response to increase in demand. What the NLRB complaint fails to mention is the increased demand for the

planes prompted the creation of over 2,000 new jobs in Washington State first, and continued demand

subsequently required an expansion facility in South Carolina. Recognizing the dangerous precedent this

aggressive action could set against the right to work, job creation, and economic growth in many states, the

attorneys general wrote:

"This complaint represents an assault upon the constitutional right of free speech, and the ability of our states

to create jobs and recruit industry. Your ill-conceived retaliatory action seeks to destroy our citizens' right to

work. It is South Carolina and Boeing today, but will be any of our states, with our right to work guarantees,

tomorrow."

"...this tenuous complaint will reverberate throughout union and non-union states alike, as international

companies will question the wisdom of locating in a country where the federal government interferes in industry

without cause or justification."

"Our states are struggling to emerge from one of the worst economic collapses since the Depression. Your

complaint further impairs an economic recovery. Intrusion by the federal bureaucracy on behalf of unions will

not create a single new job or put one unemployed person back to work."

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

NLRB-FOIA-00009816

Microsoft Outlook

From:
Sent:
To:
Subject:

Liebman, W ilma B.

Thursday, April 28, 2011 4:38 PM

Cleeland, Nancy

RE: letter from South Carolina and 8 other state ag's about BOEING

Ex. 6
Forgot to mention,
said that
soon. Ex. 6 found Ex. 6 pretty limited.

Ex. 6

nterviewed Ex. 6 about a piece that is coming out

From: Cleeland, Nancy

Sent: Thursday, April 28, 2011 3:17 PM

To: Cleeland, Nancy; Solomon, Lafe E.; Liebman, Wilma B.; Garza, Jose; Ferguson, John H.

Subject: RE: letter from South Carolina and 8 other state ag's about BOEING

Sorry I meant to say about the Boeing complaint

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

From: Cleeland, Nancy

Sent: Thursday, April 28, 2011 3:14 PM

To: Solomon, Lafe E.; Liebman, Wilma B.; Garza, Jose; Ferguson, John H.

Subject: letter from South Carolina and 8 other state ag's about lawsuits

Please see below; Now there are 9 states going after us. Bloomberg asks if we have a response.

Columbia - South Carolina Attorney General Alan Wilson and eight (8) other state attorneys general have

replied to a complaint filed against Boeing Corporation by the U.S. National Labor Relations Board (NLRB). The

complaint charges Boeing with the commission of an unfair labor practice, but appears to do so without legal

and factual foundation. The board claims Boeing is prohibited from expanding production of its planes beyond

the reach of unions currently associated with its workers in Washington State. South Carolina is a staunch right

to work state. In reality, Boeing expanded its production of 787 Dreamliners to South Carolina last year in

response to increase in demand. What the NLRB complaint fails to mention is the increased demand for the

planes prompted the creation of over 2,000 new jobs in Washington State first, and continued demand

subsequently required an expansion facility in South Carolina. Recognizing the dangerous precedent this

aggressive action could set against the right to work, job creation, and economic growth in many states, the

attorneys general wrote:

NLRB-FOIA-00009817

"This complaint represents an assault upon the constitutional right of free speech, and the ability of our states

to create jobs and recruit industry. Your ill-conceived retaliatory action seeks to destroy our citizens' right to

work. It is South Carolina and Boeing today, but will be any of our states, with our right to work guarantees,

tomorrow."

"...this tenuous complaint will reverberate throughout union and non-union states alike, as international

companies will question the wisdom of locating in a country where the federal government interferes in industry

without cause or justification."

"Our states are struggling to emerge from one of the worst economic collapses since the Depression. Your

complaint further impairs an economic recovery. Intrusion by the federal bureaucracy on behalf of unions will

not create a single new job or put one unemployed person back to work."

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

NLRB-FOIA-00009818

Microsoft Outlook

From:
Sent:
To:
Subject:

Exemptio...

Cleeland, Nancy

Thursday, April 28, 2011 4:39 PM

Liebman, W ilma B.

RE: letter from South Carolina and 8 other state ag's about BOEING

doing something on Exemption 6 Ex. 6 may be right, but Im much happier to work with

Ex. 6 than

Ex. 6

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

From: Liebman, Wilma B.

Sent: Thursday, April 28, 2011 4:38 PM

To: Cleeland, Nancy

Subject: RE: letter from South Carolina and 8 other state ag's about BOEING

Ex. 6
Forgot to mention,
said that
Ex.
6
soon.
found Ex. 6 pretty limited.

Ex. 6

interviewed

Ex. 6

about a piece that is coming out

From: Cleeland, Nancy

Sent: Thursday, April 28, 2011 3:17 PM

To: Cleeland, Nancy; Solomon, Lafe E.; Liebman, Wilma B.; Garza, Jose; Ferguson, John H.

Subject: RE: letter from South Carolina and 8 other state ag's about BOEING

Sorry I meant to say about the Boeing complaint

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

From: Cleeland, Nancy

Sent: Thursday, April 28, 2011 3:14 PM

To: Solomon, Lafe E.; Liebman, Wilma B.; Garza, Jose; Ferguson, John H.

Subject: letter from South Carolina and 8 other state ag's about lawsuits

Please see below; Now there are 9 states going after us. Bloomberg asks if we have a response.

Columbia - South Carolina Attorney General Alan Wilson and eight (8) other state attorneys general have

replied to a complaint filed against Boeing Corporation by the U.S. National Labor Relations Board (NLRB). The

complaint charges Boeing with the commission of an unfair labor practice, but appears to do so without legal

NLRB-FOIA-00009819

and factual foundation. The board claims Boeing is prohibited from expanding production of its planes beyond

the reach of unions currently associated with its workers in Washington State. South Carolina is a staunch right

to work state. In reality, Boeing expanded its production of 787 Dreamliners to South Carolina last year in

response to increase in demand. What the NLRB complaint fails to mention is the increased demand for the

planes prompted the creation of over 2,000 new jobs in Washington State first, and continued demand

subsequently required an expansion facility in South Carolina. Recognizing the dangerous precedent this

aggressive action could set against the right to work, job creation, and economic growth in many states, the

attorneys general wrote:

"This complaint represents an assault upon the constitutional right of free speech, and the ability of our states

to create jobs and recruit industry. Your ill-conceived retaliatory action seeks to destroy our citizens' right to

work. It is South Carolina and Boeing today, but will be any of our states, with our right to work guarantees,

tomorrow."

"...this tenuous complaint will reverberate throughout union and non-union states alike, as international

companies will question the wisdom of locating in a country where the federal government interferes in industry

without cause or justification."

"Our states are struggling to emerge from one of the worst economic collapses since the Depression. Your

complaint further impairs an economic recovery. Intrusion by the federal bureaucracy on behalf of unions will

not create a single new job or put one unemployed person back to work."

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

NLRB-FOIA-00009820

Microsoft Outlook

Cleeland, Nancy

Thursday, April 28, 2011 4:55 PM

Liebman, W ilma B.

RE: letter from South Carolina and 8 other state ag's about lawsuits

From:
Sent:
To:
Subject:

Exemption 5

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

From: Liebman, Wilma B.

Sent: Thursday, April 28, 2011 4:42 PM

To: Cleeland, Nancy

Subject: RE: letter from South Carolina and 8 other state ag's about lawsuits

Exemption 5

From: Cleeland, Nancy

Sent: Thursday, April 28, 2011 3:20 PM

To: Garza, Jose; Solomon, Lafe E.; Liebman, Wilma B.; Ferguson, John H.

Subject: RE: letter from South Carolina and 8 other state ag's about lawsuits

Here is their letter to congress http://www.scattorneygeneral.org/newsroom/pdf/2011/4.28.11_Letter_to_Congress_2.pdf

Here is their letter to us

http://www.scattorneygeneral.org/newsroom/pdf/2011/4.28.11_NLRB_Letter_Formatted_with_Signatures.pdf

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

From: Garza, Jose

Sent: Thursday, April 28, 2011 3:19 PM

To: Cleeland, Nancy; Solomon, Lafe E.; Liebman, Wilma B.; Ferguson, John H.

Subject: RE: letter from South Carolina and 8 other state ag's about lawsuits

The 8 states have replied to the complaint through a letter? To whom? Do we have a copy?

From: Cleeland, Nancy

Sent: Thursday, April 28, 2011 3:14 PM

To: Solomon, Lafe E.; Liebman, Wilma B.; Garza, Jose; Ferguson, John H.

Subject: letter from South Carolina and 8 other state ag's about lawsuits

NLRB-FOIA-00009821

Please see below; Now there are 9 states going after us. Bloomberg asks if we have a response.

Columbia - South Carolina Attorney General Alan Wilson and eight (8) other state attorneys general have

replied to a complaint filed against Boeing Corporation by the U.S. National Labor Relations Board (NLRB). The

complaint charges Boeing with the commission of an unfair labor practice, but appears to do so without legal

and factual foundation. The board claims Boeing is prohibited from expanding production of its planes beyond

the reach of unions currently associated with its workers in Washington State. South Carolina is a staunch right

to work state. In reality, Boeing expanded its production of 787 Dreamliners to South Carolina last year in

response to increase in demand. What the NLRB complaint fails to mention is the increased demand for the

planes prompted the creation of over 2,000 new jobs in Washington State first, and continued demand

subsequently required an expansion facility in South Carolina. Recognizing the dangerous precedent this

aggressive action could set against the right to work, job creation, and economic growth in many states, the

attorneys general wrote:

"This complaint represents an assault upon the constitutional right of free speech, and the ability of our states

to create jobs and recruit industry. Your ill-conceived retaliatory action seeks to destroy our citizens' right to

work. It is South Carolina and Boeing today, but will be any of our states, with our right to work guarantees,

tomorrow."

"...this tenuous complaint will reverberate throughout union and non-union states alike, as international

companies will question the wisdom of locating in a country where the federal government interferes in industry

without cause or justification."

"Our states are struggling to emerge from one of the worst economic collapses since the Depression. Your

complaint further impairs an economic recovery. Intrusion by the federal bureaucracy on behalf of unions will

not create a single new job or put one unemployed person back to work."

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

NLRB-FOIA-00009822

Microsoft Outlook

Cleeland, Nancy

Thursday, April 28, 2011 4:58 PM

Liebman, W ilma B.

RE: letter from South Carolina and 8 other state ag's about lawsuits

From:
Sent:
To:
Subject:

Yep he seemed to know who I was. Not the friendliest guy.

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

From: Liebman, Wilma B.

Sent: Thursday, April 28, 2011 4:58 PM

To: Cleeland, Nancy

Subject: RE: letter from South Carolina and 8 other state ag's about lawsuits

Great.

Exemption 5

From: Cleeland, Nancy

Sent: Thursday, April 28, 2011 4:55 PM

To: Liebman, Wilma B.

Subject: RE: letter from South Carolina and 8 other state ag's about lawsuits

Exemption 5

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

From: Liebman, Wilma B.

Sent: Thursday, April 28, 2011 4:42 PM

To: Cleeland, Nancy

Subject: RE: letter from South Carolina and 8 other state ag's about lawsuits

Exemption 5

From: Cleeland, Nancy

Sent: Thursday, April 28, 2011 3:20 PM

To: Garza, Jose; Solomon, Lafe E.; Liebman, Wilma B.; Ferguson, John H.

Subject: RE: letter from South Carolina and 8 other state ag's about lawsuits

Here is their letter to congress http://www.scattorneygeneral.org/newsroom/pdf/2011/4.28.11_Letter_to_Congress_2.pdf

NLRB-FOIA-00009823

Here is their letter to us

http://www.scattorneygeneral.org/newsroom/pdf/2011/4.28.11_NLRB_Letter_Formatted_with_Signatures.pdf

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

From: Garza, Jose

Sent: Thursday, April 28, 2011 3:19 PM

To: Cleeland, Nancy; Solomon, Lafe E.; Liebman, Wilma B.; Ferguson, John H.

Subject: RE: letter from South Carolina and 8 other state ag's about lawsuits

The 8 states have replied to the complaint through a letter? To whom? Do we have a copy?

From: Cleeland, Nancy

Sent: Thursday, April 28, 2011 3:14 PM

To: Solomon, Lafe E.; Liebman, Wilma B.; Garza, Jose; Ferguson, John H.

Subject: letter from South Carolina and 8 other state ag's about lawsuits

Please see below; Now there are 9 states going after us. Bloomberg asks if we have a response.

Columbia - South Carolina Attorney General Alan Wilson and eight (8) other state attorneys general have

replied to a complaint filed against Boeing Corporation by the U.S. National Labor Relations Board (NLRB). The

complaint charges Boeing with the commission of an unfair labor practice, but appears to do so without legal

and factual foundation. The board claims Boeing is prohibited from expanding production of its planes beyond

the reach of unions currently associated with its workers in Washington State. South Carolina is a staunch right

to work state. In reality, Boeing expanded its production of 787 Dreamliners to South Carolina last year in

response to increase in demand. What the NLRB complaint fails to mention is the increased demand for the

planes prompted the creation of over 2,000 new jobs in Washington State first, and continued demand

subsequently required an expansion facility in South Carolina. Recognizing the dangerous precedent this

aggressive action could set against the right to work, job creation, and economic growth in many states, the

attorneys general wrote:

"This complaint represents an assault upon the constitutional right of free speech, and the ability of our states

to create jobs and recruit industry. Your ill-conceived retaliatory action seeks to destroy our citizens' right to

work. It is South Carolina and Boeing today, but will be any of our states, with our right to work guarantees,

tomorrow."

NLRB-FOIA-00009824

"...this tenuous complaint will reverberate throughout union and non-union states alike, as international

companies will question the wisdom of locating in a country where the federal government interferes in industry

without cause or justification."

"Our states are struggling to emerge from one of the worst economic collapses since the Depression. Your

complaint further impairs an economic recovery. Intrusion by the federal bureaucracy on behalf of unions will

not create a single new job or put one unemployed person back to work."

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

NLRB-FOIA-00009825

Microsoft Outlook

From:
Sent:
To:
Subject:

Cleeland, Nancy

Thursday, April 28, 2011 5:12 PM

Liebman, W ilma B.

RE: letter from South Carolina and 8 other state ag's about lawsuits

I just got another call. Apparently there are emails going around, thats whats prompting the calls, according to this one

guy. I actually had a good long talk with him and he ended up being fairly reasonable. People are just getting pumped full

of lies.

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

From: Liebman, Wilma B.

Sent: Thursday, April 28, 2011 5:05 PM

To: Cleeland, Nancy

Subject: Re: letter from South Carolina and 8 other state ag's about lawsuits

That's one way to describe him!

From: Cleeland, Nancy

To: Liebman, Wilma B.

Sent: Thu Apr 28 16:58:06 2011

Subject: RE: letter from South Carolina and 8 other state ag's about lawsuits

Yep he seemed to know who I was. Not the friendliest guy.

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

From: Liebman, Wilma B.

Sent: Thursday, April 28, 2011 4:58 PM

To: Cleeland, Nancy

Subject: RE: letter from South Carolina and 8 other state ag's about lawsuits

Great.

Exemption 5

From: Cleeland, Nancy

Sent: Thursday, April 28, 2011 4:55 PM

To: Liebman, Wilma B.

Subject: RE: letter from South Carolina and 8 other state ag's about lawsuits

Exemption 5

NLRB-FOIA-00009826

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

From: Liebman, Wilma B.

Sent: Thursday, April 28, 2011 4:42 PM

To: Cleeland, Nancy

Subject: RE: letter from South Carolina and 8 other state ag's about lawsuits

Exemption 5

From: Cleeland, Nancy

Sent: Thursday, April 28, 2011 3:20 PM

To: Garza, Jose; Solomon, Lafe E.; Liebman, Wilma B.; Ferguson, John H.

Subject: RE: letter from South Carolina and 8 other state ag's about lawsuits

Here is their letter to congress http://www.scattorneygeneral.org/newsroom/pdf/2011/4.28.11_Letter_to_Congress_2.pdf

Here is their letter to us

http://www.scattorneygeneral.org/newsroom/pdf/2011/4.28.11_NLRB_Letter_Formatted_with_Signatures.pdf

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

From: Garza, Jose

Sent: Thursday, April 28, 2011 3:19 PM

To: Cleeland, Nancy; Solomon, Lafe E.; Liebman, Wilma B.; Ferguson, John H.

Subject: RE: letter from South Carolina and 8 other state ag's about lawsuits

The 8 states have replied to the complaint through a letter? To whom? Do we have a copy?

From: Cleeland, Nancy

Sent: Thursday, April 28, 2011 3:14 PM

To: Solomon, Lafe E.; Liebman, Wilma B.; Garza, Jose; Ferguson, John H.

Subject: letter from South Carolina and 8 other state ag's about lawsuits

Please see below; Now there are 9 states going after us. Bloomberg asks if we have a response.

Columbia - South Carolina Attorney General Alan Wilson and eight (8) other state attorneys general have

replied to a complaint filed against Boeing Corporation by the U.S. National Labor Relations Board (NLRB). The

complaint charges Boeing with the commission of an unfair labor practice, but appears to do so without legal

NLRB-FOIA-00009827

and factual foundation. The board claims Boeing is prohibited from expanding production of its planes beyond

the reach of unions currently associated with its workers in Washington State. South Carolina is a staunch right

to work state. In reality, Boeing expanded its production of 787 Dreamliners to South Carolina last year in

response to increase in demand. What the NLRB complaint fails to mention is the increased demand for the

planes prompted the creation of over 2,000 new jobs in Washington State first, and continued demand

subsequently required an expansion facility in South Carolina. Recognizing the dangerous precedent this

aggressive action could set against the right to work, job creation, and economic growth in many states, the

attorneys general wrote:

"This complaint represents an assault upon the constitutional right of free speech, and the ability of our states

to create jobs and recruit industry. Your ill-conceived retaliatory action seeks to destroy our citizens' right to

work. It is South Carolina and Boeing today, but will be any of our states, with our right to work guarantees,

tomorrow."

"...this tenuous complaint will reverberate throughout union and non-union states alike, as international

companies will question the wisdom of locating in a country where the federal government interferes in industry

without cause or justification."

"Our states are struggling to emerge from one of the worst economic collapses since the Depression. Your

complaint further impairs an economic recovery. Intrusion by the federal bureaucracy on behalf of unions will

not create a single new job or put one unemployed person back to work."

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

NLRB-FOIA-00009828

Microsoft Outlook

From:
Sent:
To:
Subject:

Liebman, W ilma B.

Thursday, April 28, 2011 5:16 PM

Cleeland, Nancy

Re: letter from South Carolina and 8 other state ag's about lawsuits

So crazy. Denise was so funny. She said one caller used the F word!

From: Cleeland, Nancy

To: Liebman, Wilma B.

Sent: Thu Apr 28 17:12:08 2011

Subject: RE: letter from South Carolina and 8 other state ag's about lawsuits

I just got another call. Apparently there are emails going around, thats whats prompting the calls, according to this one

guy. I actually had a good long talk with him and he ended up being fairly reasonable. People are just getting pumped full

of lies.

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

From: Liebman, Wilma B.

Sent: Thursday, April 28, 2011 5:05 PM

To: Cleeland, Nancy

Subject: Re: letter from South Carolina and 8 other state ag's about lawsuits

That's one way to describe him!

From: Cleeland, Nancy

To: Liebman, Wilma B.

Sent: Thu Apr 28 16:58:06 2011

Subject: RE: letter from South Carolina and 8 other state ag's about lawsuits

Yep he seemed to know who I was. Not the friendliest guy.

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

From: Liebman, Wilma B.

Sent: Thursday, April 28, 2011 4:58 PM

To: Cleeland, Nancy

Subject: RE: letter from South Carolina and 8 other state ag's about lawsuits

Great.

Exemption 5

NLRB-FOIA-00009829

From: Cleeland, Nancy

Sent: Thursday, April 28, 2011 4:55 PM

To: Liebman, Wilma B.

Subject: RE: letter from South Carolina and 8 other state ag's about lawsuits

Exemption 5

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

From: Liebman, Wilma B.

Sent: Thursday, April 28, 2011 4:42 PM

To: Cleeland, Nancy

Subject: RE: letter from South Carolina and 8 other state ag's about lawsuits

Exemption 5

From: Cleeland, Nancy

Sent: Thursday, April 28, 2011 3:20 PM

To: Garza, Jose; Solomon, Lafe E.; Liebman, Wilma B.; Ferguson, John H.

Subject: RE: letter from South Carolina and 8 other state ag's about lawsuits

Here is their letter to congress http://www.scattorneygeneral.org/newsroom/pdf/2011/4.28.11_Letter_to_Congress_2.pdf

Here is their letter to us

http://www.scattorneygeneral.org/newsroom/pdf/2011/4.28.11_NLRB_Letter_Formatted_with_Signatures.pdf

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

From: Garza, Jose

Sent: Thursday, April 28, 2011 3:19 PM

To: Cleeland, Nancy; Solomon, Lafe E.; Liebman, Wilma B.; Ferguson, John H.

Subject: RE: letter from South Carolina and 8 other state ag's about lawsuits

The 8 states have replied to the complaint through a letter? To whom? Do we have a copy?

From: Cleeland, Nancy

Sent: Thursday, April 28, 2011 3:14 PM

To: Solomon, Lafe E.; Liebman, Wilma B.; Garza, Jose; Ferguson, John H.

Subject: letter from South Carolina and 8 other state ag's about lawsuits

NLRB-FOIA-00009830

Please see below; Now there are 9 states going after us. Bloomberg asks if we have a response.

Columbia - South Carolina Attorney General Alan Wilson and eight (8) other state attorneys general have

replied to a complaint filed against Boeing Corporation by the U.S. National Labor Relations Board (NLRB). The

complaint charges Boeing with the commission of an unfair labor practice, but appears to do so without legal

and factual foundation. The board claims Boeing is prohibited from expanding production of its planes beyond

the reach of unions currently associated with its workers in Washington State. South Carolina is a staunch right

to work state. In reality, Boeing expanded its production of 787 Dreamliners to South Carolina last year in

response to increase in demand. What the NLRB complaint fails to mention is the increased demand for the

planes prompted the creation of over 2,000 new jobs in Washington State first, and continued demand

subsequently required an expansion facility in South Carolina. Recognizing the dangerous precedent this

aggressive action could set against the right to work, job creation, and economic growth in many states, the

attorneys general wrote:

"This complaint represents an assault upon the constitutional right of free speech, and the ability of our states

to create jobs and recruit industry. Your ill-conceived retaliatory action seeks to destroy our citizens' right to

work. It is South Carolina and Boeing today, but will be any of our states, with our right to work guarantees,

tomorrow."

"...this tenuous complaint will reverberate throughout union and non-union states alike, as international

companies will question the wisdom of locating in a country where the federal government interferes in industry

without cause or justification."

"Our states are struggling to emerge from one of the worst economic collapses since the Depression. Your

complaint further impairs an economic recovery. Intrusion by the federal bureaucracy on behalf of unions will

not create a single new job or put one unemployed person back to work."

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

NLRB-FOIA-00009831

Microsoft Outlook

From:
Sent:
To:
Subject:

Cleeland, Nancy

Thursday, April 28, 2011 5:17 PM

Liebman, W ilma B.

RE: letter from South Carolina and 8 other state ag's about lawsuits

Ha! A very funny image.

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

From: Liebman, Wilma B.

Sent: Thursday, April 28, 2011 5:16 PM

To: Cleeland, Nancy

Subject: Re: letter from South Carolina and 8 other state ag's about lawsuits

So crazy. Denise was so funny. She said one caller used the F word!

From: Cleeland, Nancy

To: Liebman, Wilma B.

Sent: Thu Apr 28 17:12:08 2011

Subject: RE: letter from South Carolina and 8 other state ag's about lawsuits

I just got another call. Apparently there are emails going around, thats whats prompting the calls, according to this one

guy. I actually had a good long talk with him and he ended up being fairly reasonable. People are just getting pumped full

of lies.

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

From: Liebman, Wilma B.

Sent: Thursday, April 28, 2011 5:05 PM

To: Cleeland, Nancy

Subject: Re: letter from South Carolina and 8 other state ag's about lawsuits

That's one way to describe him!

From: Cleeland, Nancy

To: Liebman, Wilma B.

Sent: Thu Apr 28 16:58:06 2011

Subject: RE: letter from South Carolina and 8 other state ag's about lawsuits

Yep he seemed to know who I was. Not the friendliest guy.

Nancy Cleeland

NLRB Director of Public Affairs

NLRB-FOIA-00009832

(202) 273-0222

nancy.cleeland@nlrb.gov

From: Liebman, Wilma B.

Sent: Thursday, April 28, 2011 4:58 PM

To: Cleeland, Nancy

Subject: RE: letter from South Carolina and 8 other state ag's about lawsuits

Great.

Exemption 5

From: Cleeland, Nancy

Sent: Thursday, April 28, 2011 4:55 PM

To: Liebman, Wilma B.

Subject: RE: letter from South Carolina and 8 other state ag's about lawsuits

Exemption 5

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

From: Liebman, Wilma B.

Sent: Thursday, April 28, 2011 4:42 PM

To: Cleeland, Nancy

Subject: RE: letter from South Carolina and 8 other state ag's about lawsuits

Exemption 5

From: Cleeland, Nancy

Sent: Thursday, April 28, 2011 3:20 PM

To: Garza, Jose; Solomon, Lafe E.; Liebman, Wilma B.; Ferguson, John H.

Subject: RE: letter from South Carolina and 8 other state ag's about lawsuits

Here is their letter to congress http://www.scattorneygeneral.org/newsroom/pdf/2011/4.28.11_Letter_to_Congress_2.pdf

Here is their letter to us

http://www.scattorneygeneral.org/newsroom/pdf/2011/4.28.11_NLRB_Letter_Formatted_with_Signatures.pdf

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

From: Garza, Jose

Sent: Thursday, April 28, 2011 3:19 PM

To: Cleeland, Nancy; Solomon, Lafe E.; Liebman, Wilma B.; Ferguson, John H.

Subject: RE: letter from South Carolina and 8 other state ag's about lawsuits

NLRB-FOIA-00009833

The 8 states have replied to the complaint through a letter? To whom? Do we have a copy?

From: Cleeland, Nancy

Sent: Thursday, April 28, 2011 3:14 PM

To: Solomon, Lafe E.; Liebman, Wilma B.; Garza, Jose; Ferguson, John H.

Subject: letter from South Carolina and 8 other state ag's about lawsuits

Please see below; Now there are 9 states going after us. Bloomberg asks if we have a response.

Columbia - South Carolina Attorney General Alan Wilson and eight (8) other state attorneys general have

replied to a complaint filed against Boeing Corporation by the U.S. National Labor Relations Board (NLRB). The

complaint charges Boeing with the commission of an unfair labor practice, but appears to do so without legal

and factual foundation. The board claims Boeing is prohibited from expanding production of its planes beyond

the reach of unions currently associated with its workers in Washington State. South Carolina is a staunch right

to work state. In reality, Boeing expanded its production of 787 Dreamliners to South Carolina last year in

response to increase in demand. What the NLRB complaint fails to mention is the increased demand for the

planes prompted the creation of over 2,000 new jobs in Washington State first, and continued demand

subsequently required an expansion facility in South Carolina. Recognizing the dangerous precedent this

aggressive action could set against the right to work, job creation, and economic growth in many states, the

attorneys general wrote:

"This complaint represents an assault upon the constitutional right of free speech, and the ability of our states

to create jobs and recruit industry. Your ill-conceived retaliatory action seeks to destroy our citizens' right to

work. It is South Carolina and Boeing today, but will be any of our states, with our right to work guarantees,

tomorrow."

"...this tenuous complaint will reverberate throughout union and non-union states alike, as international

companies will question the wisdom of locating in a country where the federal government interferes in industry

without cause or justification."

"Our states are struggling to emerge from one of the worst economic collapses since the Depression. Your

complaint further impairs an economic recovery. Intrusion by the federal bureaucracy on behalf of unions will

not create a single new job or put one unemployed person back to work."

Nancy Cleeland

NLRB-FOIA-00009834

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

NLRB-FOIA-00009835

Microsoft Outlook

From:
Sent:
To:
Subject:

Ahearn, Richard L.

Friday, April 29, 2011 10:48 AM

Cleeland, Nancy

RE: boeing operations in s.c.

Thx.

From: Cleeland, Nancy

Sent: Friday, April 29, 2011 7:40 AM

To: Solomon, Lafe E.; Ahearn, Richard L.; Kearney, Barry J.

Cc: Wagner, Anthony R.

Subject: boeing operations in s.c.

Interesting piece in the clips today about Boeings 787 production getting back on track. The story mentions other

operations Boeing maintains in North Charleston, which really undercuts the argument that were telling Boeing they cant

do business there:

http://www.postandcourier.com/news/2011/apr/28/good-boeing-news/

In North Charleston, two side-by-side Boeing factories produce major fuselage sections for the 787, which to date has

racked up 835 orders.

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

NLRB-FOIA-00009836

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:

Cleeland, Nancy

Thursday, May 05, 2011 1:35 PM

Mattina, Celeste J.; Schiff, Robert; Garza, Jose; Abruzzo, Jennifer; Solomon, Lafe E.

Kearney, Barry J.

RE: Boeing -- revised draft response to state AGs

Exemption 5

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

From: Mattina, Celeste J.

Sent: Thursday, May 05, 2011 12:07 PM

To: Schiff, Robert; Garza, Jose; Cleeland, Nancy; Abruzzo, Jennifer; Solomon, Lafe E.

Cc: Kearney, Barry J.

Subject: FW: Boeing -- revised draft response to state AGs

Barry and his people drafted a very good response. I made some minor edits; I

Exemption 5

From: Kearney, Barry J.

Sent: Wednesday, May 04, 2011 2:28 PM

To: Solomon, Lafe E.; Mattina, Celeste J.

Subject: FW: Boeing -- revised draft response to state AGs

Draft response from you to State AGs

From: Willen, Debra L

Sent: Wednesday, May 04, 2011 2:24 PM

To: Kearney, Barry J.; Sophir, Jayme; Farrell, Ellen; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: RE: Boeing -- revised draft response to state AGs

clean draft and AGs' letter attached

From: Kearney, Barry J.

Sent: Wednesday, May 04, 2011 2:10 PM

To: Sophir, Jayme; Farrell, Ellen; Willen, Debra L; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: RE: Boeing -- revised draft response to state AGs

I agree with all the revisions. Please send me a clean draft along with the AG letter to send on to Lafe

NLRB-FOIA-00009837

From: Sophir, Jayme

Sent: Wednesday, May 04, 2011 12:18 PM

To: Farrell, Ellen; Kearney, Barry J.; Willen, Debra L; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: RE: Boeing -- revised draft response to state AGs

Notwithstanding that this case is about retaliation for striking in other states, they seem

Exemption 5

But, regardless of what theyre saying, Ellens

modification is definitely better.

From: Farrell, Ellen

Sent: Wednesday, May 04, 2011 12:07 PM

To: Kearney, Barry J.; Willen, Debra L; Sophir, Jayme; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: FW: Boeing -- revised draft response to state AGs

See my modification

Exemption 5

Ellen

Ellen Farrell

Deputy Associate General Counsel

Division of Advice, NLRB

202-273-3810

Ellen.Farrell@nlrb.gov

From: Sophir, Jayme

Sent: Wednesday, May 04, 2011 11:33 AM

To: Kearney, Barry J.; Farrell, Ellen; Szapiro, Miriam; Willen, Debra L

Cc: Dodds, Amy L.

Subject: FW: Boeing -- revised draft response to state AGs

Exemption 5

From: Willen, Debra L

Sent: Wednesday, May 04, 2011 10:58 AM

To: Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: Boeing -- revised draft response to state AGs

As Barry requested, I've incorporated his changes and am attaching the new version along with the AG's letter.

Jayme -- I have not addressed your concern -- please discuss it with Barry and let me know if what you all want me to

do.

Thanks, Deb

NLRB-FOIA-00009838

Microsoft Outlook

From:

Kearney, Barry J.

Sent:

Friday, March 25, 2011 2:00 PM

To:

Solomon, Lafe E.

Cc:

Farrell, Ellen; Sophir, Jayme

Subject:

FW: Boeing

The beat goes on

From: Kearney, Barry J.

Sent: Friday, March 25, 2011 1:53 PM

To: 'Kilberg P.C., William'

Subject: RE: Boeing

Bill

Is this call necessary? What ever they had to say to one another was said last Friday. I have communicated the Unions

response to the no layoff offer. Isnt it time to move on?

Barry

From: Kilberg P.C., William [mailto:WKilberg@gibsondunn.com]

Sent: Friday, March 25, 2011 12:38 PM

To: Kearney, Barry J.

Subject: RE: Boeing

Barry: I got your message; I still do not have an answer although I have reached out again. I

understand that the Judge was traveling and I do not know where he is today. As soon as I

hear something, I will let you know. Bill

William J. Kilberg

GIBSON DUNN

Gibson, Dunn & Crutcher LLP

1050 Connecticut Avenue, N.W., Washington, DC 20036-5306

Tel +1 202.955.8573 Fax +1 202.530.9559

WKilberg@gibsondunn.com www.gibsondunn.com

From: Kearney, Barry J. [mailto:barry.kearney@nlrb.gov]

Sent: Friday, March 25, 2011 9:28 AM

To: Kilberg P.C., William

Subject: Boeing

Bill

I just left you a voice mail message. What is the status of the call between the Judge and Lafe?

Barry

NLRB-FOIA-00009839

Microsoft Outlook

From:

Kearney, Barry J.

Sent:

Friday, March 25, 2011 3:11 PM

To:

Solomon, Lafe E.; Mattina, Celeste J.

Cc:

Farrell, Ellen; Sophir, Jayme

Subject:

FW: Boeing

When do you want to do it? Monday am is bad for me.

From: Kilberg P.C., William [mailto:WKilberg@gibsondunn.com]

Sent: Friday, March 25, 2011 3:02 PM

To: Kearney, Barry J.

Subject: RE: Boeing

Barry: I have heard back from the Judge's office; he would like to have a call either Monday or

Tuesday. Can you give me some times that work for Lafe? Bill

William J. Kilberg

GIBSON DUNN

Gibson, Dunn & Crutcher LLP

1050 Connecticut Avenue, N.W., Washington, DC 20036-5306

Tel +1 202.955.8573 Fax +1 202.530.9559

WKilberg@gibsondunn.com www.gibsondunn.com

From: Kearney, Barry J. [mailto:barry.kearney@nlrb.gov]

Sent: Friday, March 25, 2011 1:53 PM

To: Kilberg P.C., William

Subject: RE: Boeing

Bill

Is this call necessary? What ever they had to say to one another was said last Friday. I have communicated the Unions

response to the no layoff offer. Isnt it time to move on?

Barry

From: Kilberg P.C., William [mailto:WKilberg@gibsondunn.com]

Sent: Friday, March 25, 2011 12:38 PM

To: Kearney, Barry J.

Subject: RE: Boeing

Barry: I got your message; I still do not have an answer although I have reached out again. I

understand that the Judge was traveling and I do not know where he is today. As soon as I

hear something, I will let you know. Bill

NLRB-FOIA-00009840

William J. Kilberg

GIBSON DUNN

Gibson, Dunn & Crutcher LLP

1050 Connecticut Avenue, N.W., Washington, DC 20036-5306

Tel +1 202.955.8573 Fax +1 202.530.9559

WKilberg@gibsondunn.com www.gibsondunn.com

From: Kearney, Barry J. [mailto:barry.kearney@nlrb.gov]

Sent: Friday, March 25, 2011 9:28 AM

To: Kilberg P.C., William

Subject: Boeing

Bill

I just left you a voice mail message. What is the status of the call between the Judge and Lafe?

Barry

NLRB-FOIA-00009841

Microsoft Outlook

From:

Solomon, Lafe E.

Sent:

Friday, March 25, 2011 5:08 PM

To:

Kearney, Barry J.; Mattina, Celeste J.

Cc:

Farrell, Ellen; Sophir, Jayme

Subject:

RE: Boeing

Any time except 1-3 on Tues.

From: Kearney, Barry J.

Sent: Friday, March 25, 2011 3:11 PM

To: Solomon, Lafe E.; Mattina, Celeste J.

Cc: Farrell, Ellen; Sophir, Jayme

Subject: FW: Boeing

When do you want to do it? Monday am is bad for me.

From: Kilberg P.C., William [mailto:WKilberg@gibsondunn.com]

Sent: Friday, March 25, 2011 3:02 PM

To: Kearney, Barry J.

Subject: RE: Boeing

Barry: I have heard back from the Judge's office; he would like to have a call either Monday or

Tuesday. Can you give me some times that work for Lafe? Bill

William J. Kilberg

GIBSON DUNN

Gibson, Dunn & Crutcher LLP

1050 Connecticut Avenue, N.W., Washington, DC 20036-5306

Tel +1 202.955.8573 Fax +1 202.530.9559

WKilberg@gibsondunn.com www.gibsondunn.com

From: Kearney, Barry J. [mailto:barry.kearney@nlrb.gov]

Sent: Friday, March 25, 2011 1:53 PM

To: Kilberg P.C., William

Subject: RE: Boeing

Bill

Is this call necessary? What ever they had to say to one another was said last Friday. I have communicated the Unions

response to the no layoff offer. Isnt it time to move on?

Barry

From: Kilberg P.C., William [mailto:WKilberg@gibsondunn.com]

Sent: Friday, March 25, 2011 12:38 PM

NLRB-FOIA-00009842

To: Kearney, Barry J.

Subject: RE: Boeing

Barry: I got your message; I still do not have an answer although I have reached out again. I

understand that the Judge was traveling and I do not know where he is today. As soon as I

hear something, I will let you know. Bill

William J. Kilberg

GIBSON DUNN

Gibson, Dunn & Crutcher LLP

1050 Connecticut Avenue, N.W., Washington, DC 20036-5306

Tel +1 202.955.8573 Fax +1 202.530.9559

WKilberg@gibsondunn.com www.gibsondunn.com

From: Kearney, Barry J. [mailto:barry.kearney@nlrb.gov]

Sent: Friday, March 25, 2011 9:28 AM

To: Kilberg P.C., William

Subject: Boeing

Bill

I just left you a voice mail message. What is the status of the call between the Judge and Lafe?

Barry

NLRB-FOIA-00009843

Microsoft Outlook

From:

Kearney, Barry J.

Sent:

Thursday, March 31, 2011 11:06 AM

To:

Solomon, Lafe E.

Cc:

Farrell, Ellen; Sophir, Jayme; Ahearn, Richard L.

Subject:

FW:

From: David Campbell [mailto:campbell@workerlaw.com]

Sent: Thursday, March 31, 2011 9:23 AM

To: Kearney, Barry J.

Cc: Corson Christopher; Jude Bryan; Carson Glickman-Flora; Solomon, Lafe E.

Subject:

Barry, Thanks for calling me back yesterday. We are waiting for Boeings call. As I mentioned in our call,

while Boeing is talking good faith they are capitalizing on chilling union activity by expanding their

operations to create duplicate parts manufacturing in South Carolina (even though there is unused capacity in

the bargaining unit). Just last week Ray Connor was quoted in the following

Article: http://www.postandcourier.com/news/2011/mar/26/parts-plant-marks-boeings-ascent/

Boeing already employs more than 1,300 workers at a similar plant at its Everett, Wash., aircraft assembly

headquarters, but company executives said early last year that they wanted to duplicate their critical jet

manufacturing operations in Charleston in case of W est Coast labor strikes or other work stoppages. A walkout by

the International Association of Machinists and Aerospace W orkers in 2008 cost the company an estimated $1.8

billion.

A similar local union at the North Charleston site voted to disband in September 2009, setting the stage for

Boeing to announce six weeks later it would build its new aircraft assembly plant in the Lowcountry.

"All roads to the 787 lead through South Carolina," Ray Conner, vice president and general manager of supply

chain management and operations for Boeing Commercial Airplanes, said. "We expect to do big things here in

South Carolina."

We believe that Boeing continues to merely play for time, while it capitalizes on its unlawful conduct. We are

willing to meet if Boeing genuinely wants to resolve this matter. But we believe instead Boeing will wait to call

us late in the week, and then find some reason for further delay. Boeing has been less than honest in its claims

in this case, including three claimed facts (that we know about) which were plainly not the case. For at least

five months they have led your office to believe they have some interest in resolving this matter while

continuously reinforcing their undisputed and unambiguous chilling message to their workers and the

nation. Boeing is forcing the issue which we ask be resolved without delay: Can Boeing relocate jobs to a

newly decertified site because its union employees strike? If so, why cant any employer discriminate in favor

of non-union employees? Such a result would leave 8(a)(3) a dead letter, and effectively overrule by inaction

the Boards runaway shop cases as well as its recent decision in

Paraxel, 356 NLRB No. 82 (2011).

Boeing is winning this

point of law by delay and default. We hope to hear from Boeing and if possible promptly reach a settlement.

Absent this, we respectfully request that the General Counsel issue a complaint. Failure to do so will harm tens

of thousands of Boeings employees and create a union-busting roadmap that will be emulated across the

US. Surely, that is not to be the legacy of this General Counsel and Board.

NLRB-FOIA-00009844

Thanks, Dave

Sincerely, David Campbell

campbell@workerlaw.com

Schwerin Campbell Barnard Iglitzin & Lavitt

18 W Mercer Suite 400

Seattle, W ashington 98119-3971

Phone (206)285-2828: FAX (206)378-4132

This communication is protected by the attorney client and attorney work-product privileges. Please do not copy, forward

or append.

NLRB-FOIA-00009845

Microsoft Outlook

From:

Kearney, Barry J.

Sent:

Saturday, April 02, 2011 2:37 PM

To:

Farrell, Ellen; Sophir, Jayme

Subject:

FW: Call from Boeing

fyi

-----Original Message----From: Corson Christopher [mailto:ccorson@iamaw.org]

Sent: Friday, April 01, 2011 7:29 PM

To: Kearney, Barry J.

Cc: David Campbell; Canter Robin

Subject: Call from Boeing

Barry,

Thank you for talking to Dave Campbell and me earlier today.

Boeing's lawyer, Brett Gerry, called me at 5:00 pm. He said he is the lead lawyer for Boeing's commercial division.

His proposal was as follows. Since Joe Albaugh and Tom Buffenbarger are currently scheduled to have dinner in May,

Albaugh thinks that would be a good time to talk about these issues. I asked if the company had a proposal at this time,

and he said that there isn't one -- at least nothing that he would tell me about.

I talked with Tom Buffenbarger after Gerry called. Tom's recollection is that the dinner is set for May 16th or 17th. As

you can imagine, the thought of putting off any attempt to have a serious discussion with us for another month and a

half -- and even then just over dinner -- is simply unacceptable. The company is not being serious.

Frankly, I hope you as offended by this suggestion as we are. You and Lafe have worked very hard to bring about

discussions that could lead to a more comprehensive and tailored solution than we are likely to get from Board

processes and remedies. We have shown ourselves time and again to be serious about meeting in good faith with the

company. But you and we can't do it without Boeing, and it is crystal clear that Boeing is only interested in stringing us

all along.

Boeing made a commitment to you on Monday to contact us and then to tell you by the end of the week whether they

thought there were fruitful discussions with us to be had. I don't think that a company lawyer calling me at 5:00 on

Friday to say that the company has no proposal at all except that Albaugh and Tom Buffenbarger could discuss things

over an already-scheduled dinner in a month and a half comes close to satisfying what they promised you to do.

By mid-May the company will be much farther along in South Carolina, and our members in Puget Sound will, by that

time, know for sure that protected activity has become meaningless for them. Boeing hammers its retaliatory message

every day, and every day shows that the company is getting away with it. The Act means something, or it really doesn't.

The IAM sincerely appreciates all that Lafe and you have been trying to do, and we know that this case will be big. But

given what Boeing's chief officers have signaled to companies all across the country about how to retaliate against

organized workers for what the statute says is protected activity, this case needs to be big. You would like Boeing to talk

to us in good faith, and so would we, but it is crystal clear that such discussions are a false choice. The last three and a

half months (since the company met with Lafe and you in mid-December) show that they have no intention of engaging

NLRB-FOIA-00009846

with us. They have had months to call us and didn't, and they will shamelessly tell you anything to just keep playing for

more time.

The IAM hopes that time is up.

Thank you for all that we hope the Board will do, Chris Corson

Sent from my iPad

Christopher Corson

General Counsel

International Association of Machinists & Aerospace Workers

9000 Machinists Place

Upper Marlboro, MD 20772

301-967-4510 (office)

301-967-4594 (fax)

202-368-6484 (cell)

_____________________________________________________________

Notice: This message is intended for the addressee only and may contain privileged and/or confidential information. Use

or dissemination by anyone other than the intended recipient is prohibited.

____________________________________________________________

NLRB-FOIA-00009847

Microsoft Outlook

From:

Kearney, Barry J.

Sent:

Monday, April 04, 2011 9:55 AM

To:

Solomon, Lafe E.; Mattina, Celeste J.; Farrell, Ellen; Sophir, Jayme; Ahearn, Richard L.

Subject:

FW: Call from Boeing

fyi

-----Original Message----From: Kearney, Barry J.

Sent: Monday, April 04, 2011 9:38 AM

To: 'Corson Christopher'

Cc: David Campbell; Canter Robin

Subject: RE: Call from Boeing

Chris

Boing's response is very disappointing and you are undoubtedly correct that they are looking for delay. However I

believe we can't assume that and the loop needs to be closed. I would ask that you get back to Gerry and tell him a

previously scheduled meeting 6 weeks from now is unacceptable and if Boeing is serious they will meet this week with a

proposal. Boeing response is predictable but I think they need to say it. Thanks for your patience Barry

-----Original Message----From: Corson Christopher [mailto:ccorson@iamaw.org]

Sent: Friday, April 01, 2011 7:29 PM

To: Kearney, Barry J.

Cc: David Campbell; Canter Robin

Subject: Call from Boeing

Barry,

Thank you for talking to Dave Campbell and me earlier today.

Boeing's lawyer, Brett Gerry, called me at 5:00 pm. He said he is the lead lawyer for Boeing's commercial division.

His proposal was as follows. Since Joe Albaugh and Tom Buffenbarger are currently scheduled to have dinner in May,

Albaugh thinks that would be a good time to talk about these issues. I asked if the company had a proposal at this time,

and he said that there isn't one -- at least nothing that he would tell me about.

I talked with Tom Buffenbarger after Gerry called. Tom's recollection is that the dinner is set for May 16th or 17th. As

you can imagine, the thought of putting off any attempt to have a serious discussion with us for another month and a

half -- and even then just over dinner -- is simply unacceptable. The company is not being serious.

Frankly, I hope you as offended by this suggestion as we are. You and Lafe have worked very hard to bring about

discussions that could lead to a more comprehensive and tailored solution than we are likely to get from Board

processes and remedies. We have shown ourselves time and again to be serious about meeting in good faith with the

company. But you and we can't do it without Boeing, and it is crystal clear that Boeing is only interested in stringing us

all along.

NLRB-FOIA-00009848

Boeing made a commitment to you on Monday to contact us and then to tell you by the end of the week whether they

thought there were fruitful discussions with us to be had. I don't think that a company lawyer calling me at 5:00 on

Friday to say that the company has no proposal at all except that Albaugh and Tom Buffenbarger could discuss things

over an already-scheduled dinner in a month and a half comes close to satisfying what they promised you to do.

By mid-May the company will be much farther along in South Carolina, and our members in Puget Sound will, by that

time, know for sure that protected activity has become meaningless for them. Boeing hammers its retaliatory message

every day, and every day shows that the company is getting away with it. The Act means something, or it really doesn't.

The IAM sincerely appreciates all that Lafe and you have been trying to do, and we know that this case will be big. But

given what Boeing's chief officers have signaled to companies all across the country about how to retaliate against

organized workers for what the statute says is protected activity, this case needs to be big. You would like Boeing to talk

to us in good faith, and so would we, but it is crystal clear that such discussions are a false choice. The last three and a

half months (since the company met with Lafe and you in mid-December) show that they have no intention of engaging

with us. They have had months to call us and didn't, and they will shamelessly tell you anything to just keep playing for

more time.

The IAM hopes that time is up.

Thank you for all that we hope the Board will do, Chris Corson

Sent from my iPad

Christopher Corson

General Counsel

International Association of Machinists & Aerospace Workers

9000 Machinists Place

Upper Marlboro, MD 20772

301-967-4510 (office)

301-967-4594 (fax)

202-368-6484 (cell)

_____________________________________________________________

Notice: This message is intended for the addressee only and may contain privileged and/or confidential information. Use

or dissemination by anyone other than the intended recipient is prohibited.

____________________________________________________________

NLRB-FOIA-00009849

Microsoft Outlook

From:

Kearney, Barry J.

Sent:

Monday, April 04, 2011 2:37 PM

To:

Solomon, Lafe E.; Mattina, Celeste J.; Farrell, Ellen; Sophir, Jayme; Ahearn, Richard L.

Subject:

FW: Call from Boeing

fyi

-----Original Message----From: Corson Christopher [mailto:ccorson@iamaw.org]

Sent: Monday, April 04, 2011 2:18 PM

To: Kearney, Barry J.

Cc: David Campbell; Carson Glickman-Flora; Canter Robin

Subject: RE: Call from Boeing

Barry,

Gerry was traveling this morning, so I was just able to talk with him a few minutes ago. Message delivered. Let's see

what they say.

Chris

Christopher Corson

General Counsel

International Association of Machinists &

Aerospace Workers

301-967-4510 (office)

301-967-4594 (fax)

202-368-6484 (cell)

ccorson@iamaw.org

-----Original Message----From: Kearney, Barry J. [mailto:barry.kearney@nlrb.gov]

Sent: Monday, April 04, 2011 9:38 AM

To: Corson Christopher

Cc: David Campbell; Canter Robin

Subject: RE: Call from Boeing

Chris

Boing's response is very disappointing and you are undoubtedly correct that they are looking for delay. However I

believe we can't assume that and the loop needs to be closed. I would ask that you get back to Gerry and tell him a

previously scheduled meeting 6 weeks from now is unacceptable and if Boeing is serious they will meet this week with a

proposal. Boeing response is predictable but I think they need to say it. Thanks for your patience Barry

-----Original Message----From: Corson Christopher [mailto:ccorson@iamaw.org]

Sent: Friday, April 01, 2011 7:29 PM

To: Kearney, Barry J.

Cc: David Campbell; Canter Robin

NLRB-FOIA-00009850

Subject: Call from Boeing

Barry,

Thank you for talking to Dave Campbell and me earlier today.

Boeing's lawyer, Brett Gerry, called me at 5:00 pm. He said he is the lead lawyer for Boeing's commercial division.

His proposal was as follows. Since Joe Albaugh and Tom Buffenbarger are currently scheduled to have dinner in May,

Albaugh thinks that would be a good time to talk about these issues. I asked if the company had a proposal at this time,

and he said that there isn't one -- at least nothing that he would tell me about.

I talked with Tom Buffenbarger after Gerry called. Tom's recollection is that the dinner is set for May 16th or 17th. As

you can imagine, the thought of putting off any attempt to have a serious discussion with us for another month and a

half -- and even then just over dinner -- is simply unacceptable. The company is not being serious.

Frankly, I hope you as offended by this suggestion as we are. You and Lafe have worked very hard to bring about

discussions that could lead to a more comprehensive and tailored solution than we are likely to get from Board

processes and remedies. We have shown ourselves time and again to be serious about meeting in good faith with the

company. But you and we can't do it without Boeing, and it is crystal clear that Boeing is only interested in stringing us

all along.

Boeing made a commitment to you on Monday to contact us and then to tell you by the end of the week whether they

thought there were fruitful discussions with us to be had. I don't think that a company lawyer calling me at 5:00 on

Friday to say that the company has no proposal at all except that Albaugh and Tom Buffenbarger could discuss things

over an already-scheduled dinner in a month and a half comes close to satisfying what they promised you to do.

By mid-May the company will be much farther along in South Carolina, and our members in Puget Sound will, by that

time, know for sure that protected activity has become meaningless for them. Boeing hammers its retaliatory message

every day, and every day shows that the company is getting away with it. The Act means something, or it really doesn't.

The IAM sincerely appreciates all that Lafe and you have been trying to do, and we know that this case will be big. But

given what Boeing's chief officers have signaled to companies all across the country about how to retaliate against

organized workers for what the statute says is protected activity, this case needs to be big. You would like Boeing to talk

to us in good faith, and so would we, but it is crystal clear that such discussions are a false choice. The last three and a

half months (since the company met with Lafe and you in mid-December) show that they have no intention of engaging

with us. They have had months to call us and didn't, and they will shamelessly tell you anything to just keep playing for

more time.

The IAM hopes that time is up.

Thank you for all that we hope the Board will do, Chris Corson

Sent from my iPad

Christopher Corson

General Counsel

International Association of Machinists & Aerospace Workers

9000 Machinists Place

Upper Marlboro, MD 20772

301-967-4510 (office)

301-967-4594 (fax)

NLRB-FOIA-00009851

202-368-6484 (cell)

_____________________________________________________________

Notice: This message is intended for the addressee only and may contain privileged and/or confidential information. Use

or dissemination by anyone other than the intended recipient is prohibited.

____________________________________________________________

_____________________________________________________________

Notice: This message is intended for the addressee only and may contain privileged and/or confidential information. Use

or dissemination by anyone other than the intended recipient is prohibited.

____________________________________________________________

NLRB-FOIA-00009852

Microsoft Outlook

From:
Sent:
To:
Subject:

Kearney, Barry J.

W ednesday, April 13, 2011 12:20 PM

Sophir, Jayme; Farrell, Ellen

RE: draft press release in Boeing

Exemption 5

From: Sophir, Jayme

Sent: Wednesday, April 13, 2011 12:17 PM

To: Kearney, Barry J.; Farrell, Ellen

Subject: draft press release in Boeing

Heres something we could use as a response when the fireworks erupt.

Jayme Sophir

Assistant General Counsel

Chief, Regional Advice Branch

National Labor Relations Board

202-273-3837

NLRB-FOIA-00009853

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:
Attachments:

Kearney, Barry J.

W ednesday, April 13, 2011 1:55 PM

Solomon, Lafe E.; Mattina, Celeste J.; Cleeland, Nancy; Ahearn, Richard L.

Farrell, Ellen; Sophir, Jayme

FW : draft press release in Boeing

Boeingpressrelease.jls.doc

Exemption 5

From: Sophir, Jayme

Sent: Wednesday, April 13, 2011 12:17 PM

To: Kearney, Barry J.; Farrell, Ellen

Subject: draft press release in Boeing

Heres something we could use as a response when the fireworks erupt.

Jayme Sophir

Assistant General Counsel

Chief, Regional Advice Branch

National Labor Relations Board

202-273-3837

NLRB-FOIA-00009854

Exemption 5

NLRB-FOIA-00009855

Exemption 5

NLRB-FOIA-00009856

Microsoft Outlook

From:
Sent:
To:
Subject:
Attachments:

Ahearn, Richard L.

W ednesday, April 13, 2011 2:31 PM

Solomon, Lafe E.; Mattina, Celeste J.; Cleeland, Nancy; Kearney, Barry J.; Farrell, Ellen;

Sophir, Jayme

draft press release in Boeing

Boeingpressrelease.jls.doc

Looks good; my few suggestions are in italics.

Rich

From: Kearney, Barry J.

Sent: Wednesday, April 13, 2011 10:55 AM

To: Solomon, Lafe E.; Mattina, Celeste J.; Cleeland, Nancy; Ahearn, Richard L.

Cc: Farrell, Ellen; Sophir, Jayme

Subject: FW: draft press release in Boeing

Exemption 5

From: Sophir, Jayme

Sent: Wednesday, April 13, 2011 12:17 PM

To: Kearney, Barry J.; Farrell, Ellen

Subject: draft press release in Boeing

Heres something we could use as a response when the fireworks erupt.

Jayme Sophir

Assistant General Counsel

Chief, Regional Advice Branch

National Labor Relations Board

202-273-3837

NLRB-FOIA-00009857

Exemption 5

NLRB-FOIA-00009858

Exemption 5

NLRB-FOIA-00009859

Microsoft Outlook

From:
Sent:
To:
Subject:
Attachments:

Kearney, Barry J.

Sunday, April 17, 2011 3:47 PM

Farrell, Ellen; Sophir, Jayme

FW : Complaint

Boeing complaint post RA revised draft 4-16-11.doc; ATT00001..htm

Lets discuss tomorrow before meeting with GC at 11

From: Ahearn, Richard L.

Sent: Sunday, April 17, 2011 2:19 PM

To: Kearney, Barry J.

Cc: Farrell, Ellen; Sophir, Jayme

Subject: Complaint

Barry, I have attached a ROUGH draft for the Boeing complaint. Id greatly appreciate any suggestions,

corrections, improvements, etc.

A few observations, questions:

Exemption 5

Many thanks; look forward to your insights.

Rich

NLRB-FOIA-00009860

NLRB-FOIA-00009861

Ex. 5 Deliberative

NLRB-FOIA-00009862

Ex. 5 Deliberative

NLRB-FOIA-00009863

Ex. 5 Deliberative

NLRB-FOIA-00009864

Ex. 5 Deliberative

NLRB-FOIA-00009865

Ex. 5 Deliberative

NLRB-FOIA-00009866

Ex. 5 Deliberative

NLRB-FOIA-00009867

Ex. 5 Deliberative

NLRB-FOIA-00009868

Ex. 5 Deliberative

NLRB-FOIA-00009869

Ex. 5 Deliberative

NLRB-FOIA-00009870

Ex. 5 Deliberative

NLRB-FOIA-00009871

Ex. 5 Deliberative

NLRB-FOIA-00009872

Ex. 5 Deliberative

NLRB-FOIA-00009873

Ex. 5 Deliberative

NLRB-FOIA-00009874

Ex. 5 Deliberative

NLRB-FOIA-00009875

Ex. 5 Deliberative

NLRB-FOIA-00009876

Ex. 5 Deliberative

NLRB-FOIA-00009877

Ex. 5 Deliberative

NLRB-FOIA-00009878

Ex. 5 Deliberative

NLRB-FOIA-00009879

Microsoft Outlook

Abruzzo, Jennifer

Monday, April 18, 2011 4:16 PM

Cleeland, Nancy; Solomon, Lafe E.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Mattina,

Celeste J.

Re: new draft

From:
Sent:
To:
Subject:

Sorry, I'm on my BB, a few suggestions:

The paragraph starting with

Exemption 5

In the paragraph starting with

Exemption 5

--------------------------

Sent from my BlackBerry Wireless Handheld

From: Cleeland, Nancy

To: Solomon, Lafe E.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Abruzzo, Jennifer; Mattina, Celeste J.

Sent: Mon Apr 18 15:44:07 2011

Subject: new draft

Thanks for all your suggestions. Here is the latest draft of the release. Feel free to make suggestions, particularly
Exemption 5

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

NLRB-FOIA-00009880

Microsoft Outlook

Abruzzo, Jennifer

Monday, April 18, 2011 4:31 PM

Cleeland, Nancy; Solomon, Lafe E.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Mattina,

Celeste J.

Re: new draft

From:
Sent:
To:
Subject:

Exemption 5
--------------------------

Sent from my BlackBerry Wireless Handheld

From: Abruzzo, Jennifer

To: Cleeland, Nancy; Solomon, Lafe E.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Mattina, Celeste J.

Sent: Mon Apr 18 16:16:20 2011

Subject: Re: new draft

Sorry, I'm on my BB, a few suggestions:

The paragraph starting with

Exemption 5

In the paragraph starting with


--------------------------

Exemption 5

Sent from my BlackBerry Wireless Handheld

From: Cleeland, Nancy

To: Solomon, Lafe E.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Abruzzo, Jennifer; Mattina, Celeste J.

Sent: Mon Apr 18 15:44:07 2011

Subject: new draft

Thanks for all your suggestions. Here is the latest draft of the release. Feel free to make suggestions, particularly
Exemption 5

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

NLRB-FOIA-00009881

Microsoft Outlook

From:
Sent:
To:
Subject:

Cleeland, Nancy

Thursday, April 28, 2011 5:59 PM

Solomon, Lafe E.; Kearney, Barry J.; Garza, Jose; Ahearn, Richard L.; Farrell, Ellen

time to decide

Importance:

High

Still no word from Lafe, the story goes to bed in 4 minutes. I need a judgment call. Should we
Exemption 5

Exemption 5

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

NLRB-FOIA-00009882

Microsoft Outlook

From:
Sent:
To:
Subject:

Kearney, Barry J.

Thursday, April 28, 2011 6:05 PM

Cleeland, Nancy; Solomon, Lafe E.; Garza, Jose; Ahearn, Richard L.; Farrell, Ellen

Re: time to decide

I would go with

Exemption 5

--------------------------

Sent from my BlackBerry Wireless Handheld

From: Cleeland, Nancy

To: Solomon, Lafe E.; Kearney, Barry J.; Garza, Jose; Ahearn, Richard L.; Farrell, Ellen

Sent: Thu Apr 28 17:59:18 2011

Subject: time to decide

Still no word from Lafe, the story goes to bed in 4 minutes. I need a judgment call. Should we
Exemption 5

Exemption 5

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

NLRB-FOIA-00009883

Microsoft Outlook

Farrell, Ellen

Thursday, April 28, 2011 6:07 PM

Kearney, Barry J.; Cleeland, Nancy; Solomon, Lafe E.; Garza, Jose; Ahearn, Richard L.

RE: time to decide

From:
Sent:
To:
Subject:

Exemption 5

is fine with me too.

Ellen

Ellen Farrell

Deputy Associate General Counsel

Division of Advice, NLRB

202-273-3810

Ellen.Farrell@nlrb.gov

From: Kearney, Barry J.

Sent: Thursday, April 28, 2011 6:05 PM

To: Cleeland, Nancy; Solomon, Lafe E.; Garza, Jose; Ahearn, Richard L.; Farrell, Ellen

Subject: Re: time to decide

I would go with

Exemption 5

--------------------------

Sent from my BlackBerry Wireless Handheld

From: Cleeland, Nancy

To: Solomon, Lafe E.; Kearney, Barry J.; Garza, Jose; Ahearn, Richard L.; Farrell, Ellen

Sent: Thu Apr 28 17:59:18 2011

Subject: time to decide

Still no word from Lafe, the story goes to bed in 4 minutes. I need a judgment call. Should we
Exemption 5

Exemption 5

Exemption 5

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

NLRB-FOIA-00009884

NLRB-FOIA-00009885

Microsoft Outlook

Garza, Jose

Thursday, April 28, 2011 6:09 PM

Farrell, Ellen; Kearney, Barry J.; Cleeland, Nancy; Solomon, Lafe E.; Ahearn, Richard L.

Re: time to decide

From:
Sent:
To:
Subject:

I'm OK

Exemption 5

From: Farrell, Ellen

To: Kearney, Barry J.; Cleeland, Nancy; Solomon, Lafe E.; Garza, Jose; Ahearn, Richard L.

Sent: Thu Apr 28 18:07:13 2011

Subject: RE: time to decide

Exemption 5

is fine with me too.

Ellen

Ellen Farrell

Deputy Associate General Counsel

Division of Advice, NLRB

202-273-3810

Ellen.Farrell@nlrb.gov

From: Kearney, Barry J.

Sent: Thursday, April 28, 2011 6:05 PM

To: Cleeland, Nancy; Solomon, Lafe E.; Garza, Jose; Ahearn, Richard L.; Farrell, Ellen

Subject: Re: time to decide

I would go with

Exemption 5

--------------------------

Sent from my BlackBerry Wireless Handheld

From: Cleeland, Nancy

To: Solomon, Lafe E.; Kearney, Barry J.; Garza, Jose; Ahearn, Richard L.; Farrell, Ellen

Sent: Thu Apr 28 17:59:18 2011

Subject: time to decide

Still no word from Lafe, the story goes to bed in 4 minutes. I need a judgment call. Should we
Exemption 5

Exemption 5

NLRB-FOIA-00009886

Exemption 5

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

NLRB-FOIA-00009887

Microsoft Outlook

From:
Sent:
To:
Subject:

Farrell, Ellen

W ednesday, May 04, 2011 8:54 AM

W illen, Debra L; Kearney, Barry J.; Sophir, Jayme; Szapiro, Miriam

RE: draft response to state AGs

What a welcome voice of sanity in this cacophony!

I have questions on two points. First,

Exemption 5

Second,

Exemption 5

Ellen

Ellen Farrell

Deputy Associate General Counsel

Division of Advice, NLRB

202-273-3810

Ellen.Farrell@nlrb.gov

From: Willen, Debra L

Sent: Tuesday, May 03, 2011 12:24 PM

To: Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam

Subject: draft response to state AGs

Draft attached comments/edits welcome.

NLRB-FOIA-00009888

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:

W illen, Debra L

Friday, June 03, 2011 1:33 PM

Farrell, Ellen

Psotka, Jonathan

Deco-Akal - Boeing press release

Ellen

I havent been able to find the press release where

Exemption 5

I was thinking that it might be in his answer to the letter from the right-to-work state attorney generals, but I dont have that

-- did he ever answer that letter?

Any ideas?

Thanks, Deb

NLRB-FOIA-00009889

Microsoft Outlook

From:
Sent:
To:
Subject:
Attachments:

Farrell, Ellen

Tuesday, June 07, 2011 9:07 AM

Mattina, Celeste J.

FW : Boeing -- revised draft response to state AGs

AGs letter.pdf; GC Response to State AG's.doc

Heres both the AGs letter and our draft response

Ellen

Ellen Farrell

Deputy Associate General Counsel

Division of Advice, NLRB

202-273-3810

Ellen.Farrell@nlrb.gov

From: Kearney, Barry J.

Sent: Thursday, May 05, 2011 1:25 PM

To: Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam; Willen, Debra L

Subject: FW: Boeing -- revised draft response to state AGs

From: Mattina, Celeste J.

Sent: Thursday, May 05, 2011 12:07 PM

To: Schiff, Robert; Garza, Jose; Cleeland, Nancy; Abruzzo, Jennifer; Solomon, Lafe E.

Cc: Kearney, Barry J.

Subject: FW: Boeing -- revised draft response to state AGs

Barry and his people drafted a very good response. I made some minor edits; I

Exemption 5

From: Kearney, Barry J.

Sent: Wednesday, May 04, 2011 2:28 PM

To: Solomon, Lafe E.; Mattina, Celeste J.

Subject: FW: Boeing -- revised draft response to state AGs

Draft response from you to State AGs

From: Willen, Debra L

Sent: Wednesday, May 04, 2011 2:24 PM

To: Kearney, Barry J.; Sophir, Jayme; Farrell, Ellen; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: RE: Boeing -- revised draft response to state AGs

clean draft and AGs' letter attached

NLRB-FOIA-00009890

From: Kearney, Barry J.

Sent: Wednesday, May 04, 2011 2:10 PM

To: Sophir, Jayme; Farrell, Ellen; Willen, Debra L; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: RE: Boeing -- revised draft response to state AGs

I agree with all the revisions. Please send me a clean draft along with the AG letter to send on to Lafe

From: Sophir, Jayme

Sent: Wednesday, May 04, 2011 12:18 PM

To: Farrell, Ellen; Kearney, Barry J.; Willen, Debra L; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: RE: Boeing -- revised draft response to state AGs

Notwithstanding that this case is about retaliation for striking in other states, they seem t

Exemption 5

But, regardless of what theyre saying, Ellens

modification is definitely better.

From: Farrell, Ellen

Sent: Wednesday, May 04, 2011 12:07 PM

To: Kearney, Barry J.; Willen, Debra L; Sophir, Jayme; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: FW: Boeing -- revised draft response to state AGs

See my modification

Exemption 5

Ellen

Ellen Farrell

Deputy Associate General Counsel

Division of Advice, NLRB

202-273-3810

Ellen.Farrell@nlrb.gov

From: Sophir, Jayme

Sent: Wednesday, May 04, 2011 11:33 AM

To: Kearney, Barry J.; Farrell, Ellen; Szapiro, Miriam; Willen, Debra L

Cc: Dodds, Amy L.

Subject: FW: Boeing -- revised draft response to state AGs

Exemption 5

From: Willen, Debra L

Sent: Wednesday, May 04, 2011 10:58 AM

To: Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: Boeing -- revised draft response to state AGs

As Barry requested, I've incorporated his changes and am attaching the new version along with the AG's letter.

NLRB-FOIA-00009891

Jayme -- I have not addressed your concern -- please discuss it with Barry and let me know if what you all want me to

do.

Thanks, Deb

NLRB-FOIA-00009892

Exemption 5

NLRB-FOIA-00009893

Exemption 5

NLRB-FOIA-00009894

Exemption 5

NLRB-FOIA-00009895

ALANWILSON

ATTORNEY GENERAL

April 28, 2011

Lafe E. Solomon, Esquire

Acting General Counsel

National Labor Relations Board

1099 14 th Street, NW, Suite 8600

Washington, DC 20570

Dear Mr. Solomon:

As Attorneys General of our respective states, we call upon you, as Acting General

Counsel of the National Labor Relations Board (NLRB), to withdraw immediately the

complaint numbered 19-CA-32431 against Boeing. This complaint represents an assault upon the

constitutional right of free speech, and the ability of our states to create jobs and recruit industry.

Your ill-conceived retaliatory action seeks to destroy our citizens right to work. It is South

Carolina and Boeing today, but will be any of our states, with our right to work guarantees,

tomorrow.

The right to work, uninhibited by compulsory unionism, is a precious right and is

constitutionally enforceable through our states right to work laws. See Retail Clerks Intl v.

Schermerhorn, 375 U.S. 96 (1963). Such laws are designed to eliminate union affiliation as a

criterion for employment. However, the NLRB, through this single proceeding, attempts to

sound the death knell of the right to work. Additionally, this tenuous complaint will reverberate

throughout union and non-union states alike, as international companies will question the

wisdom of locating in a country where the federal government interferes in industry without

cause or justification.

Furthermore, this complaint disrupts, and may well eliminate, the production of Boeing

787 Dreamliners in South Carolina. In fact, Boeing has expanded its operations to meet product

demand in South Carolina, while adding new jobs in Washington State. The complaint charges

Boeing with the commission of an unfair labor practice, but appears to do so without legal and

factual foundation. This unparalleled and overreaching action seeks to drive a stake through the

heart of the free enterprise system. The statements of Boeing officials cited in your complaint are

the innocent exercise of the companys right of free speech. The Supreme Court long ago made

it clear that the NLRA does not limit, and the First Amendment protects, the employer's right to

express views on labor policies or problems. N.L.R.B. v. Va. Electric and Power, 314 US 469,

NLRB-FOIA-00009896

Hon. Lafe E. Solomon

April 27, 2011

Page 2

477 (1941). As the Court recently reiterated in Citizens United v. FEC, 130 S. Ct. 876, 899-90

(2010), a corporation is not a second class citizen in terms of First Amendment protection.

Our states are struggling to emerge from one of the worst economic collapses since the

Depression. Your complaint further impairs an economic recovery. Intrusion by the federal

bureaucracy on behalf of unions will not create a single new job or put one unemployed person

back to work.

The only justification for the NLRBs unprecedented retaliatory action is to aid union

survival. Your action seriously undermines our citizens right to work as well as their ability to

compete globally. Therefore, as Attorneys General, we will protect our citizens from union

bullying and federal coercion. We thus call upon you to cease this attack on our right to work,

our states economies, and our jobs.

We look forward to your immediate response.

Sincerely,

Alan Wilson

Attorney General

[Signatures continue next page]

Cc: Respective Congressional Delegations

NLRB-FOIA-00009897

Hon. Lafe E. Solomon

April 27, 2011

Page 3

Ken Cuccinelli

Attorney General
Commonwealth of Virginia

Jon C. Bruning

Attorney General
State of Nebraska

Greg Abbott

Attorney General

State of Texas

Samuel S. Olens
Attorney General
State of Georgia

E. Scott Pruitt
Attorney General
State of Oklahoma

Pam Bondi
Attorney General
State of Florida

Tom Horne

Attorney General

State of Arizona

Luther Strange

Attorney General

State of Alabama

NLRB-FOIA-00009898

Microsoft Outlook

From:
Sent:
To:
Subject:

Ferguson, John H.

W ednesday, October 27, 2010 3:40 PM

Kearney, Barry J.

Link to SC Boeing articles

Your team is probably well beyond needing this, being more cognizant than I am of web resources, but just in case

Andrew Martins FYI legal news of today had an article from a South Carolina papers website, which has a whole section

devoted to news articles about Boeings move to South Carolina. The link is

http://www.postandcourier.com/stories/2009/oct/29/boeing-co-lands-lowcountry/

One of the articles says Boeing has lost more orders than it has booked because of customer cancellations. Another said

its profits dropped 21% and that layoffs are likely.

NLRB-FOIA-00009899

Microsoft Outlook

Finch, Peter G.

W ednesday, May 25, 2011 10:52 AM

Ahearn, Richard L.

RE: seattletimes.com: Boeing will build next 787's first horizontal tails in Seattle

From:
Sent:
To:
Subject:

I saw this last night.


IAM.

It's a very interesting development, and I wonder how it plays with

Speaking of which, I think that whatever the Union wants to convey/have conveyed to

Boeing
Exemption 5

Just my $.02.

Peter G. Finch, Field Attorney

National Labor Relations Board - Region 19

2948 Jackson Federal Building

915 Second Avenue

Seattle, Washington 98174

Tel.: 206.220.6285

Fax: 206.220.6305

e-mail: peter.finch@nlrb.gov

-----Original Message-----

From: Ahearn, Richard L.

Sent: Wednesday, May 25, 2011 7:49 AM

To: Pomerantz, Anne; Anzalone, Mara-Louise; Finch, Peter G.; Harvey, Rachel

Subject: Fw: seattletimes.com: Boeing will build next 787's first horizontal tails in Seattle

--------------------------

Sent from my BlackBerry Wireless Handheld

----- Original Message -----

From:

Ex. 6 personal privacy

To: Ahearn, Richard L.

Sent: Wed May 25 07:42:42 2011

Subject: seattletimes.com: Boeing will build next 787's first horizontal tails in Seattle

This message was sent to you by

Ex. 6 personal privacy

as a service of The Seattle Times

http://www.seattletimes.com.

----------------------------------------------------------------------

Boeing will build next 787's first horizontal tails in Seattle

Boeing Commercial Airplanes chief Jim Albaugh confirmed for the first time Tuesday that the

company intends to do initial production work...

http://seattletimes.nwsource.com/html/businesstechnology/2015138417_boeing25.html

======================================================================

TO SUBSCRIBE TO THE SEATTLE TIMES PRINT EDITION

Call (206) 464-2121 or 1-800-542-0820, or go to http://seattletimes.com/subscribe

NLRB-FOIA-00009900

HOW TO ADVERTISE WITH THE SEATTLE TIMES COMPANY ONLINE For information on advertising in this

e-mail newsletter, or other online marketing platforms with The Seattle Times Company, call

(206) 464-3237 or e-mail websales@seattletimes.com

TO ADVERTISE IN THE SEATTLE TIMES PRINT EDITION Please go to

http://www.seattletimescompany.com/advertise

for information.

======================================================================

Copyright (c) 2009 The Seattle Times Company

www.seattletimes.com

NLRB-FOIA-00009901

Microsoft Outlook

From:
Sent:
To:
Subject:

Flanagan, Kevin P.

Thursday, May 27, 2010 9:43 AM

Moskowitz, Eric G.; Platt, Nancy

RE: Boeing Company, Case 19-CA-32431

Heres my take:

Exemption 5

(1) I

Exemption 5

(2) A separate issue

Exemption 5

NLRB-FOIA-00009902

Exemption 5

From: Moskowitz, Eric G.

Sent: Wednesday, May 26, 2010 4:57 PM

To: Ahearn, Richard L.

Cc: Kearney, Barry J.; Platt, Nancy; Flanagan, Kevin P.

Subject: RE: Boeing Company, Case 19-CA-32431

Off the cuff, I do not think this raises

Exemption 5

Nancy Platt and Kevin Flanagan are looking into this.

Eric

From: Ahearn, Richard L.

Sent: Tuesday, May 25, 2010 7:09 PM

To: Moskowitz, Eric G.

Subject: RE: Boeing Company, Case 19-CA-32431

Eric,

We (in the metaphorical sense)did not attempt to determine that; in fact it was Andrew Martin of our library who

made the request. However we thought it would be

Exemption 5

t.

Rich

From: Moskowitz, Eric G.

Sent: Tuesday, May 25, 2010 2:36 PM

To: Ahearn, Richard L.

Subject: FW: Boeing Company, Case 19-CA-32431

Rich:

Question: Has anyone in the Region determined from the Seattle Times what they mean

Exemption 5

Eric

From: Estep, Susan C.

Sent: Tuesday, May 25, 2010 5:12 PM

To: Kearney, Barry J.; Moskowitz, Eric G.

Cc: Baniszewski, Joseph; Ahearn, Richard L.

Subject: Boeing Company, Case 19-CA-32431

Per Regional Director Ahearns instructions, attached is a memo requesting guidance in the above case.

Susan C. Estep, Secretary to the Regional Director

NLRB, Region 19, Seattle

206.220.6333; FAX 206. 220.6305

NLRB-FOIA-00009903

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:

Flanagan, Kevin P.

Tuesday, June 01, 2010 5:29 PM

Ahearn, Richard L.

Moskowitz, Eric G.; Platt, Nancy

FW : Extended Interview with Boeing CEO Jim Albaugh

Rich We received the following response from the Seattle Times. They seem willing to work with us,

but we need to clarify a few things.

Exemption 5

I plan on contacting Edens again to make sure the Times understands this process. Before I do, it would

be helpful to know what is the minimum number of copies you think we will need (assuming the case

goes to hearing)? Also, you mentioned in our last conversation that the Region would make a transcript

from the videos. How many copies of the transcript would need to be made?

Thanks,

Kevin

From: Evelyn Edens [mailto:eedens@seattletimes.com]

Sent: Tuesday, June 01, 2010 2:41 PM

To: Flanagan, Kevin P.

Subject: RE: Extended Interview with Boeing CEO Jim Albaugh

Hello Kevin,

Thank you for your inquiry. We would be willing to burn the video interviews as they appear on our website for your limited

use. W e would require no duplication, no posting on any website and for the exclusive purpose of internal use and

possible entering into evidence. W e would charge the fee of $35.00 per disc ( 3 discs). Let me know if that will work for

your focused request.

Regards,

Evelyn Edens

News Business Development Manager

The Seattle Times

206-464-2299

From: Flanagan, Kevin P. [mailto:Kevin.Flanagan@nlrb.gov]

Sent: Friday, May 28, 2010 6:23 AM

To: Evelyn Edens

Subject: Extended Interview with Boeing CEO Jim Albaugh

NLRB-FOIA-00009904

Dear Ms. Edens: The National Labor Relations Board (NLRB) is interested in acquiring copies of the extended video

interview Dominic Gates conducted with Boeing CEO Jim Albaugh. The video is available online at the following

URL: http://seattletimes.nwsource.com/html/businesstechnology/2011673748_video%20_albaugh.html. You

previously referred our law librarian, Andrew Martin, to a website containing terms and conditions for personal use.

The NLRB intends to use these videos as part of an ongoing investigation. Furthermore, if necessary, the NLRB intends

to introduce copies of the videos into evidence during a potential hearing involving alleged violations of the National

Labor Relations Act. As such, the terms and conditions for personal use do not appear to contemplate the NLRBs

intended uses. Please let me know whether the Seattle Times would agree to these uses of the videos--that is, whether

the NLRB may acquire the videos without the restrictions for personal use.

Thanks,

Kevin

__

Kevin Flanagan

National Labor Relations Board

Special Litigation Branch

1099 14th Street, NW

Washington, DC 20570

Phone: (202) 273-2938 Fax: (202) 273-1799

Kevin.Flanagan@nlrb.gov

NLRB-FOIA-00009905

Microsoft Outlook

From:
Sent:
To:
Subject:

Ahearn, Richard L.

Thursday, June 03, 2010 12:57 PM

Flanagan, Kevin P.

RE: Extended Interview with Boeing CEO Jim Albaugh

Kevin, For purpose of the investigation we only need one copy; if we go to trial, wed need 8 copies.

Many thanks.

Rich

From: Flanagan, Kevin P.

Sent: Tuesday, June 01, 2010 2:29 PM

To: Ahearn, Richard L.

Cc: Moskowitz, Eric G.; Platt, Nancy

Subject: FW: Extended Interview with Boeing CEO Jim Albaugh

Rich We received the following response from the Seattle Times. They seem willing to work with us,

but we need to clarify a few things.

Exemption 5

I plan on contacting Edens again to make sure the Times understands this process. Before I do, it would

be helpful to know what is the minimum number of copies you think we will need (assuming the case

goes to hearing)? Also, you mentioned in our last conversation that the Region would make a transcript

from the videos. How many copies of the transcript would need to be made?

Thanks,

Kevin

From: Evelyn Edens [mailto:eedens@seattletimes.com]

Sent: Tuesday, June 01, 2010 2:41 PM

To: Flanagan, Kevin P.

Subject: RE: Extended Interview with Boeing CEO Jim Albaugh

Hello Kevin,

Thank you for your inquiry. We would be willing to burn the video interviews as they appear on our website for your limited

use. W e would require no duplication, no posting on any website and for the exclusive purpose of internal use and

possible entering into evidence. W e would charge the fee of $35.00 per disc ( 3 discs). Let me know if that will work for

your focused request.

Regards,

Evelyn Edens

News Business Development Manager

The Seattle Times

206-464-2299

NLRB-FOIA-00009906

From: Flanagan, Kevin P. [mailto:Kevin.Flanagan@nlrb.gov]

Sent: Friday, May 28, 2010 6:23 AM

To: Evelyn Edens

Subject: Extended Interview with Boeing CEO Jim Albaugh

Dear Ms. Edens: The National Labor Relations Board (NLRB) is interested in acquiring copies of the extended video

interview Dominic Gates conducted with Boeing CEO Jim Albaugh. The video is available online at the following

URL: http://seattletimes.nwsource.com/html/businesstechnology/2011673748_video%20_albaugh.html. You

previously referred our law librarian, Andrew Martin, to a website containing terms and conditions for personal use.

The NLRB intends to use these videos as part of an ongoing investigation. Furthermore, if necessary, the NLRB intends

to introduce copies of the videos into evidence during a potential hearing involving alleged violations of the National

Labor Relations Act. As such, the terms and conditions for personal use do not appear to contemplate the NLRBs

intended uses. Please let me know whether the Seattle Times would agree to these uses of the videos--that is, whether

the NLRB may acquire the videos without the restrictions for personal use.

Thanks,

Kevin

__

Kevin Flanagan

National Labor Relations Board

Special Litigation Branch

1099 14th Street, NW

Washington, DC 20570

Phone: (202) 273-2938 Fax: (202) 273-1799

Kevin.Flanagan@nlrb.gov

NLRB-FOIA-00009907

Microsoft Outlook

From:
Sent:
To:
Subject:
Attachments:

Solomon, Lafe E.

Monday, April 18, 2011 4:05 PM

Garza, Jose

FW : new draft

Boeingrelease.doc

From: Cleeland, Nancy

Sent: Monday, April 18, 2011 3:44 PM

To: Solomon, Lafe E.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Abruzzo, Jennifer; Mattina, Celeste J.

Subject: new draft

Thanks for all your suggestions. Here is the latest draft of the release. Feel free to make suggestions, particularly
Exemption 5

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

NLRB-FOIA-00009908

Exemption 5

NLRB-FOIA-00009909

Microsoft Outlook

From:
Sent:
To:
Subject:

Garza, Jose

Monday, April 18, 2011 4:08 PM

Solomon, Lafe E.

Re: new draft

Thnx!

From: Solomon, Lafe E.

To: Garza, Jose

Sent: Mon Apr 18 16:04:34 2011

Subject: FW: new draft

From: Cleeland, Nancy

Sent: Monday, April 18, 2011 3:44 PM

To: Solomon, Lafe E.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Abruzzo, Jennifer; Mattina, Celeste J.

Subject: new draft

Thanks for all your suggestions. Here is the latest draft of the release. Feel free to make suggestions, particularly
Exemption 5

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

NLRB-FOIA-00009910

Microsoft Outlook

Cleeland, Nancy

Tuesday, April 19, 2011 1:57 PM

W agner, Anthony R.; Garza, Jose

FW : part of fact sheet

From:
Sent:
To:
Subject:

Fyi - this might be of interest.

-----Original Message-----

From: Cleeland, Nancy

Sent: Tuesday, April 19, 2011 1:56 PM

To: Ahearn, Richard L.; Mattina, Celeste J.; Solomon, Lafe E.; Kearney, Barry J.; Farrell,

Ellen; Sophir, Jayme; Abruzzo, Jennifer

Subject: part of fact sheet

Hi everyone,

I'm working on the fact sheet and am struggling to condense the case law mentioned in the

Advice memo

Exemption 5

NLRB-FOIA-00009911

Exemption 5

NLRB-FOIA-00009912

Microsoft Outlook

From:

Cleeland, Nancy

Sent:

Thursday, April 28, 2011 10:24 AM

To:

Solomon, Lafe E.; Ahearn, Richard L.; Kearney, Barry J.; Liebman, Wilma B.; Colwell, John

Subject:

ezra klein

F.; Schiff, Robert; Garza, Jose; Wagner, Anthony R.

I love that Ezra Klein, a young up-and-coming opinionator on the Washington Post, highlighted the Pearlstein column this

morning, especially the part that he cited.

Domestic Policy

The administrations crackdown on Boeing is well-justified, writes Steven Pearlstein: The answer, I would suggest,

is to be found not in the case law but in the clear and unambiguous words of the National Labor Relations Act and the

history behind it. In a 1993 law review article, New York University law professor Cynthia Estlund wrote that in passing the

act, Congress sought to restrain corporate power and tilt the economic playing field in favor of workers. The idea was to

outlaw union-avoidance strategies that, while economically rational for any one firm, would be economically harmful for

the nation as a whole if widely adopted. Today, we may find all that quaintly -- or menacingly -- socialistic, but it is still the

law of the land, one that Lafe Solomon and his NLRB colleagues have a duty to enforce.

Immediately followed by this:

Interspecies argument interlude: A dog and a duckling have it out.

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

NLRB-FOIA-00009913

Microsoft Outlook

Non-Responsive

From: Cleeland, Nancy

Sent: Thursday, April 28, 2011 10:24 AM

To: Solomon, Lafe E.; Ahearn, Richard L.; Kearney, Barry J.; Liebman, Wilma B.; Colwell, John F.; Schiff, Robert; Garza,

Jose; Wagner, Anthony R.

Subject: ezra klein

I love that Ezra Klein, a young up-and-coming opinionator on the Washington Post, highlighted the Pearlstein column this

morning, especially the part that he cited.

Domestic Policy

The administrations crackdown on Boeing is well-justified, writes Steven Pearlstein: The answer, I would suggest,

is to be found not in the case law but in the clear and unambiguous words of the National Labor Relations Act and the

history behind it. In a 1993 law review article, New York University law professor Cynthia Estlund wrote that in passing the

act, Congress sought to restrain corporate power and tilt the economic playing field in favor of workers. The idea was to

outlaw union-avoidance strategies that, while economically rational for any one firm, would be economically harmful for

the nation as a whole if widely adopted. Today, we may find all that quaintly -- or menacingly -- socialistic, but it is still the

law of the land, one that Lafe Solomon and his NLRB colleagues have a duty to enforce.

Immediately followed by this:

Interspecies argument interlude: A dog and a duckling have it out.

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

NLRB-FOIA-00009914

Microsoft Outlook

From:
Sent:
To:
Subject:

Cleeland, Nancy

Thursday, April 28, 2011 3:49 PM

Solomon, Lafe E.; Kearney, Barry J.; Garza, Jose; W agner, Anthony R.

any thoughts on a response?

Hi Lafe, I fear you are in the air again. If not, please let me know if you have 5 minutes to talk. Weve been asked for

comment on this letter from 9 states asking us to withdraw the complaint.

Exemption 5

Any thoughts?

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

NLRB-FOIA-00009915

Microsoft Outlook

From:
Sent:
To:
Subject:

Garza, Jose

Thursday, April 28, 2011 3:59 PM

Cleeland, Nancy; Solomon, Lafe E.; Kearney, Barry J.; W agner, Anthony R.

RE: any thoughts on a response?

Exemption 5

From: Cleeland, Nancy

Sent: Thursday, April 28, 2011 3:49 PM

To: Solomon, Lafe E.; Kearney, Barry J.; Garza, Jose; Wagner, Anthony R.

Subject: any thoughts on a response?

Hi Lafe, I fear you are in the air again. If not, please let me know if you have 5 minutes to talk. Weve been asked for

comment on this letter from 9 states asking us to withdraw the complaint.

Exemption 5

Any thoughts?

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

NLRB-FOIA-00009916

Microsoft Outlook

From:
Sent:
To:
Subject:

Cleeland, Nancy

Thursday, April 28, 2011 4:05 PM

Garza, Jose

RE: any thoughts on a response?

When you run for office I want to work on your campaign!

This was Barry Kearneys response:

Exemption 5

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

From: Garza, Jose

Sent: Thursday, April 28, 2011 3:59 PM

To: Cleeland, Nancy; Solomon, Lafe E.; Kearney, Barry J.; Wagner, Anthony R.

Subject: RE: any thoughts on a response?

Exemption 5

From: Cleeland, Nancy

Sent: Thursday, April 28, 2011 3:49 PM

To: Solomon, Lafe E.; Kearney, Barry J.; Garza, Jose; Wagner, Anthony R.

Subject: any thoughts on a response?

Hi Lafe, I fear you are in the air again. If not, please let me know if you have 5 minutes to talk. Weve been asked for

comment on this letter from 9 states asking us to withdraw the complaint.

Exemption 5

Any thoughts?

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

NLRB-FOIA-00009917

Microsoft Outlook

From:
Sent:
To:
Subject:

Garza, Jose

Thursday, April 28, 2011 4:13 PM

Cleeland, Nancy

RE: any thoughts on a response?

Ha!

Exemption 5

From: Cleeland, Nancy

Sent: Thursday, April 28, 2011 4:05 PM

To: Garza, Jose

Subject: RE: any thoughts on a response?

When you run for office I want to work on your campaign!

This was Barry Kearneys response:

Exemption 5

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

From: Garza, Jose

Sent: Thursday, April 28, 2011 3:59 PM

To: Cleeland, Nancy; Solomon, Lafe E.; Kearney, Barry J.; Wagner, Anthony R.

Subject: RE: any thoughts on a response?

Exemption 5

From: Cleeland, Nancy

Sent: Thursday, April 28, 2011 3:49 PM

To: Solomon, Lafe E.; Kearney, Barry J.; Garza, Jose; Wagner, Anthony R.

Subject: any thoughts on a response?

Hi Lafe, I fear you are in the air again. If not, please let me know if you have 5 minutes to talk. Weve been asked for

comment on this letter from 9 states asking us to withdraw the complaint.

Exemption 5

Any thoughts?

Nancy Cleeland

NLRB-FOIA-00009918

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

NLRB-FOIA-00009919

Microsoft Outlook

From:
Sent:
To:
Subject:

Cleeland, Nancy

Thursday, April 28, 2011 4:14 PM

Garza, Jose

RE: any thoughts on a response?

You know my answer to that!

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

From: Garza, Jose

Sent: Thursday, April 28, 2011 4:13 PM

To: Cleeland, Nancy

Subject: RE: any thoughts on a response?

Ha!

Exemption 5

From: Cleeland, Nancy

Sent: Thursday, April 28, 2011 4:05 PM

To: Garza, Jose

Subject: RE: any thoughts on a response?

When you run for office I want to work on your campaign!

This was Barry Kearneys response:

Exemption 5

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

From: Garza, Jose

Sent: Thursday, April 28, 2011 3:59 PM

To: Cleeland, Nancy; Solomon, Lafe E.; Kearney, Barry J.; Wagner, Anthony R.

Subject: RE: any thoughts on a response?

Exemption 5

From: Cleeland, Nancy

Sent: Thursday, April 28, 2011 3:49 PM

To: Solomon, Lafe E.; Kearney, Barry J.; Garza, Jose; Wagner, Anthony R.

Subject: any thoughts on a response?

NLRB-FOIA-00009920

Hi Lafe, I fear you are in the air again. If not, please let me know if you have 5 minutes to talk. Weve been asked for

comment on this letter from 9 states asking us to withdraw the complaint.

Exemption 5

Any thoughts?

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

NLRB-FOIA-00009921

Microsoft Outlook

Cleeland, Nancy

Thursday, April 28, 2011 4:27 PM

Garza, Jose

RE: any thoughts on a response?

From:
Sent:
To:
Subject:

Good news I checked with Ernestine and lafe is in a session with the afl right now but should be out in a half hour.
Exemption 5

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

From: Garza, Jose

Sent: Thursday, April 28, 2011 4:13 PM

To: Cleeland, Nancy

Subject: RE: any thoughts on a response?

Ha!

Exemption 5

From: Cleeland, Nancy

Sent: Thursday, April 28, 2011 4:05 PM

To: Garza, Jose

Subject: RE: any thoughts on a response?

When you run for office I want to work on your campaign!

This was Barry Kearneys response:

Exemption 5

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

From: Garza, Jose

Sent: Thursday, April 28, 2011 3:59 PM

To: Cleeland, Nancy; Solomon, Lafe E.; Kearney, Barry J.; Wagner, Anthony R.

Subject: RE: any thoughts on a response?

Exemption 5

From: Cleeland, Nancy

Sent: Thursday, April 28, 2011 3:49 PM

NLRB-FOIA-00009922

To: Solomon, Lafe E.; Kearney, Barry J.; Garza, Jose; Wagner, Anthony R.

Subject: any thoughts on a response?

Hi Lafe, I fear you are in the air again. If not, please let me know if you have 5 minutes to talk. Weve been asked for

comment on this letter from 9 states asking us to withdraw the complaint.

Exemption 5

Any thoughts?

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

NLRB-FOIA-00009923

Microsoft Outlook

Garza, Jose

Thursday, April 28, 2011 4:27 PM

Cleeland, Nancy

RE: any thoughts on a response?

From:
Sent:
To:
Subject:

Great!

From: Cleeland, Nancy

Sent: Thursday, April 28, 2011 4:27 PM

To: Garza, Jose

Subject: RE: any thoughts on a response?

Good news I checked with Ernestine and lafe is in a session with the afl right now but should be out in a half hour.
Exemption 5

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

From: Garza, Jose

Sent: Thursday, April 28, 2011 4:13 PM

To: Cleeland, Nancy

Subject: RE: any thoughts on a response?

Ha!

Exemption 5

From: Cleeland, Nancy

Sent: Thursday, April 28, 2011 4:05 PM

To: Garza, Jose

Subject: RE: any thoughts on a response?

When you run for office I want to work on your campaign!

This was Barry Kearneys response:

Exemption 5

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

From: Garza, Jose

Sent: Thursday, April 28, 2011 3:59 PM

To: Cleeland, Nancy; Solomon, Lafe E.; Kearney, Barry J.; Wagner, Anthony R.

Subject: RE: any thoughts on a response?

NLRB-FOIA-00009924

Exemption 5

From: Cleeland, Nancy

Sent: Thursday, April 28, 2011 3:49 PM

To: Solomon, Lafe E.; Kearney, Barry J.; Garza, Jose; Wagner, Anthony R.

Subject: any thoughts on a response?

Hi Lafe, I fear you are in the air again. If not, please let me know if you have 5 minutes to talk. Weve been asked for

comment on this letter from 9 states asking us to withdraw the complaint.

Exemption 5

Any thoughts?

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

NLRB-FOIA-00009925

Microsoft Outlook

From:
Sent:
To:
Subject:

Kearney, Barry J.

Thursday, April 28, 2011 4:30 PM

Garza, Jose; Cleeland, Nancy; Solomon, Lafe E.; W agner, Anthony R.; Ahearn, Richard L.

RE: any thoughts on a response?

Exemption 5

From: Garza, Jose

Sent: Thursday, April 28, 2011 3:59 PM

To: Cleeland, Nancy; Solomon, Lafe E.; Kearney, Barry J.; Wagner, Anthony R.

Subject: RE: any thoughts on a response?

Exemption 5

From: Cleeland, Nancy

Sent: Thursday, April 28, 2011 3:49 PM

To: Solomon, Lafe E.; Kearney, Barry J.; Garza, Jose; Wagner, Anthony R.

Subject: any thoughts on a response?

Hi Lafe, I fear you are in the air again. If not, please let me know if you have 5 minutes to talk. Weve been asked for

comment on this letter from 9 states asking us to withdraw the complaint.

Exemption 5

Any thoughts?

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

NLRB-FOIA-00009926

Microsoft Outlook

From:
Sent:
To:
Subject:

Cleeland, Nancy

Thursday, April 28, 2011 4:33 PM

Kearney, Barry J.; Garza, Jose; Solomon, Lafe E.; W agner, Anthony R.; Ahearn, Richard L.

RE: any thoughts on a response?

Great I just learned from Ernestine that Lafe is in a session until about 5 our time. Ill write up a draft statement and run it

by all of you before sending it for his approval. Hopefully we can get something to the reporter before her deadline.

Thanks!

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

From: Kearney, Barry J.

Sent: Thursday, April 28, 2011 4:30 PM

To: Garza, Jose; Cleeland, Nancy; Solomon, Lafe E.; Wagner, Anthony R.; Ahearn, Richard L.

Subject: RE: any thoughts on a response?

Exemption 5

From: Garza, Jose

Sent: Thursday, April 28, 2011 3:59 PM

To: Cleeland, Nancy; Solomon, Lafe E.; Kearney, Barry J.; Wagner, Anthony R.

Subject: RE: any thoughts on a response?

Exemption 5

From: Cleeland, Nancy

Sent: Thursday, April 28, 2011 3:49 PM

To: Solomon, Lafe E.; Kearney, Barry J.; Garza, Jose; Wagner, Anthony R.

Subject: any thoughts on a response?

Hi Lafe, I fear you are in the air again. If not, please let me know if you have 5 minutes to talk. Weve been asked for

comment on this letter from 9 states asking us to withdraw the complaint.

Exemption 5

NLRB-FOIA-00009927

Any thoughts?

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

NLRB-FOIA-00009928

Microsoft Outlook

From:
Sent:
To:
Subject:

Ahearn, Richard L.

Thursday, April 28, 2011 4:36 PM

Kearney, Barry J.; Garza, Jose; Cleeland, Nancy; Solomon, Lafe E.; W agner, Anthony R.

RE: any thoughts on a response?

Exemption 5

From: Kearney, Barry J.

Sent: Thursday, April 28, 2011 1:30 PM

To: Garza, Jose; Cleeland, Nancy; Solomon, Lafe E.; Wagner, Anthony R.; Ahearn, Richard L.

Subject: RE: any thoughts on a response?

Exemption 5

From: Garza, Jose

Sent: Thursday, April 28, 2011 3:59 PM

To: Cleeland, Nancy; Solomon, Lafe E.; Kearney, Barry J.; Wagner, Anthony R.

Subject: RE: any thoughts on a response?

Exemption 5

From: Cleeland, Nancy

Sent: Thursday, April 28, 2011 3:49 PM

To: Solomon, Lafe E.; Kearney, Barry J.; Garza, Jose; Wagner, Anthony R.

Subject: any thoughts on a response?

Hi Lafe, I fear you are in the air again. If not, please let me know if you have 5 minutes to talk. Weve been asked for

comment on this letter from 9 states asking us to withdraw the complaint.

Exemption 5

Any thoughts?

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

NLRB-FOIA-00009929

nancy.cleeland@nlrb.gov

NLRB-FOIA-00009930

Microsoft Outlook

Garza, Jose

Thursday, April 28, 2011 6:09 PM

Farrell, Ellen; Kearney, Barry J.; Cleeland, Nancy; Solomon, Lafe E.; Ahearn, Richard L.

Re: time to decide

From:
Sent:
To:
Subject:

I'm OK

Exemption 5

From: Farrell, Ellen

To: Kearney, Barry J.; Cleeland, Nancy; Solomon, Lafe E.; Garza, Jose; Ahearn, Richard L.

Sent: Thu Apr 28 18:07:13 2011

Subject: RE: time to decide

Exemption 5

is fine with me too.

Ellen

Ellen Farrell

Deputy Associate General Counsel

Division of Advice, NLRB

202-273-3810

Ellen.Farrell@nlrb.gov

From: Kearney, Barry J.

Sent: Thursday, April 28, 2011 6:05 PM

To: Cleeland, Nancy; Solomon, Lafe E.; Garza, Jose; Ahearn, Richard L.; Farrell, Ellen

Subject: Re: time to decide

I would go with

Exemption 5

--------------------------

Sent from my BlackBerry Wireless Handheld

From: Cleeland, Nancy

To: Solomon, Lafe E.; Kearney, Barry J.; Garza, Jose; Ahearn, Richard L.; Farrell, Ellen

Sent: Thu Apr 28 17:59:18 2011

Subject: time to decide

Still no word from Lafe, the story goes to bed in 4 minutes. I need a judgment call. Should we

Exemption 5

Exemption 5

NLRB-FOIA-00009931

Exemption 5

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

NLRB-FOIA-00009932

Microsoft Outlook

From:
Sent:
To:
Subject:

Cleeland, Nancy

W ednesday, May 04, 2011 2:48 PM

Garza, Jose; Solomon, Lafe E.; Ahearn, Richard L.

fyi, here are stories currently in the works about boeing

FYI, these publications are working on stories NLRB regarding Boeing letter today. Some are seeking phone interviews.

Financial Times deadline 4 pm today story running Friday on Boeing, including letter. Seeking short interview with

Lafe today, and Im answering some other questions.

Bloomberg Stephanie Armour I'm working on this broader picture story about implications of

the case, why such a backlash against it, what is at stake here both for unions and

businesses. Seeking interview with Lafe.

Washington Examiner editorial and story for tomorrow on Boeing letter theyre ok with the statement.

Seattle Post Intelligencer story for tomorrow on Boeing letter, havent sent statement yet waiting for possible revision

Post and Courier in Charleston SC seeking reaction to Boeing letter, havent sent statement yet

AP daily about letter, he has the statement but we can revise

BNA daily about letter, I sent the statement

CQ Weekly story for this weekend, deadline tomorrow, broad look at policy oscillation at the NLRB. W ould like a brief

phone interview with Wilma Thursday morning.

Question:

Exemption 5

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

NLRB-FOIA-00009933

Microsoft Outlook

From:
Sent:
To:
Subject:

Ahearn, Richard L.

W ednesday, May 04, 2011 3:00 PM

Cleeland, Nancy; Garza, Jose; Solomon, Lafe E.

RE: fyi, here are stories currently in the works about boeing

further tomorrow and Friday I am all day each day at the

Exemption 5
Pacific Coast Labor & Employment Law Conference, where I am speaking tomorrow pm and need to be generally present

as I am the organizations treasurer this year and Chair for next year. Also my blackberry is dead and being replaced; Al

Turner informed me I should expect new one in tomorrows mail, but until it arrives Ill have limited access.

From: Cleeland, Nancy

Sent: Wednesday, May 04, 2011 11:48 AM

To: Garza, Jose; Solomon, Lafe E.; Ahearn, Richard L.

Subject: fyi, here are stories currently in the works about boeing

FYI, these publications are working on stories NLRB regarding Boeing letter today. Some are seeking phone interviews.

Financial Times deadline 4 pm today story running Friday on Boeing, including letter. Seeking short interview with

Lafe today, and Im answering some other questions.

Bloomberg Stephanie Armour I'm working on this broader picture story about implications of

the case, why such a backlash against it, what is at stake here both for unions and

businesses. Seeking interview with Lafe.

Washington Examiner editorial and story for tomorrow on Boeing letter theyre ok with the statement.

Seattle Post Intelligencer story for tomorrow on Boeing letter, havent sent statement yet waiting for possible revision

Post and Courier in Charleston SC seeking reaction to Boeing letter, havent sent statement yet

AP daily about letter, he has the statement but we can revise

BNA daily about letter, I sent the statement

CQ Weekly story for this weekend, deadline tomorrow, broad look at policy oscillation at the NLRB. W ould like a brief

phone interview with Wilma Thursday morning.

Question:

Exemption 5

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

NLRB-FOIA-00009934

Microsoft Outlook

From:
Sent:
To:
Subject:

Cleeland, Nancy

W ednesday, May 04, 2011 3:02 PM

Ahearn, Richard L.; Garza, Jose; Solomon, Lafe E.

RE: fyi, here are stories currently in the works about boeing

That all makes sense.

Exemption 5

Thanks, Nancy

From: Ahearn, Richard L.

Sent: Wednesday, May 04, 2011 3:00 PM

To: Cleeland, Nancy; Garza, Jose; Solomon, Lafe E.

Subject: RE: fyi, here are stories currently in the works about boeing

Exemption 5
further tomorrow and Friday I am all day each day at the

Pacific Coast Labor & Employment Law Conference, where I am speaking tomorrow pm and need to be generally present

as I am the organizations treasurer this year and Chair for next year. Also my blackberry is dead and being replaced; Al

Turner informed me I should expect new one in tomorrows mail, but until it arrives Ill have limited access.

From: Cleeland, Nancy

Sent: Wednesday, May 04, 2011 11:48 AM

To: Garza, Jose; Solomon, Lafe E.; Ahearn, Richard L.

Subject: fyi, here are stories currently in the works about boeing

FYI, these publications are working on stories NLRB regarding Boeing letter today. Some are seeking phone interviews.

Financial Times deadline 4 pm today story running Friday on Boeing, including letter. Seeking short interview with

Lafe today, and Im answering some other questions.

Bloomberg Stephanie Armour I'm working on this broader picture story about implications of

the case, why such a backlash against it, what is at stake here both for unions and

businesses. Seeking interview with Lafe.

Washington Examiner editorial and story for tomorrow on Boeing letter theyre ok with the statement.

Seattle Post Intelligencer story for tomorrow on Boeing letter, havent sent statement yet waiting for possible revision

Post and Courier in Charleston SC seeking reaction to Boeing letter, havent sent statement yet

AP daily about letter, he has the statement but we can revise

BNA daily about letter, I sent the statement

CQ Weekly story for this weekend, deadline tomorrow, broad look at policy oscillation at the NLRB. W ould like a brief

phone interview with Wilma Thursday morning.

NLRB-FOIA-00009935

Question:

Exemption 5

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

NLRB-FOIA-00009936

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:

Garza, Jose

Thursday, May 05, 2011 1:38 PM

Cleeland, Nancy; Mattina, Celeste J.; Schiff, Robert; Abruzzo, Jennifer; Solomon, Lafe E.

Kearney, Barry J.

RE: Boeing -- revised draft response to state AGs

To the extent it is possible, I think it would be best to have this conversation in person.

From: Cleeland, Nancy

Sent: Thursday, May 05, 2011 1:35 PM

To: Mattina, Celeste J.; Schiff, Robert; Garza, Jose; Abruzzo, Jennifer; Solomon, Lafe E.

Cc: Kearney, Barry J.

Subject: RE: Boeing -- revised draft response to state AGs

Exemption 5

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

From: Mattina, Celeste J.

Sent: Thursday, May 05, 2011 12:07 PM

To: Schiff, Robert; Garza, Jose; Cleeland, Nancy; Abruzzo, Jennifer; Solomon, Lafe E.

Cc: Kearney, Barry J.

Subject: FW: Boeing -- revised draft response to state AGs

Barry and his people drafted a very good response. I made some minor edits; I

Exemption 5

From: Kearney, Barry J.

Sent: Wednesday, May 04, 2011 2:28 PM

To: Solomon, Lafe E.; Mattina, Celeste J.

Subject: FW: Boeing -- revised draft response to state AGs

Draft response from you to State AGs

From: Willen, Debra L

Sent: Wednesday, May 04, 2011 2:24 PM

To: Kearney, Barry J.; Sophir, Jayme; Farrell, Ellen; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: RE: Boeing -- revised draft response to state AGs

NLRB-FOIA-00009937

clean draft and AGs' letter attached

From: Kearney, Barry J.

Sent: Wednesday, May 04, 2011 2:10 PM

To: Sophir, Jayme; Farrell, Ellen; Willen, Debra L; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: RE: Boeing -- revised draft response to state AGs

I agree with all the revisions. Please send me a clean draft along with the AG letter to send on to Lafe

From: Sophir, Jayme

Sent: Wednesday, May 04, 2011 12:18 PM

To: Farrell, Ellen; Kearney, Barry J.; Willen, Debra L; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: RE: Boeing -- revised draft response to state AGs

Notwithstanding that this case is about retaliation for striking in other states, they seem

Exemption 5

But, regardless of what theyre saying, Ellens

modification is definitely better.

From: Farrell, Ellen

Sent: Wednesday, May 04, 2011 12:07 PM

To: Kearney, Barry J.; Willen, Debra L; Sophir, Jayme; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: FW: Boeing -- revised draft response to state AGs

See my modification

Exemption 5

Ellen

Ellen Farrell

Deputy Associate General Counsel

Division of Advice, NLRB

202-273-3810

Ellen.Farrell@nlrb.gov

From: Sophir, Jayme

Sent: Wednesday, May 04, 2011 11:33 AM

To: Kearney, Barry J.; Farrell, Ellen; Szapiro, Miriam; Willen, Debra L

Cc: Dodds, Amy L.

Subject: FW: Boeing -- revised draft response to state AGs

Exemption 5

From: Willen, Debra L

Sent: Wednesday, May 04, 2011 10:58 AM

To: Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: Boeing -- revised draft response to state AGs

NLRB-FOIA-00009938

As Barry requested, I've incorporated his changes and am attaching the new version along with the AG's letter.

Jayme -- I have not addressed your concern -- please discuss it with Barry and let me know if what you all want me to

do.

Thanks, Deb

NLRB-FOIA-00009939

Microsoft Outlook

From:
Sent:
To:
Subject:

Garza, Jose

Tuesday, June 07, 2011 9:56 AM

Mattina, Celeste J.; Solomon, Lafe E.; Abruzzo, Jennifer

RE: Boeing -- revised draft response to state AGs

That is my recollection as well.

From: Mattina, Celeste J.

Sent: Tuesday, June 07, 2011 9:55 AM

To: Garza, Jose; Solomon, Lafe E.; Abruzzo, Jennifer

Subject: FW: Boeing -- revised draft response to state AGs

We have no record of having sent this response out and I seem to recall
Exemption 5
I am just sending this message out

in case somebody has a different recollection, although I am pretty sure this is what

happened.

From: Mattina, Celeste J.

Sent: Tuesday, June 07, 2011 9:11 AM

To: MotonBostick, Sylvia; Contee, Ernestine R.

Subject: FW: Boeing -- revised draft response to state AGs

I am pretty sure we decided not to send this response, but can you please check and

get back to me on this? Thank you!

From: Farrell, Ellen

Sent: Tuesday, June 07, 2011 9:07 AM

To: Mattina, Celeste J.

Subject: FW: Boeing -- revised draft response to state AGs

Heres both the AGs letter and our draft response

Ellen

Ellen Farrell

Deputy Associate General Counsel

Division of Advice, NLRB

202-273-3810

Ellen.Farrell@nlrb.gov

From: Kearney, Barry J.

Sent: Thursday, May 05, 2011 1:25 PM

To: Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam; Willen, Debra L

Subject: FW: Boeing -- revised draft response to state AGs

NLRB-FOIA-00009940

From: Mattina, Celeste J.

Sent: Thursday, May 05, 2011 12:07 PM

To: Schiff, Robert; Garza, Jose; Cleeland, Nancy; Abruzzo, Jennifer; Solomon, Lafe E.

Cc: Kearney, Barry J.

Subject: FW: Boeing -- revised draft response to state AGs

Barry and his people drafted a very good response. I made some minor edits; I

Exemption 5

From: Kearney, Barry J.

Sent: Wednesday, May 04, 2011 2:28 PM

To: Solomon, Lafe E.; Mattina, Celeste J.

Subject: FW: Boeing -- revised draft response to state AGs

Draft response from you to State AGs

From: Willen, Debra L

Sent: Wednesday, May 04, 2011 2:24 PM

To: Kearney, Barry J.; Sophir, Jayme; Farrell, Ellen; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: RE: Boeing -- revised draft response to state AGs

clean draft and AGs' letter attached

From: Kearney, Barry J.

Sent: Wednesday, May 04, 2011 2:10 PM

To: Sophir, Jayme; Farrell, Ellen; Willen, Debra L; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: RE: Boeing -- revised draft response to state AGs

I agree with all the revisions. Please send me a clean draft along with the AG letter to send on to Lafe

From: Sophir, Jayme

Sent: Wednesday, May 04, 2011 12:18 PM

To: Farrell, Ellen; Kearney, Barry J.; Willen, Debra L; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: RE: Boeing -- revised draft response to state AGs

Notwithstanding that this case is about retaliation for striking in other states, they seem

Exemption 5

But, regardless of what theyre saying, Ellens

modification is definitely better.

From: Farrell, Ellen

Sent: Wednesday, May 04, 2011 12:07 PM

To: Kearney, Barry J.; Willen, Debra L; Sophir, Jayme; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: FW: Boeing -- revised draft response to state AGs

NLRB-FOIA-00009941

See my modification

Exemption 5

Exemption 5
Ellen

Ellen Farrell

Deputy Associate General Counsel

Division of Advice, NLRB

202-273-3810

Ellen.Farrell@nlrb.gov

From: Sophir, Jayme

Sent: Wednesday, May 04, 2011 11:33 AM

To: Kearney, Barry J.; Farrell, Ellen; Szapiro, Miriam; Willen, Debra L

Cc: Dodds, Amy L.

Subject: FW: Boeing -- revised draft response to state AGs

Exemption 5
Exemption 5

From: Willen, Debra L

Sent: Wednesday, May 04, 2011 10:58 AM

To: Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: Boeing -- revised draft response to state AGs

As Barry requested, I've incorporated his changes and am attaching the new version along with the AG's letter.

Jayme -- I have not addressed your concern -- please discuss it with Barry and let me know if what you all want me to

do.

Thanks, Deb

NLRB-FOIA-00009942

Microsoft Outlook

From:

Todd, Dianne

Sent:

Thursday, April 22, 2010 6:56 PM

To:

Ahearn, Richard L.; Jablonski, Colleen G.

Subject:

Video - Boeing

Attachments:

2011237525_albaughvideo.html

From: Jude Bryan [mailto:bryan@workerlaw.com]

Sent: Tuesday, April 20, 2010 4:25 PM

To: Todd, Dianne

Cc: Carson Glickman-Flora

Subject: Case No. 19-CA-32431

Ms. Todd:

Attached is Seattle Times reporter Dominic Gates' video of his interview with Jim Albaugh. You'll need to scroll down to

get to the video.

Jude Bryan | Schwerin Campbell Barnard Iglitzin & Lavitt LLP | 206.285.2828 | www.workerlaw.com

This communication is intended for a specific recipient and may be protected by the attorney client and work-product privilege.

If you receive this message in error, please permanently delete it and notify the sender.

NLRB-FOIA-00009943

%XVLQHVV 7 HFKQRORJ \ _9 LGHR_$ QLQWHUYLHZ Z LWK%RHLQJ & ( 2 - LP $ OEDXJ KH[ WHQGHG 3 DJ HR I  

z
z

/ RZ 
J UDS K LF R UWH[ W
7 RGD\
VQHZ VLQGH[

7 KH6 HDWWOH7 LP HV& RP SDQ\


1: M
REV_1 : DXW
RV_1 : KRP HV_1 : VRXUFH_) UHH& ODVVLI LHGV_VHDWWOHWLP HVF R P

% XVLQHVV7 HFKQRORJ \

2 X UQHWZ R UN VLWHV
VHDWWOHWLP HVF R P _ $ GYDQFHG

z
z

+ RP H
/ RFDO
{ + RP H
{
{
{
{
{
{
{
{

( GX FDWLRQ
3 R OLWLF V
2 E LWX DULHV
6 S HF LDOUHS R UWV
& RUUHF WLRQV
7 UDI I LF
: HDWKHU

1 LFROH% URGHXU
- HUU\ / DUJ H
{ ' DQQ\ 
: HVW
QHDW
{ % HOOHY X H
{ , VVDT XDK
{ . LUNODQG
1 DWLRQ: RUOG
{ + RP H
{ 3 R OLWLF V
% XVLQHVV7 HFK
{ + RP H
{ %RHLQJ $ HURVSDFH
{ 0 LFURVRI W
{ 1 :
FRP SDQLHV
{ 3 HUVRQDOW
HFK QRORJ \
{ 5 H DOHVWDWH
{ 6 W
RFNP DUNHW
{

I LOH' & : 9 VFUDWFKWHP SHVDGEDWW& DFKH' LUGDWD6 WRUHBFDVHBB

       
NLRB-FOIA-00009944

%XVLQHVV 7 HFKQRORJ \ _9 LGHR_$ QLQWHUYLHZ Z LWK%RHLQJ & ( 2 - LP $ OEDXJ KH[ WHQGHG 3 DJ HR I  

% ULHU' XGOH\
5 HWDLO5 HS RUW
{ 6 RXQG
( FRQRP \
{ 6 XQGD\ 
%X] ]
6 S R UWV
{ + RP H
{ + LJ K
6 FKRRO
{ 0 DULQHUV
{ 6 HDKDZ NV
{ 6 RXQGHUV
) &
{ 6 WR UP
{ + XVNLHV
{ & RXJ DUV
{ 6 HDW
WOH8 QLY HUVLW\
{ & ROOHJ H
{ * RO
I
{ 2 O
\ P SLFV
{ 6 QRZ VS RUW
V
{ 2 W
K HUVS R UWV
{

{
{

) DQVKRS

6 WHY H. HOOH\


- HUU\ % UHZ HU
{ 6 LGHOLQH& K DW
WHU
( QWHUWDLQP HQW
{ + RP H
{ 5 HVW
DX UDQWV
{ 0 RYLHV
{ 0 XVLF
1 LJ KWOLI H
{ 7 K H$ UW
V
{ % RRNV
{ 7 9 OLVW
LQJ V
{ & DOOE R DUG
{

{
{
{
{

) LQGHY HQWV Y HQX HV


7 RGD\
VHY HQWV
6 X E P LWOLVWLQJ V

& RP LFV* DP HV
{ + RURVFRSHV
{ / RW
WHU\
/ LYLQJ
{ + RP H
{ ) RRG
: LQH
{ + RP H
* DUGHQ
{ 3 DFLI LF
1 : 0 DJ D] LQH
{ + HDOWK
{ :
LQH$ GYLVHU3 DXO* UHJ XWW
7 UDY HO
{

I LOH' & : 9 VFUDWFKWHP SHVDGEDWW& DFKH' LUGDWD6 WRUHBFDVHBB

       
NLRB-FOIA-00009945

%XVLQHVV 7 HFKQRORJ \ _9 LGHR_$ QLQWHUYLHZ Z LWK%RHLQJ & ( 2 - LP $ OEDXJ KH[ WHQGHG 3 DJ HR I  

{
{
{
{
{
{

+ RP H
6 HDWWOHJ X LGH
: DVKLQJ WRQJ XLGH
2 UHJ RQJ XLGH
% ULWLVK& ROXP ELDJ XLGH
7 UDY HOWR R OV

{
{

9 DF DWLR QUHQWDOV

7 UDYHO: LVH& DURO3 XFFL


5 LFN6 WHYHV
( XURSH
{ 7 UDLO
0 L[ 5 RQ- XGG
2 SLQLRQ
{ + RP H
{ / HW
WHUVWR WK H( G LWR U
{ 7 KH
' HP RFUDF\ 3 DSHUV
{

{
{

( G& HWHUD% ORJ

z
z
z

6 KRSSLQJ
- RE V
{ 6 HDUF K MR E OLVW
LQJ V
{ 3 RVW
DUHVX P H
{ & DUHHU& HQW
HU
{ 3 R VWDMR E
$ X WRV
{ 6 HDUF K DX W
R OLVWLQJ V
{ 5 HVHDUFK & HQW
HU
{ 6 HOODY HK LF OH
+ RP HV
{ 6 HDUFK
I RUQHZ KRP HV
{ 6 HDUF K DOOS UR S HUW
LHV
{ 2 SHQ
KRXVHV
{ 6 HOODS UR S HUW
\
5 HQ WDOV
{ 6 HDUF K DOOUHQ WDOV
{ 3 R VWDUH Q WDOOLVWLQ J
& ODVVLI LHGV
{ 3 R VWDOLVWLQ J

z
z

% X\ DGV
{ 2 QOLQHDGV
{ 1 HZ VSDSHU
DGV
{ & ODVVLI LHGDGV

4 X LF NOLQNV7 UDI I LF _0 RYLHV _5 HVWDX UDQWV _7 RGD\


VHY HQWV _9 LGHR _3 K RWRV _% ORJ V _) RUXP V _
1 HZ VSDSHUGHOLYHU\
& R QWDF WX V
2 ULJ LQDOO\ SXEOLVKHG0 DUFK     DW3 0 _3 DJ HP RGLI LHG0 DUFK     DW   3 0

I LOH' & : 9 VFUDWFKWHP SHVDGEDWW& DFKH' LUGDWD6 WRUHBFDVHBB

       
NLRB-FOIA-00009946

%XVLQHVV 7 HFKQRORJ \ _9 LGHR_$ QLQWHUYLHZ Z LWK%RHLQJ & ( 2 - LP $ OEDXJ KH[ WHQGHG 3 DJ HR I  

& RP P HQWV 

( 
P DLODUWLF OH

3 ULQ WY LHZ

6 K DUH

9 LGHR_$ QLQW
HUYLHZ Z LW
K%RHLQJ& ( 2 - LP 
$ OE DX J KH[ WHQGHGYHUVLRQ
- LP $ OEDXJ KWKH& KLHI ( [ HFXWLYH2 I I LFHURI % RHLQJ & RP P HUFLDO$ LUSODQHVWDONVZ LWK6 HDWWOH7 LP HV
DHURVS DFHUHS RUWHU' RP LQLF* DWHVDE RX WWK H' UHDP OLQHU& K DUOHVWRQDQGFRP S DQ\
VI X WX UHLQWK H3 X J HW
6 RX QGDUHD
- LP $ OEDXJ KWKH& KLHI ( [ HFXWLYH2 I I LFHURI % RHLQJ & RP P HUFLDO$ LUSODQHVWDONVZ LWK6 HDWWOH7 LP HV
DHURVS DFHUHS RUWHU' RP LQLF* DWHVDE RX WWK H' UHDP OLQHU& K DUOHVWRQDQGWK HFRP S DQ\
VI X WX UHLQWK H
3 X J HW6 RX QGDUHD: DWFK WK HLQWHUY LHZ E HORZ RUF OLF N K HUH WR VHHH[ F HUS WV

I LOH' & : 9 VFUDWFKWHP SHVDGEDWW& DFKH' LUGDWD6 WRUHBFDVHBB

       
NLRB-FOIA-00009947

%XVLQHVV 7 HFKQRORJ \ _9 LGHR_$ QLQWHUYLHZ Z LWK%RHLQJ & ( 2 - LP $ OEDXJ KH[ WHQGHG 3 DJ HR I  

I LOH' & : 9 VFUDWFKWHP SHVDGEDWW& DFKH' LUGDWD6 WRUHBFDVHBB

       
NLRB-FOIA-00009948

%XVLQHVV 7 HFKQRORJ \ _9 LGHR_$ QLQWHUYLHZ Z LWK%RHLQJ & ( 2 - LP $ OEDXJ KH[ WHQGHG 3 DJ HR I  

I LOH' & : 9 VFUDWFKWHP SHVDGEDWW& DFKH' LUGDWD6 WRUHBFDVHBB

       
NLRB-FOIA-00009949

%XVLQHVV 7 HFKQRORJ \ _9 LGHR_$ QLQWHUYLHZ Z LWK%RHLQJ & ( 2 - LP $ OEDXJ KH[ WHQGHG 3 DJ HR I  

( 
P DLODUWLF OH

3 ULQ WY LHZ

6 K DUH

0 RUH%XVLQHVV 7 HFKQRORJ \
( $ ' 6 VD\ VLWVWDQNHUE LGZ LOOE HDW% RHLQJ RQS ULFH
$ P D] RQ1 & E LGWRWUDFNWD[ HVY LRODWHVI UHHVS HHFK
3 DFFDUDQQRXQFHVLP SURYHG4 HDUQLQJ V
8 3' $ 7( 

3 0
$ SSOH4 LQFRP HXSSFWVKDUHVMXP SWRQHZ KLJ K
8 3' $ 7( 

3 0
* ROGP DQUHS RUWVK X J HS URI LWVE X WWURX E OHVP RX QW
0 RUH% XVLQHVV 7 HFKQRORJ \ KHDGOLQHV
& RP P HQW
V
1 RFRP P HQWVK DY HE HHQS RVWHGWRWK LVDUWLF OH
5 HDGDOOFRP P HQWV6 K DUH\ RX UWK RX J K WV

I LOH' & : 9 VFUDWFKWHP SHVDGEDWW& DFKH' LUGDWD6 WRUHBFDVHBB

       
NLRB-FOIA-00009950

%XVLQHVV 7 HFKQRORJ \ _9 LGHR_$ QLQWHUYLHZ Z LWK%RHLQJ & ( 2 - LP $ OEDXJ KH[ WHQGHG 3 DJ HR I  

* HWKRP HGHOLYHU\ WRGD\ 


9 LGHR

* OHH
I ODVKP RESHUI RUP DQFHV

% HOO\ GDQFLQJ I RUDFDX VH

/ LE HUW\ ) RX QGDWLRQ
V% 

7 KH/ LEHUW\ ) RXQGDWLRQ
WR X UVWK HF R X QWU\ Z LWK D
UHVWR UHG% R HLQJ % 

: : , , ERP EHU) OLJ KW
VDUH
DY DLODE OHWR WK HS X E OLF 

+ HDU$ OH[ / XSOD\ SLDQR

2 SHQLQJ GD\ DW


( P HUDOG' RZ QV

3 OD\ VWDWLRQ0 RYHGHP R

% DUHI RRW7 HG

$ QLP HI DQVDWWHQG6 DNX UD


& RQ

% HDFRQ+ LOO, QWHUQDWLRQDO6 FK RROODQJ X DJ HLP P HUVLRQ

0 DUFK) RXUWKSHUI RUP VDW+ RQN) HVW: HVW


0 RUHYLGHRV
$ GYH UWLVLQJ

$ 3 9 LGHR
( QWHUWDLQP HQW_7 RS9 LGHR_: RUOG_2 I I EHDW9 LGHR_6 FL
7 HFK
0 DUNHWS ODF H

0 R VWUHDG

I LOH' & : 9 VFUDWFKWHP SHVDGEDWW& DFKH' LUGDWD6 WRUHBFDVHBB

       
NLRB-FOIA-00009951

%XVLQHVV 7 HFKQRORJ \ _9 LGHR_$ QLQWHUYLHZ Z LWK%RHLQJ & ( 2 - LP $ OEDXJ KH[ WHQGHG 3 DJ HR I  

0 RVWFRP P HQWHG
0 R VWH
P DLOHG









) HORQDFFXVHGRI UXQQLQJ DQLP DO


VH[ I DUP LQ: KDW
FRP & RXQW
\
6 2 / ' WLQ\ WRZ QWR% RWK HOOFRX S OHI RU
+ LJ K F RX UWWRORRNDW& RVWFRVDOHRI 6 Z LVVZ DWFK HV
% HOOWRZ QK LJ K 
ULVHZ R Q
WE HLP S ORGHG
: LOO5 RVVLUXQDJ DLQVW0 XUUD\ " 2 WKHU6 HQDWHKRSHI XOVZ DQWWRNQRZ
* DUEDJ HI RXQGLQVWRP DFKRI GHDGZ KDOHRQ: HVW6 HDWWOHEHDFK
: KDW
VP RUHDP D] LQJ W
KHQHZ L3 KRQHRU$ SSOHORVLQJ RQH"  8 3 ' $ 7 ( ' Z LWKEDFNVWRU\ _% ULH U
' XGOH\
V%ORJ
  3 DQK DQGOLQJ E LOOS DVVHV
0 F* LQQY HWROLNHO\ WRK ROG_ 3 ROLWLF V1 RUWK Z HVW
  6 HDK DZ NV
OHI W
WDF NOHT X HVWLRQVX UI DF HVI RUGUDI W
   6 HDI DLUK \ GURS ODQHUDFHLQMHRS DUG\











* DP HWK UHDG0 DULQHUVY V2 ULROHV$ S ULO



& RX QFLOS RLVHGWRS DVVS DQK DQGOLQJ E LOO0 F* LQQVD\ VK H
OOY HWRQRP DWWHUZ K DW
0 RWK HUGHS RUWHGWR0 H[ LFR\ HDUVDJ RZ LQVFK DQFHWRUHWX UQ

7 K HWHD
SDUW\ P RYHP HQWP XFKDGRDERXWQRWYHU\ P XFK

5 HQWRQZ RP DQGLHVDI WHUE HLQJ VWUX FNE \ E LF\ FOLVW   
6 HDWWOHS DQK DQGOLQJ E LOOS DVVHVODF N VY R WHVWR R Y HUULGHP D\ R UDOY HWR

) RJ HUVRQVD\ VKH
VKDSS\ Z KHUHKHLV

& OLI I / HHVXVSHQVLRQDQGI LQHDUHGURSSHGFRP SOHWHO\

6 HDI DLUK \ GURS ODQHUDFHLQMHRS DUG\

* DUEDJ HLQVWRP DFKRI GHDGZ KDOH













) HORQDFFXVHGRI UXQQLQJ DQLP DO


VH[ I DUP LQ: KDW
FRP & RXQW
\
6 2 / ' WLQ\ WRZ QWR% RWK HOOFRX S OHI RU
& KDWHDX6 WH0 LFKHOOHDQQRXQFHVVXP P HUFRQFHUWVFKHGXOH
, UDQLDQFOHULF3 URP LVFXRXVZ RP HQFDXVHT XDNHV
* DUEDJ HI RXQGLQVWRP DFKRI GHDGZ KDOHRQ: HVW6 HDWWOHEHDFK
( GX FDWLQJ FUHDWLY HWK LQNHUVLVJ RRGI RUWK HHFRQRP \ _* XHVWFROXP QLVW
% HOOWRZ QK LJ K 
ULVHZ R Q
WE HLP S ORGHG
5 HGP RQG+ LJ KHQYLURQP HQWDO
VFLHQFHWHDFKHUZ LQV* UHHQ3 UL] H
0 DX L
VK LJ K OLI H
( [ S HQVLY HWLF NHWNHHS VUHVWRUHG) O\ LQJ ) RUWUHVVLQWK HDLU



0 RVWYLHZ HGLP DJ HV
$

6 LWHP DS








2 X UQHWZ R UN VLWHV

I LOH' & : 9 VFUDWFKWHP SHVDGEDWW& DFKH' LUGDWD6 WRUHBFDVHBB

       
NLRB-FOIA-00009952

%XVLQHVV 7 HFKQRORJ \ _9 LGHR_$ QLQWHUYLHZ Z LWK%RHLQJ & ( 2 - LP $ OEDXJ KH[ WHQGH 3 DJ H  R I  








VHDWWOHWLP HVF R P _$ GYDQFHG

7 KH6 HDWWOH7 LP HV& RP SDQ\

z
z
z
z
z

$ ERXWWKHFRP SDQ\
( P SOR\ P HQWRSSRUWXQLWLHV
6 HDWWOH7 LP HVVWR UH
$ GY HUWLVHZ LWK X V
1 HZ VSDSHUVLQ( GXFDWLRQ

6 HUYLFHV

z
z
z
z
z
z

< RX UDFFRX QW/ RJ LQ


(
P DLOQHZ VOHWWHUV
& R QWDF WX V
) HHGEDFNDQGT XHVWLRQV
6 X E P LWOLVWLQJ V
6 HQGX VQHZ VWLS V

1 HZ V

z
z
z
z
z
z
z
z
z
z
z

+ RP H
/ RFDO
1 DWLRQ: RUOG
% XVLQHVV7 HFK
( QWHUWDLQP HQW
/ LYLQJ
7 UDY HO
6 S R UWV
2 SLQLRQ
( [ WUDV
7 RGD\
VQHZ VLQGH[

0 DUNHWS ODFH

z
z
z
z
z
z
z
z
z

- RE V
$ X WRV
+ RP HV
5 HQ WDOV
& ODVVLI LHGV
6 KRSSLQJ
1 : VRXUFH
3 HUVRQDOV
3 R VWDQ DG

* HWWLQJ < RXU1 HZ VSDSHU

z
z
z

+ RP HGHOLYHU\
7 HP SRUDU\ VWRSV
6 X E VFULE HUVHUY LFHV

I LOH' & : 9 VFUDWFKWHP SHVDGEDWW& DFKH' LUGDWD6 WRUHBFDVHBB

       
NLRB-FOIA-00009953

%XVLQHVV 7 HFKQRORJ \ _9 LGHR_$ QLQWHUYLHZ Z LWK%RHLQJ & ( 2 - LP $ OEDXJ KH[ WHQGH 3 DJ H  R I  

2 WK HUHG LWLRQ V

z
z
z
z
z
z

1 HZ VE\ H
P DLO
0 RELOH
5 6 6 I HHGV
H
( GLWLR Q
/ RZ 
J UDS K LF
7 Z LWWHU

0 DOZ DUHDWWDFNVDUHDJ URZ LQJ S URE OHP RQDOO: HE VLWHV5 HDGP RUHDE R X WZ K DWWR GR LI \ R X VHH
VRP HWKLQJ VXVSLFLRXV

3 ULY DF\ VWDWHP HQW_7 HUP VRI VHUYLFH


& RS\ ULJ KW     7 KH6 HDWWOH7 LP HV& RP SDQ\

I LOH' & : 9 VFUDWFKWHP SHVDGEDWW& DFKH' LUGDWD6 WRUHBFDVHBB

       
NLRB-FOIA-00009954

Microsoft Outlook

From:
Sent:
To:
Subject:

Todd, Dianne

Monday, May 24, 2010 3:21 PM

Ahearn, Richard L.; Jablonski, Colleen G.

Subpoena request for Boeing video

Rich, the manual states that the request should go to the Division of Advice and the Special Litigation

Branch. Thanks, Dianne

This Region is currently investigating charge 19-CA-32431 filed by the IAM&AW against The Boeing

Company. As part of the investigation, the assigned Board Agent is seeking a video tape from the

Seattle Times newspaper. As CHM 11770.4 requires clearance from Headquarters prior to the

issuance of an investigative subpoena where the subpoena seeks evidence from a member of the

press to elicit testimony relating to information gained in his or her professional capacity or requiring

the production of materials secured as a result of news gathering activities, I am submitting this

request.

The Employer, a manufacturer of airplanes, announced in October 2009 that it would be placing a

second assembly line for the 787 Dreamliner in South Carolina at its non-union facility instead of at its

union-represented facility in Everett, Washington where the first assembly line is located. The charge

alleges, among other items, that the Employer placed the second line in South Carolina in retaliation

for the unit employees engaging in strikes in 2008 and prior years.

In March 2010, a local reporter for the Seattle Times newspaper video-taped his interview with Jim

Albaugh, CEO of Boeing Commercial Airplanes. In that three-part interview, Mr. Albaugh states

Boeings reasons for placing the second line in South Carolina labor strife and increased wages.

Thus, the Region seeks possession of the video as it contains direct statements from a Boeing

official regarding Boeings reasons for placing the second line in S. Carolina.

We requested the video from the Seattle Times, but the following restrictions were placed on the use

of the video.

Purchase of video does not transfer copyright and is for personal use only.

No model or property release exists.

Only Seattle Times staff produced video is for purchase.

Videos are digital format, burned on a DVD at least 640 resolution or more.

No posting online, website or use in blogs.

Video is intended for editorial use and not to be used for promotion or advertisement.

Video is provided to you as is for your personal use only and may not be copied, reproduced, distributed. broadcast, displayed, sold, licensed or otherwise

exploited for any other purpose whatsoever.

If you are interested in licensing video content for commercial use, please contact us at eedens@seattletimes.com.

As such, we wish to subpoena the video tape in order to not be limited by the newspapers use

restrictions.

NLRB-FOIA-00009955

Microsoft Outlook

From:
Sent:
To:
Subject:
Attachments:

Jablonski, Colleen G.

Tuesday, May 25, 2010 8:07 PM

Kobe, James

FW : Boeing Company, Case 19-CA-32431

ADV.19-CA-32431.Boeing.Memo to Advice and Special Lit. req. Permission to Subpoena

Video Tape.pdf

From: Estep, Susan C.

Sent: Tuesday, May 25, 2010 5:16 PM

To: Jablonski, Colleen G.; Todd, Dianne; Perkins, Victoria

Subject: FW: Boeing Company, Case 19-CA-32431

See attached.

Susan C. Estep, Secretary to the Regional Director

NLRB, Region 19, Seattle

206.220.6333; FAX 206. 220.6305

From: Estep, Susan C.

Sent: Tuesday, May 25, 2010 2:12 PM

To: Kearney, Barry J.; Moskowitz, Eric G.

Cc: Baniszewski, Joseph; Ahearn, Richard L.

Subject: Boeing Company, Case 19-CA-32431

Per Regional Director Ahearns instructions, attached is a memo requesting guidance in the above case.

Susan C. Estep, Secretary to the Regional Director

NLRB, Region 19, Seattle

206.220.6333; FAX 206. 220.6305

NLRB-FOIA-00009956

U N IT E D S T A T E S G O V E R N M E N T

N a tio n a lLa b o r R elations B o a rd

M em orandum

B arry J. K earney, A ssociate G eneral C ounsel

D ivision of A dvice

TO :

DATE:

M a y 25, 2 010

E ric G . M oskow itz, A ssistan t G eneral C ounsel

S pecial Litigation B ranch

FR O M :

R ichard L. A hearn, R egional D irector

R egion 1 9, S eattle, W A

S U B JE C T :

B oeing C om pany

C ase 1 9-C A -32431

T his R egion is currently investigating charge 1 9-C A -32431 filed b y the IA M & A W a gainst

T he B oeing C om pany. A s part of the investigation, the assigned B oard A gent is

seeking a v ideo tape from the S eattle T im es new spaper. A s C H M 11770.4 requires

clearance from H eadquarters p rior to the issuance o f an investigative s ubpoena w here

"the subpoena s eeks e vidence from a m em ber of the p ress to e licit testim ony relating to

inform ation gained in his or h er p rofessional capacity o r requiring the production of

m aterials secured a s a result of new s g athering a ctivities," I am subm itting this request.

T he E m ployer, a m anufacturer of airplanes, a nnounced in O ctober 2009 that it w ould be

placing a s econd assem bly line for the 787 D ream liner in S outh C arolina a t its non-

union facility instead of at its u nion-represented facility in E verett, W ashington w here the

first assem bly line is located. T he charge alleges, am ong other item s, that the

E m ployer p laced the s econd line in S outh C arolina in retaliation for the u nit e m ployees

engaging in strikes in 2008 a nd p rior years.

In M arch 2010, a local reporter for the S eattle T im es new spaper video-taped his

interview w ith Jim A lbaugh, C E O of B oeing C om m ercial A irplanes. In that three-part

interview , M r. A lbaugh states B oeing's reasons for placing the second line in S outh

C arolina - labor strife a nd increased w ages. T hus, the R egion s eeks p ossession o f the

video as it contains d irect statem ents from a B oeing o fficialregarding B oeing's reasons

for placing the s econd line in S . C arolina.

W e requested the v ideo from the S eattle T im es, w hich is available for p urchase a t$ 35

for each o f three tapes, b ut the follow ing restrictions w ere p laced on the u se o f the video

under those circum stances.

P urchase of video d o e s n o t transfer copyright and is fo r personalu se o nly.

N o m odelo r property release e xists.

O nly S eattle T im es sta ff produced video is fo r purchase.

V ideos a re d igitalfon nat, b urned on a D V D a t least 640 resolution or m ore.

NLRB-FOIA-00009957

C ase 1 9-C A -32431

M ay 25 ,2 0 1 0

-2-

N o posting online, w ebsite or use in blogs.

V ideo is intended for editorialu se and n ot to b e u sed for prom otion or advertisem ent.

V ideo is p rovided to you a s is for your personalu se o nly a nd m ay not b e c opied, reproduced, d istributed. b roadcast, d isplayed,

sold, licensed or otherw ise e xploited for any other purpose w hatsoever.

Ifyou a re interested in licensing video content for com m ercialu se, please contact us at eedens@ seattletim es.com .

A s such, w e w ish to subpoena the video tape in order to not be lim ited by the

new spaper's use restrictions.

P lease advise.

R . L. A .

cc:

Joe B aniszew ski, D eputy A G e

D ivision o f O perations M anagem ent

NLRB-FOIA-00009958

Microsoft Outlook

From:
Sent:
To:
Subject:

Jablonski, Colleen G.

W ednesday, May 26, 2010 6:11 PM

Kobe, James

FW : Boeing Company, Case 19-CA-32431

fyi

From: Ahearn, Richard L.

Sent: Wednesday, May 26, 2010 6:05 PM

To: Moskowitz, Eric G.

Cc: Kearney, Barry J.; Platt, Nancy; Flanagan, Kevin P.

Subject: RE: Boeing Company, Case 19-CA-32431

Many thanks; look forward to your response.

rich

From: Moskowitz, Eric G.

Sent: Wednesday, May 26, 2010 1:57 PM

To: Ahearn, Richard L.

Cc: Kearney, Barry J.; Platt, Nancy; Flanagan, Kevin P.

Subject: RE: Boeing Company, Case 19-CA-32431

Off the cuff, I do not think this raises

Exemption 5

Nancy Platt and Kevin Flanagan are looking into this.

Eric

From: Ahearn, Richard L.

Sent: Tuesday, May 25, 2010 7:09 PM

To: Moskowitz, Eric G.

Subject: RE: Boeing Company, Case 19-CA-32431

Eric,

We (in the metaphorical sense)did not attempt to determine that; in fact it was Andrew Martin of our library who

made the request. However we thought it would be

Exemption 5

Rich

From: Moskowitz, Eric G.

Sent: Tuesday, May 25, 2010 2:36 PM

To: Ahearn, Richard L.

Subject: FW: Boeing Company, Case 19-CA-32431

Rich:

Question: Has anyone in the Region determined from the Seattle Times what they mean by

Exemption 5

Eric

NLRB-FOIA-00009959

From: Estep, Susan C.

Sent: Tuesday, May 25, 2010 5:12 PM

To: Kearney, Barry J.; Moskowitz, Eric G.

Cc: Baniszewski, Joseph; Ahearn, Richard L.

Subject: Boeing Company, Case 19-CA-32431

Per Regional Director Ahearns instructions, attached is a memo requesting guidance in the above case.

Susan C. Estep, Secretary to the Regional Director

NLRB, Region 19, Seattle

206.220.6333; FAX 206. 220.6305

NLRB-FOIA-00009960

Microsoft Outlook

From:
Sent:
To:
Subject:

Jablonski, Colleen G.

Monday, June 07, 2010 8:00 PM

Todd, Dianne; Ahearn, Richard L.

RE: Boeing

Seems premature to me.

From: Todd, Dianne

Sent: Monday, June 07, 2010 7:56 PM

To: Ahearn, Richard L.; Jablonski, Colleen G.

Subject: Boeing

Rich,

I spoke to Dave Campbell today and he would like to meet with you to go over the case as it stands

and see if there are any questions or issues they can address more fully.

Thanks,

Dianne Todd

Board Agent

NLRB, Region 19

Ph: 206-220-6319

Fax: 206-220-6305

NLRB-FOIA-00009961

Microsoft Outlook

From:
Sent:
To:
Subject:

Todd, Dianne

Monday, June 07, 2010 8:01 PM

Jablonski, Colleen G.; Ahearn, Richard L.

RE: Boeing

That is what I told him but I said I would check with Rich.

From: Jablonski, Colleen G.

Sent: Monday, June 07, 2010 5:00 PM

To: Todd, Dianne; Ahearn, Richard L.

Subject: RE: Boeing

Seems premature to me.

From: Todd, Dianne

Sent: Monday, June 07, 2010 7:56 PM

To: Ahearn, Richard L.; Jablonski, Colleen G.

Subject: Boeing

Rich,

I spoke to Dave Campbell today and he would like to meet with you to go over the case as it stands

and see if there are any questions or issues they can address more fully.

Thanks,

Dianne Todd

Board Agent

NLRB, Region 19

Ph: 206-220-6319

Fax: 206-220-6305

NLRB-FOIA-00009962

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:

Jablonski, Colleen G.

W ednesday, June 16, 2010 6:45 PM

Ahearn, Richard L.

Todd, Dianne

Boeing

Dianne and I thought it might be a good idea to have a mini preliminary agenda in Boeing at the start of next week. The

thought is that Dianne can give us a general, verbal description of the evidence and we can discuss how to proceed.

Your view?

NLRB-FOIA-00009963

Microsoft Outlook

From:
Sent:
To:
Subject:

Ahearn, Richard L.

W ednesday, June 16, 2010 8:15 PM

Jablonski, Colleen G.

Re: Boeing

GREAT!

--------------------------

Sent from my BlackBerry Wireless Handheld

From: Jablonski, Colleen G.

To: Ahearn, Richard L.

Cc: Todd, Dianne

Sent: Wed Jun 16 18:44:53 2010

Subject: Boeing

Dianne and I thought it might be a good idea to have a mini preliminary agenda in Boeing at the start of next week. The

thought is that Dianne can give us a general, verbal description of the evidence and we can discuss how to proceed.

Your view?

NLRB-FOIA-00009964

Microsoft Outlook

From:
Sent:
To:
Subject:

Jablonski, Colleen G.

Thursday, June 17, 2010 12:29 PM

Todd, Dianne

FW : Boeing

From: Ahearn, Richard L.

Sent: Wednesday, June 16, 2010 8:15 PM

To: Jablonski, Colleen G.

Subject: Re: Boeing

GREAT!

--------------------------

Sent from my BlackBerry Wireless Handheld

From: Jablonski, Colleen G.

To: Ahearn, Richard L.

Cc: Todd, Dianne

Sent: Wed Jun 16 18:44:53 2010

Subject: Boeing

Dianne and I thought it might be a good idea to have a mini preliminary agenda in Boeing at the start of next week. The

thought is that Dianne can give us a general, verbal description of the evidence and we can discuss how to proceed.

Your view?

NLRB-FOIA-00009965

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:
Attachments:

Pomerantz, Anne

W ednesday, September 01, 2010 5:05 PM

Advice; Karsh, Aaron

Albertsen, Mary

RE: Boeing Company, 19-CA-32431, Submission

ADV.19-CA-32431.Boeing Memo to Advice and Special Lit re decision and 10j.doc

Aaron,

Mary forwarded your e-mail to me for response. The files in this case are quite voluminous, as you may have already

gathered from the submission. We anticipate having all the materials to you next week. Meanwhile, I have attached a

copy of the submission in Word, which Mary informed me you had asked for, and below is the link to the electronic case

file on Region 19s H drive: R19COM\R19COM\REGION 19 C CASES\19-CA-32431 Boeing.

Please feel free to contact me should you require anything else.

Anne

From: Albertsen, Mary

Sent: Wednesday, September 01, 2010 1:55 PM

To: Pomerantz, Anne

Subject: FW: Boeing Company, 19-CA-32431, Submission

Mary Albertsen, AOM

Region 19 - Seattle, W A

(206) 220-6318

From: Advice

Sent: Wednesday, September 01, 2010 8:42 AM

To: Albertsen, Mary

Subject: FW: Boeing Company, 19-CA-32431, Submission

Thanks for the submission. Please let us know on what date and in what form you will be sending us the Regional Office

Files. And, to help us with the assignment process, could you also let me know how voluminous the ROFs are and how

many there are?

Thanks -

Aaron Karsh

DAGC, Advice

From: Albertsen, Mary

Sent: Tuesday, August 31, 2010 7:21 PM

To: Advice; Injunction Litigation Branch; Kearney, Barry J.; Katz, Judy

Cc: Baniszewski, Joseph; Ahearn, Richard L.; Pomerantz, Anne

Subject: Boeing Company, 19-CA-32431, Submission

Attached please find a Request for Advice and Authorization to Seek Section 10(j) Injunctive Relief in the above case.

NLRB-FOIA-00009966

Mary Albertsen, AOM

Region 19 - Seattle, W A

(206) 220-6318

NLRB-FOIA-00009967

Exemption 5

NLRB-FOIA-00009968

Exemption 5

NLRB-FOIA-00009969

Exemption 5

NLRB-FOIA-00009970

Exemption 5

NLRB-FOIA-00009971

Exemption 5

NLRB-FOIA-00009972

Exemption 5

NLRB-FOIA-00009973

Exemption 5

NLRB-FOIA-00009974

Exemption 5

NLRB-FOIA-00009975

Exemption 5

NLRB-FOIA-00009976

Exemption 5

NLRB-FOIA-00009977

Exemption 5

NLRB-FOIA-00009978

Exemption 5

NLRB-FOIA-00009979

Exemption 5

NLRB-FOIA-00009980

Exemption 5

NLRB-FOIA-00009981

Exemption 5

NLRB-FOIA-00009982

Exemption 5

NLRB-FOIA-00009983

Exemption 5

NLRB-FOIA-00009984

Exemption 5

NLRB-FOIA-00009985

Exemption 5

NLRB-FOIA-00009986

Exemption 5

NLRB-FOIA-00009987

Exemption 5

NLRB-FOIA-00009988

Exemption 5

NLRB-FOIA-00009989

Exemption 5

NLRB-FOIA-00009990

Exemption 5

NLRB-FOIA-00009991

Exemption 5

NLRB-FOIA-00009992

Exemption 5

NLRB-FOIA-00009993

Exemption 5

NLRB-FOIA-00009994

Exemption 5

NLRB-FOIA-00009995

Exemption 5

NLRB-FOIA-00009996

Exemption 5

NLRB-FOIA-00009997

Exemption 5

NLRB-FOIA-00009998

Exemption 5

NLRB-FOIA-00009999

Exemption 5

NLRB-FOIA-00010000

Exemption 5

NLRB-FOIA-00010001

Exemption 5

NLRB-FOIA-00010002

Exemption 5

NLRB-FOIA-00010003

Exemption 5

NLRB-FOIA-00010004

Exemption 5

NLRB-FOIA-00010005

Exemption 5

NLRB-FOIA-00010006

Exemption 5

NLRB-FOIA-00010007

Exemption 5

NLRB-FOIA-00010008

Exemption 5

NLRB-FOIA-00010009

Exemption 5

NLRB-FOIA-00010010

Exemption 5

NLRB-FOIA-00010011

Exemption 5

NLRB-FOIA-00010012

Exemption 5

NLRB-FOIA-00010013

Exemption 5

NLRB-FOIA-00010014

Exemption 5

NLRB-FOIA-00010015

Exemption 5

NLRB-FOIA-00010016

Exemption 5

NLRB-FOIA-00010017

Exemption 5

NLRB-FOIA-00010018

Exemption 5

NLRB-FOIA-00010019

Exemption 5

NLRB-FOIA-00010020

Exemption 5

NLRB-FOIA-00010021

Exemption 5

NLRB-FOIA-00010022

Exemption 5

NLRB-FOIA-00010023

Exemption 5

NLRB-FOIA-00010024

Exemption 5

NLRB-FOIA-00010025

Exemption 5

NLRB-FOIA-00010026

Exemption 5

NLRB-FOIA-00010027

Exemption 5

NLRB-FOIA-00010028

Exemption 5

NLRB-FOIA-00010029

Exemption 5

NLRB-FOIA-00010030

Exemption 5

NLRB-FOIA-00010031

Exemption 5

NLRB-FOIA-00010032

Exemption 5

NLRB-FOIA-00010033

Exemption 5

NLRB-FOIA-00010034

Exemption 5

NLRB-FOIA-00010035

Exemption 5

NLRB-FOIA-00010036

Exemption 5

NLRB-FOIA-00010037

Exemption 5

NLRB-FOIA-00010038

Exemption 5

NLRB-FOIA-00010039

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:

Pomerantz, Anne

Thursday, September 02, 2010 4:47 PM

Advice; Karsh, Aaron

Lundgren, Cynthia A

RE: Boeing Company, 19-CA-32431, Submission

Aaron,

Cynthia Lundgren in our office has been assembling the documents for submission as per the below. In an effort to

conserve resources and expedite your receipt, she will begin sending you the press releases/news articles and position

statements electronically. She will send them both to you and to the Advice mailbox. Please let Cynthia and/or me know

if there is any problem with receipt or access to that sent. Thanks.

Anne

From: Pomerantz, Anne

Sent: Wednesday, September 01, 2010 2:05 PM

To: Advice; Karsh, Aaron

Cc: Albertsen, Mary

Subject: RE: Boeing Company, 19-CA-32431, Submission

Aaron,

Mary forwarded your e-mail to me for response. The files in this case are quite voluminous, as you may have already

gathered from the submission. We anticipate having all the materials to you next week. Meanwhile, I have attached a

copy of the submission in Word, which Mary informed me you had asked for, and below is the link to the electronic case

file on Region 19s H drive: R19COM\R19COM\REGION 19 C CASES\19-CA-32431 Boeing.

Please feel free to contact me should you require anything else.

Anne

From: Albertsen, Mary

Sent: Wednesday, September 01, 2010 1:55 PM

To: Pomerantz, Anne

Subject: FW: Boeing Company, 19-CA-32431, Submission

Mary Albertsen, AOM

Region 19 - Seattle, W A

(206) 220-6318

From: Advice

Sent: Wednesday, September 01, 2010 8:42 AM

To: Albertsen, Mary

Subject: FW: Boeing Company, 19-CA-32431, Submission

Thanks for the submission. Please let us know on what date and in what form you will be sending us the Regional Office

Files. And, to help us with the assignment process, could you also let me know how voluminous the ROFs are and how

many there are?

NLRB-FOIA-00010040

Thanks -

Aaron Karsh

DAGC, Advice

From: Albertsen, Mary

Sent: Tuesday, August 31, 2010 7:21 PM

To: Advice; Injunction Litigation Branch; Kearney, Barry J.; Katz, Judy

Cc: Baniszewski, Joseph; Ahearn, Richard L.; Pomerantz, Anne

Subject: Boeing Company, 19-CA-32431, Submission

Attached please find a Request for Advice and Authorization to Seek Section 10(j) Injunctive Relief in the above case.

Mary Albertsen, AOM

Region 19 - Seattle, W A

(206) 220-6318

NLRB-FOIA-00010041

Microsoft Outlook

From:

Ahearn, Richard L.

Sent:

Tuesday, November 02, 2010 2:57 PM

To:

Pomerantz, Anne; Jablonski, Colleen G.; Todd, Dianne

Subject:

Boeing Interim Draft Order Revisions

Attachments:

PROPOSED INTERIM ORDER.doc1.doc

My suggestions in track changes.

Your thoughts?

R.

NLRB-FOIA-00010042

Exemption 5

NLRB-FOIA-00010043

Exemption 5

NLRB-FOIA-00010044

Microsoft Outlook

From:
Sent:
To:
Subject:

Pomerantz, Anne

Tuesday, November 02, 2010 3:30 PM

Ahearn, Richard L.; Jablonski, Colleen G.; Todd, Dianne

RE: Boeing Interim Draft Order Revisions

Works for me.

From: Ahearn, Richard L.

Sent: Tuesday, November 02, 2010 11:57 AM

To: Pomerantz, Anne; Jablonski, Colleen G.; Todd, Dianne

Subject: Boeing Interim Draft Order Revisions

My suggestions in track changes.

Your thoughts?

R.

NLRB-FOIA-00010045

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:

Todd, Dianne

Thursday, November 18, 2010 1:04 PM

Ahearn, Richard L.

Jablonski, Colleen G.

RE: Boeing, 19-CA-32431 - follow-up request

Rich,

Just an FYI - Dave Campbell informed me that they are gathering new information that the facility in

S. Carolina will not be up and running for several years contrary to what has been indicated in the

papers. Although he hoped to get this information to us by Friday, it is taking longer than expected.

Thus, he will be providing this information as well as responses to the questions below early next

week.

Dianne

From: David Campbell [mailto:campbell@workerlaw.com]

Sent: Thursday, November 18, 2010 9:26 AM

To: Todd, Dianne

Cc: Carson Glickman-Flora

Subject: RE: Boeing, 19-CA-32431 - follow-up request

Diane, Per the phone message I left you we are assembling this information, as well as more information regarding South

Carolina, but need more time. Please call me on my cell if this is a problem. Thanks, Dave C

E.6 Privacy

Thanks, Dave

Sincerely, David Campbell

campbell@workerlaw.com

Schwerin Campbell Barnard Iglitzin & Lavitt

18 W Mercer Suite 400

Seattle, W ashington 98119-3971

Phone (206)285-2828: FAX (206)378-4132

This communication is protected by the attorney client and attorney work-product privileges. Please do not copy, forward

or append.

From: Todd, Dianne [mailto:Dianne.Todd@nlrb.gov]

Sent: Tue 11/16/2010 10:21 AM

To: David Campbell

Subject: Boeing, 19-CA-32431 - follow-up request

Dave,

Here is the list of information that we are requesting. Please let me know if you will not be able to

provide the information by Friday.

1. Historically, how many employees have there been in the unit at issue for the past 20-30

years?

2. How many employees total are there currently in the unit?

NLRB-FOIA-00010046

3. I understand from prior information submitted by the Union that there are currently 2610 unit

employees on the 787 assembly line in Everett. Does the Union have any further information

on how many employees would need to work on the current assembly line and on the surge

line once the lines are fully running?

4. How many of the current unit employees are in layoff status? How many of those would be

qualified to work on the assembly lines?

5. What is currently being done on the 787 assembly line?

6. Once the 787 assembly line and the surge lines are fully producing planes, what is the Unions

understanding as to how the lines would be staffed? Would employees be recalled from lay off

status? Would working unit employees be pulled from other areas? If so, what happens to the

area from which the employees were pulled? In essence, we are trying to understand how

employees can be moved around from one area to another if employees are already working

full-time. Is it possible or would Boeing have to hire new employees into the unit?

7. Has it occurred in the past where unit employees are pulled from one line to work on another?

How has this been done?

Thanks,

Dianne Todd

Board Agent

NLRB, Region 19

Ph:

206-220-6319

Fax: 206-220-6305

NLRB-FOIA-00010047

Microsoft Outlook

From:
Sent:
To:
Subject:
Attachments:

Todd, Dianne

Thursday, December 09, 2010 12:28 PM

Ahearn, Richard L.; Pomerantz, Anne; Kobe, James; Jablonski, Colleen G.

Update from Union on Boeing Surge Line, 19-CA-32431

2010 12_03 Ltr to Todd.pdf

I spoke with Dave Campbell this morning to clarify the data he provided in paragraphs 3 and 6 of his

December 3, 2010 letter (attached). Campbell informed me that the information regarding the

Arguably Exemption 4
projection of
came from union representative Brett Cody

who is in charge of the 787 program. Cody gathered the numbers from Boeings quarterly

forecasting. However, Campbell states that these numbers continue to increase and do not

necessarily reflect
Arguably Exemption 4

As an example, Boeing
Thus, it is

Arguably Exemption 4

unknown how many employees there will actually be on the surge line.

Regarding movement of current work from Everett to S. Carolina, Campbell pointed out that although

the surge line is not fully running since the 787 is not ready for full assembly, there are employees

currently working on the surge line as described on page 2 of his December 3 letter. Presumably,

that is work that would be lost to current unit employees once the S. Carolina facility is up and

running.

Dianne

NLRB-FOIA-00010048

Union Position Statement

NLRB-FOIA-00010049

Union Position Statement

NLRB-FOIA-00010050

Union Position Statement

NLRB-FOIA-00010051

Union Position Statement

NLRB-FOIA-00010052

Union Position Statement

NLRB-FOIA-00010053

Union Position Statement

NLRB-FOIA-00010054

Union Position Statement

NLRB-FOIA-00010055

Union Position Statement

NLRB-FOIA-00010056

Union Position Statement

NLRB-FOIA-00010057

Union Position Statement

NLRB-FOIA-00010058

Union Position Statement

NLRB-FOIA-00010059

Union Position Statement

NLRB-FOIA-00010060

Union Position Statement

NLRB-FOIA-00010061

Microsoft Outlook

From:
Sent:
To:
Subject:

Ahearn, Richard L.

Sunday, December 12, 2010 1:55 PM

Todd, Dianne; Jablonski, Colleen G.

Memo to Lafe from Advice

Dianne, Colleen,

Do we have a response to the question in fn. 24? Evidence?

Many thanks.

Rich

Richard L Ahearn

Regional Director, Region 19, Seattle

206 220 6310

NLRB-FOIA-00010062

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:

Todd, Dianne

Tuesday, December 14, 2010 1:37 PM

Ahearn, Richard L.

Jablonski, Colleen G.

RE: Memo to Lafe from Advice

Rich,

We have an affidavit from employee Exemption 6, 7(C), 7(D) who said that
read Boeings memo 787

Second Line

Questions and Answers for Managers 10/28/9 at the time it was released as did the other Exemption 6, 7(C), 7(D)
employees in
unit.

Good luck!

Dianne

From: Ahearn, Richard L.

Sent: Sunday, December 12, 2010 10:55 AM

To: Todd, Dianne; Jablonski, Colleen G.

Subject: Memo to Lafe from Advice

Dianne, Colleen,

Do we have a response to the question in fn. 24? Evidence?

Many thanks.

Rich

Richard L Ahearn

Regional Director, Region 19, Seattle

206 220 6310

NLRB-FOIA-00010063

Microsoft Outlook

Non-Responsive

From: Estep, Susan C.

Sent: Thursday, April 14, 2011 11:09 AM

To: Ahearn, Richard L.; Pomerantz, Anne; Kobe, James; Jablonski, Colleen G.; Todd, Dianne; Perkins, Victoria

Subject: The Boeing Company, 19-CA-32431

See attached Advice decision.

Susan C. Estep, Secretary to the Regional Director

NLRB, Region 19, Seattle

206.220.6333; FAX 206. 220.6305

NLRB-FOIA-00010064

United States Government

National Labor Relations Board

OFFICE OF THE GENERAL COUNSEL

Advice Memorandum

DATE:

April 11, 2011

S.A.M.

TO:

Richard L. Ahearn, Regional Director

Region 19

FROM:

Barry J. Kearney, Associate General Counsel

Division of Advice

SUBJECT:

The Boeing Company


Case 19-CA-32431

512-5006-5062
512-5006-5067
512-5036-8387
512-5036-8389
524-0167-1033
524-5029-5037
524-0167-1033
524-506

524-8307-1600

524-8307-5300

530-6050-0825-3300

530-6067-4011-4200

530-6067-4011-4600

530-6067-4011-7700

530-8054-7000

775-8731

The Region submitted this case for advice on several

issues relating to the Employers decision to place a second

assembly line at a nonunion facility rather than at the

facility where unit employees work on the original assembly

line.
Specifically the Region requested advice as to whether:

(1) the Employer violated Section 8(a)(1) by threatening to

place the second assembly line at a nonunion facility unless

the Union agreed to a long-term no-strike clause and by

repeatedly stating that its decision to place the second line

elsewhere was based on the units strike history; (2) the

Employer violated Section 8(a)(3) by deciding to place the

second assembly line at a nonunion facility because of the

units strike history, even though no unit employees have yet

to lose their jobs; and (3) the Employer violated Section

8(a)(5) by failing to bargain in good faith over its decision

about where to locate the second assembly line or whether the

Union waived its right to bargain under the parties

collective-bargaining agreement.

We conclude that the Region should issue a complaint

alleging: independent Section 8(a)(1) violations based on the

Employers coercive and threatening statements; and a Section

8(a)(3) violation based on the Employers decision to locate

the second line at a nonunion facility and to establish a

dual-sourcing supply program in retaliation for protected

activity.
However, the Region should dismiss the Section

8(a)(5) allegations because under the contract, the Union

expressly waived its right to bargain about the Employers

decision to offload unit work to a facility not covered by

the agreement.
To remedy the chilling effect of Boeings

Section 8(a)(1) statements, the Region should request, in

addition to the traditional remedies,


a notice reading by a

NLRB-FOIA-00010065

Case 19-CA-32431

- 2 -

high-level Boeing official.


To remedy the Section 8(a)(3)

violation, the Region should seek an order that would require

Boeing to maintain the surge line in the Puget Sound area.

Specifically, Boeing intended for the second line to assemble

three aircraft each month in South Carolina, while assembling

seven planes on the first line.


Thus, the Region should seek

an order requiring Boeing to assemble in the Puget Sound area

the first ten 787 aircraft that it produces each month and to

maintain the supply lines for those aircraft where they

currently exist, in the Puget Sound and Portland facilities.

FACTS

The Boeing Company is an international corporation

engaged primarily in developing and producing military and

commercial aircraft. Boeing has a long-established collective-

bargaining relationship with the International Association of

Machinists and Aerospace Workers (IAM) and certain IAM

District and Local Lodges.


The parties current collective-

bargaining agreement is effective November 2, 2008 through

September 8, 2012 and covers three separate bargaining units

of production and maintenance employees in three geographical

areas, the Puget Sound area in Washington; Portland, Oregon;

and Wichita, Kansas.

Section 21.7 of that agreement, entitled

Subcontracting, sets forth various notice periods and an

opportunity for the Union to review and recommend alternatives

to Boeing proposals to subcontract or offload unit work.

[O]ffloading work is defined as moving work from one

Company facility to another Company facility not covered by

this Agreement[.]
Less stringent notice requirements apply

to subcontracting and offloading decisions affecting less than

ten employees.
In addition, the notice and review process

does not cover certain work transfers listed in subsections

(a) through (d), including [d]ecisions to subcontract or

offload work due to lack of capability or capacity, or to

prevent production schedule slippage[.]


Section 21.7

concludes with the following language:

Anything in this Section 21.7 to the contrary

notwithstanding, it is agreed that ... the Company has

the right to subcontract and offload work, to make and

carry out decisions in (a) through (d) above, to enter

offsets and offset arrangements, and to designate the

work to be performed by the Company and the places where

it is to be performed, which rights shall not be subject

to arbitration. ...

NLRB-FOIA-00010066

Case 19-CA-32431

- 3 -

Boeing Introduces the 787 Dreamliner

The Puget Sound unit is comprised of approximately 18,000

employees working in Washington.


Historically these employees

have performed the final assembly of all Boeing planes.


In

late 2003, Boeing announced that it would place the assembly

line for its new 787 Dreamliner airplane in Everett,

Washington after the Washington State Legislature passed a tax

and subsidy incentive package totaling more than $3.2 billion.

That line opened in May 2007, with the capacity for producing

seven planes each month.

With the 787, Boeing departed from its previous practice

of manufacturing most of the aircraft parts with its own

employees and instead outsourced parts production to other

suppliers in the southeast U.S. and abroad.


For example,

Boeing contracted with Vought Aircraft Industries in North

Charleston, South Carolina for the manufacture of the aft

fuselage and with Mitsubishi Heavy Industries in Japan for the

manufacture of the wings.


Boeing repeatedly has had to

postpone the delivery dates for the aircraft, due primarily to

problems with suppliers and software issues.

Starting in mid 2008, the media began reporting that

Boeing would need to add a second 787 assembly line because of

its growing order backlog.


At about the same time, Boeing

entered negotiations with the Union for a successor

collective-bargaining agreement.
During those negotiations,

Company officials noted the need for a second assembly line

but did not discuss the matter further.

The 2008 Strike and Its Aftermath

On September 6, 2008, the employees struck in support of

the Unions bargaining position.


On October 6, 2008, Boeings

stock dropped to a four-year low.


That same day, CEO Jim

McNerney sent a long e-mail to Boeing employees about the

strike.
McNerney stated that he understood and shared the

frustration so many of you feel when we dont have the whole

team together working to meet the commitments weve made to

our customers and competing to win the new business that will

sustain and grow Boeing jobs[.]


McNerney went on to state,

[t]he issue of competitiveness as it relates to this strike

is a big deal[.]
He also tied labor disputes to problems

with Boeings customer relationships.


After asserting that

the Union had recommended that its members reject contract

offers and go on strike four of the last five negotiations

going back to 1995, he wrote, we believe this track record of

repeated union work stoppages is earning us a reputation as an

NLRB-FOIA-00010067

Case 19-CA-32431

- 4 -

unreliable supplier to our customers who ultimately provide

job security by buying our airplanes.1

The following day, Boeings Vice President for Government

and Community Relations Fred Kiga spoke at an aerospace

conference in Everett.
In a Seattle Times article, he was

quoted as stating, We cant afford to become known as the

strike zone[.]
He reportedly also told the conference that

labor unrest could drive Boeings decision on where to build

planes in the future.


In an interview after his speech, Kiga

reportedly stated that his strike zone comments had been

cleared by Boeing Commercial Airplanes CEO Scott Carson.


Kiga

noted that he and Carson grew up in and shared a love for the

Northwest; Kiga then said that they would hate to lose a

treasure like Boeing.

The strike lasted 57 days and ended on November 1, 2008,

when the parties signed the current contract. During the

negotiations, the Union had proposed to amend Section 21.7 to,

among other things, eliminate the waiver language quoted

above.
Boeing refused to agree to such an amendment, and the

language remained in the contract.

In early 2009,2 the media again began publishing reports

that Boeing needed to establish a second 787 assembly line.

On February 9, the Seattle Times reported that Washington

Senator Patty Murray had met with Boeings Senior Vice

President of Government Operations; he had informed her that

the CEO was sick and tired of the unions strikes and was

looking to put the second 787 line elsewhere.

On April 16, Boeing and IAM officials held their annual

summit in Chicago.
Management officials attending included

CEO McNerney, Boeing Commercial Airplanes CEO Carson,

Integrated Defense Systems CEO Jim Albaugh, and for the first

time, Vice President and General Manager of Supply Chain

Management & Operations Ray Conner.


IAM representatives

included International President Tom Buffenbarger, General

Vice President Rich Michalski, and the Directing Business

Representatives who represented Boeing employees, including

District 751 DBR Tom Wroblewski.


This was the first

opportunity for the parties to meet since the strike had

ended.
McNerney and Buffenbarger were the lead speakers.

McNerney stated that Boeings customers were losing confidence

1 In his
that the
occurred
1989 (48
2

e-mail, CEO McNerney exaggerated the number of times

Union had struck.


In actuality, prior strikes

in 1948 (140 days), 1965 (19 days), 1977 (45 days),

days), 1995 (69 days), and 2005 (28 days).

Dates are in 2009 unless otherwise noted.

NLRB-FOIA-00010068

Case 19-CA-32431

- 5 -

in the Company because of past strikes and the possibility of

future strikes.
He said that the parties had to come up with

a way to stop having labor disputes.


The general theme was

that management and labor should continue to meet to find ways

to avoid the problems of the past.

As a follow-up to this summit, Wroblewski and IAM

Aerospace Coordinator Mark Blondin met on June 23 in Seattle

with Conner and Boeings Vice President of Human Resources

Doug Kight.
The parties focused on how to build a better

relationship and improve communication. While Wroblewski had

an established relationship with Kight, Conner was new to

labor relations.
Wroblewski thought that one of the purposes

of the meeting was to get to know Conner.


At a subsequent

meeting on June 30 between Wroblewski and Conner, Conner

expressed Boeings concern that its customers did not have

confidence it could make timely deliveries because it had

experienced two strikes in the last five years and had

supplier issues.
For the first time, Conner raised the

prospect of a long-term collective-bargaining agreement as a

way to gain the customers confidence that they would get

their aircraft on time.

In early July, Boeing announced its intent to purchase

the Vought plant in North Charleston, South Carolina.


IAM

Local Lodge 183 represented the Vought production,

maintenance, and quality employees.


Boeing agreed to

recognize the Union but wanted to negotiate a new collective-

bargaining agreement.

On July 8, the Seattle Times reported that Boeings CEO

had informed Washington Congressmen Norm Dicks and Jay Inslee

that as a result of past strikes, the Company would place the

second line outside the Puget Sound area unless it could reach

a long-term contract with the Union. Boeing told the

Congressmen that South Carolina was the main competitor.

Wroblewski, Blondin, Kight, and Conner met again twice in

July, on July 7 and July 23.


At each of these meetings,

Conner and Kight emphasized that strikes had to stop for

Boeing to be viable.
They stated that Boeing needed a long-

term agreement with no-strike language to satisfy their

customers.
At this point, Boeing was two years behind

schedule and had approximately 850 787 planes on back order as

a result of supplier and software problems.

Then, on July 30, the same date that Boeing announced

that it had purchased Voughts plant, a South Carolina

employee filed a decertification petition.


During August,

Boeing denied the Union access to the employees in the North

Charleston plant and wrote a memorandum to the employees

stating that it preferred to deal with employees directly

NLRB-FOIA-00010069

Case 19-CA-32431

- 6 -

without intermediaries.3
Boeing also issued a FAQ document

to the employees stating that the mass layoffs that took place

at the Vought plant in late 2008 were due to the unique

situation created by the Everett strike.


Meanwhile, the

South Carolina press was reporting that a decertification

decision could influence where Boeing located the second 787

assembly line.
For example, The Post and the Courier reported

that South Carolinas low unionization rate is viewed as an

advantage in the 787 chase[.]


An article in the Charleston

Business Journal asserted that Charleston might be a better

choice in the event of decertification because of its

potentially tamer work force instead of the Washington

workers with a history of walk[ing] off the job.

On August 26, Boeing e-mailed its managers and human

resource professionals that it had notified South Carolina

that it intended to file permits for the construction of a

second 787 line but that it had not yet made a decision as to

where to locate the second line.


The following day, Boeing

and Union officials met in Portland to discuss the prospect of

a long-term agreement.
Carson informed the Union that the

only way Boeing would place the second line in Washington was

if the Union agreed to a twenty-year no-strike agreement.

Boeing suggested a series of three-year agreements with an

overarching twenty-year no-strike pledge until 2032 and

binding interest arbitration if no agreement was reached at

the end of each of the three-year contracts.


The Union said

that this was not possible, but the Union would consider a

longer agreement than the current four-year contract in return

for some sort of neutrality agreement.


At the end of the

meeting, the parties agreed to schedule negotiations for a

long-term agreement.

Meanwhile, the decertification election in South Carolina

was scheduled for September 10.


In reporting on Boeings

permit filings in South Carolina, the Puget Sound Business

Journal characterized this vote as [a] wild card in Boeings

decision about where to locate the second line.


On September

2, Kight presented an hour-long video on Boeings website

(later quoted in a September 29 article in the Seattle Times).

In regard to the second line, he stated:

What do you do with the 787 second line so that we can

build up to rate and meet our commitment to customers?

... Theres a lot of issues to look at, a lot being

studied, no decision has been made.


But truthfully, it

is very clear that this triennial disruption, our

The Union filed a Section 8(a)(5) charge alleging that

Boeing unilaterally changed its access rules but withdrew the

charge following the election.

NLRB-FOIA-00010070

Case 19-CA-32431

- 7 -

customers cant live with it anymore.


So weve become an

unreliable supplier....
So we look at how do we become a

reliable supplier.
How do we ensure production

continuity so that we can meet our commitments to our

customers in a timely way and thats what were trying to

do.

The Union lost the election in South Carolina eight days later

and was decertified on September 18.

As a follow-up to the parties August 27 meeting in

Portland, CEO McNerney wrote to IAM International President

Buffenbarger on September 21 that Boeing planned to make a

decision on the second lines location by the end of October

and wanted the Unions input within the next three to four

weeks.
He stated, I look forward to our respective teams

engaging in fruitful dialog.


Two days later, Boeing filed an

application for a storm water permit with the City of North

Charleston and an overall site plan with the State of South

Carolina.
On October 1, Boeing applied to North Charleston

for a site clearing permit.

The Parties Meet over a Long-Term Agreement

The parties opened negotiations for a long-term agreement

on October 1.
At the start of negotiations, Boeing explained

that placement of the second line in Washington depended on a

long-term agreement to insure no further disruptions in

deliveries to customers.
The Union responded that in exchange

for giving up the right to strike, the parties would need to

resolve economic issues for the long term rather than through

interest arbitration every three years.

The parties met again on October 7, 8, and 15.


The Union

maintains that Boeing never submitted a written proposal or

counter-proposal, that it was in the dark as to what Boeing

wanted, and that in effect it was negotiating against itself.

For example, with respect to the length of the agreement, at

various points Boeing requested a contract ending in 2020 or

2022 but at other times, demanded a twenty-year agreement.


In

terms of wages, Boeing wanted to reduce general wage increases

and move toward a profit-sharing incentive program.


The Union

was not adverse to this concept but requested information to

insure that Boeings measures of productivity were tied to

employee performance and not events beyond the employees

control.
At one point, Boeing stated that the general wage

increase and COLA could not exceed 3.5%.


When a Union

negotiator asked what would happen if the cost of living

increased more than 3.5%, Boeing responded that employees

would get more.


On October 15, for the first time, Boeing

said that it wanted a lower wage structure for new hires and a

NLRB-FOIA-00010071

Case 19-CA-32431

- 8 -

defined contribution plan for them rather than the defined

benefit pension plan that the existing employees enjoyed.

The Union repeatedly raised the issues of job security

and Employer opposition to the Union elsewhere.


The Union

argued that in return for giving up the right to strike during

the long-term, employees needed enhanced job security.


Also,

if the parties relationship were to improve, the Union did

not want to face the type of anti-union conduct Boeing had

engaged in during the decertification campaign in South

Carolina.

At the October 15 session, Conner informed the Union that

the Board of Directors would be meeting on October 26 and he

wanted to give the Board a progress report on the

negotiations.
The Union asserts that Boeing never described

the Board of Directors meeting as a deadline for resolving the

outstanding bargaining issues.


Moreover, Boeing never

provided a concrete proposal that could be put to the unit

employees for a vote.

The parties met again on October 20 and 21.


Conner

stated that Boeing was getting close to making its decision on

the location of the second line and it would be discussed at

the Board meeting on October 26.


By the end of the parties

October 21 session, the Union orally had proposed the

following: an extension of the existing contract to 2020, 3%

annual wage increases plus a 1% COLA, ratification bonuses for

unit employees, an incentive pay program, health cost sharing

towards the end of the contract, annual increases in pension

benefits starting in 2013, and neutrality in connection with

Union organizing campaigns.


In addition, the Union presented

Boeing with a two-page document entitled Rough Draft on

Concepts for a long-term agreement and a joint partnership

committee.
This Draft called for retention of current unit

work; location of the second line in the Puget Sound area; and

six-month advance notice and good-faith bargaining over any

decision to establish an assembly operation for any next

generation product.
Boeing asserts that this rough draft

was the Unions last and final offer, but the Union

disagrees and also maintains that its negotiators had no idea

that this would be the parties final session.


Indeed, the

Union negotiator involved in working out the details of the

incentive pay program sent an e-mail to Kight on October 27

requesting further information.


Kight responded that he would

get back to him.

Meanwhile, on October 21, Boeing posted its quarterly

earnings conference call on its intranet site for employees.

With respect to locating the second line in South Carolina,

CEO McNerney stated:

NLRB-FOIA-00010072

Case 19-CA-32431

- 9 -

[T]here would be some duplication.


We would obviously

work to minimize that.


But I think having said all of

that, diversifying our labor pool and our labor

relationship has some benefits.


...
And so some of the

modest inefficiencies, for example, associated with the

move to Charleston, are certainly more than overcome by

strikes happening every three or four years in Puget

Sound.
And the very negative financial impact of [sic]

the company, our balance sheet would be 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....

And I dont blame this totally on the union. We just

havent figured out a way - the mix doesnt - isnt

working well yet. So, weve either got to satisfy

ourselves that the mix is different or we have to

diversify our labor base.

McNerney stated that a decision would be made in the next

couple of weeks.

Two days later, IAM General Vice President Michalski

called Conner to ask about the status of the negotiations.

Conner stated that the Unions economic terms and demand for

neutrality were unacceptable to Boeing.


Michalski explained

that the Union was not asking for a traditional neutrality

agreement but rather, as explained during negotiations, a code

of conduct.
Michalski stated that the Union was willing to

meet at any time for additional negotiations, but Conner did

not respond.
On October 24, Michalski called Senior Vice

President of Operations Tim Keating to reiterate that the

Union was not seeking a true neutrality agreement.


He wanted

to clear up any misunderstanding if that issue was blocking

the parties ability to reach an agreement.


Keating did not

respond, and no further negotiations were ever scheduled.

Meanwhile, the governmental bodies in South Carolina were

moving quickly to facilitate the second lines placement in

their State.
On October 23, North Charleston approved

Boeings request for a storm water permit, and the State of

South Carolina approved Boeings overall site plan.


On

October 27, the South Carolina legislature, in a special

session, approved $170 million in taxpayer-backed bonds for

Boeings startup costs and tax breaks totaling $450 million in

exchange for Boeings agreement to create at least 3,800 jobs

and invest more than $750 million in the State within the next

seven years.
That same day, North Charleston approved

Boeings site clearing permit.

Boeing contends that it entered these negotiations with a

good-faith intention to reach a long-term agreement that would

have resulted in placing the second line in Washington, but

NLRB-FOIA-00010073

Case 19-CA-32431

- 10 -

the Unions economic demands were too costly and its

insistence upon neutrality and job security were unacceptable.

The Union asserts, however, that Boeings failure to submit

any proposals, its rejection of the Unions serious efforts to

address Boeings purported concerns, and then its precipitous

halting of negotiations as soon as the South Carolina

legislature awarded it a generous tax and subsidy package

demonstrate that the negotiations were in fact a sham.

Boeing Announces its Decisions to Locate the Second Line in

South Carolina and to Establish a Dual-Sourcing Program

On October 28, Boeing announced its decision to locate

the second 787 assembly line in South Carolina.


In a press

release and internal e-mails, Boeing stated that the Board of

Directors had just approved the selection of North Charleston.

Boeing also announced that it intended to build a surge line

in Everett - a temporary second assembly line that would be

phased out once the South Carolina line was up and running.

Boeing issued a memo to its managers on October 28 that

provided answers to anticipated questions from employees and

talking points regarding its decision.


The managers were

advised to inform employees, among other things, that the

decision to locate the second line in Charleston would

provide economic advantages by improving our competitiveness

and reducing vulnerability to delivery disruptions due to a

host of factors, from natural disasters to homeland security

issues and work stoppages.


The memo further stated, In the

final analysis, this came down to ensuring our long-term

global competitiveness and diversifying the company to protect

against the risk of production disruption ... from natural

disasters, to homeland security threats, to work stoppages.

On December 3, Boeing notified its fabrication managers

that it intended to create a dual-sourcing program and

contract separate suppliers for the South Carolina assembly

line.
As a result, employees in the Puget Sound and Portland

units who produce parts for the 787 assembly line are likely

to suffer a loss of work.


Articles that appeared in the

Seattle Times on December 7 and the Puget Sound Business

Journal on December 8 discussed this announcement.


The

Seattle Times quoted Boeing spokesman Jim Proulx as stating,

Repeated labor disruptions have affected our performance in

our customers eyes.


We have to show our customers we can be

a reliable supplier to them.


[The second production] line has

to be able to go on regardless of whats happening over here.

The Puget Sound Business Journal quoted Conner as follows:

Dual-sourcing and co-production will allow us to maintain

production stability and be a reliable supplier to our

customers.

NLRB-FOIA-00010074

Case 19-CA-32431

- 11 -

On March 2, 2010, a Seattle Times journalist conducted a

videotaped interview of Boeings new Commercial Airplanes CEO,

Jim Albaugh.
(Albaugh had moved over from his position as

Integrated Defense Systems CEO to replace Carson.)


The

interviewer asked Albaugh some hard questions on behalf of

the Washington community about Boeings decision to locate the

second 787 line in Charleston.


In explaining Boeings

decision, Albaugh repeatedly referenced the Unions strike

history.
For example, he stated:

The issue last fall was really about, you know, how

we could ensure production stability and how we

could ensure that we were competitive over the long

haul.
And we had some very productive discussions

with the union.


And unfortunately, we just didnt

come to an agreement where we felt we could ensure

production stability.
And read [sic] that is [sic]

getting away from the frequent strikes that we were

having and also could we stop the rate of escalation

of wages.
And we just could not get to a place

where we both felt it was a win for both ourselves

and the union so we made the decision to go to

Charleston.

[W]eve had strikes three out of the last four times

weve had a labor negotiation with the IAM.


... And

weve got to get to a position where we can ensure

our customers that every three years theyre not

going to have a protracted shutdown.

It was about ensuring to our customers that when we

commit to deliver airplanes on certain dates that we

actually do deliver.
And we have lost our

customers have lost confidence in our ability to do

that, because of the strikes.

When asked whether going to Charleston, in light of the

expense and risk, made business sense, he responded:

Theres no question that whenever you go to a green field

site, theres risk involved.


At the same time, with the

protracted labor stoppage that we had ... the fall of

2008, I mean that cost the company billions of dollars.

And I think if you compare, you know, what it cost

because of the stoppages versus the cost and the risk of

starting a new line in Charleston, I think the investment

certainly is the right one for us to make.4

Once again, a Boeing CEO grossly exaggerated the burden of

the Unions strike activity.


Boeing had alleged elsewhere

that the 2008 strike reduced its earnings by $1.8 million, far

NLRB-FOIA-00010075

Case 19-CA-32431

- 12 -

At one point, Albaugh summed up the basis of Boeings

decision as follows:

[t]he overriding factor was not the business climate.

And it was not the wages were paying today.


It was that

we cannot afford to have a work stoppage, you know, every

three years.
We cannot afford to continue the rate of

escalation of wages....

Albaugh also implicitly threatened the loss of additional work

because of Union strikes, stating, [w]ell do work here if we

can make sure that we have the stability of the production

lines and that we can be competitive over the long haul.

Production is now approximately three years behind

schedule.
Approximately 2,900 Puget Sound unit employees

currently work on the 787 assembly line.


Approximately 1,740

of them are working on out-of-sequence assembly work, away

from the main assembly line. Once supply issues are resolved

and assembly can be accomplished in sequence on the line, it

is anticipated that the number of employees will drop by

approximately 60%.
Boeing asserts that the South Carolina

plant will be ready to begin assembly work in mid 2011.

Approximately 1,000 mechanic and flight line jobs will be

added in South Carolina at that time.

ACTION

This case involves Boeings transfer of work from an

experienced unionized workforce to a new, nonunion facility.

Boeings decision was motivated by antiunion considerations.

From the time of the Unions strike in the fall of 2008,

Boeing made clear to its unionized workforce that it would not

countenance further strikes.


Time and again, in e-mails to

employees, on its intranet site, in the media, and in talks

with the Union, Boeing tied its ability to compete to the

avoidance of future strike activity.


Then, when Boeing

purchased the Vought facility in South Carolina, its officials

denied the Union access to employees at the facility.


It also

let the employees know that it preferred to deal with them

directly rather than through their Union and their receipt of

the second line hinged on their vote in a decertification

election.
Simultaneously, Boeing officials told the Puget

Sound unit employees that they could retain all of the 787

assembly work only by waiving their right to strike for twenty

years.
Although the Union entered negotiations with Boeing

less than the billions of dollars that Albaugh claimed in

this interview.

NLRB-FOIA-00010076

Case 19-CA-32431

- 13 -

and made major concessions in an effort to address its stated

concerns, once the Union was decertified in South Carolina,

Boeing courted the South Carolina legislature and applied for

the necessary permits from the South Carolina regulatory

bodies - even as it continued the motions of negotiating with

the Union.
As soon as South Carolina approved the financial

incentives for Boeing, Boeing called off negotiations and

announced its decision.


Boeings CEO admitted that the

overriding factor for moving work to South Carolina was the

employees strike activity.


Moreover, to reinforce the

message to unit employees, he intimated that the continuation

of any work in Washington was contingent on the stability of

the production lines, a veiled threat designed to coerce

employees to abstain from future strikes.


Nor could Boeing

credibly blame the 787 production delays on employees 2008

strike activity, which halted production for approximately two

months.
Rather, the delay resulted primarily from its own

business decision to outsource the manufacture of the aircraft

components to various suppliers and from unexpected software

problems.

Further, the fact that it made little practical sense to

locate this second line in South Carolina, despite a two-and-

a-half-year delay in the production of its new 787 aircraft,

rather than its existing facilities in Washington, supports a

finding of unlawful motivation.


While South Carolina would

not be ready for production for two years because of the need

for substantial capital improvements and the hiring and

training of a new workforce, Washington was already up and

running, with the space, the necessary equipment, and a

significant complement of trained employees.

On these facts, we conclude that the Region should issue

a complaint alleging: independent violations of Section

8(a)(1) based upon Boeings coercive and threatening

statements to employees on the intranet and through the media;

and a violation of Section 8(a)(3) based upon Boeings

decision to place the second line in South Carolina and to

establish a dual-sourcing supply program in order to retaliate

against the unit employees for engaging in protected Union

activity.
We would also argue, in the alternative, that

Boeings actions were inherently destructive of employee

rights.
But the Region should dismiss the Section 8(a)(5)

allegations because the Union waived its right to bargain

about Boeings decision to offload unit work to a facility not

covered by the parties agreement.


Finally, to remedy the

Section 8(a)(1) and (3) violations, the Region should seek: a

notice reading by a high-level Boeing official in addition to

the traditional remedies; and an order requiring Boeing to

assemble in the Puget Sound area the first ten 787 aircraft

that it produces each month and to maintain the supply lines

for those aircraft in the Puget Sound and Portland facilities.

NLRB-FOIA-00010077

Case 19-CA-32431

- 14 -

I. The Employer Violated Section 8(a)(1)

The Supreme Court long ago delineated the line between

employer speech protected under Section 8(c) of the Act and

threats of reprisals violative of Section 8(a)(1).5


The Court

ruled in Gissel that an employer may make a prediction as to

the effects of unionization but that prediction must be

carefully phrased on the basis of objective fact to convey an

employers belief as to demonstrably probable consequences

beyond his control[.]6


On the other hand, threats of

economic reprisal to be taken solely on [the employers] own

volition violate Section 8(a)(1).7

In General Electric Company, the Board applied the Gissel

test to set aside an election because the employer threatened

a long-term loss of work based on the possibility of a strike

at some future time.8


Faced with a union organizing drive,

the employer gave multiple speeches touting its two-source

supplier strategy.9
The employer stated that it had

established its nonunion plant so that customers could get the

motors they needed during the seven strikes at its union

plant.
The employer also made clear that the plants nonunion

status was the reason it had experienced a rise in

employment.10
And the employer conveyed the message that the

plant remaining nonunion was an important, if not a decisive,

factor in any company decision to choose that plant as a

second manufacturing facility for the new motor the employer

planned to introduce.11
The Board concluded that although the

employer might want to insure itself against production

interruptions caused by employee concerted activity, no such

insurance is legally possible, for the simple reason that

employees have a federally protected right to engage in such

activity.12
The Board expressly distinguished an employers

right to take defensive action when threatened with an

See NLRB v. Gissel Packing Co., 395 U.S. 575, 618 (1969).

Ibid.

Id. at 619 (citation omitted).

See 215 NLRB 520, 522-23, fn. 6 (1974).

See id. at 520.

10

See id. at 520-21.

11

See id. at 521.

12

See id. at 522.

NLRB-FOIA-00010078

Case 19-CA-32431

- 15 -

imminent strike from threats to transfer work merely because

of the possibility of a strike at some speculative future

date.13

The Board repeatedly has held that an employer violates

Section 8(a)(1) by threatening to withhold work opportunities

because of the exercise of Section 7 rights.14


Thus, telling

employees that they will lose their jobs if they join a strike

violates Section 8(a)(1).15


Similarly, in Kroger Co., the

employer unlawfully threatened to put its plan to build a new

freezer facility for its distribution center on hold because

of intraunion unrest and labor disputes.16

Further, where an employer unconditionally predicts a

loss of customers due to unionization or strike disruptions

without any factual basis, its predictions amount to

unlawful threats.17
Rather, an employers predictions of

customer disaffection must be based on objective facts.18

Thus, in Curwood, Inc., an employer lawfully related its

13

See id. at 522, fn. 6.

14

See, e.g., Kroger Co., 311 NLRB 1187, 1200 (1993), affd.

th
mem. 50 F.3d 1037 (11
Cir. 1995); General Electric Co., 321

NLRB 662, fn. 5 (1996), enf. denied 117 F.3d 627 (D.C. Cir.

1997).

15

Aelco Corp., 326 NLRB 1262, 1265 (1998).


See also Dorsey

Trailers, Inc., 327 NLRB 835, 851 (1999), enfd. in pertinent

th
part 233 F.3d 831 (4
Cir. 2000) (threat to close the plant if

the employees went out on strike).

16

311 NLRB at 1200.


See also General Electric Co., 321 NLRB

at 662, fn. 5 (employer conveyed to employees that

unionization could result in the withholding of further

investment in the plant or its closure).

17

See, e.g., Tawas Industries, 336 NLRB 318, 321 (2001) (no

objective basis for prediction that customers, fearing

strikes, would not give their business to the employer if the

employees independent union affiliated with the UAW);

Tradewaste Incineration, 336 NLRB 902, 907-08 (2001)

(prediction that 90% of the customers would not deal with a

union facility because of fear of a work stoppage was not

based on objective facts); Debbie Reynolds Hotel, 332 NLRB

466, 466 (2000) (no factual basis for statements about having

to move productions and equipment elsewhere because customers

would not be able to afford employers facilities if employees

unionized).

18

Curwood, Inc., 339 NLRB 1137, 1137-38 (2003).

NLRB-FOIA-00010079

Case 19-CA-32431

- 16 -

customers concerns about strikes, where the employer produced

written inquiries from customers seeking information about its

contingency plans in the event of a strike.19


An employer may

also reference the possibility that unionization, including

strikes, might harm relationships with consumers, as opposed

to predicting
unavoidable consequences.20

Here, the Union has alleged that several statements by

Boeing officials violated Section 8(a)(1).


Some statements

were posted by Boeing on its website or intranet.


Others were

reprinted in newspaper articles as direct quotes; although

such a quotation is hearsay, it would be admissible as an

admission (an exception to the hearsay rule), if the reporter

testifies.21
By contrast, reporter summaries cannot form the

basis for a Section 8(a)(1) violation.


And statements

recounted by political figures within newspaper articles are

in effect double hearsay and inherently unreliable.

Based on these principles, we find that the following

constitute unlawful threats under the Gissel standard:

(1)
Boeing posted its quarterly earnings conference call

on its intranet for employees on October 21.


During the call,

CEO McNerney made an extended statement about diversifying

our labor pool and moving work to South Carolina because of

strikes happening every three or four years in Puget

Sound.22
His comments were indistinguishable from the

comments regarding a two-source supplier strategy found

violative in General Electric.23

(2)
Boeings October 28 memo to managers advised them to

inform employees that it decided to locate the second line in

South Carolina in order to reduce vulnerability to delivery

disruptions caused by, among other things, strikes.


The

thrust of Boeings message to employees was that Boeing had

19

See id. 339 NLRB at 1137.

20

E.g., Miller Industries Towing Equipment, Inc., 342 NLRB

1074, 1075-76 (2004) (employer did not predict unavoidable

consequences).

21

Cf. Sheet Metal Workers Local 15 (Brandon Regional Medical

Center), 346 NLRB 199, 201-02 (2006), enf. denied on other

grounds 491 F.3d 429 (D.C. Cir. 2007) (newspaper report of

party admission is inadmissible hearsay because the reporter

was not available for cross-examination).

22

These same comments were quoted in the Seattle Times.

23

See 215 NLRB 520, 522-23 (1974).

NLRB-FOIA-00010080

Case 19-CA-32431

- 17 -

removed jobs from Puget Sound because employees had struck and

that they would lose work if they struck again.24

(3)
In articles that appeared in the Seattle Times and

the Puget Sound Business Journal on December 7 and 8

respectively, Boeing officials attributed the plan to use a

dual-sourcing system and contract separate suppliers for the

South Carolina line to past strikes and implicitly threatened

the loss of future work opportunities in the event of future

strikes.25

(4)
In a video-taped interview on March 2, Boeing

Commercial Airplanes CEO Albaugh expressly attributed the

Employers decision to locate the second line in South

Carolina to employee strikes and threatened the loss of future

work opportunities in retaliation for such protected

activity.26

The above statements, disseminated through various

channels to unionized and nonunionized employees nationwide,

drove home the message: union activity could cost them their

jobs, while a decision to reject union representation could

bring those jobs to their communities.

II.

The Employer Violated Section 8(a)(3)

The Employers decision to locate the second 787 line at

a nonunion facility and to establish a dual-sourcing program

to support that line violated Section 8(a)(3) because the

Employer acted in retaliation for the employees Union

activity and not for a legitimate business reason.

Initially, despite Boeings assertions that its decision

to locate a second 787 assembly line in South Carolina will

not adversely impact any current unit employees, there is no

question that the decision will direct work away from Puget

Sound employees with consequent adverse effects.


Instead of

24

The Region should insure that this message was communicated

to employees.

25

The authors of these articles will need to testify.


If

they resist testifying, and it becomes necessary to seek

subpoena enforcement, the Region should contact Advice.

26

Vice President Kights video-taped comments that Boeings

customers could not live with this triennial disruption and

that Boeing was looking to insure production continuity

cannot be alleged as an independent violation because they

were first posted on Boeings website on September 2, outside

the Section 10(b) period.

NLRB-FOIA-00010081

Case 19-CA-32431

- 18 -

assembling all of the 787 planes in Washington as originally

planned, once the second line opens in South Carolina, a

significant portion of the remaining 787 orders will be filled

by planes produced in North Charlestown.


Future work

opportunities will be lost for employees on the surge line,

as well as unit employees waiting to transfer into the more

desirable 787 jobs.


There are likely to be transfers to

older, less desirable aircraft assembly lines, demotions, and

layoffs.
Moreover, Boeings adoption of its new dual-

sourcing program means that the Puget Sound and Portland unit

employees will produce parts only for planes assembled in

Washington and not for those planes assembled in South

Carolina, also causing the loss of employment opportunities

for unit employees and the likelihood of demotions and

layoffs.
If no unit employees have been harmed yet, it is

merely because Boeings retaliatory decision has not yet been

implemented.

Recently, in Pittsburg & Midway Coal Mining Co., the

Board expressly reaffirmed that an actual financial loss is

not necessary to establish a Section 8(a)(3) violation.27


In

that case, the employer revised its bonus policy in

retaliation for the employees use of contractual memorial

days to engage in work stoppages.


Even though no employees

thereafter suffered a diminution of their bonuses, the Board

found a Section 8(a)(3) violation based upon the employers

retaliatory motive.28

Moreover, the Board specifically has held that an

employer may not, for unlawfully motivated reasons, divert

unit work to a nonunion plant even where there is no immediate

impact on unit employees.29


In Adair Standish Corp., the

employer refused to take delivery of a new press ordered for

its newly-organized Standish plant and installed it instead at

its nonunion plant.


The Board noted that diversion of the

press from Standish could reasonably result in diversion of

new work from Standish and therefore violated Section 8(a)(3)

even though there was no immediate impact on the unit

employees.30
Similarly, in Cold Heading Co., the employer

unlawfully relocated equipment to a newly-purchased nonunion

facility and changed its plans to install new equipment in its

27

See 355 NLRB No. 197, slip op. at 5, fn. 8 (2010).

28

Ibid.

29

See Adair Standish Corp., 290 NLRB 317, 318-19 (1988), enfd

th
in pertinent part 912 F.2d 854 (6
Cir. 1990).

30

See id. at 319.

NLRB-FOIA-00010082

Case 19-CA-32431

- 19 -

union facility after its employees independent union

representative sought to affiliate with the UAW.31

Here, as in Adair Standish and Cold Heading, there is a

diversion of unit work that the unit employees otherwise would

have performed.
And as in Pittsburg & Midway Coal Mining Co.,

the fact that unit employees may not yet have experienced the

financial impact of Boeings decision is no defense to a

Section 8(a)(3) violation.

Further, Boeing made this decision for unlawful reasons.

Boeing admits that the overriding factor in its decision to

place the second line in a nonunion facility was the

employees strike history.


An employers discouragement of

its employees participation in a legitimate strike

constitutes discouragement of union membership within the

meaning of Section 8(a)(3).32


This applies to employer

conduct designed to retaliate against employees for having

engaged in a strike in the past,33 as well as employer conduct

designed to forestall employees from exercising their right to

strike in the future.34


Indeed, the Board recently reaffirmed

that an employer violates the Act when it acts to prevent

future protected activity.35


Comparing such conduct to the

31 See 332 NLRB 956, fn. 5, 975-76 (2000).


See also

Associated Constructors, 325 NLRB 998, 998-1000 (1998), enfd.

sub nom. ODovero v. NLRB, 193 F.3d 532 (D.C. Cir. 1999)

(double-breasted employer unlawfully diverted work from its

union entity to its nonunion entity in retaliation for the

unions efforts to organize the nonunion entity and to escape

the collective-bargaining agreement).

32

Capehorn Industry, 336 NLRB 364, 365 (2001).

33

See id. at 365-67 (employer violated Section 8(a)(3) by

failing to immediately reinstate strikers upon unconditional

offer to return to work where there was no legitimate business

justification for entering into a permanent subcontract).

34

See Century Air Freight, 284 NLRB 730, 732 (1987) (employer

violated Section 8(a)(3) by permanently subcontracting unit

work and discharging unit employees in order to forestall the

exercise of their right to strike); Westpac Electric, 321 NLRB

1322, 1374 (1996) (employer violated Section 8(a)(3) by

isolating employee in retaliation for his previous striking

activities and also in anticipation that he would participate

in a strike in the future).

35

See Parexel International, LLC, 356 NLRB No. 82, slip op.

at 4 and cases cited therein (2011) (employer violated Section

NLRB-FOIA-00010083

Case 19-CA-32431

- 20 -

erection of a dam at the source of supply of potential,

protected activity, the Board reasoned that, the suppression

of future protected activity is exactly what lies at the heart

of most unlawful retaliation against past protected

activity.36

Boeing concedes that it is removing work from the unit

employees based upon their past exercise of their right to

strike.
However, Boeing relies upon the Supreme Courts

decision in NLRB v. Brown Food Store37 to argue that it is

privileged to move work outside the unit to avoid the

disruptive consequences of future strikes and that this is a

sufficient business justification to permit its actions.

In Brown Food Store, the Court held that an employer was

privileged to lock out its employees and use temporary

replacements to carry on its business in the face of a whipsaw

strike.38
Specifically, the Court found that the use of a

lockout and the hiring of temporary replacements to bring

pressure to bear in support of its bargaining position after

an impasse in negotiations was not an unfair labor practice.39

Rather than finding the use of this economic weapon

discriminatory, the Court concluded that it was a legitimate

defensive measure to preserve the multiemployer group in the

face of a whipsaw strike.40

Boeings attempt to extend the holding of Brown to

legitimatize any action that an employer takes to protect

itself against future, wholly speculative, strikes would

vitiate the Section 13 right to strike.


And the Board has

made it clear that an employer cannot rely upon Brown to

justify discriminatory conduct based upon the exercise of the

right to strike.
Thus, in National Fabricators, the Board

expressly rejected the employers attempt to use Brown and

other lockout cases to justify its decision to lay off those

employees who were likely to honor a union picket line in the

8(a)(1) by discharging an employee to prevent her from

discussing wages with other employees).

36

Ibid. (citation omitted).

37

380 U.S. 278 (1965).

38

See id. at 283-85.

39

See id. at 284.

40

See ibid.

NLRB-FOIA-00010084

Case 19-CA-32431

- 21 -

future.41 Instead, the Board found that disfavoring employees

who were likely to engage in protected union activities was

proscribed by Section 8(a)(3) and the employers business

justification - to avoid investing money in employees who

were going to cease work later -- was neither legitimate nor

substantial.42

Boeings concession that choosing South Carolina will

result in duplication and economic inefficiencies further

demonstrates that Boeings actions were retaliatory and not a

legitimate business decision.


In addition, Commercial

Airplanes CEO Albaugh conceded that going to South Carolina,

a green field site, involves significant risks.


Boeing has

the capacity, equipment, and trained workforce to handle the

second assembly line in the Puget Sound area.


The substantial

investment required to build and equip the South Carolina

facility therefore will be duplicative.


In addition, Boeing

will have to recruit and train a new workforce in South

Carolina, while ultimately laying off experienced employees in

Washington.
Exaggerating the disruptive effects of prior

strikes, Boeing maintains that the inefficiencies associated

with moving work to South Carolina will be counterbalanced by

the avoidance of strike disruptions in the future. However,

there are other nonretaliatory and less costly means of

dealing with the potential of relatively short disruptions

caused by employee strikes, such as concluding negotiations

with the Union for a long-term no-strike agreement.


In

addition, Boeings claim that it took this action to avoid

strike disruptions is belied by Boeings rejection of the

Unions efforts to negotiate a long-term no strike agreement.

Accordingly, the Region should proceed on the theory that

Boeing violated Section 8(a)(3) by retaliating against the

unit employees for engaging in the protected activity of

striking.

We also conclude that Boeings conduct was inherently

destructive of employee interests.43


Conduct is inherently

destructive when it carries with it unavoidable

consequences which the employer not only foresaw but which he

must have intended and thus bears its own indicia of

th

41

See 295 NLRB 1095, 1095 (1989), enfd. 903 F.2d 396 (5

1990), cert. denied 498 U.S. 1024 (1991).

42

Cir.

See 295 NLRB at 1095-96.

43

See NLRB v. Great Dane Trailers, Inc., 388 U.S. 26, 33

(1967) (citation omitted).

NLRB-FOIA-00010085

Case 19-CA-32431

- 22 -

intent.44
In International Paper Co., the Board set forth

four fundamental guiding principles for determining whether

employer conduct is inherently destructive of employee

rights.45
First, the Board looks to the severity of the harm

to employees Section 7 rights.


Second, the Board considers

the temporal impact of the employers conduct, i.e. whether

the conduct merely influences the outcome of a particular

dispute or whether it has far reaching effects which would

hinder future bargaining.


Third, the Board distinguishes

between conduct intended to support an employers bargaining

position as opposed to conduct demonstrating hostility to the

process of collective bargaining.


And finally, the Board

assesses whether the employees conduct discourages collective

bargaining by making it seem a futile exercise in the eyes of

the employees.46
Even if the employees conduct is

inherently destructive, the Board weighs the employers

asserted business justification against the invasion of

employee rights.47

Boeings actions were inherently destructive of employee

rights under the four principles articulated in International

Paper.
First, the harm to employees Section 7 rights was

severe; employees got the distinct message that if they engage

in another strike, unit work will be moved to a nonunion

facility and unit jobs will be lost.


Second, Boeings

decision was designed to have far-reaching effects and not

just to influence the outcome of a particular dispute, namely,

to take away employee support for the Unions most effective

economic weapon, and for the Union itself, and thereby hinder

any future collective bargaining.


Third, Boeings conduct

demonstrated hostility to the very process of collective

bargaining and not just to support a specific bargaining

position.
Finally, bargaining was made to seem a futile

44

Ibid., quoting NLRB v. Erie Resistor Corp., 373 U.S. 221,

228, 231 (1963).


See also Dorsey Trailers, Inc., 327 NLRB

835, 863-64 (1999), enf. denied in pertinent part 233 F.3d 831

th
(4
Cir. 2000).

45

See 319 LRB 1253, 1269 (1995), enf. denied 115 F.3d 1045

(D.C. Cir. 1997).

46

Id. at 1269-70 (citations omitted).

47

Id. at 1273 (finding no justification for employers

inherently destructive conduct of permanently subcontracting

bargaining unit work during a lawful lockout).


See also

Dorsey Trailers, 327 NLRB at 863-64 (employers closing of

facility during strike and relocation of unit work to newly

purchased facility outside the unions jurisdiction was

inherently destructive of employee rights).

NLRB-FOIA-00010086

Case 19-CA-32431

- 23 -

exercise without the possibility of a strike to support the

Unions position at the bargaining table.

The unavoidable consequence of Boeings decision to place

the second line in its newly-purchased, nonunion facility,

accompanied by official comments on the intranet and in the

media, was to severely chill its employees exercise of

Section 7 rights in the future - whether it be the Puget

Sound employees, the South Carolina employees, or Boeing

employees elsewhere.
Employees will correctly fear that

engaging in such protected activity could cause them to lose

their jobs to nonunionized workers.


Others may be encouraged

to file or support decertification petitions.


And the many

unrepresented Boeing employees will be discouraged from

organizing or voting in support of union representation if

they believe that exercising their right to concerted activity

justifies moving commercial production elsewhere.

Moreover, even if the effect on employee rights was only

comparatively slight, Boeing had no legitimate business

justification. Its only justification was its desire to insure

against its employees exercise of their Section 7 rights, and

that is not a legitimate justification.

The Board recently held in Arc Bridges, Inc. that an

employers conduct was inherently destructive where its stated

reason for withholding a regularly-scheduled wage increase

from represented employees was that it was in negotiations

with the union.48


The Board found that the employers stated

reason - that it wanted to enhance its bargaining position

with the union -- was an admission that it withheld the

increase because employees chose union representation.49

Likewise, Boeings stated reason for its decision - that it

wanted to avoid strike disruptions - was an admission that it

decided to locate the second line in South Carolina because

the Puget Sound employees chose union representation and the

South Carolina employees did not.


Accordingly, Boeings

decision coupled with its public pronouncements emphasizing

the motivation for its decision was inherently destructive of

its employees rights to engage in union activity and violated

Section 8(a)(3).

III. The Union Waived its Right to Bargain

The Unions allegation that Boeing failed to bargain in

good faith over its decision as to where to locate the second

787 line raises two preliminary issues: (1) whether Boeings

decision was a mandatory subject of bargaining; and (2) if so,

48

See 355 NLRB No. 199, slip op. at 3-4 (2010).

49

See id., slip op. at 3.

NLRB-FOIA-00010087

Case 19-CA-32431

- 24 -

whether the Union waived its right to bargain over that

subject.
Although we conclude that the decision was a

mandatory subject of bargaining and there is substantial

evidence that Boeing did not bargain in good faith to a valid

impasse, the Region should dismiss the Section 8(a)(5)

allegations on the ground that the Union waived it right to

bargain, applying Provena.50

A.

Mandatory Subject of Bargaining

Under Dubuque Packing Co., a decision to relocate unit

work that is not accompanied by a basic change in the

employers operation is a mandatory subject of bargaining

unless the employer can establish that: the work performed at

the new location varies significantly from the work performed

at the prior location; the work performed at the former

location is discontinued entirely and not moved to the new

location; or the employers decision involved a change in the

enterprises scope and direction.51


Alternatively, the

employer can defend by showing that: labor costs were not a

factor in the decision; or if labor costs were a factor, the

union could not have offered sufficient concessions to change

the employers decision.52


Applying the Dubuque test, the

Board repeatedly has found relocation decisions to constitute

a mandatory subject of bargaining.53

In addition, the Board has held that a decision may be a

mandatory subject even though there is no immediate loss of

unit jobs.54
For example, in Quickway Transportation, Inc.,

50

Provena St. Joseph Medical Center, 350 NLRB 808 (2007).

51

303 NLRB 386, 391 (1991), enfd. sub nom. Food & Commercial

Workers Local 150-A v. NLRB, 1 F.3d 24 (D.C. Cir. 1993).

52

Ibid.

53

See, e.g., Titan Tire Corp., 333 NLRB 1156, 1164-65 (2001)

(decision to permanently relocate equipment and jobs in

reaction to strike); Owens-Brockway Plastic Products, 311 NLRB

519, 521-23 (1993) (decision to close plant and transfer work

to other facilities).

54

See, e.g., Overnite Transportation Co., 330 NLRB 1275, 1276

(2000), revd. mem. 248 F.3d 1131 (3d Cir. 2000) (We think it

plain that the bargaining unit is adversely affected whenever

bargaining unit work is given away to nonunion employees,

regardless of whether the work would otherwise have been

performed by employees already in the unit or by new

employees).

NLRB-FOIA-00010088

Case 19-CA-32431

- 25 -

the Board found that the employers decision to contract with

independent owner-operators rather than expand the unit, as it

had originally planned, was mandatory because that decision

obviously constrained the work opportunities available to the

bargaining unit.55
Likewise, in Spurlino Materials, LLC, the

Administrative Law Judge, in a decision adopted by the Board,

found that even though no unit employees suffered a loss of

work as a result of the employers subcontracting, existing

employees might have otherwise been given overtime or the

employer might have hired additional unit employees, resulting

in benefits for the Union and current unit employees in having

an expanded unit.56
And in Dorsey Trailers, Inc., the Board

found that subcontracting work to reduce a backlog in orders

was a mandatory subject because the potential loss of

overtime or reasonably anticipated work opportunities poses a

detriment to unit employees even if no employees lost their

jobs.57

Here, the decision to locate the second 787 assembly line

in South Carolina amounted to a relocation of unit work.


Even

though no unit employees have yet to lose work, as in Dorsey

Trailers the assignment of unit work to nonunit employees in

order to reduce an order backlog presents a potential loss of

overtime or reasonably anticipated work opportunities and

therefore poses a detriment to unit employees.58


The work

that will be performed in South Carolina is identical to that

performed on the first line and the surge line in Everett by

unit employees.
The decision did not involve a basic change

in Boeings operation or any change in the enterprises scope

or direction; Boeing does not intend to change its production

methods or its products.59


Boeing did not demonstrate that

labor costs were not a factor in the decision.


In fact,

according to Boeings CEO, the decision was motivated

primarily by a desire to avoid strikes and secondarily because

the Employer cannot afford the rate at which unit wages are

escalating.
Boeing also did not demonstrate that the Union

could not have offered sufficient concessions to change its

55

See 355 NLRB No. 140 (2010), incorporating by reference the

rationale of 354 NLRB No. 80, slip op. at 2 (2009).

56

See 355 NLRB No. 77 (2010), incorporating by reference the

rational of 353 NLRB 1198, 1219 (2009).

57

See 321 NLRB 616, 617 (1996), enf. denied in relevant part

134 F.3d 125 (3d Cir. 1998).


Accord Acme Die Casting, 315

NLRB 202, fn. 1, 209 (1994).

58

See 321 NLRB at 617.

59

See Owens-Brockway Plastic Products, 311 NLRB at 522.

NLRB-FOIA-00010089

Case 19-CA-32431

- 26 -

decision; the Union


the strike and wage
2009.
Accordingly,
where to locate the
bargaining.

B.

was willing to make concessions on both

issues during negotiations in the fall of

we conclude that Boeings decision as to

second 787 line was a mandatory subject of

Waiver of the Right to Bargain

The Board applies a clear and unmistakable waiver

standard to determine whether a union has waived its right to

bargain about a mandatory subject of bargaining during the

term of a collective-bargaining agreement.60


The Board will

find a waiver if the contract either expressly or by

necessary implication confers on management a right to

unilaterally take the action in question.61


In interpreting

the parties agreement, the relevant factors include: (1) the

wording of pertinent contractual provisions; (2) the parties

bargaining history; and (3) the parties past practice.62

The Board has found a waiver based on contract language

where there is an express reference to the specific type of

decision that the employer has implemented unilaterally.63

Thus, in Ingham Regional Medical Center, the Board adopted an

Administrative Law Judges decision that the union waived its

right to bargain about a subcontracting decision where the

contractual management-rights clause expressly reserved to

management the right to use outside assistance or engage

independent contractors to perform any of the Employers

operations or phases thereof (subcontracting)[.]64


This

right was vested exclusively in the Employer and was not

60

See Provena St. Joseph Medical Center, 350 NLRB at 810-11.

61

See id. at 812, fn. 19.

62

See Johnson-Bateman Co., 295 NLRB 180, 184-89 (1989) (no

waiver of right to bargain about drug/alcohol testing

requirement where the management rights clause was generally

worded, issue was not fully discussed and consciously

explored during negotiations, and past practice of union

acquiescence to other unilateral work rule changes did not

waive the right to bargain about such changes for all time).

63 See, e.g., Ingham Regional Medical Center, 342 NLRB 1259,

1261-62 (2004) (under the management-rights clause, the

employer expressly reserved the right to subcontract); Allison

Corp., 330 NLRB 1363, 1364-65 (2000) (management-rights clause

specifically, precisely, and plainly granted the employer

the exclusive right ... to subcontract).

64

See 342 NLRB at 1260, 1261-62.

NLRB-FOIA-00010090

Case 19-CA-32431

- 27 -

subject to arbitration.65
Although another contractual

provision required the employer to provide 60 days notice and

discuss with the union any subcontracting decision that

would cause unit employees to be laid off, the words discuss

and bargain were found not synonymous in the parties

contract.66

In this case, Section 21.7 of the parties agreement

specifically, precisely, and plainly67 granted Boeing the

right to offload work to a facility not covered by the

agreement.
As in Ingham Regional Medical Center, the other

provisions of Section 21.7 that required Boeing to provide the

Union notice and an opportunity to review and recommend

alternatives did not require the Employer to bargain over an

offloading decision.

The Union does not dispute that Section 21.7 contains a

waiver but asserts instead that the Employer may not take

advantage of the waiver.


Specifically, the Union maintains

that a contractual waiver cannot be applied to a decision that

is unlawfully motivated.
But there is no authority for the

proposition that an unlawful motive negates a contractual

waiver; rather, the cases on which the Region and Union rely

hold that a contractual waiver is no defense to a Section

8(a)(3) violation.68

The Unions other arguments against application of the

waiver are also unavailing.


Thus, the Union asserts that the

contractual waiver does not apply because the parties entered

negotiations for a new contract.


However, during those mid-

term negotiations, their existing contract -- including

Section 21.7 -- continued in effect.


The Union also contends

65

Id. at 1260.

66

Id. at 1262.

67

See Allison Corp., 330 NLRB at 1365.

68

See Reno Hilton, 326 NLRB 1421, 1430 (1998), enfd. 196 F.3d

1275 (D.C. Cir. 1999) (merely because the Respondent has

negotiated the unfettered right in a collective-bargaining

agreement to contract out work at any time, such right ...

does not unfetter and insulate the Respondent from the

sanctions of the Act prohibiting it from discriminating); RGC

th
(USA) Mineral Sands, Inc. v. NLRB, 281 F.3d 442, 450 (4
Cir.

2002) (enforcing Board decision finding Section 8(a)(3)

violation on grounds that, even if contract authorized

employer to unilaterally alter shift assignments, an employer

cannot exercise contractual rights to punish employees for

protected activity).

NLRB-FOIA-00010091

Case 19-CA-32431

- 28 -

that the waiver cannot extend to work transferred after the

contracts expiration in September 2012, but Boeing made its

final decision in 2009 and expects to open the second line in

South Carolina in mid 2011.69


The Unions estoppel argument

also lacks merit.


While Boeing took the position that the

notice and review provisions in Article 21.7 did not apply

because no employees will be laid off, Boeing is not thereby

estopped from asserting the waiver provision.

Moreover, Boeings request to negotiate mid-term changes

to the parties agreement did not subject it to the

traditional Section 8(a)(5) bargaining obligations.70


Absent

a contractual reopener provision, parties are under no

obligation to bargain over proposals for mid-term

modifications.71
For this reason, we do not reach the

question of whether Boeing engaged in surface bargaining in

the fall of 2009, bargained to a valid impasse, or unlawfully

failed to provide information relevant to those negotiations.

IV. The Appropriate Remedy

We conclude that special remedies must be fashioned in

the unusual circumstances of this case.

First, with respect to the Section 8(a)(1) violations,

which had a particularly chilling impact upon employees, the

Region should seek a notice reading by a high-level Boeing

official, to insure that employees learn about their statutory

69

Thus, if there is a duty to bargain over a relocation

decision, it arises when the decision is announced and not

when it is ultimately implemented.


See, e.g., Bell Atlantic

Corp., 336 NLRB 1076, 1086-89 (2001) (union waived right to

bargain over employers decision to close facility and

transfer work to nonunion facility where it received notice of

decision in August and did not request bargaining until

December, even though no unit work would be relocated before

the following April).

70

See St. Barnabas Medical Center, 341 NLRB 1325, 1325 (2004)

(union did not incur traditional bargaining obligations by

requesting that employer meet to discuss feasibility of wage

reopener, and employer violated Section 8(a)(5) by

unilaterally implementing wage increases after an impasse in

those negotiations).

71

See Boeing Co., 337 NLRB 758, 763 (2002) (employer did not

incur bargaining obligation by agreeing to unions request to

consider midterm modification); Connecticut Power Co., 271

NLRB 766, 766-67 (Section 8(d) does not require an employer

who suggests a midterm contract change to negotiate about it).

NLRB-FOIA-00010092

Case 19-CA-32431

- 29 -

rights and gain assurance that Boeing will respect those

rights.72
The notice reading is particularly effective if

read by an official who personally committed some of the

violations, or read by a Board agent in his presence, in order

to dispel the atmosphere of intimidation he created.73

Finally, to remedy the Section 8(a)(3) violation, the

Region should seek an order requiring Boeing to maintain the

second line in Washington.


At the time of the discriminatory

conduct, Boeing intended to use the second line to assemble

three 787 aircraft each month, while assembling seven 787

aircraft each month on the first line in Everett.


At present,

even the first line is not producing up to capacity because of

problems with suppliers and FAA certification.


Thus, the

Region should seek an order requiring that, as Boeing

production increases, the first ten aircraft assembled each

72

See, e.g., Homer D. Bronson Co., 349 NLRB 512, 515 (2007),

enfd. 273 F. Appx 32 (2d Cir. 2008) (notice reading is an

effective but moderate way to let in a warming wind of

information, and more important, reassurance); Federated

Logistics & Operations, 340 NLRB 255, 258 (2003), affd. 400

F.3d 920 (D.C. Cir. 2005) (employees will perceive that the

Respondent and its managers are bound by the requirements of

the Act).

73

Three Sisters Sportswear Co., 312 NLRB 853, 853 (1993),

enfd. mem. 55 F3d 684 (D.C. Cir. 1995), cert. denied 516 U.S.

1093 (1996).
See also, e.g., Homer D. Bronson Co., 349 NLRB

at 515 (reading by president of manufacturing, who personally

delivered speeches threatening plant closure or relocation);

Texas Super Foods, 303 NLRB 209, 209 (1991) notice reading by

owner and president who signed unlawful letters to unit

employees, drafted unlawful speech threatening job losses, and

personally gave the speech to at least two groups of

employees).

NLRB-FOIA-00010093

Case 19-CA-32431

- 30 -

month be assembled by the Puget Sound unit employees and that

the supply lines for these aircraft be maintained in the Puget

Sound and Portland facilities.74

B.J.K.

ROFs - 9

H:ADV.19-CA-32431.Response2.Boeing.dlw

74

At this time, we do not reach a decision on the Unions

request for preliminary injunctive relief.


The Region should

reassess whether Section 10(j) relief is warranted after the

case is tried before the Administrative Law Judge.


In the

meantime, the Region should put evidence in the record

regarding the chilling impact of Boeings violative statements

and conduct to support the notice-reading remedy.


This will

facilitate use of the administrative record to demonstrate in

a subsequent Section 10(j) proceeding that preliminary

injunctive relief is just and proper.

NLRB-FOIA-00010094

Microsoft Outlook

From:

Omberg, Bob

Sent:

Friday, October 15, 2010 10:29 AM

To:

Katz, Judy

Subject:

FW: Boeing memo for Monday GC agenda

Attachments:

ADV.19-CA-32431.GCAgenda.Boeing.dlw.doc

From: Willen, Debra L

Sent: Thursday, October 14, 2010 2:09 PM

To: Omberg, Bob

Subject: Boeing memo

I didnt forget --

NLRB-FOIA-00010095

Exemption 5

NLRB-FOIA-00010096

Exemption 5

NLRB-FOIA-00010097

Exemption 5

NLRB-FOIA-00010098

Exemption 5

NLRB-FOIA-00010099

Exemption 5

NLRB-FOIA-00010100

Exemption 5

NLRB-FOIA-00010101

Exemption 5

NLRB-FOIA-00010102

Exemption 5

NLRB-FOIA-00010103

Exemption 5

NLRB-FOIA-00010104

Exemption 5

NLRB-FOIA-00010105

Exemption 5

NLRB-FOIA-00010106

Exemption 5

NLRB-FOIA-00010107

Exemption 5

NLRB-FOIA-00010108

Exemption 5

NLRB-FOIA-00010109

Exemption 5

NLRB-FOIA-00010110

Exemption 5

NLRB-FOIA-00010111

Exemption 5

NLRB-FOIA-00010112

Exemption 5

NLRB-FOIA-00010113

Exemption 5

NLRB-FOIA-00010114

Exemption 5

NLRB-FOIA-00010115

Exemption 5

NLRB-FOIA-00010116

Exemption 5

NLRB-FOIA-00010117

Exemption 5

NLRB-FOIA-00010118

Exemption 5

NLRB-FOIA-00010119

Exemption 5

NLRB-FOIA-00010120

Microsoft Outlook

From:

Katz, Judy

Sent:

Tuesday, November 23, 2010 10:31 AM

To:

Willen, Debra L

Subject:

RE: Boeing's South Carolina facility

Tracking:
Tracking

Recipient

Read

Willen, Debra L

Read: 11/23/2010 10:49 AM

Thanks. Did you get the photo from my cell phone after all?

-----Original Message----From: Willen, Debra L

Sent: Tuesday, November 23, 2010 10:04 AM

To: Katz, Judy; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Omberg, Bob; Szapiro, Miriam

Subject: Boeing's South Carolina facility

Our on-the-scene investigator Judy Katz snapped this picture in Charleston last week.

NLRB-FOIA-00010121

Microsoft Outlook

From:

Omberg, Bob

Sent:

Wednesday, April 13, 2011 9:55 AM

To:

Katz, Judy; Canas, Heather

Cc:

Willen, Debra L

Subject:

Boeing 19-CA-32431 advice merits case closed 4/11; 10j case also closed

The RAB memo went out in Boeing on 4/11/11; so the ILB case comes off deferral and is also closed 4/11 as a no 10j

now decision awaiting the ALJ hearing the memo has this final footnote:

At this time, we do not reach a decision on the Unions request for

preliminary injunctive relief.

The Region should reassess whether Section

10(j) relief is warranted after the case is tried before the

Administrative Law Judge.

In the meantime, the Region should put evidence

in the record regarding the chilling impact of Boeings violative

statements and conduct to support the notice-reading remedy.

This will

facilitate use of the administrative record to demonstrate in a subsequent

Section 10(j) proceeding that preliminary injunctive relief is just and

proper.

NLRB-FOIA-00010122

Microsoft Outlook

From:
Sent:
To:
Subject:

Kearney, Barry J.

Thursday, July 14, 2011 1:37 PM

Farrell, Ellen

FW : Boeing settlement update

From: Kearney, Barry J.

Sent: Friday, July 08, 2011 2:35 PM

To: Farrell, Ellen; Sophir, Jayme; Ahearn, Richard L.

Subject: FW: Boeing settlement update

From: Solomon, Lafe E.

Sent: Friday, July 08, 2011 2:29 PM

To: Kearney, Barry J.

Subject: Re: Boeing settlement update

You're doing good and maybe something positive will come of it. Things are going pretty well here. Thanks, Lafe

--------------------------

Sent from my BlackBerry Wireless Handheld

From: Kearney, Barry J.

To: Solomon, Lafe E.

Sent: Fri Jul 08 14:24:57 2011

Subject: Boeing settlement update

Talked to Campbell and Corsen and its a mixed bag. The ALJ suggested ex-parte settlement discussions where he would

meet separately with high ranking officials from both sides to try to get settlement discussions going. Neither side seems

interested in the idea. As to our proposal that The IAM approach Boeing with the supposal that they would be willing to

make a new meaningful proposal on job guarantees if Boeing would agree to a facilitator, is being met with resistance

from Corsen who believes Boeing should make the first move and that time will likely be when we have the documents

and the CEO has to testify. I pointed out to Corsen that getting these documents is no guarantee and successful district

court is not foregone. I told Corsen That District Court is where Boeing wants to be. On a better note, Corsen told me that

Buffinbarger was approached by someone in Boeing about setting up a mechanism for settlement talks. Unfortunately the

proposal was withdrawn the next day. However I told Corsen that this demonstrates that there is disagreement in Boeing

whether to settle now or drag this out until negotiation of a new contract and the IAM needs to think of creative ways to

exploit that dissension by giving those in Boeing who want to settle now some leverage. I told them the IAM has to move

now and not wait for Boeing. Corsen said he woulkd talk with Buffinbarger.

NLRB-FOIA-00010123

Page 1 of 1

Attorney Work Product

K earn ey, B arry J.

From :
Sent:

W illen, D ebra L

T uesday, O ctober 19, 2010 4:12 P M

Attorney Work Product

K earney, B arry J

To:
Subject: B oeing's counsel

I he attorney w ho signed allot B oeing's position statem ents is

R icha rd H an kins 4

M cK enna Long & A ldridge

A tlanta

1-404-527-8372

I talked to R ich A hearn. H e's trying to confirm w ith the investigator that H ankins is the right guy, but she's in D C

at a training conference.

H e'llcallyou directly w hen he hears back from her.

Attorney Work Product

10/19/2010

NLRB-FOIA-00010124

K earn ey, B arry J.

F ro m :
S e n t:
To:
C c:
S u b je c t:

W illen, D ebra L

W ednesday, O ctober 13, 2010 8 36 A M

.K earn ey, B arry J., S zapiro, M iriam

F arrell, E llen; S ophir, Jaym e

R E .B o e in g

See footnote 1 --

1989: 48 days

1995: 69 days

2005: 28 days

2008: 57 days

There were strikes before 1989, that I didn't put in the footnote.

if you give me another minute, I can send you those.

From: Kearney, Barry J.

Sent: Wednesday, October 13, 2010 8:35 AM

To: Willen, Debra L; Szapiro, Miriam

Cc: Farrell, Ellen; Sophir, Jayme

Subject: RE: Boeing

We say in memo that there were two stikes in the last 5 years. Do we know the strike

history?

Original Message

From: Willen, Debra L

Sent: Wednesday, October 13, 2010 8:32 AM

To: Kearney, Barry J.; Szapiro, Miriam

Cc: Farrell, Ellen; Sophir, Jayme

Subject: RE: Boeing

No -- there are 18,000 employees in this unit and they work on several different airplanes

and parts.

From: Kearney, Barry J.

Sent: Wednesday, October 13, 2010 8:29 AM

To: Willen, Debra L; Szapiro, Miriam

Cc: Farrell, Ellen; Sophir, Jayme

Subject: RE: Boeing

Are the only planes manufactured by this unit the dream liner ?

Original Message

From: Willen, Debra L

Sent: Wednesday, October 13, 2010 8:09 AM

To: Kearney, Barry J.; Szapiro, Miriam

Cc: Farrell, Ellen; Sophir, Jayme

Subject: RE: Boeing

I don't have copies of the contracts. What I know is that at some point,
Arguably Ex. 4

From: Kearney, Barry J.

Sent: Wednesday, October 13, 2010 8:08 AM

To: Willen, Debra L; Szapiro, Miriam

Cc: Farrell, Ellen; Sophir, Jayme

Subject: Boeing

Did you tell me that

Arguably Ex. 4

f so what do we know about that?

NLRB-FOIA-00010125

K earn ey, B arry J.

F ro m :
S e n t:
To:
C c:
S u b je c t:

W illen, D ebra L

W ednesday, O ctober 13, 2010 8.39 A M

K earney, B arry J , S zapiro, M iriam

F arrell, E llen, S ophir, Jaym e

R E : B oeing

Earlier strikes:

1948 for 140 days, in 1965 for 19 days, in 1977 for 45 days

From: Kearney, Barry J.

Sent: Wednesday, October 13, 2010 8:35 AM

To: Willen, Debra L; Szapiro, Miriam

Cc: Farrell, Ellen; Sophir, Jayme

Subject: RE: Boeing

We say in memo that there were two stikes in the last 5 years. Do we know the strike

history?

Original Message

From: Willen, Debra*L

Sent: Wednesday, October 13, 2010 8:32 AM

To: Kearney, Barry J.; Szapiro, Miriam

Cc: Farrell, Ellen; Sophir, Jayme


.

Subject: RE: Boeing

No -- there are 18,000 employees in thi unit and they work on several different airplanes

and parts.

From: Kearney, Barry J.

Sent: Wednesday, October 13, 2010 8:29 AM

To: Willen, Debra L; Szapiro, Miriam

Cc: Farrell, Ellen; Sophir, Jayme

Subject: RE: Boeing

Are the only planes manufactured by this unit the dream liner ?

Original Message

From: Willen, Debra L

Sent: Wednesday, October 13, 2010 8:09 AM

To: Kearney, Barry J.; Szapiro, Miriam

Cc: Farrell, Ellen; Sophir, Jayme

Subject: RE: Boeing

I d o n ' t h a v e c o p i e s o f t h e c o n t r a c t s . W h a t I k n o w i s t h a t a t s o m e p o i n t ,,
Arguably Ex. 4

From: Kearney, Barry J.

Sent: Wednesday, October 13, 2010 8:08 AM

To: Willen, Debra L; Szapiro, Miriam

Cc: Farrell, Ellen; Sophir, Jayme

Subject: Boeing

Arguably Ex. 4
Did you tell me that
If so what do we know about that?

NLRB-FOIA-00010126

P ag e 1 o f 1

K earn ey, B arry J.

F rom :

K earney, B arry J.

Sent:

T hursday, M ay 05, 2011 1:48 P M

T o:

S olom on, L afe E .; M attina, C eleste J.; G arza, Jose; A bruzzo, Jennifer

S u b ject:

FW :

Im portance: H igh

D raft response to L uttig

F rom : P erson, R obyn

S en t: T hursday, M ay 05, 2011 10:49 A M

T o: K earney, B arry J.

S u b ject:

Im p ortan ce: H igh

Boeing Company

L9-CA-32431

Dear Mr. Luttig:

T h i s i s i n r e s p o n s e t o y o u r M a y 3 rd l e t t e r t o m e c o n c e r n i n g t h e

above captioned case.

Your letter makes certain assertions and arguments concerning

statements in the press about this matter. Needless to say, I don't

agree with your contentions. .There have been numerous conversations

between my office and Boeing concerning the facts and the law

surrounding the circumstances of this case so that each party is

aware of the other's position. The appropriate forum to test those

positions and the relevance and probative value of your assertions is

through the development of an evidentiary record on which an

Administrative Law Judge can make a decision which can be reviewed by

the Board and ultimately the Courts. Finally, while our earlier

efforts to resolve this matter were unsuccessful, I still remain open

to a resolution between the parties.

Sincerely yours,

5/5/2011

NLRB-FOIA-00010127

+119111

Te

co vvtA o a :tiv,

h ts v v ._

R d ) X V

e tto l;

ext TALtAsciczA r _ G era

C a w ',
/rvaeit cly.)

U 't }IQ L

,_ c .4 4 d _ b tu . 6 J v t to ;c .W

e_

en tilu d aztrizt____

G iA C -.

& t

-&T 10:71.4!itis

tercaot

-4 A 0 frt

tke

ofit4 -65

,* c 4

(V P h t M O

h d

J-n ti
N
ti

TA itt

lt 4 a 7 4 1 -, 6 ,-4 6 ( fr ite iti_ k ;0 (A ;A ti

G irtio

ac t rta-
7L

IN 4 nixa-et

t B e tt;tj

Iec.. 4-114,4-

.4 6 f a te tt 1 1 (5 , k re t4 1 AeG re

teete4.0,*4- 0.0tekirtia_

itd ciP ta;

O cAt

diew -));h,_ tvlo

014m -t

Vtga-

6 ? tA d e t8 ,4

1;41( 14/Y er6 0.; A .tiv z il

tvg d - tkt:o d d t L akiv_

o tto iti f tv 4 e 4,

teadAtkt

giA 410.3-,

L M L

(ti-1 tuA -7 4 - At tw icit471P til_

c e ltu o u t _ tits z n e -rk s ;

ttJ

P k _ e -o livcA s6 tr

.
/

4 _ 1 tw it

" f4 T 4

rird

1 1 A )-

Aut.tzmy)ett-e_

NLRB-FOIA-00010128

L L d A r t/ k in
e i6 0 .0 0

t -dv i tw

4 d e- id a Ly44 L et toe&

X yl__pm eeLA

NLRB-FOIA-00010129

.,

- B o ein g su b m issio n to th e G en eral C o u n sel

P ag e 1 o f 2

K earn ey, B arry J.

F rom :

W illen, D ebra L

S en t:

T hursday, D ecem ber 09, 2010 11 -23 A M

T o:

S op hir, Jaym e; S zapiro, M iria m ; K earn ey, B arry J.; F arrell, E lle n

C c:

K atz, Judy; O m berg, B ob

S u b ject: R E : B oeing subm ission to the G eneral C ounsel

U nion counse l called m e earlier th is w eek, h e is prep aring a n ew positio n state m ent on 10(j) an d a pa per on the

U n io n 's "in h e re n tly d e stru ctive " th e o ry o f vio la tio n H e a ske d m e to g e t b a ck to h im if B o e in g 's su b m issio n ra ise d

a n y q u e stio n s th a t h e sh o u ld a d d re ss A
Exemption 5

A n y th o u g h ts'?

T hanks, D eb

F ro m : S ophir, Jaym e

S en t: W ednesday, D ecem ber 08, 2010 12:25 P M

T o : W illen, D ebra L ; S zapiro, M iriam

S u b ject: F W : B oeing subm ission to the G eneral C ounsel

F ro m : Farrell,E llen

S en t: W ednesday, D ecem ber 08, 2010 12:18 P M

T o : K earney, B arry J.; S ophir, Jaym e; C olangelo, D avid (A dvice); M arx, E ric C .

C c: S olom on, Lafe E .; M attina, C eleste J.

S u b ject: F W : B oeing subm ission to the G eneral C ounsel

D id I m iss anyone'?

E llen

E llen F arrell

D eputy A ssociate G eneral C ounsel

D ivision of A dvice, N LR B

202-273-3810

E llen F arrell@ nlrb gov

F ro m : K ilberg P .C ., W illiam [m ailto:W K ilberg@ gibsondunn.corn]

S en t: W ednesday, D ecem ber 08, 2010 10:48 A M

T o : F arrell, E llen

C c: B aum eister, B ryan H ; C larke, Joan C ; G erry, B rett C ; rhankins@ m ckennalong.com ; M cG ill, M atthew D .;

B lankenstein, P aul; M artin, C hristopher J.

S u b ject: B oeing subm ission to the G eneral C ounsel

E llen : A s p ro m ised . B est, B ill

W illiam J. K ilb erg

1 2 /1 3 /2 0 1 0

NLRB-FOIA-00010130

B ong subm ission to the G eneral C ounsel

Page 2 of 2

G IB SO N D U N N

G ibson, D unn & C rutcher LLP

1050 C onnecticut A venue, N .W ., W ashington, D C 20036-5306

T el+ 1 202 955.8573 F ax + 1 202.530.9559

W K ilberg@ gibsondunn corn . w w w gibsondunn.com

<<Ltr to Lafe S olonnon pdf>>

This message may contain confidential and privileged information. If it has

been sent to you in error, please reply to advise the sender of the error and

then immediately delete this message.

12/13/2010

NLRB-FOIA-00010131

K earn ey, B arry J.

F rom :
S en t:
T o:
C c:
S u b ject:

K earney, B arry J.

M o n d ay, A p ril 04, 2011 9:38 A M

'C orson C hristopher'

D avid C am pbell; C anter R obin

R E : C all from B oeing

Chris

Boing's response is very disappointing and you are undoubtedly correct that they are

looking for delay. However I believe we can't assume that and the loop needs to be closed.

I would ask that you get back to Gerry and tell him a previously scheduled meeting 6 weeks

from now is unacceptable and if Boeing is serious they will meet this week with a

proposal. Boeing response is predictable but I think they need to say it. Thanks for your

patience Barry
Original Message

From: Corson Christopher [mailto:ccorson@iamaw.org]

Sent: Friday, April 01, 2011 7 : 2 9 PM

To: Kearney, Barry J.

Cc: David Campbell; Canter Robin

Subject: Call from Boeing

Barry,

Thank you for talking to Dave Campbell and me earlier today.

Boeing's lawyer, Brett Gerry, called me at 5:00 pm. He said he is the lead lawyer for

Boeing's commercial division.

His proposal was as follows. Since Joe Albaugh and Tom Buffenbarger are currently

scheduled to have dinner in May, Albaugh thinks that would be a good time to talk about

these issues. I asked if the company had a proposal at this time, and he said that there

isn't one -- at least nothing that he would tell me about.

I talked with Tom Buffenbarger after Gerry called. Tom's recollection is that the dinner

As you can imagine, the thought of putting off any attempt

is set for May 16th or 17th.


to have a serious discussion with us for another month and a half -- and even then just

over dinner -- is simply unacceptable. The company is not being serious.

Frankly, I hope you as offended by this suggestion as we are. You and Lafe have worked

very hard to bring about discussions that could lead to a more comprehensive and tailored

solution than we are likely to get from Board processes and remedies. We have shown

ourselves time and again to be serious about meeting in good faith with the company. But

you and we can't do it without Boeing, and it is crystal clear that Boeing is only

interested in stringing us all along.

Boeing made a commitment to you on Monday to contact us and then to tell you by the end of

the week whether they thought there were fruitful discussions with us to be had. I don't

think that a company lawyer calling me at 5 : 0 0 on Friday to say that the company has no

proposal at all except that Albaugh and Tom Buffenbarger could discuss things over an

already-scheduled dinner in a month and a half comes close to satisfying what they

promised you to do.

By mid-May the company will be much farther along in South Carolina, and our members in

Puget Sound will, by that time, know for sure that protected activity has become

meaningless for them. Boeing hammers its retaliatory message every day, and every day

shows that the company is getting away with it. The Act means something, or it really

doesn't.

The IAN sincerely appreciates all that Lafe and you have been trying to do, and we know

that this case will be big. But given what Boeing's chief officers have signaled to

companies all across the country about how to retaliate against organized workers for what

the statute says is protected activity, this case needs to be big. You would like Boeing

NLRB-FOIA-00010132

to talk to us in good faith, and so would we, but it is crystal clear that such

discussions are a false choice. The last three and a half months (since the company met

with Lafe and you in mid-December) show that they have no intention of engaging with us.

They have had months to call us and didn't, and they will shamelessly tell you anything to

just keep playing for more time.

The IAN hopes that time is up.

Thank you for all that we hope the Board will do, Chris Corson

Sent from my iPad

Christopher Corson

General Counsel

International Association of Machinists & Aerospace Workers 9000 Machinists Place Upper

Marlboro, MD 20772 301-967-4510 (office)

301-967-4594 (fax)

202-368-6484 (cell)

Notice: This message is intended for the addressee only and may contain privileged and/or

confidential information. Use or dissemination by anyone other than the intended recipient

is prohibited.

NLRB-FOIA-00010133

K earn ey, B arry J.

F ro m :
S en t:
To:
C c:
S u b ject:

C orson C hristopher [ccorson@ iam aw .org ]

F riday, A pril01, 2011 7:29 P M

K earney, B arry J.

D avid C am pbell; C anter R obin

C allfrom B oeing

Barry,

Thank you for talking to Dave Campbell and me earlier today.

Boeing's lawyer, Brett Gerry, called me at 5:00 pm. He said he is the lead 'lawyer for

Boeing's commercial division.

His proposal was as follows. Since Joe Albaugh and Tom Buffenbarger are currently

scheduled to have dinner in May, Albaugh thinks that would be a good time to talk about

these issues. I asked if the company had a proposal at this time, and he said that there

isn't one -- at least nothing that he would tell me about.

I talked with Tom Buffenbarger after Gerry called. Tom's recollection is that the dinner

As you can imagine, the thought of putting off any attempt

4( is set for May 16th or 17th.


to have a serious discussion with us for another month and a half -- and even then just

over dinner -- is simply unacceptable. The company is not being serious.

Frankly, I hope you as offended by this suggestion as we are. You and Lafe have worked

very hard to bring about discussions that could lead to a more comprehensive and tailored

solution than we are likely to get from Board processes and remedies. We have shown

ourselves time and again to be serious about meeting in good faith with the company. But

' you and we can't do it without Boeing, and it is crystal clear that Boeing is only

interested in stringing us all along.

Boeing made a commitment to you on Monday to contact us and then to tell you by the end of

the week whether they thought there were fruitful discussions with us to be had. I don't

think that a company lawyer calling me at 5 : 0 0 on Friday to say that the company has no

proposal at all except that Albaugh and Tom Buffenbarger could discuss things over an

already-scheduled dinner in a month and a half comes close to satisfying what they

promised you to do.

By mid-May the company will be much farther along in South Carolina, and our members in

Puget Sound will, by that time, know for sure that protected activity has become

meaningless for them. Boeing hammers its retaliatory message every day, and everyday

shows that the company is getting away with it. The Act means something, or it really

doesn't.

The IAN sincerely appreciates all that Lafe and you have been trying to do, and We know

that this case will be big. But given what Boeing's chief officers have signaled to

companies all across the country about how to retaliate against organized workers for what

the statute says is protected activity, this case needs to be big. You would like Boeing

to talk to us in good faith, and so would we, but it is crystal clear that such

discussions are a false choice. The last three and a half months (since the company met

with Lafe and you in mid-December) show that they have no intention of engaging with us.

They have had months to call us and didn't, and they will shamelessly tell you anything to

just keep playing for more time.

The IAM hopes that time is up.

Thank you for all that we hope the Board will do, Chris Corson

Sent from my iPad

Christopher Corson

General Counsel

International Association of Machinists & Aerospace Workers 9000 Machinists Place Upper

NLRB-FOIA-00010134

Marlboro, MD 20772 301-967-4510 (office)

301-967-4594 (fax)

202-368-6484 (cell)

Notice: This message is intended for the addressee only and may contain privileged and/or

confidential information. Use or dissemination by anyone other than the intended recipient

is prohibited.

NLRB-FOIA-00010135

N L R B F act Sheet: B oeing C om plaint

O n A pril20,2011,the N ationalL abor R elations B oard issued a com plaint against the

B oeing C om pany alleging that it violated federallabor law by deciding to transfer a

second airplane production line from a union facility in the state of W ashington to a non-

union facility in South C arolina for discrim inatory reasons.A hearing has been set for

June 14,2011 in Seattle before an adm inistrative law judge.

C lick here to see a new s release about the com plaint,and here to see a copy of the full

com plaint.

T he C harge and C om plaint

O n M arch 26,2010,the InternationalA ssociation of M achinists and A erospace W orkers,

D istrict L odge 751,filed a charge w ith the N L R B alleging that the B oeing C om pany had

engaged in m ultiple unfair labor practices related to its decision to place a second

production line for the 787 D ream liner airplane in a non-union facility.

Specifically,the union charged that the decision to transfer the line w as m ade to retaliate

against union em ployees for participating in past strikes and to chillfuture strike activity,

w hich is protected under the N ationalL abor R elations A ct.

T he union also charged that the com pany violated the N ationalL abor R elations A ct by

failing to negotiate over the decision to transfer the production line.T he M achinists'

union has represented B oeing C om pany em ployees in the Puget Sound area of

W ashington,w here the planes are assem bled,and in Portland,O regon,w here som e

airplane parts are m ade,since 1975.

T hroughout the investigation of the charge,N L R B officials m et w ith both parties in

efforts to facilitate a settlem ent agreem ent.T he overw helm ing m ajority of N L R B charges

found to have m erit are settled by agreem ent.(See chart).A lthough no settlem ent w as

reached and the A gency w as com pelled to pursue litigation,the A cting G eneral C ounsel

rem ains open to a resolution betw een the parties.

T he com plaint (19-C A -32431) alleges that B oeing violated tw o sections of the N ational

L abor R elations A ct by m aking coercive statem ents to em ployees for engaging in

statutorily protected activities,and by deciding to place the second line at a non-union

facility,and to establish a parts supply program nearby,in retaliation for past strike

activity and to chill future strike activity by its union em ployees.

T he investigation found that B oeing officials com m unicated the unlaw ful m otivation in

m ultiple statem ents to em ployees and the m edia.For exam ple,a senior B oeing official

said in a videotaped interview w ith the Seattle T im es new spaper: "T he overriding factor

(in transferring the line) w as not the business clim ate. A nd it w as not the w ages w e're

NLRB-FOIA-00010136

paying today.It w as that w e cannot afford to have a w ork stoppage,you know ,every

three years."

T he com plaint also alleges that B oeing's actions w ere "inherently destructive of the

rights guaranteed em ployees by Section 7 of the A ct."

T he investigation did notfind m eritto the union's charge thatB oeing failed to bargain in

good faith over its decision regarding the second line.A lthough a decision to locate unit

w ork w ould typically be a m andatory subjectofbargaining,in this case,the union had

w aived its right to bargain on the issue in its collective bargaining agreem ent w ith

B oeing.

T he L aw and Supporting C ases

T he N L R B enforces the N ationalL abor R elations A ct,w hich guarantees em ployees the

right to organize and collectively bargain,or to refrain from doing so.A pplicable

Sections of the A ct follow :

R IG H T S O F E M PL O Y E E S

Section 7: E m ployees shallhave the right to self-organization,to form ,join,or assist

labor organizations,to bargain collectively through representatives oftheir ow n choosing,

and to engage in other concerted activities for the purpose of collective bargaining or

other m utualaid or protection,and shallalso have the rightto refrain from any or allsuch

activities...

U N FA IR L A B O R PR A C T IC E S (relevant sections)

Section 8(a)Itshallbe an unfair labor practice for an em ployer

(1)to interfere w ith,restrain,or coerce em ployees in the exercise ofthe rights guaranteed

in section 7;

(3)by discrim ination in regard to hire or tenure ofem ploym entor any term or condition

ofem ploym entto encourage or discourage m em bership in any labor organization

C ases:

O n the 8(a)(1)charge:

T he U .S.Suprem e C ourt delineated the line betw een protected em ployer speech versus

unlaw fulem ployer speech under the N L R A in N L R B v.G isselPacking C orp.,395 U S

575, 618 (1969).

In G eneralE lectric C om pany,215 N L R B 520 (1974),the N ationalL abor R elations

B oard applied the G isseltest to set aside an election because the em ployer,citing

concerns aboutpossible future strikes,stated thatthe plant's nonunion status w as a

prim ary factor in choosing to locate a production line for a new m otor there.In its

decision,the B oard distinguished an em ployer's right to take defensive action w hen

threatened w ith an im m inentstrike from threats to transfer w ork "m erely because ofthe

possibility ofa strike atsom e speculative future date."

Since then,the B oard has repeatedly held that an em ployer violates section 8(a)(1) by

threatening that em ployees w illlose their jobs if they join a strike,or by predicting a loss

ofbusiness and jobs because ofunionization or strike disruptions w ithoutany factual

basis.In contrast,the B oard has found thatem ployers m ay law fully relate concerns raised

NLRB-FOIA-00010137

by custom ers (C urw ood,Inc.,339 N L R B 1137 (2003).T hey m ay also reference the

possibility that unionization,including strikes,m ight harm relationships w ith consum ers,

as opposed to predicting "unavoidable consequences." M iller Industries T ow ing

E quipm ent,Inc.,342 N L R B 1074,1075-76 (2004)

O n the 8(a)(3) charge:

A n em ployer's discouragem ent of its em ployees'participation in a legitim ate strike

constitutes discouragem ent of union m em bership w ithin the m eaning of this section.T his

applies to em ployer conduct designed to retaliate against em ployees for having engaged

in a strike in the past (C apehorn Industry,336 N L R B 364(2001) w here the em ployer

failed to reinstate strikers w hen there w as no legitim ate business justification for

perm anently subcontracting the w ork),as w ell as em ployer conduct designed to forestall

em ployees from exercising their right to strike in the future (C entury A ir Freight,284

N L R B 730 (1987) w here em ployer perm anently subcontracted unit w ork and discharged

em ployees in order to forestallthe exercise of their right to strike;and W estpac E lectric,

321 N L R B 1322 (1996),w here em ployer isolated em ployee in retaliation for previous

and anticipated future strike activities).In N ational Fabricators,w here potentialstrikers

w ere targeted for layoffs,the B oard held that "disfavoring em ployees w ho w ere likely to

strike,is the kind of coercive discrim ination that...discourages...protected activity."

N ext Steps

A hearing before an N L R B adm inistrative law judge has been scheduled for June 14 at

the N L R B 's Seattle office.A t the hearing,both parties w ill have an opportunity to

present evidence and argue in favor of their position.T he decision of the judge m ay be

appealed to the B oard in W ashington by the filing of exceptions by either party T he

B oard's decision could further be appealed to the federal courts.For a full description of

the N L R B process,please see:http://w w w .nlrb.gov/nIrb-process.

For m ore inform ation about the N ational L abor R elations B oard,please see our w ebsite

atw w w .nlrb.gov .T his fact sheet w as posted on 4/20/2011 and w illbe U pdated

periodically.

NLRB-FOIA-00010138

T f*e answ er to B oeing's labor dispute - T he W ashington Post

Page 1 of 3

be liii
asting III
rtpost

B ack to previous page

Tournewly

decorated m odel

hom es in four

M aryland

corn munities.

1 .-E N IN A R :

T he answ er to B oeing's labor dispute

B y Steven P earlstein,T uesday,A pril 26,12:47 P M

For high-stakes legal dram a, it doesn't get m uch bigger than last w eek's filing by the N ational L abor

R elations B oard charging that B oeing's decision to open a big new production facility in union-phobic

South C arolina w as m otivated by a desire to punish and iniiiiZ ale the strike-prone uniorrarirrE

established plant in Seattle.

If the N L R B decides to pursue the case through the federal courts and loses a real possibility given

the inclinations of the federal appeals courts it w ould effectively eviscerate w hat is left of w orkers'

right to strike,at least against large m ultinational com panies.

H ow ever,if the agency prevails and is able to force B oeing to open an additional production line for its

new 787 D ream liner in Seattle,it could finally put a brake on the steady flow of m anufacturing jobs to

"right to w ork" states in the South.

"R unaw ay com panies," of course,have been a feature in A m erican business ever since the first N ew

E ngland textile m ill shut its doors and m oved to the m ore hospitable labor m arkets dow n South.B ut

since the N ational L abor R elations A ct w as passed in 1935,com panies have had to be careful not to

expressly link their production and investm ent decisions to union activity,lest they be judged to have

crossed the line into union busting.

Indeed,the decision to m ove production to anti-union states has becom e so com m onplace that B oeing

could be excused for finally joining the procession after a costly tw o-m onth strike in 2008,follow ing an

'1U
earl
---.'
ier--T
or
eli-'
2
05. B oeing had other legitim ate business reasons for creating a second, $750 m illion

http://w w w .w ashingtonpost.com /business/econom y/the-answ er-to-boeings-labor-dispute/2.. . 4/27/2011

NLRB-FOIA-00010139

.T he answ er to B oeing's labor dispute - T he W ashington Post

Page 2 of 3

production line in South C arolina for its rapidly grow ing 787 production,including low er labor costs

and severalhundred m illion dollars in subsidies from a state eager for 4,000 new factory jobs.

B ut the N L R B 's generalcounselsays that B oeing stepped over the line w hen its top executives said out

loud w hat m ost com panies only w hisper in the sanctity of the boardroom nam ely,thata significant

factor in the m ove w as the desire to reduce B oeing's vulnerability to delivery disruptions caused by

repeated strikes.T he N L R B cited interview s w ith localnew spapers,m em os to B oeing m anagers and

statem ents m ade by top executives to investors and W ashington state politicians.

Y ou can im agine the politicalruckus this has caused in South C arolina,w here voters have already

approved a constitutionalam endm entm eantto thw artunion organizing and the A FL-C IO has filed suit

againstG ov.N ikkiH aley for public statem ents thatunions w ere notw elcom e in the Palm etto State.

B usiness groups in W ashington also w enton high alert,accusing the O bam a adm inistration ofusing its

new m ajority on the N L R B to push a radicalpro-union agenda.(Sm alldetail:W hite H ouse C hiefof

Staff B illD aley is a form er B oeing director.)

G iven the public statem ents of B oeing officials,there is nothina radicalabout the N L R B 's decision to

hold a heari'rIT =1 on the com plaint filed by the InternationalA ssociation of M achinists.L afe
Solom on,the acting generalcounselw ho m ade the decision,is a m uch-adm ired careeer w ho is

prohibited from talking w ith board m em bers aboutthe case.Solom on spentseveralm onths trying to

broker a settlem ent,butran up againsta com pany and union thatare fed up w ith each other and

stubbornly determ ined to teach each other a lesson.


A lthough Solom on w as rightto initiate the proceedings,itis anything butclear thathe w illprevailin

court.

A til.futoixisfor B oeing to denthat it w ants to send a strong m essage to w orkers that they w illnow

pay a price for future strikes in term s ofw here the com pany decides to produce its planes.A tthe sam e

tim e,it is e uallcleatiat B oeing also has other legitim ate business reasons for opening a second line

in South C arolina.

T he view ofN L R B law yers seem s to be thatas long as there is a dem onstrable intenton the partofthe

com pany to m ove production in order to punish w orkers for paststrikes and discourage them from

1 future ones,B oeing's behavior is illegally coercive despite other legitim ate m otives or rationales that

m ight exist.

B oeing's view is thatavoiding production disruptions is a legitim ate bilisiness reason for m aking

1 investm entdecisions,irrespective ofother m otives,and thatits lack ofanim us tow ard its union is am ply

'dem onstrated by the 2,000 jobs thathave been created in PugetSound since its decision to expand to

South C arolina.

Y ou see the roblem : T he "right" for w orkers to strike w ithout undue coercion from the com pany is

'ar o square w ith the "right" of the com pany to protect itself from the consequences of production

disruptions.B oth "rights" seem to have am ple supportin the case law .

T he answ er,I w ould suggest,is to be found not in the case law but in the clear and unam biguous w ords

ofthe N ationalL abor R elations A ct and the history behind it.In a 1993 law review article,N ew Y ork

U niversity law professor C ynthia E stlund w rote thatin passing the act,C ongress soughtto restrain

corporate pow er and tilt the econom ic playing field in favor of w orkers.T he idea w as to outlaw union-

avoidance strategies that,w hile econom ically rationalfor any one firm ,w ould be econom ically harm ful

http://w w w .w ashingtonpost.com /business/econom y/the-answ er-to-boeings-labor-dispute/2.. .4/27/2011

NLRB-FOIA-00010140

..
,

. T 1 -.eansw er to B oeing's labor dispute - T he W ashington Post

Page 3 of 3

for the nation as a w hole if w idely adopted.

T oday,w e m ay find allthat quaintly or m enacingly socialistic,butit is stillthe law ofthe land,

ea-rerE ave a duty to enforce.If B oeing or the C ham ber of

one thatL afe Solom on and his


C om m erce or the South C ar ina politicalestablishm ent w ant to change or repealthe law ,it is certainly

w ithin their rights to try.A fter 75 years,itw ould be a usefuldebate for the country to have again.B ut

given the further consolidation ofcorporate pow er and tw o decades ofstagnantw ages,I'm notsure

they'lllike how itturns out.

S p o n so red L in ks

H O TTE S T O IL S TO C K IN U S !

W illthe "new B akken" oilfind pum p w ealth into your portfolio'? O nly if you act now .

w w w .A m ericanE nergyR eport.com

D IR E C TV for your B usiness

S ave m oney and im prove your custom ers experience w ith D IR E C TV .

w w w .directv.com /forbusiness

N ew Issue A lert O B JE

H ot S tock O bscene Jeans Inc.E xplosive Investm ent P otential

w w w .O bsceneJeans.com .

B u y a lin k h ere

0 2011 T he W ashington Post C om pany

http://w w w .w ashingtonpost.com /business/econom y/the-answ er-to-boeings-labor-dispute/2.. .4/27/2011

NLRB-FOIA-00010141

B usiness & T echnology I M achinists file unfair labor charge against B oeing over C harlest... Page 1 of 3

M yT im es:

hi

T h e A n s w e r to

W ho is C alling"'

N W (obs I N W autos I N W hom es I N W source I Free C lassifieds I seattletenes corn

T he S eattle T im es C om pany

1"?1,) Ig

"eriic$eattlerames
B u sin ess / T ech n ology

47F

W inner ofE ightP ulitzer P rizes

L o c a l N a tio n /W o rld B u s in e s s /T e c h S p o rts E n te rta in m e n t L iv in g T ra v e l O p in io n

H om e

O ur netw ork sites

a.P rint

C la ssifie d s B u y a d s

Y o u r acco u n t I L o g in I C o n tact u s

ith)046 .R yza ,N W lobs,

nw

sitabiani

ty pt.bl'snad .4.re 4 20 10 a 4 3 , 1,M , P ad ,: m ad iS A Ji.n e 5 2 0 1 0 at a .1

IQ C o m m en ts (1 1 7 ) (2 1 E -m ail article

S eat ch

seattletim es co rn I A d v an ced

S h o p p in g J o b s A u to s H o m e s R e n ta ls

Q u ick lin k s T raffic I M o v ies I R estau ran ts I T o d ay 's ev en ts I V id eo I P h o to s I In teractiv es I B lo g s I F o ru m s I S u b scrib er S erv ices

!kyrirl

D S h are

V ideo

N W W a n d e rin g s I S h o o p

s h e a re r

M ach in ists file u n fair lab o r ch arg e ag ain st B o e in g o ver

C h arlesto n

E ifion M organ,of W ares,visits

th e P acific N o rth w est to v isit h is

% W es fam ily,and to shear

sheep

ch afe n o th al tIle

P ela L 1 4 B a rd
' fle A rr.? ..n s ts J i.ri r...S led a co m e a n l ag 2 in s L io .in g w ith th e rk.E1/111d

a seco n o D ream t n o r cases - ely I n o n

co m p zn y ssas 'etaeati"g fo r a 2 C G 8 u n io n stn k a ssn e - II ce:A ceC ast '011 10


C h an n sto n , S C , rath er !..a n E sre tt

B y D om inic G ates

S eattle T im es aerospace reporter

C en su s 2 0 1 0 I

C hinese

lan g u ag e class

M e 4 B -1 7 " L ib e rty B e lle " A U D y n a m ic

D uel I W ill

"
w e be

w itn esses?

E M P u n v eils N irv an a ex h ib it
111
_ L I

T h e M ach inists u nion has filed a co m plain t again st

B oeing w ith the N ational L abor R elations B oard

(N L R B ), charging that the com pany w as retaliating

for a 2008 union stnke w hen it decided last fall to put

a seco n d D ream lin er assem b ly lin e in C h arlesto n ,

S C , rather than E v erett

It is illegal under the N ational L abor R elations A ct for

em ployers to retaliate against w orkers for engaging


in law ful activities, including strikes

IA 'S P rin g 'G g ;M e 2 0 1 1

M o re v id eo s I,

ADVERT/41.4

T om W roblew ski

R elated

M achinists in S pokane ratify contract w ith job

g u aran tees

T he unfair-labor practices com plaint by the

International A ssociation of M achinists (IA M ) D istrict

751 is being investigated by the N L R B 's S eattle

F ed eral m ed iato r p u sh es talk s to en d B o ein g stn k e

office

In a statem ent, D istrict 751 president T om W roblew ski cited public declarations by senior B oeing

ex ecu tiv es ty in g the selection of N o rth C h arlesto n to a desire to avoid M achin ists'strik es in the P ug et

S ound region

S u ch d eclaratio n s, W ro b lew sk i said , "sen d a m essag e to w o rk ers th at th ey sh o u ld n o t stan d u p fo r th eir

nghts at the bargaining table W e w ill not allow this unlaw fu l intim idation to stand as w e prepare for the

2012 contract negotiations "

B o ein g sp o k esm an T im H ealy said th e co m p an y b eliev es th e ch arg es are "m en tless "

T he IA M struck B oeing for tw o m onths in fall 2008, the fourth stnke in a decade E arly the follow ing year,

B oeing C hief E xecutive Jim M cN erney told W ashington's co ngressional d elegation th e repeated strikes

w ere a m ajo r p ro b lem an d th e co m p an y w o u ld seek an o th er lo catio n fo r its seco n d 7 8 7 assem b ly lin e

u n less th e u n io n ag reed to a lo n g -term n o -strik e clau se

"W e w ere entirely transparent w ith th e IA M ," H ealy said "W e needed an agreem ent that w ould allow us to

m eet o u r cu sto m er co m m itm en ts"

In d irect n eg o tiatio n s w ith th e u n io n last su m m er an d fall, th e tw o sid es failed to reach ag reem en t an d

B o ein g an n o u n ced th e n ew assem b ly lin e w o u ld g o to N o rth C h arlesto n

T he com plaint w as filed w ith the N L R B in M arch T hat sam e m onth, Jim A lbaugh, the chief executive of

B oeing C om m ercial A irplanes, said in a S eattle T im es interview that "the overriding factor (in choosing

S o u th C aro lin a) w as n o t th e b u sin ess clim ate A n d it w as n o t th e w ag es w e are p ay in g to d ay It w as th at

w e can 't affo rd to h av e a w o rk sto p p ag e ev ery th ree y ears"

Is that an illegal repnsal, punishing a past strike? O r is it a legitim ate strategic choice, avoiding future

strikes?

A P V id eo

"O u r d ecisio n h as ev ery th in g to d o w ith b ein g a reliab le su p p lier an d is n o t a rep n sal fo r th e p ast," said

B oeing's H ealy

R ichard A hearn, the N L R B regional director

http://seatt1etim es.nw source.com /htm 1/businesstechno1ogy/2012034258_boeing05.htm l

5/3/2011

NLRB-FOIA-00010142

B usiness & T echnology I M achinists file unfair labor charge against B oeing over C harlest...Page 2 of 3

in v estig atin g th e co m p lain t, said it w o u ld h av e b een

an easier case fo r th e u n io n to arg u e if B o ein g h ad m o v ed ex istin g w o rk fro m E v erett, rath er th an p lacin g

n ew w ork in C h arlesto n.

A s it is, A h eam said , h e can n o t p o in t to an y "b rig h t lin e" in th e law th at m ak es it im m ed iately clear w h eth er

trilhO nO w

F bcdirg F ears

tecom es

P rom pt

N osy S eals

killed sane bin

F eacL etiors

L aden

m e reit n est

E ntertainm ent I T op V ideo I W orld IO ffbeat V ideo I S c._

T ech

th is w as illeg al retaliatio n o r a leg itim ate strateg y .

T h e N L R B is still g ath erin g ev id en ce. A b eam said an in itial ru lin g is w eek s aw ay an d w o u ld b e su b ject to

M a rke tp la ce

ap p eal.

D o m in ic G a te s: 2 0 6 -4 6 4 -2 9 6 3 o r clse le _ se se A ttle tin

I2 1 E -m ail article

P rint

tat S hare

M ore from ou r n etw ork

B in L ad en raid y ears in th e m ak in g , m in u tes in

ex ecu tio n F rom S e attle T im e s N ation & W orld

E x - b illio n aire h it w ith fo rced b an k ru p tcy

p etitio n F rom S e attle T im e s B usine ss & T ech nology

pet classifieds

M ore from th e W eb

S elected ter y o u n y a S p o n so r

A d o ra b le B ro w n F t

L a b ra d o o d le P u p p ie s !!!

W h ere d o y o u r g aso lin e d o llars g o ? F rom

E xxo nM obil's P erspectives

'A rm y W iv es' S easo n 5 , E p iso d e 8 R ecap F rom

T V S quad

rest a p et list th e

S C law m ak ers criticize N L R B co m p lain t F rom

U K D eclin es to P ro secu te B T , P h o rm O v er

S eattle T im es Local N ew s

S p y in g S o ftw are F rom P C W orld

general classifieds

S C atto rn ey g en eral w an ts B o ein g co m p lain t

E L L E R ead ers' P rize P ick s: M ay F rom E LLE .com

d ro p p ed F rom S eattle T im es LocalN ew s

A p p le so ars in C h in a's fo rb id d in g retail

m ark etp lace F rom S e attle T im e s B usine ss &

G arage& estate sales

Furni ture & hom e fu rn ish in g s

E1ectronic:5

E u ro p ean L eg islato rs C o n sid er N et F ilter fo r

E u ro p e F rom

P C W orld

b o ars th is]

T echnology

just listed

A R C F rench B ulldog C ham pion B loodlines

A K C R eg B oxer Puppies

B eautiful 3.y y e a r old S hiba Inn looking to...

M ore listings

M o re B u sin ess & T ech n o lo g y

S ell your stuff

S earch classifieds

U P D A T E - 09:48 A M

P O S T A F R E E LIS T IN G

E x x o n M o b il w in s ru lin g in A la s k a o il s p ill c a s e

U P D A T E -09 32 A M

B ank s to c k s p u s h in d e x e s h ig h e r; o il p ric e s d ip

U P D A T E - 08:04 A M

F ord C E O M u !a lly g e ts $ 5 6 .5 M in sto ck a w a rd

U P D A T E 0 7 .5 4 A M

U n d erw ater m o rtg ag es rise as h o m e p rice s fa ll

N EW

09 43 A M

W arn er B ro s. to o ffer m o v ie ren tals o n F aceb o o k

M o s t re a d I M o s t c o m m e n te d M o s t e - m ailed

M o re B u sin e ss 8 T e c h n o lo g y h e a d lin e s..

H ide com m ents / S how com m ents

C o m m en ts (1 1 7 )

P O U N D T H E L A S T N A IL in the coffin! G eesh... lA M still doesn't get it.


P osted on June 4,2010 at 4.56 P M

op G o R e n to n G o Ju m p to c o m m e n t

Is the union trying to m ount a P R cam paign A G A IN S T them selves? 'C ause the seem to be doing it

very w ell. P osted on June 4. 2010 at 5:23 P M by A P asserB y. Jum p to com m ent

M ars right. A ntagonize the goose that lays golden eggs ...and she'll fly aw ay.. P osted on June
457 P M

4,2010

1. B in Laden's dem ise. U S rejoices after a decade

2.

D espite D N A evidence, som e doubt bin Laden

really dead

3. A uburn shooting victim s are brothers of U W

football recruit I T he B lotter

B in Laden raid years in m aking, m inutes in

4.
execution

5. M an unknow ingly liveblogs bin Laden operation

6. T eacher shaves for first tim e since S ept. 11, 2001

at

b y im ju stsa y in Ju m p to c o m m e n t

7. S eahaw ks shrug off analysts'poor grades for draft

results

8. T ension as W hite H ouse Situation R oom w atched

raid

9. C ascade coach killed trying to help brother

10. T ense, finalm inutes of bin Laden pursuit

R e a d a ll c o m m e n ts ] S h a re y o u r th o u g h ts

B :1 M o st v ie w

S p o n so re d L istin g s

e d im a g e s

T op S tock for 2011 - G T S O

D esperate S earch F or R are E arth M inerals S olved. R are O pportunity

w w w .R areE arthE xporters.com

SH O C K IN G : 46" L C D T V s for $54.09

T oday O N L Y : U nique site sells 46 L C D T V s for up to 98% off retailprice.

LocalToday9.com

P re s R e d u ce s M o rtg a g e s

If you ow e under $729k, you probably qualify for G ov't R efi P rogram s

w w w .S eeR efinanceR ates.com

G et hom e delivery today ,

S ite m ap

N ew s

M a rk e tp la c e

S u b s c rib e r

http://seattletim es.nw source.com /htm libusinesstechnology/2012034258_boeing05.htm l

S ervices

5/3/2011

NLRB-FOIA-00010143

. . .

B usiness & T echnology I M achinists file unfair labor charge against B oeing over C harlest...Page 3 of 3

6 O ur netw ork sites


\

seattlehm es co rn I A d vanced

H om e
Local
N ation/W orld
B u sin e ssre ch
E ntertainm ent
Living
Travel
S ports
O pinion
E xtras
T oday's new s index

Jobs
A utos
H om es
R entals
C lassifieds
S hopping

P ersonals
P ost an ad

S ubscribe

a-E dition

P ay for your subscription

S ubscriber rew ards

T em porary,stops
O th e r e d itio n s

N ew s by e-m ail

M obile

R S S feeds

e-E dition

Low -graphic

T w itter

S ocialm edia

M alw are attacks are a grow ing problem on allW eb sites R ead m ore about w hat to do if you see som ething suspicious

P rivacy statem ent I T erm s of service

C opynght 0 2011 T he S eattle T im es C om pany

http://seattletim es.nw source.com /htm l/businesstechnology/2012034258_boeing05.htm l

5/3/2011

NLRB-FOIA-00010144

Exemption 5

NLRB-FOIA-00010145

W all S treet Jo u rn al O p in io n M ay 11, 2011

B oeing Is P ro-G row th, N ot A nti-U nion

W ashington's actions have assaulted the capitalist principles that have sustained A m erica's

com petitiveness since it becam e the w orld's largest econom y nearly 140 years ago.

B y J IM M C N E R N E Y

D eep into the recent recession, B oeing decided to invest m ore than $1 billion in a new factory in S outh

C arolina. S urging global dem and for our innovative, new 787 D ream liner exceeded w hat w e could build

on one production line and w e needed to open another.

This w as good new s for B oeing and for the econom y. The new jetliner assem bly plant w ould be the first

one built in the U .S . in 40 years. It w ould create new A m erican jobs at a tim e w hen m ost em ployers are

hunkered dow n. It w ould expand the dom estic footprint of the nation's leading exporter and m ake it m ore

com petitive against em erging plane m akers from C hina, R ussia and elsew here. A nd it w ould bring hope

to a state burdened by double-digit unem ploym ent w ith the construction phase alone estim ated to

create m ore than 9,000 total jobs.

E ighteen m onths later, a N orth C harleston sw am p has been transform ed into a state-of-the-art, green-

energy pow ered, 1.2 m illion square-foot airplane assem bly plant. O ne thousand new w orkers are hired

and being trained to start building planes in July.

It is an A m erican industrial success story by every m easure. W ith 9% unem ploym ent nationw ide, w e need

m ore of them and soon.

Y et the N ational Labor R elations B oard (N LR B ) believes it w as a m istake and that our actions w ere

unlaw ful. It claim s w e im properly transferred existing w ork, and that our decision reflected "anim us" and

constituted "retaliation" against union-represented em ployees in W ashington state. Its rem edy: R everse

course, B oeing, and build the assem bly line w here w e tell you to build it.

...

Irf

ti iiilli=11* I

:', - '. ,
, , . 'tf:M

..

4,,,,- -

J'

7 ,46

tfn

;.
,:
-'-.

1,73} In r11111W

"

,-.1.11 '''t"', i la Ett'"it....,,i,

is.i..--, #Ent,

..-- --,-..e...,.--11,7"; ' 1

To
L,

,.., , ,

e 1 ,4 1 -

,I -

i '- '4 4 1 0 3:',."1

A S S O C IA T E D P R E S S

B oeing em ployees w ork on the 787 D ream liner at the N orth C harleston, S .C ., facility.

The N LR B is w rong and has far overreached its authority. Its action is a fundam ental assault on the

capitalist principles that have sustained A m erica's com petitiveness since it becam e the w orld's largest

econom y nearly 140 years ago. W e've m ade a rational, legal business decision about the allocation of our

capital and the placem ent of new w ork w ithin the U .S . W e're confident the federal courts w ill reject the

claim , but only after a significant and unnecessary expense to taxpayers.

NLRB-FOIA-00010146

M ore w orrisom e,though,are the potentialim plications of such brazen regulatory activism on the U .S .

m anufacturing base and long-term job creation.The N LR B 's overreach could accelerate the overseas

f lig h t o f g o o d , m id d le - c la s s A m e r ic a n jo b s . i

C ontrary to the N LR B 's claim ,our decision to expand in S outh C arolina resulted from an objective

analysis of the sam e factors w e use in every site selection.W e considered locations in severalstates but

narrow ed the choice to either N orth C harleston (w here sections of the 787 are built already) or E verett,

(/ W ash ., w h ich w o n th e in itial 787 assem b ly lin e in 2003.

O ur union contracts expressly perm it us to locate new w ork at our discretion.H ow ever,w e view ed E verett

as an attractive option and engaged voluntarily in talks w ith union officials to see if w e could m ake the

business case w ork.A m ong the considerations w e sought w ere a long-term "no-strike clause" that w ould

ensure production stability for our custom ers,and a w age and benefit grow th trajectory that w ould help in

our cost battle against A irbus and other state-sponsored com petitors.

D espite m onths of effort,no agreem ent w as reached.U nion leaders couldn't m eet expectations on our

key issues,and w e couldn't accept their dem ands that w e rem ain neutralin allunion-organizing

cam paigns and essentially guarantee to build every future B oeing airplane in the P uget S ound area.In

O ctober 2009,w e m ade the C harleston selection.

Im portant to our case is the basic fact that no existing w ork is being transferred to S outh C arolina,and not

a single union m em ber in W ashington has been adversely affected by this decision.In fact,w e've since

added m ore than 2,000 union jobs there,and the hiring continues.The 787 production line in E verett has

a planned capacity of seven airplanes per m onth.The line in C harleston w illbuild three additional

airplanes to reach our 10-per-m onth capacity plan.P roduction of the new U .S .A ir Force aerialrefueling

tanker w illsustain and grow union jobs in E verett,too.

B efore and after the selection,w e spoke openly to em ployees and investors about our com petitive

realities and the business considerations of the decision.The N LR B now is selectively quoting and

m ischaracterizing those com m ents in an attem pt to bolster its case.This is a distressing signalfrom one

arm of the governm ent w hen others are pushing for greater openness and transparency in corporate

decision m aking.

It is no secret that over the years B oeing and union leaders have struggled to find the right w ay to w ork

together.Idon't blam e that allon the union,or allon the com pany.B oth sides are w orking to im prove that

dynam ic,w hich is also a top concern for custom ers.V irgin A tlantic founder R ichard B ranson put it this

w ay follow ing the 2008 m achinists'strike that shut dow n assem bly for eight w eeks: "If union leaders and

,m anagem ent can't get their act together to avoid strikes,w e're not going to com e back here again.W e're

thinking,W ould w e ever risk putting another order w ith B oeing?'It's that serious."

'D espite the ups-and-dow ns,w e hold no anim us tow ard union m em bers,and w e have never sought to

threaten or punish them for exercising their rights,as the N LR B claim s.To the contrary,union m em bers

are part of our com pany's fabric and key to our success.A bout 40% of our 155,000 U .S .em ployees are

represented by unions a ratio unchanged since 2003.

N or are w e m aking a m ass exodus to right-to-w ork states that forbid com pulsory union m em bership.W e

have a sizable presence in 34 states; half are unionized and half are right-to-w ork.W e m ake decisions on

w ork placem ent based on business principles not out of em otion or spite.For exam ple,last year w e

added new m anufacturing facilities in Illinois and M ontana.O ne w ork force is union-represented,the

other is not.B oth decisions m ade business sense.

The w orld the N LR B w ants to create w ith its com plaint w ould effectively prevent allcom panies from

placing new plants in right-to-w ork states if they have existing plants in unionized states.B ut as an

unintended consequence,forw ard-thinking C E O s also w ould be reluctant to place new plants in unionized

states lest they be forever restricted from placing future plants elsew here across the country.

NLRB-FOIA-00010147

U .S .tax and regulatory policies already m ake it m ore attractive for m any com panies to build new

m anufacturing capacity overseas.That's som ething the adm inistration has said it w ants to change and is

taking steps to address.It appears that m essage hasn't m ade it to the front offices of the N LR B .

M r.M cN erney is chairm an,president and C E O of the B oeing C o.

NLRB-FOIA-00010148

Pr'ess R eleases - U nited States Senator O rrin H atch

Page 1 of 14

U nited States Senator O rrin H atch

Press releases are archived according to their release date.For press releases

by topic,please see the Issue Positions page.

M ay 6,2011

H atch B lasts D angerous N L R B

B oeing D ecision; C alls O n

P resident T o W ithdraw N om ination

O f G eneral C ounsel

U tah Senator Says D ecision W illH ave C hilling Im pact on

E conom ic G row th; O pens the D oor to Im posing U nion

R equirem ents on R ight-to-W ork States

W A SH IN G T O N In a speech this m orning,U .S.Senator O rrin H atch (R -

U tah) blasted a recent com plaint filed by the N ational L abor R elations B oard

(N L R B ) that w ould punish B oeing for opening a plant in South C arolina and

requiring B oeing to do that production w ork in its W ashington facilities.

C iting the linkage betw een unions and the D em ocratic party,H atch,a

m em ber of the Senate H ealth E ducation L abor and Pensions C om m ittee that

has jurisdiction over the N L R B ,today called on President O bam a to pull the

nom ination of L afe Solom on to serve as N L R B G eneral C ounsel. H e also

explained that this decision w ill have a chilling im pact on the nation's

econom y and on business activity by allow ing federal bureaucrats to

determ ine state R ight-to-W ork decisions that end up serving as a back-door

effort to im pose "card check" requirem ents on the nation.B elow are

excerpts of H atch's speech:

O N N L R B 'S B O E IN G C O M PL A IN T :

The N ational Labor R elations B oard's A cting G eneralC ounsel Lafe

Solom on after 17 m onths of indecision,issued one of the m ost far-reaching

and outrageous com plaints ever issued by the B oard against a private

business.This com plaint against B oeing is easily one of the m ost outlandish

and regrettable com plaints I have seen in all of m y years ill the Senate.

http://hatch.senate.gov/public/index.cfm /releases?C ontentR ecord_id=33ae54e2-49f5-4633-.. . 5/9/2011

NLRB-FOIA-00010149

Pi-ess R eleases - U nited States Senator O rrin H atch

Page 2 of 14

E very citizen in South C arolina,and every M em ber of C ongress

R epublican or D em ocrat ought to be outraged by the N LR B 's action.To

borrow from F rank Sinatra,if they can do it there,they can do it anyw here.

If the N LR B can do this in South C arolina,disrupting business and killing

jobs,it can happen anyw here,including U tah or any other R ight-to-W ork

state.It can happen even in non-R ight-to-W ork states as w ell.

G overnm entactions like the ones w e have seen w ith the B oeing C om plaint

are debilitating to our econom y at a tim e w hen w e are struggling to recover

from one of the N ation's w orst recessions since the G reat D epression.Such

bureaucratic decisions cost jobs at a tim e w hen w e are struggling to reduce

unem ploym ent.They delay business decision m aking and interfere w ith

com petition.They underm ine business confidence in governm ent.W hy

should com panies investin expanding business in the U nited States if,w ith

the drop of the hat,a federal bureaucrat can sim ply reverse that decision

and destroy thatinvestm ent?

O N W H Y T H E N L R B C O M PL A IN T FL IE S IN T H E FA C E O F T H E

FA C T S:

The m ost im portantfactor is that the w ork in South C arolina w as new w ork,

w hich B oeing w as notobligated to perform in the State of W ashington under

its collective bargaining agreem ent.B oeing sim ply decided,for sound

business reasons to open a new facility to perform new w ork in a business-

friendly state.This is som ething businesses do all the tim e.

N ota single job union or non-union w as lostin the State of

W ashington as a result of B oeing's decision.In fact,over 2,000 new jobs

have been created in P uget Sound since the com pany's announcem ent to

begin new w ork atthe new facility.This is notto m ention South C arolina,

w here hundreds of new jobs w ere created.A dded jobs in W ashington plus

added jobs in South C arolina sounds like a w in-w in for A m erican w orkers to

m e.

So,yes,B oeing's decision to build its new plant in South C arolina w as good

for just about everybody.Yet,w ithout asserting any evidence of anti-union

anim us on the part of B oeing or of an adverse im pact on union w orkers .

exercising their legalrights,the N LR B filed its com plaintand has soughtto

step in and m ake B oeing's business decisions for them .

B oeing had no legal obligation to locate any and all new w ork in P uget

Sound.It w as not obligated under any collective bargaining agreem ent to

keep the w ork there.It sim ply chose to locate new w ork and new expansion

in a business-friendly,R ight-to-W ork state.

O N L A B O R 'S C O N N E C T IO N S W IT H T H E D E M O C R A T IC PA R T Y :

W hat m akes this case particularly ugly is that this is a case of the regulators

http ://hatch.senate.gov/public/index .c fm /releases?C ontentR ecord_i d=33ae54e2-49f5-4633-...5/9/2011

NLRB-FOIA-00010150

Piess R eleases - U nited States Senator O n -in H atch

Page 3 of 14

conveniently supporting the interests of B ig Labor against private

enterprise.W hat m akes this case appalling is that it is a gift-w rapped

present to the interests that just-so-happen to be the largest contributors to

D em ocratic cam paigns.

O N U R G IN G T H E PR E SID E N T T O W IT H D R A W SO L O M O N

A PPO IN T M E N T T O N L R B :

The N LR B 's A cting G eneralC ounsel em phasis on the acting sitting in

his Ivory Tow er in W ashington,D C essentially substituted his business

judgm ent for that of a private corporation.In essence,M r.Solom on claim ed

the authority to determ ine w here and how a private com pany is perm itted to.

do business.In fact,in light of his recent actions,including the B oeing

C om plaint,it's hard to conceive of a w orse choice for acting G eneral

C ounseL

That decision should be revisited.That 's w hy Jam w riting to P resident

O bam a to requestthat he w ithdraw his appointm ent of M r.Solom on.A nd,

as far as P resident O bam a's nom ination of M r.Solom on for a full term as

G eneral C ounsel is concerned,itis difficult to im agine how M r.Solom on

could ever be confirm ed by the Senate in view of his actions w hile serving as

A cting G eneralC ounsel.

O N T H IS D E C ISIO N B E IN G A B A C K D O O R M E A N S O F

E N A C T IN G L IB E R A L L A B O R PO L IC Y :

The contem ptfor the A m erican people on display in this decision is

astounding.The P resident and congressional D em ocrats w ere unable to

enactthe E m ployee F ree C hoice A cteven w ith superm ajorities in C ongress.

B ut not to w orry.Just have som e bureaucrat do it.

B elow is H atch's full speech he delivered on the Senate floor this

m orning:

I rise to speak aboutan unfortunate and,quite frankly,disturbing m atter.

W hile w e w ere allback hom e during the m ostrecentSenate recess,the

N ationalLabor R elations B oard's A cting G eneralC ounsel Lafe Solom on

after 17 m onths of indecision,issued one of the m ostfar-reaching and

outrageous com plaints ever issued by the B oard againsta private business.

This com plaintagainstB oeing is easily one of the m ostoutlandish and

regrettable com plaints I have seen in allof m y years in the Senate.

The N LR B 's A cting G eneralC ounsel em phasis on the acting sitting in

his Ivory Tow er in W ashington,D C essentially substituted his business

judgm entfor thatof a private corporation.In essence,M r.Solom on claim ed

the authority to determ ine w here and how a private com pany is perm itted to

http://hatch.senate.gov/public/index.cfm /releases?C ontentR ecord_id=33ae54e2-49f5-4633-.. . 5/9/2011

NLRB-FOIA-00010151

Press R eleases -U nited States Senator O rrin H atch

Page 4 of 14

do business.

T his is a specious claim .B oeing did nothing w rong,and I am confident that

itw illultim ately prevail.

Y et,this com plaint carries a potentialcost of billions of dollars and

thousands of new jobs for the com pany and the com m unity w here it chose to

operate.

So w hy m ake this decision at all?

W hy attack a private com pany w ith a legalchallenge thatw illcostan

enorm ous am ountofm oney to defend,disrupts business,underm ines the

efforts ofstates to increase jobs and prom ote econom ic recovery,butthat

w illfailfor its lack of m erit?

T he answ er is sim ple.T he unions w anted it.

T his is justanother chapter in the sorry relationship betw een unions,big

governm ent,and the party ofbig governm ent.

I have to say,I adm ire M r.Solom on's m oxie.B y m aking this decision

during a congressionalrecess,it is alm ost as if he thought it m ight avoid our

scrutiny.M aybe he thought that new s like this m ight not m ake its w ay back

to the states.T o that,I say: nice try,but you w illnot escape the scrutiny of

the A m erican people w hen it com es to an action this over-the-top.

Sunshine w illfallon a decision this politically m otivated.A nd in the light

of day,the decision and the decisionm akers are going to look aw fully bad.

T he N L R B 's B oeing C om plaint has been w idely criticized in the m edia,

here in the Senate by a num ber ofm y colleagues,and throughoutthe

business com m unity as a prim e exam ple ofa federalbureaucracy run am ok.

Butthis is m ore than another exam ple ofan unaccountable bureaucracy

harm ing job creators and em ployees.W hat m akes this case particularly ugly

is that this is a case of the regulators conveniently supporting the interests of

Big Labor againstprivate enterprise.

W hatm akes this case appalling is thatitis a gift-w rapped presentto the

interests thatjust-so-happen to be the largestcontributors to D em ocratic

cam paigns.

T he N L R B issued its com plaint against B oeing one of our nation's

iconic com panies for allegedly transferring assem bly w ork on its

D ream liner 787 fleetof airplanes from Puget Sound,W ashington to N orth

C harleston,South C arolina.

B oeing m ade a legitim ate business decision to open a new plant,w ith new

http://hatch.senate.gov/public/index.cfm /releases?C ontentR ecord_id=33ae54e2-49f5-4633-... 5/9/2011

NLRB-FOIA-00010152

Page 5 of 14

Press R eleases - U nited States Senator O rrin H atch


w orkers,in a new ,m ore business-friendly clim ate.It chose South C arolina,

in part,to avoid labor disputes and crippling strikes w hich had befallen the

com pany repeatedly over the past few years.

W hen B oeing first m ade this decision w ay back in 2009 ithad

experienced four labor strikes in 20 years.T he m ost recent w ork stoppage

a 58-day strike in 2008 costthe com pany $1.8 billion.

W as the decision to bring new w ork to South C arolina prudent business?

B oeing faces significant global com petition.T he French com pany A irbus is

anxious to take B oeing's business w ith the help and backing of the French

governm ent.

W as the decision good for A m erican w orkers? C learly it w as.In the current

m arketplace m any of B oeing's com petitors m ight have considered m oving

jobs overseas.Instead of follow ing that course,B oeing saved A m erican

jobs.

T he Presidentlikes to talk about jobs thathe has created and saved.

W ell,M r.President,not a single job union or non-union w as lost in

the State of W ashington as a result of B oeing's decision.In fact,over 2,000

new jobs have been created in Puget Sound since the com pany's

announcem ent to begin new w ork at the new facility.T his is not to m ention

South C arolina,w here hundreds of new jobs w ere created.A dded jobs in

W ashington plus added jobs in South C arolina sounds like a w in-w in for

A m erican w orkers to m e.

So,yes,B oeing's decision to build its new plant in South C arolina w as good

for just about everybody.Y et,w ithout asserting any evidence of anti-union

anim us on the part of B oeing or of an adverse im pact on union w orkers

exercising their legal rights,the N L R B filed its com plaint and has sought to

step in and m ake B oeing's business decisions for them .

A s South C arolina G overnor N ikki H aley described it in an A pril 26 W all

Street Journal editorial,the excitem ent in South C arolina turned to gloom for

m illions of South C arolinians w ho are rightly aghast at the thought of the

greatest econom ic developm ent success our state has seen in decades being

ripped aw ay by federal bureaucrats w ho appear to be little m ore than union

puppets.

G overnor H aley should be applauded for calling the N L R B 's decision for

w hatit is a hand w rapped present to B ig L abor,courtesy of their friends

in the federal bureaucracy and the A dm inistration.


L et's take a look at the N L R B 's com plaint for a m om ent.First,let's

consider the tim ing of the com plaint.It is highly suspect if you ask m e.

T he B oeing C om plaint com es just a few short m onths before the new South

http://hatch.senate.gov/public/index.cfm /releases?C ontentR ecord_id=33ae54e2-49f5-4633-.. . 5/9/2011

NLRB-FOIA-00010153

Press R eleases -U nited States Senator O rrin H atch

Page 6 of 14

C arolina facility w as scheduled to open in July,and w ellafter m ost of the

construction w as com pleted and the new w orkers w ere hired.In other

w ords,after m ost of B oeing's substantialinvestm ents had been m ade,the

heavy hand ofthe federalbureaucracy intervened to dictate thatits business

decision m ustbe reversed.

In its A pril21 editorial,the W allStreetJournaldescribes the B oeing

C om plaint saying "after 17 m onths and $2 billion,the N L R B sandbags

B oeing." T he editorialcontinued:"T here are plentifullegalprecedents that

give business the rightto locate operations in R ightto W ork states.T hat

righthas created healthy com petition am ong states and kepttens ofm illions

ofjobs in A m erica rather than overseas."

A n opinion editorialby Steven Pearlstein in the A pril26 W ashington Post is

even m ore telling.A lthough M r.Pearlstein w as,not unexpectedly,

som ew hat supportive of B ig L abor and the N L R B 's actions in this case,he

nevertheless acknow ledged that"U N the agency prevails and is able to force

B oeing to open an additionalproduction line for its new 787 D ream liner in

Seattle,itcould finally puta brake on the steady flow ofm anufacturing jobs

to rightto w ork states in the South."

Pearlstein hits it on the head here.T he decision to file this com plaint is an

attack on business-friendly states thatare attracting com panies and creating

jobs.Itis an effortby W ashington D em ocrats and career bureaucrats to

force unionism on the entire country.

Y et in m y view Pearlstein does not adequately state the radicalism of the

N L R B 's position.

T he factis thatifthe N L R B doing the bidding ofthe International

A ssociation of M achinists and A erospace W orkers prevails here,it w ill

give them the right to dictate business location decisions everyw here

even in non-R ight-to-W ork states.

T here is a greatdealofm isinform ation com ing from those w ho supportthe

N L R B 's actions.

In his article,Pearlstein inaccurately describes B oeing's new m anufacturing

facility in South C arolina as a run-aw ay shop.

B oeing had no legalobligation to locate any and allnew w ork in Puget

Sound.It w as not obligated under any collective bargaining agreem ent to

keep the w ork there.It sim ply chose to locate new w ork and new expansion

in a business-friendly,R ight-to-W ork state.Is thata run-aw ay shop? I think

not.

A pparently,the N L R B agrees w ith m e,because the C om plaint does not

allege that this w as a classic run-aw ay shop.In those situations,bargaining

unitw ork thatis contractually obligated to be perform ed by m em bers ofthe

http://hatch.senate.gov/public/index.cfm /releases?C ontentR ecord_id=33ae54e2-49f5-4633-... 5/9/2011

NLRB-FOIA-00010154

Press R eleases - U nited States Senator O n -in H atch

Page 7 of 14

union is shut dow n unilaterally by m anagem ent.E m ployees are laid off and

the com pany stealthily slips out of tow n w ith little or no notice,only to

reopen at a new location to perform the exact sam e w ork on a union-free

basis.

T he N L R B m akes no such allegations here because that's not w hat happened

in this case.Instead,the C om plaint falls back on the broad,catch-all

argum ent that B oeing's actions w ere inherently destructive of [union

w orkers'] Section 7 rights,referring to the rights protected by Section 7 of

the N ational L abor R elations A ct,w hich,in this case,m eans the right to

strike.

If that theory w ere to apply to all cases like this one,if com panies cannot

factor labor conditions into decisions regarding new operations w ithoutit

being inherently destructive of Section 7 rights,there is no logical end to

w hat private decisions can be overruled by the N L R B .

Fortunately,the legal precedents dealing w ith this type of decision do not

support the A cting G eneral C ounsel's interpretation in the B oeing

C om plaint.T he cases cited in the C om plaint are all distinguishable.N ot

one of them deals w ith fact patterns involving new w ork,because there's

nothing unlaw ful about opening a new facility to perform new w ork that is

not obligated under an existing collective bargaining agreem ent.

Put sim ply,this is just another effort on the part of the union-packed O bam a

N L R B to undo years of legal precedentto satisfy B ig L abor.

If B oeing's actions are inherently destructive of the union's rights,w here is

the anti-union discrim ination? O nce again,M r.President,not a single union

w orker lost a job,or even lost an hour of w ork as a result of B oeing's

business decision.

L et's be perfectly clear: B oeing w orkers in the State of W ashington actually

G A IN E D N E W W O R K A N D G A IN E D 2,000 N E W JO B S follow ing the

decision in 2009.T hose jobs are am ong the best paid in A m erica.

D oes that sound like anti-union discrim ination?

T his w as not a stealth m ove in the dark of night; no one w as surprised or

caught off guard.T he M achinists'union knew that B oeing w as building a

new facility in South C arolina.B oeing had even discussed the new location

w ith them .W orkers knew about B oeing's plans as w ell.So,too,did the

N LR B .

B ut before issuing his com plaint,the A cting G eneral C ounsel stew ed for 17

m onths,w hile new facilities w ere being constructed in South C arolina at the

cost of billions of dollars and w orkers w ere hired to run the assem bly lines.

Itgoes w ithoutsaying that,if South C arolina w orkers w anted a union they,

http://hatch.senate.gov/public/index.cfm /releases?C ontentR ecord_id=33ae54e2-49f5-4633-.. . 5/9/2011

NLRB-FOIA-00010155

Press R eleases -U nited States Senator O rrin H atch

Page 8 of 14

like any other private sector em ployees in South C arolina or any other state,

could file a petition w ith the N L R B for a union representation election.

T here w as no evidence of anti-union discrim ination by B oeing to any union

petition or union representation election.

B ut and I can'tstress this enough ,the m ostim portantfactor is thatthe

w ork in South C arolina w as new w ork,w hich B oeing w as not obligated to

perform in the State ofW ashington under its collective bargaining

agreem ent.

B oeing sim ply decided,for sound business reasons to open a new facility to

perform new w ork in a business-friendly state.T his is som ething businesses

do allthe tim e.

T hat is,they used to do it allthe tim e,before President O bam a's A cting

G eneralC ounsel,and the m ightofthe federalbureaucracy under the heavy-

handed controlof B ig L abor,decided to step in to interfere w ith B oeing's

decision.If this com plaint is upheld and this interpretation becom es the new

status quo,w ho know s how it w illim pact businesses in the future?

E very citizen in South C arolina,and every M em ber of C ongress

R epublican or D em ocrat ought to be outraged by the N L R B 's action.T o

borrow from Frank Sinatra,ifthey can do itthere,they can do itanyw here.

Ifthe N L R B can do this in South C arolina,disrupting business and killing

jobs,itcan happen anyw here,including U tah or any other R ight-to-W ork

state.It can happen even in non-R ight-to-W ork states as w ell.

But,the m ostappalling partaboutthis com plaint,M r.President,is notthe

N L R B 's borderline frivolous interpretation of the law .N o,it's the rem edies

the agency is seeking.

A fter asserting thatBoeing unlaw fully transferred bargaining unitw ork to

South C arolina,the A cting G eneralC ounsel a career N L R B bureaucrat

w ho,throughouthis governm entlegalcareer,has never been responsible for

m aking a single entrepreneurialdecision soughtan order stipulating that

B oeing's w ork on the 787 D ream liner could not be perform ed in South

C arolina and w ould have to be m oved to the State ofW ashington.

A s is typicalin these cases,the B oeing C om plaint w illsurely be subject to

lengthy litigation w hile B oeing's foreign com petitors eagerly seek to

supplant B oeing's business orders.E ven if B oeing ultim ately prevails in the

litigation battle,it could lose the business w ar to fierce globalcom petition.

T he M achinists know that,and so does the N L R B .

M ightI rem ind the supporters ofthe N L R B that,justice delayed is justice

denied.A nd here,the longer the w heels of justice turn,the w orse it is for

B oeing's business,and the w orse it is for A m erican jobs and prosperity.

http://hatch.senate.gov/pub lic/index.c fm /releases?C ontentR ecord_id=33ae54e2-49f5-4633 -...5/9/2011

NLRB-FOIA-00010156

Press R eleases -U nited States Senator O rrin H atch

Page 9 of 14

D elay does not favor B oeing,but it plays right into the hands of its global

com petitors,as w ellas the M achinists union and President O bam a's A cting

G eneralC ounselat the N L R B ,w ho,it seem s,w ould force the com pany into

accepting a settlem ent that cem ents an untenable business decision in law .

T his is no less than econom ic w arfare being w aged by the N L R B on behalf

of President O bam a's friends the labor unions against B oeing,against

the w orkers in South C arolina and allSouth C arolinians,and againstthe 22

R ight to W ork states across the country.In the end,it is econom ic w arfare

by the O bam a A dm inistration againstallbusiness-friendly states and against

capitalism and free enterprise everyw here.

I'm not the only one saying this.I note,for exam ple,that the A ttorneys

G eneralin nine states across the country N evada,V irginia,T exas,

G eorgia,A rizona,O klahom a,A labam a,Florida,and South C arolina

have w ritten to M r.Solom on asking thatthe B oeing C om plaintbe

w ithdraw n.

Their A pril28 letter states:This com plaintrepresents an assaultupon the

constitutionalrightoffree speech,and the ability ofour states to create jobs

and recruit industry....T he only justification for the N L R B 's unprecedented

retaliatory action is to aid union survival.Y our action seriously underm ines

our citizens'right to w ork as w ellas their ability to com pete globally.

T herefore,as A ttorneys G eneral,w e w illprotectour citizens from union

bullying and federalcoercion.W e thus callupon you to cease this attack on

our rightto w ork,our states'econom ies,and our jobs.

E ditorials from new spapers across the country have criticized the B oeing

C om plaint.E ven the Seattle T im es w rote in an A pril22nd editorial: "T his

page regretted B oeing's decision,but has never thought of it as som ething

that could be,or should be,reversed by the federalgovernm ent." T he

article continues,saying that"the N ationalLabor R elations Board has

labeled B oeing's decision an unfair labor practice,and is asking a federal

courtto order the line to be m oved to W ashington...w e w ould celebrate the

day B oeing decided to do that but itis B oeing's decision."

L ater the sam e editorialconcluded,"M lle com pany has the rightto build

assem bly plants.Itcan build them in South C arolina or in A fghanistan ifit

likes.Its decision m ay be unw ise,but it is B oeing's."

T hese sam e sentim ents w ere expressed in the President's hom etow n

new spaper.A C hicago T ribune editorialon A pril22,described the N L R B

A cting G eneralC ounsel's actions a "gross intrusion."

T he editorialcontinued,"B oeing,the C hicago-based aviation com pany,

already has one governm ent-induced headache.Its m ain rival,A irbus SA S,

has received from E uropean nations about$20 billion in subsidies thatare

prohibited by internationaltrade agreem ents.T hatis challenging enough for

http://hatch.senate.gov/public/index.cfm /releases?C ontentR ecord_id=33ae54e2 -49f5-4633-... 5/9/2011

NLRB-FOIA-00010157

Press R eleases - U nited States Senator O rrin H atch

Page 10 of 14

B oeing as it tries to com pete in an international m arket.B ut w hen the U .S.

governm ent tries to dictate w here B oeing can do business..,that's even

harder to stom ach."

T he T ribune editorial concluded,"[t]he disastrous,unintended m essage to a

m ajor U .S.em ployer: K eep your m outh shut and find another country to do

business."

T he D etroit N ew s has the President and his pro-union adm inistration

pegged.A bout this decision,the editors w rote,"President B arack O bam a

has m ade conciliatory sounds seeking to reassure business,but the actions of

the N L R B illustrate the real face of his adm inistration.C ongress ought to

hold hearings on reining in the N L R B ."

So if the N L R B 's C om plaint is so transparently aw ful,w hat is this all about?

L et's see.

A n unfair decision com es late in the gam e.It threatens to destroy rather than

create jobs.A nd it is based on specious legalreasoning.

R est assured,the issue is not jobs.T he issue is union jobs.

A nd the issue is not better pay for w orkers.T he issue is about m oney in the

union coffers.

A nd ultim ately,the issue is about the 2012 elections,because m oney in

union coffers m eans m oney for D em ocratic candidates.

T he InternationalA ssociation of M achinists union is im portantto President

O bam a.It endorsed him and contributed substantial resources to his

cam paign.A nd w hile President O bam a could not deliver on such legislative

initiatives as the E m ployee Free C hoice A ct,he appears determ ined that

every lever of governm ent


especially at the N ational L abor R elations

B oard w ill be turned in the U nion's favor.

T he contem pt for the A m erican people on display in this decision is

astounding.

T he President and congressional D em ocrats w ere unable to enact the

E m ployee Free C hoice A ct even w ith superm ajorities in C ongress.

B ut not to w orry.Just have som e bureaucrat do it.

K eep this episode in m ind the next tim e you hear progressives talk about the

need for enlightened adm inistration.

K eep it in m ind w hen you hear progressives claim that the President is just

http://hatch.senate.gov/public/index.cfm /releases?C ontentR ecord_id=33ae54e2-49f5-4633-.. . 5/9/2011

NLRB-FOIA-00010158

Press R eleases - U nited States Senator O rrin H atch

Page 11 of 14

interested in doing w hatw orks,and thathe is not ideological.

Progressives ultim ately have little respect for the rule of law or the people

them selves.

For all of their talk about non-partisanship and doing w hat w orks,w hat they

really prom ote is a supposedly enlightened bureaucracy that in fact w ill push

liberal policies regardless of w hatthe people w ant.

Progressives are to non-partisanship as D onald T rum p is to subtlety.

U ltim ately,progressives are as partisan as they com e,and they push their

liberalism through a vast and perm anent bureaucracy that plods along day

after day largely out of sight of the A m erican people,w ho w ould never elect

representatives that w ould actually prom ote this leftist anti-business agenda.

W hen form er Speaker of the H ouse N ancy Pelosisaid that elections should

not m atter as m uch as they do,this is w hat she m eant.L iberalism should

advance no m atter w hat the people of this country actually desire.

A nd the foot soldiers that w ill advance the causes of progressive leftism day-

in-and-day-outare the unelected and largely unaccountable bureaucrats that

churn out page after page of regulation and infiltrate the decisionm aking

process of every business,no m atter how sm all the decision or how sm all

the business.

W hich brings m e to the N L R B 's A cting G eneral C ounsel.

H ow did he even w ind up in a position to cause this level of econom ic

m ayhem ?

N ot under the established procedure for appointing an interim G eneral

C ounselunder Section 3(d) of the N ationalL abor R elations A ct,w hich

provides very clearly as follow s: In case of vacancy in the office of the

G eneralC ounselthe P resident is authorized to designate the officer or

em ployee w ho shall act as G eneral C ounsel during such vacancy,but no

person or persons so designated shall so act (1) for m ore than forty days

w hen the C ongress is in session unless a nom ination to fill such vacancy

shall have been subm itted to the Senate,or (2) after the adjournm ent sine die

of the session of the Senate in w hich such nom ination w as subm itted.

President O bam a ignored the clearly established statutory procedure for

appointing an acting G eneral C ounsel under the N ational L abor R elations

A ct,and instead m ade M r.Solom on his personal A cting G eneral C ounsel

under the m ore generous term s of the federal V acancies A ct,w hich is

intended to apply to governm ent vacancies in general.

E ven if he is technically authorized to do so,the Presidentshould not use the

V acancies A ct to supplantor displace specific statutory procedures for

http://hatch.senate.gov/public/index.cfm /releases?C ontentR ecord_id=33ae54e2-49f5-4633-.. . 5/9/2011

NLRB-FOIA-00010159

. .

Press R eleases -U nited States Senator O rrin H atch

Page 12 of 14

appointing federalem ployees to vacancies w here,as here under the N ational

L abor R elations A ct,the organic law is perfectly clear as to the intended

process.

W hy did PresidentO bam a m ake the appointm entunder the V acancies A ct

rather than follow the m ore preferred and traditionalprocedure provided

under the N L R A ? T he answ er is pretty sim ple:

U nder the V acancies A ct,M r.Solom on is allow ed to stay in the job in an

acting capacity,w ithoutSenate approval,for an initial210 days rather

than the 40 days provided under the N L R A and then be reappointed again

for another 210 days,and a third tim e for yetanother 210 days,untilthe end

ofPresidentO bam a's term .

T his is yetanother exam ple ofthe Presidentend-running the law in order to

ensconce in office individuals w ho w ould have a difficult tim e surviving the

constitutionally required confirm ation process,a process thatensures the

people and their representatives have som e m eaningfuloversight of the

appointee.

So w hy did no one com plain about this appointm ent before now ? I suppose

som e should have.

I suppose that,after the battle over the nom ination ofA FL -C IO and SE IU

A ssociate C ounselC raig B ecker to the N L R B ,m any w ere convinced that

they could do a lot w orse than having a career N L R B civilservant serve as

acting G eneralC ounsel.

I'm not so sure anyone feels that w ay now .In fact,in light of his recent

actions,including the B oeing C om plaint,it's hard to conceive of a w orse

choice for acting G eneralC ounsel.

T hat decision should be revisited.T hat's w hy I am w riting to President

O bam a to requestthathe w ithdraw his appointm entofM r.Solom on.

A nd,as far as PresidentO bam a's nom ination ofM r.Solom on for a fullterm

as G eneralC ounselis concerned,it is difficult to im agine how M r.Solom on

could ever be confirm ed by the Senate in view of his actions w hile serving

as A cting G eneralC ounsel.

G overnm ent actions like the ones w e have seen w ith the B oeing C om plaint

are debilitating to our econom y ata tim e w hen w e are struggling to recover

from one of the N ation's w orst recessions since the G reat D epression.Such

bureaucratic decisions costjobs ata tim e w hen w e are struggling to reduce

unem ploym ent.T hey delay business decision m aking and interfere w ith

com petition.T hey underm ine business confidence in governm ent.

W hy should com panies investin expanding business in the U nited States if,

w ith the drop ofthe hat,a federalbureaucratcan sim ply reverse that

http://hatch.senate.gov/public/index.cfm /releases?C ontentR ecord_id=33ae54e2-49f5-4633-.. . 5/9/2011

NLRB-FOIA-00010160

Press R eleases -U nited States Senator O rrin H atch

Page 13 of 14

decision and destroy thatinvestm ent?

A t this point,w e are left scratching our heads.W hy w ould the A cting

G eneralC ounseldo this?

U nfortunately,the answ er appears to be thatthe decision to issue the

com plaint w as a politicalone designed to placate an im portant politicalally

of the President's organized labor.T hat answ er,w hile unacceptable,is

the only logicalone.

A s the A pril21stW allStreetJournalconcluded,"[b]eyond labor politics,

the N L R B 's ruling w ould set a terrible precedent for the flow of jobs and

investm ents w ithin the U nited States.It w ould essentially give labor a veto

over m anagem entdecisions aboutw here to build future plants."

T hatm ustnever be allow ed to happen.T he N L R B should w ithdraw the

B oeing C om plaint.

###

Perm alink:http://hatch.senate.gov/public/index.cfm /2011/5/hatch-blasts-

dangerous-nlrb-boeing-decision-calls-on-president-to-w ithdraw -nom ination-

of-general-counsel

Like

:id B O O K M A R K leigj i7 ...;

B row se by: maY

A pErri

E :....
92i

H A T C H H O N O R S PR E SID E N T R E A G A N 'S JU D IC IA L

05/06/11 L E G A C Y ,C O M M IT M E N T T O C O N ST IT U T IO N IN

SPE E C H T H IS M O R N IN G

05/06/11 C urrentrecord

05/06/11 H atch,C am p Introduce B icam eralJobs A ct

H atch V otes A gainst M cC onnellN om ination to U .S.D istrict

05/04/11

C ourt

05/04/11

H atch C ongratulates PrudentialSpirit of C om m unity A w ard

W inners From U tah

H atch says Interior D epartm ent M oving Forw ard W ith

05/04/11
G rey W olf D elisting D oesn't G o Far E nough,Ignores K ey

Parts of U tah W here W olf Populations E xist

05/04/11 H atch,C oburn,G roup of Senators Introduce L egislation

http://hatch.senate.gov/public/index.cfm /releases?C ontentR ecordid=33ae54e2-49f5-4633-.. . 5/9/2011

NLRB-FOIA-00010161

Press R eleases - U nited States Senator O rrin H atch

Page 14 of 14

Preventing FederalFunding of A bortion in O bam aC are

05/04/11

H earing on E xam ining FederalB udget E nforcem ent

M echanism s

05/03/11

H atch,G O P Senators protest FederalG overnm ent's

C om plaint A gainst B oeing 4'1

05/03/11

H atch U nveils L egislation R olling B ack O nerous M edicaid

R equirem ents that are B ankrupting States

05/03/11

H atch: M ore than H alf of U .S.H ouseholds did N ot Pay A ny

Incom e T ax in 2009

05/03/11

E xam ining B urdens & B enefits of D istribution w ith the U .S.

T ax C ode

05/01/11
H atch Statem ent on the D eath of O sam a bin L aden

http://hatch.senate.gov/public/index.cfm /releases?C ontentR ecord_id=33ae54e2-49f5-4633-.. . 5/9/2011

NLRB-FOIA-00010162

P ag e 1 o f 2

K earn ey, B arry J.

From :

Farrell,Ellen

S ent:

Thursday, M ay 12, 2011 2:01 P M

To:

K earney,B arry J.; S ophir,Jaym e; S zapiro,M iriam ; W illen,D ebra L

S ubject: R E : B oeing - D R A FT N otice language

R ich sent this draft.Isaid Ithink


Exemption 5

Ellen

E llen F arrell

D eputy A ssociate G eneral C ounsel

D ivision of A dvice, N LR B

202-273-3810

E llen.F arrell@ nlrb.gov

From : A hearn,R ichard L.

S ent: Thursday, M ay 12, 2011 1:38 P M

To: Farrell,E llen

S ubject: FW : B oeing - D R A FT N otice language

From : Finch,P eter G .

S ent: Thursday, M ay 12, 2011 10:19 A M

To: A hearn,R ichard L.; P om erantz,A nne; A nzalone,M ara-Louise

S ubject: FW : B oeing - D R A FT N otice language

P er th e co llective c h a n g e s to th e o rig in a l: ,

Exemption 5

NLRB-FOIA-00010163

P age 2 of 2

as

Exemption 5

P eter G .Finch,Field A ttorney

N ationalLabor R elations B oard - R egion 19

2948 Jackson FederalB uilding

915 Second A venue

Seattle,W ashington 98174

Tel.: 206.220.6285

Fax: 206.220.6305

e-m ail: peter.finch@ nlrb.gov

5/12/2011

NLRB-FOIA-00010164

P ag e 1 o f 2

K earn ey, B arry J.

From :

M attina, C eleste J.

S ent:

T hursday, M ay 05, 201112:07 P M

To:

S chiff, R obert; G arza, Jose; C leeland, N ancy; A bruzzo, Jennifer; S olom on, L afe E .

C c:

K earney, B arry J.

S u b ject:

F W : B oeing -- revised draft response to state A G s

A ttach m en ts: A G s letter.pdf; G C R esponse to S tate A G 's.doc

B arry and his people drafted a very good response. I m ade som e m inor edits; I

Exemption 5

F ro m : K earney, B arry J.

S en t: W ednesday, M ay 04, 2011 2:28 P M

T o : S olom on, L afe E .; M attina, C eleste).

S u b ject: F W : B oeing -- revised draft response to state A G s

D raft response from you to S tate A G s

F ro m : W illen, D ebra L

S en t: W ednesday, M ay 04, 2011 2:24 P M

T o : K earney, B arry J.; S ophir, Jaym e; F arrell, E llen; S zapiro, M iriam

C c: D odds, A m y L .

S u b ject: R E : B oeing -- revised draft response to state A G s

clean draft and A G s'letter attached

F ro m : K earney, B arry J.

S en t: W ednesday, M ay 04, 2011 2:10 P M

T o : S ophir, Jaym e; F arrell, E llen; W illen, D ebra L ; S zapiro, M iriam

C c: D odds, A m y L .

S u b ject: R E : B oeing -- revised draft response to state A G s

I agree w ith all the revisions. P lease send m e a clean draft along w ith the A G letter to send on to L afe

F ro m : S ophir, Jaym e

S en t: W ednesday, M ay 04, 2011 12:18 P M

T o : F arrell, E llen; K earney, B arry J.; W illen, D ebra L ; S zapiro, M iriam

C c: D odds, A m y L .

S u b ject: R E : B oeing -- revised draft response to state A G s

N otw ithstanding that this case is about retaliation for striking in other states, they seem t
Exemption 5

they're saying, E llen's m odification is definitely better.

ut, regardless of w hat

5/5/2011

NLRB-FOIA-00010165

P age 2 of2

From : Farrell,Ellen

S en t: W ednesday,M ay 04,2011 12:07 P M

To: K earney,B arry J.; W illen,D ebra L; Sophir,Jaym e; Szapiro,M iriam

C c: D odds,A m y L.

S u b ject: FW : B oeing -- revised draft response to state A G s

See m y m odification...

Exemption 5

Ellen

E llen F arrell

D eputy A ssociate G eneralC ounsel

D ivision of A dvice,N LR B

202-273-3810

Ellen.Farrell@ nlrb.gov

From : Sophir,Jaym e

S en t: W ednesday,M ay 04,2011 11:33 A M

To: K earney,B arry J.; Farrell,Ellen; Szapiro,M iriam ; W illen,D ebra L

C c: D odds,A m y L.

S u b ject: FW : B oeing -- revised draft response to state A G s

Exemption 5

From : W illen,D ebra L

S en t: W ednesday,M ay 04,2011 10:58 A M

To: K earney,B arry J.; Farrell,Ellen; Sophir,Jaym e; Szapiro,M iriam

C c: D odds,A m y L.

S u b ject: B oeing -- revised draft response to state A G s

A s B arry requested,I've incorporated his changes and am attaching the new version along w ith the A G 's letter.

Jaym e -- Ihave not addressed your concern -- please discuss it w ith B arry and let m e know if w hat you allw ant

m e to do.

Thanks,D eb

5/5/2011

NLRB-FOIA-00010166

Exemption 5

NLRB-FOIA-00010167

-2-

Exemption 5

NLRB-FOIA-00010168

-3-

Exemption 5

NLRB-FOIA-00010169

..

P ag e I o f I

K earn ey, B arry J.

From :

S ophir, Jaym e

S ent:

W ednesday, M ay 04, 201112:18 P M

To:

F arrell, E llen; K earney, B arry J.; W illen, D ebra L ; S zapiro, M iriam

C c:

D odds, A m y L .

S u b ject: R E : B oeing -- revised draft response to state A G s

N otw ithstanding that this case is about retaliation for striking in other states, they seem t
B ut, regardless of w hat

Exemption 5

they're saying, E llen's m odification is definitely better.

F ro m : Farrell, E llen

S en t: W ednesday, M ay 04, 2011 12:07 P M

T o : K earney, B arry J.; W illen, D ebra L ; S ophir, Jaym e; S zapiro, M iriam

C c: D odds, A m y L .

S u b ject: F W : B oeing -- revised draft response to state A G s

S ee m y m odification...

Exemption 5

E llen

E llen F arrell

D eputy A ssociate G eneral C ounsel

D ivision of A dvice, N LR B

202-273-3810

E llen.F arrell@ nlrb.gov

F ro m : S ophir, Jaym e

S en t: W ednesday, M ay 04, 2011 11:33 A M

T o : K earney, B arry J.; F arrell, E llen; S zapiro, M iriam ; W illen, D ebra L

C c: D odds,A m y L .

S ubject: FW : B oeing -- revised d raft response to state A G s

Exemption 5

F ro m : W illen, D ebra L

S en t: W ednesday, M ay 04, 2011 10:58 A M

T o : K earney, B arry J.; F arrell, E llen; S ophir, Jaym e; S zapiro, M iriam

C c: D odds, A m y L .

S u b ject: B oeing -- revised draft response to state A G s

A s B arry requested, I've incorporated his changes and am attaching the new version along w ith the A G 's letter.

Jaym e -- I have not addressed your concern -- please discuss it w ith B arry and let m e know if w hat you all w ant

m e to do.

T hanks, D eb

5/4/2011

NLRB-FOIA-00010170

i,

P age 1 of1

K earney,B arry J.

From :

W illen,D ebra L

Sent:

W ednesday,M ay 04,201112:14 P M

T o:

Szapiro,M iriam ; Farrell,Ellen; K earney,B arry J.; Sophir,Jaym e

C c:

D odds,A m y L.

Subject: R E: B oeing -- revised draft response to state A G s

Fine by m e too.

From : Szapiro,M iriam

S ent: W ednesday,M ay 04,2011 12:10 P M

To: Farrell,Ellen; K earney,B arry J.; W illen,D ebra L; Sophir,Jaym e

C c: D odds,A m y L.

S ubject: R E: B oeing -- revised draft response to state A G s

I like Jaym e's point and Ellen's m odification; it's a good addition.

From : Farrell,Ellen

S ent: W ednesday,M ay 04,2011 12:07 P M

To: K earney,B arry J.; W illen,D ebra L; Sophir,Jaym e; Szapiro,M iriam

C c: D odds,A m y L.

Subject: FW : B oeing -- revised draft response to state A G s

See m y m odification T

Exemption 5

Ellen

E llen F arrell

D eputy A ssociate G eneralC ounsel

D ivision of A dvice,N LR B

202-273-3810

E llen.Farrell@ nlrb.gov

'1

From : Sophir,Jaym e

S ent: W ed n esd ay, M ay 04, 2011 11:33 A M

To: K earney,B arry J.; Farrell,Ellen; Szapiro,M iriam ; W illen,D ebra L

C c: D odds,A m y L.

Subject: FW : B oeing -- revised draft response to state A G s

Exemption 5

From : W illen,D ebra L

S ent: W ednesday,M ay 04,2011 10:58 A M

To: K earney,B arry J.; Farrell,Ellen; Sophir,Jaym e; Szapiro,M iriam

C c: D odds,A m y L.

S ubject: B oeing -- revised draft response to state A G s

A s B arry requested, I've incorporated his changes and am attaching the new version along w ith the A G 's letter.

Jaym e -- Ihave not addressed your concern -- please discuss it w ith B arry and let m e know if w hat you allw ant m e to do.

Thanks,D eb

5/4/2011

NLRB-FOIA-00010171

Statem ent

of

T he H onorable J.M ichaelL uttig

E xecutive V ice President and G eneralC ounsel

T he B oeing C om pany

before

T he C om m ittee on H ealth,E ducation,L abor and Pensions

U nited States Senate

M ay 12,2011

T hank you C hairm an H arkin,R anking M em ber E nziand M em bers of the Senate

C om m ittee on H ealth,E ducation,L abor and Pensions,for inviting m e to testify before the

C om m ittee today.

T he com plaint filed by A cting G eneralC ounselL afe Solom on of the N ationalL abor

R elations B oard ("N L R B ") against "T he B oeing C om pany" that is at issue before the C om m ittee

arises from B oeing's selection of N orth C harleston,South C arolina,as its location for a second

finalassem bly facility for the 787 D ream liner.T he D ream liner is B oeing's revolutionary new

w ide-body com m ercialairplane that w illbe significantly m ore energy efficient than com parably

sized airplanes,w ith advanced electric system s.T he assem bly of the 787 began (and continues)

in E verett,W ashington,at the site w here B oeing builds its other tw in-aisle com m ercialairplanes,

including the 747 and the 777.In response to extraordinary custom er dem and for the 787,
B oeing decided in 2008 to create significant new production capacity by-establishing a second

787 assem bly line.

T he decision to place the second line in N orth C harleston w as one of the m ore im portant

decisions in B oeing's recent history,and w as m ade only after extensive deliberation by the

C om pany's senior m anagem ent.B oeing w as predisposed to place the second assem bly line in

iE verett,w here the C om pany could draw upon a pre-existing,skilled w ork force and benefit from

the low er construction costs of expanding its existing footprint.B ut there w ere also good

reasons to consider locating the second assem bly line in N orth C harleston.South C arolina offers

V an exceptionalbusiness environm ent for m anufacturing com panies,w hich in this case included a

significant package of financialincentives in its effort to persuade B oeing to build the new line

there.Further,N orth C harleston w ould provide B oeing,for the first tim e,w ith desirable

geographicaldiversity for its com m ercialairplanes operations.B oeing's desire to protect the

v future stability of the D ream liner's globalproduction system w as also a significant factor in its

decision-m aking process.A n InternationalA ssociation of M achinists and A erospace W orkers

("JA M ") strike in 2008 shut dow n 787 production,costing the C om pany m ore than a billion

NLRB-FOIA-00010172

dollars and dam aging Boeing's reputation for reliability w ith its airline custom ers,suppliers,and

investors.

B oeing's collective bargaining agreem entw ith IA M authorizes itto place w ork at

locations of its choosing.T he C om pany,how ever,recognized the potentialadvantages of

locating the second line in Everettand invited the IA M to discuss the issue during the tim e that

B oeing w as evaluating severalkey issues thatw ould ultim ately fram e the business decision as to

w here to place the second line.B oeing's intense discussions w ith the JA M continued for m ore

than a m onth,and-focused on Boeing's interestin obtaining a long-term contract,w ith a no-

strike clause,w hich w ould ensure future production stability for the 787.T he IA M ,how ever,

w ould notagree to a long-term extension ofthe collective bargaining agreem entunless B oeing

w ould agree to m aterialchanges in the contract,including significantguaranteed w age and

benefitincreases,an assurance thatallfuture com m ercialaircraftw ork be placed in the Puget

Sound area,and a com m itm entthatBoeing w ould rem ain neutralin future JA M organizing

efforts in other parts ofthe country.T hose conditions w ere unacceptable to B oeing.A tabout

the sam e tim e thatthe IA M provided Boeing w ith its fm alposition,South C arolina confirm ed

B oeing's eligibility for severalhundred m illion dollars in incentives w ere itto locate its second

line in N orth C harleston.W eighing the business case presented by the tw o alternatives,B oeing

decided to build the second line in N orth C harleston.

C ontrary to w hatA cting G eneralC ounselSolom on's com plaintasserts,B oeing's conduct

in selecting South C arolina for the second line did notviolate the N LR A for tw o independently

sufficientreasons.First,the law unam biguously requires a show ing ofan adverse em ploym ent

action caused by the challenged action.A gain contrary to w hatthe A cting G eneralC ounselsays

in the com plaint,B oeing's decision concerned the placem ent of new w ork,notthe m ovem entof

existing w ork to N orth C harleston.N o IA M m em ber in PugetSound w as (or w illbe)laid off,or

saw (or w illsee)a reduction in his or her benefits,as a resultofthe C om pany's decision.A nd

B oeing's rightto place new production capacity ata location ofits choosing is notonly

perm issible under settled Board doctrine;itis expressly authorized by B oeing's collective

bargaining agreem entw ith the JA M ,and has been for over 45 years.Far from any IA M m em ber

suffering an adverse em ploym entaction from B oeing's decision to place the second line in

C harleston,Boeing has already hired new em ployees and plans to hire additionalem ployees in

the PugetSound area as the rate ofproduction ofthe 787 and other airplanes increases over tim e.

The new em ployees w illbecom e m em bers ofthe IA M bargaining unitin the PugetSound area.

,T hat even m ore IA M em ployees m ighthave been hired ifallproduction w ere in Everettcould

V notpossibly resultin an adverse em ploym entaction w ith respectto any currentIA M m em ber.

Second,even ifthe Board w ere to conclude contrary to clear precedentand supported

by none thatlocating the second 787 finalassem bly line in N orth C harleston som ehow resulted

in an adverse em ploym entaction,the Board w ould stillbe required to establish thatBoeing's

actions w ere "inherently destructive" ofprotected activity,or thatBoeing w as m otivated by anti-

union anim us.N either conclusion can plausibly be draw n from the facts.B oeing w as

predisposed to place the second line in E verett,and itw ould have done so had the business case

NLRB-FOIA-00010173

been superior (or atleastequal)to locating the new facility in N orth C harleston.W hile B oeing

did consider the need for future 787 production stability in m aking its decision,thatw as only one

factor in the decision process.E ven ifanalyzed in isolation (w hich is certainly notthe test),that

business consideration w as entirely consistentw ith settled precedent.The Board and the

Suprem e C ourthave long held thatan em ployer is fully entitled to m ake business decisions that

m ay blunt the effectiveness of future strikes.A nd,as B oeing's choice of production sites is

explicitly allow ed by the IA M 's collective bargaining agreem ent,thatconsequence cannot

reasonably be view ed as inherently destructive tow ard the U nion.

N or can itbe credibly claim ed thatB oeing's actions and business decisions show

anything resem bling anti-union anim us.Q uite the contrary:T he placem entofthe 787 second

line w as a m ulti-billion-dollar decision one thatB oeing m ustlive w ith for decades to com e.

T he decision w as abouteconom ic reality and the future ofthe C om pany.Indeed,the C om pany's

decision to negotiate w ith the IA M as partofthe decision-m aking process a step the C om pany

w as notrequired to take under its collective bargaining agreem ent as w ellas Boeing's plan to

expand w ork for IA M m em bers in the PugetSound area show s thatBoeing w as and is trying to

w ork w ith the IA M ,notto punish it,as the com plaintincorrectly alleges.

For these reasons,w hich are discussed in detailbelow ,the unfair labor practices alleged

in the com plaintm ake no sense on the facts and constitute a sw eeping departure from clearly

established law .The theory espoused by the com plaintis tantam ountto a claim thatno

A m erican corporation m ay perm issibly decide to locate future w ork atany location other than

the one w here union w ork is currently being perform ed,and never in a R ight-to-W ork state.

I.

A m ong other products,Boeing m akes large jetairplanes for custom ers around the w orld.

B oeing is the N ation's largestexporter w ith $29 billion in overseas sales in 2009.

B oeing's latestgeneration ofcom m ercialaircraftis the 787 D ream liner.B uiltw ith

lightw eightcom posite m aterials,the 787 is one ofthe m ostfuel-efficient,technologically

advanced passenger airplanes in the w orld.In addition to novelm aterials and technologies,the

787 is m anufactured through a new production process involving a globalsupply chain.In 2003,

w hen selecting the site for the firstD ream liner finalassem bly line,B oeing considered several

possibilities.In addition to E verett,W ashington,w here the firstline ultim ately w as placed,

Boeing seriously considered other locations,including the C harleston,South C arolina area.In

choosing the site for finalassem bly,B oeing considered a variety offactors,including

construction costs,labor costs,supply chain logistics,and the overallbusiness clim ate.A fter

w eighing these factors carefully,Boeing chose Everett,and began operation ofthe first

D ream liner finalassem bly line there in 2007.

T he 787 becam e the fastest-selling airplane in aviation history.Since the 787 w as first

announced,custom ers have placed orders for alm ost850 airplanes valued ata listprice ofup to

NLRB-FOIA-00010174

$150 billion.T his has produced a backlog of orders extending through approxim ately 2020.A t

the sam e tim e,Boeing has faced challenges in the 787 program thathave resulted in significant

delays in the airplane's delivery.T o execute on its large backlog for the 787,and in an attem pt

to m itigate the risk ofadditionaldelays to its custom ers,B oeing decided in 2008 to significantly

expand 787 production capacity.T o thatend,itdecided to establish a second fm alassem bly

line.

A s ithad done w hen establishing the firstfinalassem bly facility,B oeing considered

m ultiple locations for the second line,including both R ight-to-W ork and non-R ight-to-W ork

States.A fter extensive study ofpotentialsites,the choice cam e dow n to the PugetSound area,

w here allofBoeing's com m ercialaircraftare currently assem bled,and N orth C harleston,w here

the aftand m id-body sections ofthe 787 are constructed and assem bled and w here,as a result,

Boeing had already established a significantm anufacturing footprint.

I,

In m aking its decision,B oeing considered a w ide range offactors designed to ensure the

long-term com petitiveness ofthe 787 program .In addition to construction and labor costs,

logistics,and generalbusiness clim ate,B oeing factored in the particular econom ic incentives

t/available in South C arolina,the benefits associated w ith geographic diversity in its fm al

assem bly capability,and its ability to m aintain the stability ofthe 787 production system in the

eventoffuture strikes.

B oeing's concern for production stability w as far from hypothetical.B oeing's w orkforce

in the PugetSound area is heavily unionized.T he IA M represents approxim ately 25,000 B oeing

em ployees in the PugetSound region and has represented Boeing's production and m aintenance

w orkers there since 1934.A llthe assem bly line w orkers at B oeing's various Puget Sound

facilities are represented by the JA M .The IA M has struck Boeing seven tim es atits Puget

Sound facilities since 1934,and four tim es since 1989.In 2008,w hen the IA M 's last collective

bargaining agreem entexpired,union m em bers including those assigned to the 787 production

line w enton strike for 58 days.

A tthe tim e ofthe 2008 strike,the D ream liner program w as already fifteen m onths behind

schedule and under severe stress,in significantpartbecause of"traveled w ork" from suppliers

w ork thatshould have been com pleted by suppliers before shipm ent,or w as com pleted

im properly,w hich Boeing then had to fix and address as an ongoing m atter w ith the challenged

suppliers.G iven the stress on the production system ,the 2008 strike had a cascading effect,

/delaying 787 construction and delivery far m ore than the 58-day duration ofthe strike.T he 2008

./strike also costB oeing $1.8 billion in lostrevenues thatyear,and decreased allaircraftdeliveries

by 105 for 2008.B oeing's airline custom ers w ere upset,and in som e cases publicly critical,

including suggesting thatthe lack ofproduction stability atBoeing could affectfuture orders.

For exam ple,V irgin Blue G roup C EO and Boeing custom er R ichard Branson succinctly

described the consequences ofthe delay caused by the IA M strike as "catastrophic," and stated

that"ifthere's a risk offurther strikes in the future,he m ay notbuy Boeing again."' See D om inic

G ates,B oeing's top custom er predicts big production cuts, Seattle Tim es (Feb.6,2009).M r.

NLRB-FOIA-00010175

Branson explained the effectthe strike had on his airline because planes w ere notavailable:"It

w as a horrible m ess thatB oeing w as on strike.W e m essed up tens ofthousands ofpassengers

over C hristm as ....W e had to buy tickets on other airlines and scram ble to getseats w hich

w eren'tavailable." Id.; see also B illV irgin,B oeing,unions should listen to R ichard B ranson,

Seattle Post-Intelligencer (Feb.9,2009).

In assessing its options for the second finalassem bly line,B oeing w as legitim ately

concerned w ith,am ong other factors,the econom ic im pactofpotentialfuture JA M strikes,the

delivery delays thatm ightbe caused by such strikes,and the perceptions ofits com m ercial

airline custom ers thatcould affectfuture orders.

A .

In considering differentlocations for the additionalassem bly line (as w ellas sites for the

second line's com ponentand interior parts m anufacturing facilities),Boeing relied on its rightin

Section 21.7 of the collective bargaining agreem ent w ith the IA M .Section 21.7 has been in

place in every collective bargaining agreem entw ith the IA M for the last45 years,since atleast

1965.It gives B oeing the right to "designate the w ork to be perform ed by the C om pany and the

places w here itis to be perform ed" (em phasis added),w ithoutany obligation to bargain w ith the

IA M .

B oeing nevertheless negotiated w ith the IA M regarding placem entofa second line in

Puget Sound.B oeing recognized the benefits of locating the second line in the Puget Sound

area,w hich included a skilled w ork force,Boeing's deep roots in the area,and the low er

construction costs ofexpanding an existing footprint.N otw ithstanding the significantbusiness

clim ate,econom ic incentives,geographic diversity,and labor advantages associated w ith the

/potentialN orth C harleston location,B oeing believed the balance w ould tip in favor of E verett if,

V am ong other things,itcould stabilize 787 production w ith a longer-term collective bargaining

agreem entthatw ould preventstrikes for an extended period.Boeing also w anted to slow the

v grow th of future w age increases and benefit costs.A s the President and C E O of B oeing

C om m ercialA irplanes,Jim A lbaugh,said in a later interview ,his predisposition w as to locate

the expansion in PugetSound,notC harleston.

B oeing first m entioned the second line to the IA M in the sum m er of 2008.In June 2009,

B oeing notified the IA M thata decision on the placem entofthe second assem bly line w as

forthcom ing.T he IA M agreed to discuss the issue,and negotiations began in earnestthat

A ugust.R epresentatives of the IA M and B oeing m et seven tim es betw een A ugust 27 and

O ctober 21.Boeing m ade clear from the startthat,regardless ofthe outcom e,the issue needed to

be resolved by O ctober 15 because B oeing needed to startconstruction on the second line,

w hether in Everettor in N orth C harleston.

A tthe requestofthe IA M ,neither party took notes ofthe extensive discussions,butthe

JA M did subm ita w ritten offer to Boeing thatreflects the distance betw een the parties on key

issues.T he U nion w as w illing to agree to extend the existing collective bargaining agreem ent

NLRB-FOIA-00010176

only through 2020 (not2022 as B oeing w anted),butsetforth,am ong others,the follow ing

conditions:

B oeing w ould have to selectE verettas the site for the second 787 finalassem bly line.

B oeing w ould have to notify the U nion six m onths before m aking any decisions on

w here to place new production capacity for any "nextgeneration" product.Ifthe

parties did notreach agreem entatthe end ofthe six m onth negotiation period,the

IA M could term inate the collective bargaining agreem ent,relieving itofthe no-strike

obligation.

Boeing could notm ove any bargaining unitw ork currently being perform ed by JA M

m em bers or contractw ith a supplier to perform the sam e type ofw ork being

perform ed by IA M m em bers.

In addition,though notlisted in the w ritten setofconditions,the IA M 's negotiators

consistently insisted thatany agreem entw ould also require thatBoeing rem ain neutralin all

IA M organizing or decertification cam paigns.B oeing told the IA M thatitcould notacceptsuch

significantchanges to Section 21.7 and its rightto m ake m ajor entrepreneurial-leveldecisions.

T he IA M 's insistence on neutrality in organizing and decertification cam paigns w as also

identified early on as a roadblock to m oving forw ard.B utB oeing continued to negotiate w ith

the JA M ,hoping to reach a m utually acceptable agreem ent.A s B oeing C E O Jim M cN erney said

in a contem poraneous interview ,B oeing's goals rem ained production stability and a slow ing in

w age grow th.M r.M cN erney also said thatthe tone ofthe then-ongoing negotiations w as

constructive.

A s the O ctober 15 deadline for m aking the finaldecision approached,Boeing agreed to

an JA M requestfor a one-w eek extension ofthe deadline so thatthe U nion could subm itits "best

and fm aloffer." O n O ctober 20,the eve ofthe lastscheduled m eeting,B oeing's representatives

m ade specific suggestions aboutw hatthe C om pany w ould likely accept,so as to better inform

the IA M in preparing its proposal.A m ong other things,Boeing's representatives suggested that

the C om pany could accept(1)a guaranteed annualw age increase of2% ;(2)a costofliving

form ula of1.5% ;(3)costsharing ofincrease in health care costs;and (4)a 2% annualincrease in

pension benefits.Boeing's representatives stressed to their IA M counterparts thatthe C om pany

could notaccept"neutrality" or a "guarantee" to locate future w ork in the PugetSound area.

T he IA M 's finaloffer cam e the nextafternoon,O ctober 21.In exchange for extending

the existing contractto 2020 (again,not2022,as B oeing w anted),the JA M continued to dem and

that(1)existing bargaining unitw ork could notbe m oved;(2)Boeing w ould be precluded from

setting up additionalor "dual" sources for 787 com ponentproduction and support;and (3)the

JA M w ould have the rightto term inate the collective bargaining agreem entand strike ifnew

w ork w ere notplaced in the PugetSound area.Boeing's nationw ide neutrality in any future

union organizing cam paigns w as an "absolute necessity," according to the JA M .

NLRB-FOIA-00010177

T he IA M 's offer fellshorton other grounds as w ell.A m ong other things,the IA M

required three lum p-sum bonuses of$5,000 or 10 percentofearnings,w hichever w as greater,in

2009,2013,and 2016.It requested an annualpension increase of $2.50 per m onth for the life of

the agreem ent,as w ellas generalw age increases of3 percenton top ofcost-of-living

adjustm ents.

B .

B oeing m ade its decision concerning the placem entofthe second line in late O ctober,

2009.G iven its significance,the decision involved the m ost senior m em bers of m anagem ent

undertaking a thorough com parison ofthe business cases for each site Everettand N orth

C harleston.The C om pany's inability to reach agreem entw ith the IA M on a m utually agreeable

approach to ensure long-term production stability in Everettw as an im portantconsideration in

the discussion,and itm ade the overallbusiness case for N orth C harleston m ore persuasive,as

did the generalbusiness clim ate,the desire for geographicaldiversity in fm alassem bly,labor

costs,and South C arolina's w illingness to m ake available hundreds ofm illions ofdollars of

incentives.A fter considering those factors and others,the C om pany chose N orth C harleston.

B oeing publicly announced its decision on O ctober 28,2009.

Shortly after m aking its announcem ent,Boeing began to build the second assem bly line

/in N orth C harleston on an aggressive construction schedule,and to hire w orkers to staff it.T his

w as one ofthe m ostm assive construction projects in the country in recentyears.O n N ovem ber

6,2009,Boeing aw arded a contractto BE& K Building G roup and Turner C onstruction to

design,build,and deliver the 1.2 m illion square footN orth C harleston assem bly line facility,

w hich w ould include the finalassem bly line,a delivery center,a w elcom e center,a central

utilities building,and a supportbuilding.

Boeing estim ates thatithas com m itted over $1 billion to date to its N orth C harleston

operations.C onstruction on the second finalassem bly line is now virtually com plete.B oeing

expects to start787 production in N orth C harleston by July 2011,and to deliver the first

airplanes in 2012.W ellover 1,000 em ployees have already been hired to w ork in the N orth

C harleston finalassem bly facility and plans are in place to hire m ore in the nextfew m onths.A

large team ofm anagers and em ployees m any ofw hom have m oved to the N orth C harleston

area from other parts ofthe country have been w orking tirelessly to staffthe new facility.

C . -

In M arch 2010,follow ing a delay offive m onths after B oeing announced its decision,

and w ith construction in C harleston w ellunderw ay,the IA M filed an unfair labor practice charge

w ith the B oard.T he IA M alleged thatB oeing had, inter alia, violated Section 8(a)(3) by

"beginning the process oftransferring w ork ...to a new plantem ploying non-union w orkers in

retaliation for bargaining unitw orkers'protected concerted activity." In late 2010 and early

2011,B oeing representatives had discussions w ith N L R B officials,including A cting G eneral

C ounselL afe Solom on,aboutthe charge.A lthough B oeing believed ithad reached an

NLRB-FOIA-00010178

agreem entw ith Solom on to resolve the m atter,the A cting G eneralC ounselultim ately directed

thata com plaintbe issued.

O n A pril20,2011,the com plaintw as issued,charging thatB oeing had violated Section

8(a)(3) of the N ationalL abor R elations A ct.'T he com plaint focused on B oeing's allegedly

unlaw fulactions in deciding to place its second assem bly line in N orth C harleston,as opposed to

the PugetSound area,and in describing thatdecision to em ployees.A ccording to the com plaint,

Boeing actions w ere taken in retaliation for IA M -represented em ployees for having gone on

strike in 2008 and for having the continued ability to go on strike in the future.

The com plaintalleged thatBoeing had "decided to transfer" its second D ream liner

production line and its sourcing supply program "because [lA M -represented]em ployees assisted

and/or supported the U nion by, inter alio, engaging in the protected,concerted activity oflaw ful

strikes." See id.at 117-8.A ccording to the com plaint,these actions violated Sections 8(a)(3) of

the A ctby "discrim inating in regard to the hire or tenure or term s or conditions ofem ploym ent

ofits em ployees,thereby discouraging m em bership in a labor organization." See id.at 1110.

The com plaintfound the C om pany's actions "inherently destructive" ofem ployees'rights. See

id.at 11117-8. See id.at 1112. T he key rem edy soughtby A cting G eneralC ounselSolom on w as

"an O rder requiring [B oeing]to have the [IA M ]operate [B oeing's]second line of787

D ream liner aircraftassem bly production in the State ofW ashington." See id.at li13(a).

II.

Before exposing the fatallegaldefects ofthe com plaint,a correction ofthe factualerrors,

m ischaracterizations,and m isquotations upon w hich the com plaintis based is in order.

A .

A s an initialm atter,the com plaintrepeatedly alleges thatBoeing "rem oved w ork" from

PugetSound (116),"decided to transfer its second 787 D ream liner production line" to South

C arolina (117(a)),and "decided to transfer a sourcing supply program " to South C arolina

(118(a)).

In fact,no w ork w as "rem oved" or "transferred" from E verett.T he second line for

the 787 is a new finalassem bly line.A s it did not previously exist in E verett or elsew here,

the second assem bly line could not have been "rem oved" from E verett,or "transferred"

1T he com plaint also claim ed that B oeing had violated Section 8(a)(1) of the N L R A ,alleging

the Boeing executives m ade "coercive" statem ents to IA M -represented em ployees,

threatening to rem ove w ork from the PugetSound area because em ployees had struck in the

past,and thatthe C om pany w ould m ove w ork in the eventoffuture strikes.

NLRB-FOIA-00010179

or otherw ise "m oved" to N orth C harleston.Sim ply put,the w ork that is and w illbe done

atBoeing's N orth C harleston fm alassem bly facility is new w ork,required and added in

response to the historic custom er dem and for the 787.N o m em ber ofthe IA M in the Puget

Sound area has losthis or her job,or otherw ise suffered any adverse em ploym entaction,as a

resultofthe placem entofthis new w ork in the State ofSouth C arolina.

The R egionalD irector,w hose office has been tasked w ith prosecuting this case,

understands that,and has accurately and publicly described the m atter.A s the Seattle Tim es

reported lastyear,"R ichard A hearn,the N LR B regionaldirector investigating the com plaint,said

itw ould have been an easier case for the union to argue ifBoeing had m oved existing w ork from

Everett,rather than placing new w ork in C harleston." D oininic G ates, M achinists F ile U nfair

Labor C harge A gainstB oeing over C harleston.Seattle Tim es, June 4,2010.

Since no w ork w as "transferred," N LR B officials now appear to be transform ing the

theory ofthe com plaint,via public statem ents,to say thatthe building ofairplanes in South

C arolina constitutes "transferred" or "rem oved" w ork because Boeing com m itted to the State of

W ashington thatitw ould build allofthe C om pany's 787s in thatstate.For exam ple,on A pril

26,an N LR B spokesw om an,N ancy C leeland,apparently told a new s organization that"the

charge thatBoeing is transferring w ork aw ay from union em ployees stem s from the com pany's

originalcom m itm entto the State ofW ashington thatitw ould build the D ream liner airplanes in

this state."

The prem ise underlying thatassertion thatBoeing com m itted to the State of

W ashington to build allof the C om pany's 787s there is false.B oeing fully honored allof its

contractualcom m itm ents to the State ofW ashington long before the decision to locate the

C om pany's new production facility in South C arolina.T he notion thatB oeing had som ehow

com m itted to W ashington State to build all787s in thatstate is neither m entioned nor even

suggested either in the IA M 's charge or in the com plaint.

B.

The com plaintalleges thatsenior Boeing executives show ed a purpose to "punish" union

em ployees and to "threaten" them for their pastand possible future strikes.These allegations

and other public statem ents by N LR B officials to the sam e effect,w hich are based on

m isquotations,selective quoting,and m ischaracterizations ofstatem ents by B oeing executives,

are groundless.

For exam ple,the com plaintalleges thatBoeing C om m ercialA irplanes C EO Jim A lbaugh

stated that B oeing "decided to locate its 787 D ream liner second line in South C arolina

because ofpastU nitstrikes,and threatened the loss offuture U nitw ork opportunities because of

such strikes." (C om plaint6(e).)In addition,the N LR B's w ebsite offers a "factsheet" that

quotes M r.A lbaugh as saying "the overriding factor" in transferring the line w as w ork

stoppages.In fact,M r.A lbaugh's fullstatem entshow s thathe w as referencing tw o "overriding

factors," only one ofw hich w as the risk ofa future strike,and thatfar from seeking to punish the

NLRB-FOIA-00010180

union,M r.A lbaugh's predisposition w as to place the second line in W ashington State.

M r.A lbaugh's fullstatem enton this pointw as:

W ellI think you can probably say thataboutallthe states in the country rightnow w ith

the econom y being w hatitis.B utagain,the overriding factor w as notthe business

clim ate and it w as not the w ages w e're paying people today.It w as that w e can't afford

to have a w ork stoppage every three years. W e can'tafford to continue the rate of

escalation of w ages as w e have in the past.You know ,those are the overriding factors.

A nd m y bias w as to stay here butw e could notgetthose tw o issues done despite the best

efforts ofthe U nion and the bestefforts ofthe com pany.

The italicized sentences,om itted from the C om plaintand the N LR B's w ebsite,are critical

om issions thatdirectly contradictthe N LR B's apparenttheory ofthis case.N o reasonable reader

ofM r.A lbaugh's interview w ould depictitas partofa "consistentm essage" thatBoeing sought

to "punish" its union em ployees.W hen notm isquoted,itis apparentfrom the interview

statem entthatifM r.A lbaugh had a bias,itw as in favor ofPugetSound as the place for the

second assem bly line; that the com pany's preference w as to locate the new line in E verett; and

thatboth the com pany and the union m ade good-faith efforts to accom plish thatshared objective.

O n these facts,itis noteven arguable thatM r.A lbaugh's statem entconstitutes a "m essage" of

"punishm ent" to the union for pastor future strikes.

The com plaintalso attem pts to depicta statem entduring an earnings callby Jim

M cN erney,Boeing's C hairm an and C hiefExecutive O fficer,as a threatto punish union

em ployees.The com plaintalleges thatM r.M cN erney "m ade an extended statem entregarding

'diversifying [Boeing's]labor pooland labor relationship,'and m oving the 787 D ream liner w ork

to South C arolina due to 'strikes happening every three to four years in PugetSound."

(C om plaint6(a)(em phasis added).

H e did notsay thatatall.First,M r.M cN erney w as notm aking an "extended statem ent"

about why Boeing selected N orth C harleston;indeed,the decision aboutw here to locate the new

line had noteven been m ade atthe tim e he participated in thatearnings call.H e w as responding

to a reporter's question aboutthe costofpotentially locating a new assem bly line in N orth

C harleston,and he answ ered only the question regarding com parative costs thatw as asked.

Thus,in the passages m isquoted and m ischaracterized in the com plaint,he discussed the relative

costs of a new facility in a location other than E verett,versus the potentialcosts associated

w ith "strikes happening every three to four years in PugetSound." H e did notsay,as the N LR B

alleged,thatBoeing selected N orth C harleston "due to" strikes.

N or did M r.M cN erney rem otely suggestthatw hatw ould later turn outto be the decision

to open a new line in N orth C harleston w as in retaliation for such strikes.H is answ er sim ply

cannotbe cited in supportofthe com plaint's legaltheories,m uch less in supportofthe sw eeping

statem entm ade by M r.Solom on to the N ew Y ork Tim es aboutB oeing's "consistentm essage"

thatthe C om pany and its executives soughtto "punish" their union em ployees.

10

NLRB-FOIA-00010181

Finally,M r.M cN erney's answ er to a reporter's question w as not"posted on Boeing's

intranetw ebsite for allem ployees," m uch less posted for the purpose ofsending an illegal

m essage under the N LR A ,as the com plaintincorrectly and m isleadingly suggests.

N or do any ofthe other statem ents cited in the com plaintrem otely suggestan intentto

"punish" the C om pany's unionized em ployees.Q uite the contrary:these statem ents show ,at

m ost,thatthe C om pany considered (am ong m ultiple other factors)the risk and potentialcosts of

future strikes in deciding w here to locate its new fm alassem bly facility.In fact,B oeing reached

outto the IA M in an effortto secure a long-term agreem entthatw ould have resulted in placing

the second line in E verett.A lthough those negotiations w ere notsuccessful,thateffort

com pletely underm ines the proposition thatBoeing executives senta "consistentm essage" that

Boeing's decision w as intended to "punish" the union for paststrikes.

C .

The com plaintseeks an order directing Boeing to "have the [IA M ]operate [Boeing's]

second line of787 D ream liner aircraftassem bly production in the State ofW ashington."

N otw ithstanding that,the N LR B has said on its w ebsite thatits com plaintw ould nothave the

effectofclosing the N orth C harleston facility.A s a practicalm atter,how ever,ifthe B oard w ere

to order Boeing to produce in Everettthe additionalthree 787s per m onth thatare planned for

C harleston,thatw ould ofcourse require the production ofallplanned 787 capacity in Everett,

leaving N orth C harleston w ith nothing to do.

The principalallegations ofthe com plaintand the significantrem edy sought thatthe

second line should be m oved to Everett,W ashington pertain to the claim thatBoeing violated

Section 8(a)(3)ofthe N L R A .T o establish a Section 8(a)(3)violation,the B oard m ust,under its

ow n precedents as confirm ed by the courts,show :

(1) that"an em ployee's em ploym entconditions w ere adversely affected";and

(2) thatthe adverse em ploym entaction "w as m otivated by" the em ployee's "union or

other protected activities."

W rightLine, 251 N .L .R .B .1083,1083 (1980); see also A rk Las V egas R estaurantC orp.v.

N LRB, 334 F.3d 99,104 (D .C .C ir.2003).A s a factualand legalm atter,it is not even arguable

thatthese elem ents can be established here.

A .

A n adverse em ploym entaction is one thatdiscrim inates in the "hir[ing]or tenure of

em ploym entor any term or condition ofem ploym ent." See 8(a)(3).A n em ployer's conduct

constitutes an "adverse em ploym entaction" only ifit"actually affect[s]the term s or conditions

11

NLRB-FOIA-00010182

ofem ploym ent." N LR B v.A ir C ontactTransportInc., 403 F.3d 206,212 (4th C ir.2005);

Lancaster F airfield C om m unity H osp., 311 N .L .R .B .401,403-04 (1993)

A n em ployer's decision to build a new factory unaccom panied by layoffs,a reduction

in w ages or benefits,or another change in w orking conditions atexisting facilities does not

constitute an adverse em ploym entaction and thus cannotform the basis for a Section 8(a)(3)

com plaint. See,e.g.,W eather Tam er,Inc.v.N LR B , 676 F.2d 483,491 (11th C ir.1982) ("A

runaw ay shop exists w hen an em ployer,in retaliation againstunion activities,transfers w ork

from the closed facility to another plantor opens a new plantto replace the closed plant.Ifno

transfer ofw ork has taken place ...then there has been no unfair labor practice."); see also

C ynthia L.Estlund,E conom ic R ationality and U nion A voidance: M isunderstanding the N ational

Labor R elations A ct, 71 T ex.L .R ev.921,943 n.80 (1993) ("I have been unable to locate any

decisions holding thata w ithholding ofcapitalinvestm entfrom a union plant,or a decision not

to place new or expanded operations atthe plant,w as discrim inatory under 8(a)(3).Itappears

to be necessary under Board law to show thatexisting unitw ork w as elim inated,subcontracted,

or relocated.").

N o IA M em ployees w ere or w illbe laid off,dem oted,relocated,suffer a reduction in

w ages,benefits,or w ork hours,or have their job duties changed as a resultofthe decision to

locate the second 787 assem bly line in N orth C harleston.A nd the com plaintdoes notallege that

any ofthose adverse em ploym entactions have happened or even thatthey are likely to occur in

the future.T he lack ofany adverse em ploym entaction againstIA M m em bers is fatalto the

Section 8(a)(3)claim .T he N L R A ,by its plain term s,does notgrantunions the unbargained

rightto have potentialnew w ork putin a unionized plant.N either a courtnor the Board has ever

held otherw ise.

N or can an "adverse em ploym entaction" be based upon som e sortof"diffuse" injury to a

union,such as "chilling" supportfor the union,as opposed to a tangible injury to identifiable

em ployees.T here is sim ply no precedentfor thatnoveltheory suggested in the com plaint.

Indeed,such a standard w ould effectively elim inate the adverse-action elem entofa

Section 8(a)(3)violation,and w ould allow the Board to find an unfair labor practice based upon

any em ployer action even actions that are expressly perm itted by the collective bargaining

agreem ent,and harm no em ployees that m ay nevertheless have the effect ofreducing union

bargaining pow er,or have incidentaleffects on unionization.

In addition to being contrary to the plain language ofthe statute w hich speaks in term s

ofconcrete enum erated actions the interpretation suggested w ould effectively conflate the

"adverse action" requirem entw ith the provision's distinctm otive elem ent.Ifthatw ere

perm itted,essentially any action thatis even arguably adverse to the union's interests could be

dubbed an unfair labor practice."C hill" is plainly nota substitute for the threshold adverse

action elem ent. See Textile W orkers v.D arlington M fg.C o., 380 U .S.263,269 (1965).

A s the D .C .C ircuithas explained,the factthatan em ployer's action m ay chillor

dim inish a union's relative bargaining pow er "can have no bearing on the law fulness ofthe

12

NLRB-FOIA-00010183

em ployer's [action]" under Section 8(a)(3)because "itis notthe role ofthe N LR B,and certainly

notthatofthe courts,to regulate the bargaining pow er ofthe parties to a labor dispute." In tl

B hd.of B oilerm akers,Local88 v.N LR B , 858 F.2d 756,766 (D .C .C ir.1988) (em phasis added)

(citing Am .Ship Bldg.Co.v.N LRB, 380 U .S.300,309 (1965)).W ere it otherw ise,com panies

w ould have to be neutralregarding unionization (w hich is notthe law ),neutraltow ards unions in

selecting job sites (w hich is notthe law ),and neutralregarding the effects offuture strikes

(w hich is notthe law ).

A ccordingly,B oeing's decision to place an additional787 finalassem bly facility in

C harleston w as notan adverse action under the plain language ofthe statute and clearly settled

law .

B.

Separate and apartfrom show ing an adverse action,the Board also m ustestablish either

that(1)Boeing's choice ofN orth C harleston w as "inherently destructive" ofprotected activity,

or (2)w as m otivated by anti-union anim us.T he A cting G eneralC ounsel's com plaintfails here,

as w ell.B oeing's decision to place the second line in N orth C harleston w as based upon the

C om pany's overallassessm entofthe business cases for each ofthe tw o locations,and w as m ade

only after extensive voluntary negotiations w ith the IA M .B oeing's desire to m aintain long-term

production stability for the 787 w as a significantconsideration,butthere w ere other im portant

factors,including a large econom ic incentive package.T here is sim ply no case to be m ade for a

single-m inded focus upon the IA M ,m uch less a single-m inded,vindictive focus to punish the

U nion.

E ven ifithad been the case thatB oeing's decision had been based solely on its concern

regarding future strikes for w hich there is nota single shred ofevidence such consideration

w ould notbe unlaw fulor even illegitim ate.T o the contrary,itis established law thatan

em ployer has the rightto m ake legitim ate business decisions in an effortto lim itthe im pactof

future strikes,and such decisions are as a m atter oflaw not"inherently destructive" of

protected activity and do notprovide evidence ofany "anti-union anim us." Further,there is no

legitim ate claim thatB oeing violated the collective bargaining agreem ent.T hus,even ifthe

focus w ere lim ited solely to how B oeing factored into its decision the potentialeconom ic im pact

offuture union actions,there w ould have been no resulting violation ofthe N LR A .

1.

To the extentthatBoeing considered labor stability issues in its decision-m aking process,

itis beyond question that,as a m atter oflaw ,such consideration does notconstitute "inherently

destructive" conduct.A n em ployer's conductqualifies as inherently destructive only ifit

"carries w ith itan inference ofunlaw fulintention so com pelling thatitis justifiable to disbelieve

the em ployer's protestations ofinnocentpurpose." A m .ship B ldg.C o., 380 U .S.at 311-12.T he

conductm ustbe "so destructive ofem ployee rights and so devoid ofsignificantservice to any

legitim ate business end thatitcannotbe tolerated consistently w ith the A ct." N LRB v.Brown,

13

NLRB-FOIA-00010184

380 U .S.278,286 (1965).Such cases are "relatively rare." B oilerm akers, 858 F.2d at762

(quoting Loom is C ourier Serv.,Inc.v.N LR B , 595 F.2d 491,495 (9th C ir.1979)).W here,as

here,the governing collective bargaining agreem entexpressly perm its the challenged action,an

exercise ofthatagreed-upon contractrightby the em ployer cannotbe "inherently destructive" of

protected rights.

The Suprem e C ourthas m ade itclear thatthere is a "w ide range ofem ployer actions

taken to serve legitim ate business interests in som e significantfashion,even though the act

com m itted m ay tend to discourage union m em bership." A m .Ship B uilding, 380 U .S.at 311

(citing N LR B v.M ackay R adio & Telegraph C o., 304 U .S.333 (1938)).A nd the C ourt in

A m erican Ship B uilding also m ade clear that"there is nothing in the [N LR A ]w hich gives

em ployees the rightto insiston their contractdem ands,free from the sortofeconom ic

disadvantages thatfrequently attend bargaining disputes." 380 U .S.at313.Indeed,the A ct

"do[es]notgive the Board a generalauthority to assess the relative econom ic pow er ofthe

adversaries and to deny w eapons to one party or the other because of[the Board's]assessm entof

thatparty's bargaining pow er." Id. at317.B utthatis precisely w hatthe com plaintagainst

B oeing seeks to do,overturning forty-five years ofpolicy and precedent.In order to protectthe

rightofJA M em ployees to strike to obtain their collective agenda,A cting G eneralC ounsel

Solom on w ould deny to B oeing w ell-established and legitim ate defensive actions long available

to em ployers.

Boeing's decision to putthe second 787 line in N orth C harleston,grounded in partin an

interestto m itigate the effects ofa future IA M strike on 787 production,is precisely the sortof

defensive em ployer action that does not violate Section 8(a)(3).In B row n still a leading case

in this area the Suprem e C ourtheld thatthere w as no "inherently destructive" conductw here

an em ployer,in response to a strike,locked outits regular em ployees and used tem porary

replacem ents to carry on business.In discussing the legitim ate defensive m easures thatan

em ployer m ay take,the C ourtnoted "the Board['s]conce[ssion]thatan em ployer m ay

legitim ately bluntthe effectiveness ofan anticipated strike" by,am ong other tactics,

"transferring w ork from one plantto another,even ifhe thereby m akes him self'virtually

strikeproof." 380 U .S.at283 (em phasis added).The C ourtrepeated thatrule in m uch the sam e

w ords in C harles D .B onanno L inen Service,Inc.v.N L R B , 454 U .S.404,416 n.9 (1982) ("[A n

em ployer can] try to bluntthe effectiveness ofan anticipated strike by," inter alia, "transferring

w ork from one plantto another.").

If"transferring w ork from one plantto another" is not "so destructive ofem ployee rights

and so devoid ofsignificantservice to any legitim ate business end thatitcannotbe tolerated

consistently w ith the A ct," then choosing to locate new w ork atone site (N orth C harleston),

w ithout reducing w ork atanother (Everett) and in factincreasing w ork atthatother site could

notpossibly be "inherently destructive" either. See B row n, 380 U .S.at 284,287.

Itcom es as little surprise,then,thatBoeing's actions do notfallw ithin the tw o

established categories of"inherently destructive" conduct.The firstinvolves clear-cut

discrim ination betw een w orkers "based on their participation (or lack ofparticipation)" in

14

NLRB-FOIA-00010185

protected union activity. Esm ark,Inc.v.N LRB, 887 F.2d 739,748 & 749 n.14 (7th C ir.1989)

(collecting cases).B oeing plainly did notapply differentialpunishm ents or rew ards to Puget

Sound area em ployees based on their varying degrees ofunion activity.

A second,narrow er category ofinherently destructive action involves conductthat

"discourages collective bargaining in the sense of m aking it seem a futile exercise in the eyes of

em ployees." Boilerm akers, 858 F.2d at764.T here is no authority for treating an em ployer's

exercise ofits contractualrightto add new production w herever itchooses as "inherently

destructive" under thatcategory and considerable contrary authority.Indeed,under the

B oard's ow n decision in M ilw aukee Spring II, 268 N .L .R .B .601 (1984), enfd,Auto W orkers v.

N LRB, 765 F.2d 175,179 (D .C .C ir.1985),even a w ork relocation is not"inherently


destructive" ofprotected rights ifconsistentw ith the em ployer's rights under the governing

collective bargaining agreem ent.T he A cting G eneralC ounsel's com plaintw ould setaside that

longstanding precedentas w ell.

2.

W hile B oeing's decision w as based on a num ber offactors,including business clim ate,

incentives,geographicaldiversity,labor and construction costs,and production stability,to the

extentthe potentialim pactoffuture strikes w as considered am ong those factors,the facts here do

notsupporta claim thatthe C om pany's decision w as m otivated by anti-union anim us.A s

previously discussed,the statem ents ofB oeing executives cited in the com plaintfallfar shortof

evidencing anti-union anim us,how ever m uch the com plainttakes those statem ents outof

context,m isquotes others,and selectively quotes stillothers.Statem ents ofconcern aboutfuture

strikes are sim ply notevidence ofanti-union anim us as a m atter oflaw .A nd neither do these

statem ents reflecta backw ard-looking desire to punish the JA M for the 2008 strike.Instead,

these statem ents reflectBoeing's forthrightacicnow ledgem ent thatproduction setbacks caused by

strikes are econom ically dam aging to its aircraftm anufacturing operation,and thatits econom ic

need and its custom ers'dem ands for future production stability contributed to its choice of

N orth C harleston,after the IA M 's dem ands in exchange for a long-term extension ofthe existing

collective bargaining agreem entproved unacceptable.B oeing operates in a highly com petitive

industry thatruns on long-term production com m itm ents.Thatbusiness reality w as one

consideration in B oeing's decision to build a new production facility in a location thatw illallow

som e 787 production to continue during any future IA M strike in Everett.

T hatB oeing considered as one partofits business decision the benefits ofim proving

production stability by avoiding strikes is notim proper anti-union anim us.Both Suprem e C ourt

precedents and the consistentposition ofthe Board since 1965 m ake plain thatan em ployer's

interestin avoiding or m itigating the econom ic harm caused by anticipated strikes is a legitim ate

business objective.In its briefto the Suprem e C ourtin A m erican Ship B uilding, the Board said

thatan em ployer's decision "transferring w ork from one plantto another" w as a "legitim ate

defensive m easure[]," even ifdoing so m akes the em ployer "virtually `strikeproofduring the

period follow ing the expiration ofa contract." B rieffor the N L R B at17, Am .Ship Building Co.

v.N LRB, 380 U .S.300 (1965) (N o.255).A s previously noted,the C ourt in Brown em braced

15

NLRB-FOIA-00010186

and adopted the B oard's view ,380 U .S.at283,as the C ourtdid again in C harles D .B onanno

Linen Service,Inc., 454 U .S.at416 (em ployers m ay legitim ately "try to bluntthe effectiveness

ofan anticipated strike"). See B irkenw ald D istributing, 282 N .L .R .B .954 (1987) (em ployer

m otivation to averteconom ic dam age caused by anticipated strike w as legitim ate); B etts

C adillac O lds,Inc., 96 N .L .R .B .268,285 (1951) ("[A n em ployer] has,and needs,the right to

protecthim selfby reasonable m easures from harm fuleconom ic or operative consequences ofa

strike.").T he com plaintfiled by the A cting G eneralC ounselsim ply ignores the B oard's ow n

precedents and the controlling Suprem e C ourtdecisions.

Boeing's public statem ents explaining its reasons for choosing N orth C harleston are

consistentw ith legitim ate defensive actions thatthe courts and the Board have held that

em ployers m ay take w ithoutviolating Section 8(a)(3),and are protected statem ents under

Section 8(c)ofthe N LR A ,notto m ention the FirstA m endm ent. 2 A nd those statem ents cannot

be view ed as pretexts for anti-union m otivation.Itis sim ply im plausible,on both econom ic and

labor-relations grounds,thatBoeing w ould undertake a m ulti-billion-dollar expansion in N orth

C harleston sim ply to retaliate againstthe IA M for past strikes,rather than to im provefiaure

production stability for the 787.M oreover,B oeing's decision did not involve a transfer of any

w ork from its existing operations and by no m eans m ade the C om pany "strikeproof." Boeing

rem ains heavily invested in,and com m itted to,the PugetSound area,w here allofits com m ercial

aircraftare currently assem bled,and w here the IA M represents 25,000 m em bers ofthe

bargaining unit.3

Indeed,thatBoeing reached outto the IA M to try to negotiate a long-term contractbefore

itm ade its decision as to w here to place the new 787 assem bly line w holly underm ines any

suggestion thatthe C om pany w anted to punish the JA M .Significantly,the com plaintfails to

m ention Boeing's efforts in thatregard,although the A cting G eneralC ounseland his staffw ere

fully aw are ofthose negotiations.First,B oeing had no obligation to negotiate w ith the IA M

aboutthe location ofthe second fm alassem bly line;Section 21.7 ofthe collective bargaining

agreem entgave Boeing the unilateralrightto decide w here the w ork w ould be placed.In fact,

.)

Those statem ents are neither threats nor attem pts to coerce or restrain IA M m em bers from

engaging in protected activities and do not violate Section 8(a)(1),notw ithstanding the

com plaint's contrary allegations.

3 T he IA M

voted to strike B oeing's St.L ouis facility,and other unions have struck B oeing's

other facilities,since B oeing announced its decision to place the second line in N orth

C harleston.B oeing is unaw are ofany objective or subjective evidence ofdecreased interest

in union activity by em ployees atPugetSound or elsew here.Indeed,the IA M 's m em bership

in the PugetSound area is about25,000 strong,w ith hiring continuing,and the bargaining

unitw orks on building com ponentparts for and assem bling B oeing's 737,747,757,767 and

777 airplanes.In those circum stances,even w ithout controlof all D ream liner production,the

IA M 's bargaining pow er rem ains m assive.

16

NLRB-FOIA-00010187

B oeing's decision to invite the IA M to negotiate,even w hen itw as notcontractually required to

do so,raises an alm ostirrefutable inference ofgood faith and a desire to cooperate w ith the

U nion. See D em ocratic U nion O rganizing C om m .v.N LR B , 603 F.2d 862,887 (D .C .C ir.1978)

("[T]he factthatthe com panies inform ed the union thatthey w ere considering leasing and

'invited discussion before their finaldecision'evinces a greater com m itm enton their partto the

collective bargaining process than w as reflected by the U nion.").E ven ifB oeing had not

negotiated w ith the U nion and had m erely exercised its rights under the collective bargaining

agreem ent,and follow ing its decision,sim ply announced itw as locating a second line in N orth

C harleston,thatalone w ould noteven arguably be evidence ofpunishm ent.

Second,B oeing's conductduring the course ofthe negotiations w ith the IA M sim ilarly

does notsupportan inference ofanim us.Boeing could notreach agreem entw ith the JA M due to

the U nion's dem ands for,am ong other things,a neutrality agreem entand a m odification of

Section 21.7 thatw ould require Boeing to place future w ork in PugetSound or face a perhaps-

crippling strike by the IA M .B ecause ofthe tim eline for reaching a decision on the second line,

Boeing reasonably asked the IA M for its last,bestoffer and even gave itadditionaltim e to m ake

that offer.T hat B oeing did not accept the IA M 's best and finaloffer w as sim ply B oeing's

exercise ofits rightnotto agree to a tradeoffthatw as m aterially adverse to the interests ofits

shareholders,custom ers,and em ployees.

N o inference ofanti-union anim us can plausibly be draw n from the factthe IA M w as

unsuccessfulin its negotiation to have the second 787 assem bly line established in PugetSound.

A tm ost,an inference can be draw n thatB oeing w as only w illing to agree to place the second

line in Everetton term s itfound acceptable.Butw here,as here,"the intention proven is m erely

to bring abouta settlem entofa labor dispute on favorable term s,no violation of (a)(3)is

show n." A m .ship B uilding, 380 U .S.at 313.Put another w ay,the N L R A is not so slanted in

favor ofunions thata union's failure to achieve its goals atthe bargaining table establishes that

the em ployer w as acting from anti-union anim us,rather than for legitim ate business reasons.

A nd thatis true even ifthe failure to achieve a favorable resultlessens the union's bargaining

pow er.A s the D .C .C ircuitexplained on this very point:

Itis clear...thatany effecton the parties'relative bargaining pow er so long as

itdoes notsubstantially im pair the em ployee's ability to organize and to engage

in concerted activity is sim ply outside the scope ofproper inquiry under

Sections 8(a)(1) and (3).

B oilerm akers, 858 F.2d at 765.T he notion that B oeing's contractually-sanctioned decision an

action thatdoes notaffectany term s or conditions ofa currentIA M m em ber's em ploym ent

could som ehow cause "substantialim pairm ent" ofthe 'A M 's 25,000-strong PugetSound

bargaining unit's ability to organize and function,is sim ply notcredible.

B oeing considered m any factors in m aking its decision.A nd B oeing's taking into

accountthe econom ic effects ofa potentialfuture strike,as one elem entofthatanalysis,w as

17

NLRB-FOIA-00010188

entirely proper under the law .Boeing considered the im portance ofensuring stable production

ofthe 787,notw hether the IA M should be punished for pastconduct.

IV .

B oeing's business decision to constructa new 787 production facility in C harleston w as

based on a num ber oflegitim ate considerations,allofw hich w ere plainly perm issible under the

relevantcollective bargaining agreem entand established law .T o the extentB oeing considered

the possibility offuture strikes by the JA M am ong m any other factors,Boeing w as entitled to

rely on the provisions ofits contractw ith the IA M and settled precedentunder the N LR A in

m aking an econom ic decision w here to place the second 787 fm alassem bly line.

A tbottom ,the A cting G eneralC ounselis seeking to change radically the balance

betw een m anagem entand unions struck by the N LR A ,as the A cthas been interpreted for the

last75 years.H e seeks to change the law so thatw hata union cannotachieve atthe bargaining

table itw illbe able to achieve through the B oard.B utthe A ctsim ply does notprovide the B oard

or the courts w ith the authority to "assess the relative econom ic pow er ofthe adversaries in the

bargaining process and to deny w eapons to one party or the other because of[the Board's]

assessm entofthatparty's bargaining pow er." Am .Ship Building, 380 U .S.at 317.T o do so

w ould am ountto "the Board's entrance into the substantive aspects ofthe bargaining process to

an extentC ongress has notcountenanced." Id. at 317-18.

A gain,thank you.I w illbe glad to answ er any questions the C om m ittee m ay have.

18

NLRB-FOIA-00010189

P age 1 of3

K e a rn e y , B a rry J .

F ro m :

A h e a rn , R ich a rd L .

S e n t:

T h u rsd a y, A p ril 2 1 , 2 0 1 1 6 :0 1 P M

T o:

S o lo m o n , L a fe E .; M a ttin a , C e le ste J.; C le e la n d , N a n cy; K e a rn e y, B a rry J.; F a rre ll, E lle n

S u b je ct:

F W : V icto ry O n O u r U L P

A tta ch m e n ts: 2 0 1 1 _ 0 4 2 0 C o m p la in t N o tice o f H e a rin g .p d f

T h e la st se n te n ce re p re se n ts th e b e st h o p e fo r b o th p a rtie s.

F ro m : S noo k, D enn is

S e n t: T h u rsd a y, A p ril 2 1 , 2 0 1 1 2 :4 9 P M

T o : A hea rn , R icha rd L.

S u b je c t: F W : V icto ry O n O u r U L P

R ich,

F ro m S e n . M u rra y's o ffice .

F ro m : G le n n , M a ry (M u rra y) [m a ilto :M ary_G len n @ m u rra y.sen a te.g o v]

S e n t: T hursday, A pril 21, 2011 2:3 9 P M

T o : d e n n is.sn o o k@ n lrb .g o v

S u b je c t: F W : V ictory O n O ur U LP

W e th o u g h t yo u m ig h t like to sh a re th is w ith th e o ffice

F ro m : C onw ay, M ary (M urray)

S e n t: W e d n e sd a y, A p ril 2 0 , 2 0 1 1 1 0 :5 0 A M

T o : G le n n , M a ry (M u rra y)

S u b je c t: F W : V ictory O n O ur U LP

F Y I fe e l fre e to sh a re w ith fo lks a cro ss th e h a ll.

F ro m : L a rry B ro w n [m a ilto :L a rry B ia m 7 5 1 .o rg ]

S e n t: W e d n e sd a y, A p ril 2 0 , 2 0 1 1 1 0 :4 7 A M

S u b je c t: F W : V icto ry O n O u r U L P

La rry B row n

L e g isla tive & P o litica l D ire cto r

A e ro sp a ce M a ch in ists 7 5 1

2 0 6 7 6 4 -0 3 0 6 (o ffice )

2 0 6 7 1 3 -2 4 3 7 (ce ll)

T H IS M E S S A G E IS B E IN G S E N T O N B E H A L F O F D IS T R IC T P R E S ID E N T T O M

W R O B L E W S K I:

B e lo w is th e p re ss re le a se a n d sta te m e n t w h ich w ill b e p o ste d o n o u r w e b site a n d se n t to

S te w a rd s, m e m b e rs a n d th e m e d ia o n o u r u n fa ir la b o r p ra ctice . I h a ve a lso a tta ch e d th e N L R B

4 22 2011

NLRB-FOIA-00010190

Page 2 of 3

C om plaint and N otice of H earing.

T his is a m ajor victory for allw orkers everyw here. I w ant to thank allof you for your role in

m aking this happen.

M ach in ists A p p lau d N L R B C om p lain t O ver B oein g S ou th C arolin a M ove

SE A T T L E ,W A -- A com plaint issued today by the N ationalLabor R elations B oard against the

B oeing C o. is a victory for allA m erican w orkers particularly aerospace w orkers in both P uget

S ound and S outh C arolina, officials w ith the M achinists U nion said.

T he federalcom plaint alleges that B oeing's decision in 2009 to locate a 787 finalassem bly line

in N orth C harleston, S .C ., represented illegalretaliation against m em bers of the International

A ssociation of M achinists & A erospace W orkers w ho w ork for the com pany.

A s a rem edy for the legalviolation, the federalagency is seeking a judicialorder requiring

B oeing to operate the second 787 line, including supply lines, w ith union m achinist w orkers in

the P uget S ound.

B oeing "m ade coercive statem ents to its em ployees that it w ould rem ove or had rem oved w ork

from the unit because em ployees had struck," the N LR B com plaint alleges. T hat action w as

"inherently destructive to the rights guaranteed em ployees" under federallaw , it says.

T he board's action reinforces the fact that "w orkers have a right to join a union, and com panies

don't have a right to punish them for engaging in legalunion activities," said T om W roblew ski,

the president of M achinists U nion D istrict Lodge 751 in S eattle. "T aking w ork aw ay from

w orkers because they exercise their union rights is against the law , and it's against the law in

all50 states."
.

T he board's com plaint com es after a year-long investigation, and is in response to an U nfair

Labor P ractice charge filed in M arch 2010 by D istrict 751. In it, the board cites repeated

statem ents by B oeing spokespeople and executives that the "overriding" factor in the decision

to open the C harleston plant w as the com pany's problem s reaching contracts w ith the

M achinists U nion representing w orkers in P uget S ound.

"B y opening the line in C harleston, B oeing tried to intim idate our m em bers w ith the idea that

the com pany w ould take aw ay their w ork unless they m ade concessions at the bargaining

table," W roblew skisaid. "B ut the law is clear: A m erican w orkers have a right to pursue

collective bargaining, and no com pany not even B oeing can threaten or punish them for

exercising those rights."

T he decision to open in C harleston also cam e after it w as m ade clear to w orkers there that the

only w ay they could ensure their future w ork on the 787 w ould be if they left the M achinists

U nion, forcing them to sacrifice their collective bargaining rights to have a chance at m ore jobs.

F ortunately for them , "the sam e federalrights that apply to the rest of A m erica also apply in

S outh C arolina," W roblew skisaid. "S hould they ever decide to form a union again, the

C harleston w orkers could do it know ing that B oeing couldn't retaliate against them for seeking

better pay, benefits and w orking conditions."

"H ad w e allow ed B oeing to break the law and go unchecked in their actions, it w ould have

4/22/2011

NLRB-FOIA-00010191

P age 3 of 3

given the green light for corporate A m erica to discrim inate against union m em bers and w ould

have becom e m anagem ent's new strategic tem plate to attack em ployees," W roblew ski added.

T he dispute has its ro ots in rece nt M ach inists U nion strikes tha t w ere trig gered b y B oein g

proposals to gut health care and pension benefits for w orkers, and to erode job security by

giving w ork histo rically done inside the factories by M a chinists to non-un ion con tractors.

T he strikes prom p ted B o eing officials to re taliate b y m oving 7 87 fina l assem bly and su pply

chain w ork to C harleston, according to the N LR B com plaint.

T he statem en ts by B o eing, lin king futu re expa nsion in C harlesto n to fu ture unio n activity in

P ug et S ou nd, ha ve not slow ed d ow n. A s re cently a s last w ee k, a B o eing spo kesw om an told

T he S eattle T im es of B oeing's inten tion to m ake th e C harleston facility in depe ndent of P ug et

S ound because of the risk of strikes here.

W roblew ski said th at even after filing the U n fair Labo r P ractice ch arge, th e unio n has b een

ope n to ta lking w ith B oeing about a long-term solution to its P uget S ound la bor issue s.

"T he ruling is an o pportun ity for B o eing to m ove b eyond a failed strategy of confro ntation and

to w o rk m ore close ly w ith its e m ployees and th eir represe ntatives and th e com m un ities that

have stood by them for years," W roblew ski said. "M oving forw ard, w e w ould hope B oeing

w ould partner w ith us to build on the success w e achieved w orking together on the A ir F orce

tan ker, rathe r than b attling to try to in tim idate w orkers w ho account for less than 5 percent of

their product cost."

B efore B oeing announced its C harleston decision, the M achinists had offered the com pany an

unp receden ted 11 -year ag re em ent that w ou ld have given th e com pa ny the "lab or pea ce," it

claim ed it needed to be successful.

S ince the C h arleston annou ncem ent, B oeing hasn't be en w illing to have any serio us

conversations about its future in P uget S ound, W roblew ski said.

"I'm ready to have that conversation," he said. "W e need to sit dow n and talk about our shared

futu re, and w hat b oth side s need to be successfu l long-term . T hat kind of con versation is

w hat's in the best interest of our com pany, our m em be rs and o ur com m un ities."

4222O 11

NLRB-FOIA-00010192

Microsoft Outlook

From:

Purcell, Anne G.

Sent:

Monday, April 11, 2011 5:21 PM

To:

Kelly, David A.

Cc:

Levin, Nelson; Siegel, Richard A.

Subject:

FW: Advice Memorandum - Case 19-CA-32431

Attachments:

ADV.19-CA-32431.Response2.Boeing.dlw.doc

From: Bush, Lynn

Sent: Monday, April 11, 2011 4:46 PM

To: Region 19, Seattle; Ahearn, Richard L.

Subject: Advice Memorandum - Case 19-CA-32431

Please see the attached closed Advice memorandum.

Lynn

NLRB-FOIA-00010193

NLRB-FOIA-00010194

NLRB-FOIA-00010195

United States Government

National Labor Relations Board

OFFICE OF THE GENERAL COUNSEL

Advice Memorandum

DATE:

April 11, 2011

S.A.M.

TO:

Richard L. Ahearn, Regional Director

Region 19

FROM:

Barry J. Kearney, Associate General Counsel

Division of Advice

SUBJECT:

The Boeing Company


Case 19-CA-32431

512-5006-5062
512-5006-5067
512-5036-8387
512-5036-8389
524-0167-1033
524-5029-5037
524-0167-1033
524-506

524-8307-1600

524-8307-5300

530-6050-0825-3300

530-6067-4011-4200

530-6067-4011-4600

530-6067-4011-7700

530-8054-7000

775-8731

The Region submitted this case for advice on several

issues relating to the Employers decision to place a second

assembly line at a nonunion facility rather than at the

facility where unit employees work on the original assembly

line.
Specifically the Region requested advice as to whether:

(1) the Employer violated Section 8(a)(1) by threatening to

place the second assembly line at a nonunion facility unless

the Union agreed to a long-term no-strike clause and by

repeatedly stating that its decision to place the second line

elsewhere was based on the units strike history; (2) the

Employer violated Section 8(a)(3) by deciding to place the

second assembly line at a nonunion facility because of the

units strike history, even though no unit employees have yet

to lose their jobs; and (3) the Employer violated Section

8(a)(5) by failing to bargain in good faith over its decision

about where to locate the second assembly line or whether the

Union waived its right to bargain under the parties

collective-bargaining agreement.

We conclude that the Region should issue a complaint

alleging: independent Section 8(a)(1) violations based on the

Employers coercive and threatening statements; and a Section

8(a)(3) violation based on the Employers decision to locate

the second line at a nonunion facility and to establish a

dual-sourcing supply program in retaliation for protected

activity.
However, the Region should dismiss the Section

8(a)(5) allegations because under the contract, the Union

expressly waived its right to bargain about the Employers

decision to offload unit work to a facility not covered by

the agreement.
To remedy the chilling effect of Boeings

Section 8(a)(1) statements, the Region should request, in

addition to the traditional remedies,


a notice reading by a

NLRB-FOIA-00010196

Case 19-CA-32431

- 2 -

high-level Boeing official.


To remedy the Section 8(a)(3)

violation, the Region should seek an order that would require

Boeing to maintain the surge line in the Puget Sound area.

Specifically, Boeing intended for the second line to assemble

three aircraft each month in South Carolina, while assembling

seven planes on the first line.


Thus, the Region should seek

an order requiring Boeing to assemble in the Puget Sound area

the first ten 787 aircraft that it produces each month and to

maintain the supply lines for those aircraft where they

currently exist, in the Puget Sound and Portland facilities.

FACTS

The Boeing Company is an international corporation

engaged primarily in developing and producing military and

commercial aircraft. Boeing has a long-established collective-

bargaining relationship with the International Association of

Machinists and Aerospace Workers (IAM) and certain IAM

District and Local Lodges.


The parties current collective-

bargaining agreement is effective November 2, 2008 through

September 8, 2012 and covers three separate bargaining units

of production and maintenance employees in three geographical

areas, the Puget Sound area in Washington; Portland, Oregon;

and Wichita, Kansas.

Section 21.7 of that agreement, entitled

Subcontracting, sets forth various notice periods and an

opportunity for the Union to review and recommend alternatives

to Boeing proposals to subcontract or offload unit work.

[O]ffloading work is defined as moving work from one

Company facility to another Company facility not covered by

this Agreement[.]
Less stringent notice requirements apply

to subcontracting and offloading decisions affecting less than

ten employees.
In addition, the notice and review process

does not cover certain work transfers listed in subsections

(a) through (d), including [d]ecisions to subcontract or

offload work due to lack of capability or capacity, or to

prevent production schedule slippage[.]


Section 21.7

concludes with the following language:

Anything in this Section 21.7 to the contrary

notwithstanding, it is agreed that ... the Company has

the right to subcontract and offload work, to make and

carry out decisions in (a) through (d) above, to enter

offsets and offset arrangements, and to designate the

work to be performed by the Company and the places where

it is to be performed, which rights shall not be subject

to arbitration. ...

NLRB-FOIA-00010197

Case 19-CA-32431

- 3 -

Boeing Introduces the 787 Dreamliner

The Puget Sound unit is comprised of approximately 18,000

employees working in Washington.


Historically these employees

have performed the final assembly of all Boeing planes.


In

late 2003, Boeing announced that it would place the assembly

line for its new 787 Dreamliner airplane in Everett,

Washington after the Washington State Legislature passed a tax

and subsidy incentive package totaling more than $3.2 billion.

That line opened in May 2007, with the capacity for producing

seven planes each month.

With the 787, Boeing departed from its previous practice

of manufacturing most of the aircraft parts with its own

employees and instead outsourced parts production to other

suppliers in the southeast U.S. and abroad.


For example,

Boeing contracted with Vought Aircraft Industries in North

Charleston, South Carolina for the manufacture of the aft

fuselage and with Mitsubishi Heavy Industries in Japan for the

manufacture of the wings.


Boeing repeatedly has had to

postpone the delivery dates for the aircraft, due primarily to

problems with suppliers and software issues.

Starting in mid 2008, the media began reporting that

Boeing would need to add a second 787 assembly line because of

its growing order backlog.


At about the same time, Boeing

entered negotiations with the Union for a successor

collective-bargaining agreement.
During those negotiations,

Company officials noted the need for a second assembly line

but did not discuss the matter further.

The 2008 Strike and Its Aftermath

On September 6, 2008, the employees struck in support of

the Unions bargaining position.


On October 6, 2008, Boeings

stock dropped to a four-year low.


That same day, CEO Jim

McNerney sent a long e-mail to Boeing employees about the

strike.
McNerney stated that he understood and shared the

frustration so many of you feel when we dont have the whole

team together working to meet the commitments weve made to

our customers and competing to win the new business that will

sustain and grow Boeing jobs[.]


McNerney went on to state,

[t]he issue of competitiveness as it relates to this strike

is a big deal[.]
He also tied labor disputes to problems

with Boeings customer relationships.


After asserting that

the Union had recommended that its members reject contract

offers and go on strike four of the last five negotiations

going back to 1995, he wrote, we believe this track record of

repeated union work stoppages is earning us a reputation as an

NLRB-FOIA-00010198

Case 19-CA-32431

- 4 -

unreliable supplier to our customers who ultimately provide

job security by buying our airplanes.1

The following day, Boeings Vice President for Government

and Community Relations Fred Kiga spoke at an aerospace

conference in Everett.
In a Seattle Times article, he was

quoted as stating, We cant afford to become known as the

strike zone[.]
He reportedly also told the conference that

labor unrest could drive Boeings decision on where to build

planes in the future.


In an interview after his speech, Kiga

reportedly stated that his strike zone comments had been

cleared by Boeing Commercial Airplanes CEO Scott Carson.


Kiga

noted that he and Carson grew up in and shared a love for the

Northwest; Kiga then said that they would hate to lose a

treasure like Boeing.

The strike lasted 57 days and ended on November 1, 2008,

when the parties signed the current contract. During the

negotiations, the Union had proposed to amend Section 21.7 to,

among other things, eliminate the waiver language quoted

above.
Boeing refused to agree to such an amendment, and the

language remained in the contract.

In early 2009,2 the media again began publishing reports

that Boeing needed to establish a second 787 assembly line.

On February 9, the Seattle Times reported that Washington

Senator Patty Murray had met with Boeings Senior Vice

President of Government Operations; he had informed her that

the CEO was sick and tired of the unions strikes and was

looking to put the second 787 line elsewhere.

On April 16, Boeing and IAM officials held their annual

summit in Chicago.
Management officials attending included

CEO McNerney, Boeing Commercial Airplanes CEO Carson,

Integrated Defense Systems CEO Jim Albaugh, and for the first

time, Vice President and General Manager of Supply Chain

Management & Operations Ray Conner.


IAM representatives

included International President Tom Buffenbarger, General

Vice President Rich Michalski, and the Directing Business

Representatives who represented Boeing employees, including

District 751 DBR Tom Wroblewski.


This was the first

opportunity for the parties to meet since the strike had

ended.
McNerney and Buffenbarger were the lead speakers.

McNerney stated that Boeings customers were losing confidence

1 In his
that the
occurred
1989 (48
2

e-mail, CEO McNerney exaggerated the number of times

Union had struck.


In actuality, prior strikes

in 1948 (140 days), 1965 (19 days), 1977 (45 days),

days), 1995 (69 days), and 2005 (28 days).

Dates are in 2009 unless otherwise noted.

NLRB-FOIA-00010199

Case 19-CA-32431

- 5 -

in the Company because of past strikes and the possibility of

future strikes.
He said that the parties had to come up with

a way to stop having labor disputes.


The general theme was

that management and labor should continue to meet to find ways

to avoid the problems of the past.

As a follow-up to this summit, Wroblewski and IAM

Aerospace Coordinator Mark Blondin met on June 23 in Seattle

with Conner and Boeings Vice President of Human Resources

Doug Kight.
The parties focused on how to build a better

relationship and improve communication. While Wroblewski had

an established relationship with Kight, Conner was new to

labor relations.
Wroblewski thought that one of the purposes

of the meeting was to get to know Conner.


At a subsequent

meeting on June 30 between Wroblewski and Conner, Conner

expressed Boeings concern that its customers did not have

confidence it could make timely deliveries because it had

experienced two strikes in the last five years and had

supplier issues.
For the first time, Conner raised the

prospect of a long-term collective-bargaining agreement as a

way to gain the customers confidence that they would get

their aircraft on time.

In early July, Boeing announced its intent to purchase

the Vought plant in North Charleston, South Carolina.


IAM

Local Lodge 183 represented the Vought production,

maintenance, and quality employees.


Boeing agreed to

recognize the Union but wanted to negotiate a new collective-

bargaining agreement.

On July 8, the Seattle Times reported that Boeings CEO

had informed Washington Congressmen Norm Dicks and Jay Inslee

that as a result of past strikes, the Company would place the

second line outside the Puget Sound area unless it could reach

a long-term contract with the Union. Boeing told the

Congressmen that South Carolina was the main competitor.

Wroblewski, Blondin, Kight, and Conner met again twice in

July, on July 7 and July 23.


At each of these meetings,

Conner and Kight emphasized that strikes had to stop for

Boeing to be viable.
They stated that Boeing needed a long-

term agreement with no-strike language to satisfy their

customers.
At this point, Boeing was two years behind

schedule and had approximately 850 787 planes on back order as

a result of supplier and software problems.

Then, on July 30, the same date that Boeing announced

that it had purchased Voughts plant, a South Carolina

employee filed a decertification petition.


During August,

Boeing denied the Union access to the employees in the North

Charleston plant and wrote a memorandum to the employees

stating that it preferred to deal with employees directly

NLRB-FOIA-00010200

Case 19-CA-32431

- 6 -

without intermediaries.3
Boeing also issued a FAQ document

to the employees stating that the mass layoffs that took place

at the Vought plant in late 2008 were due to the unique

situation created by the Everett strike.


Meanwhile, the

South Carolina press was reporting that a decertification

decision could influence where Boeing located the second 787

assembly line.
For example, The Post and the Courier reported

that South Carolinas low unionization rate is viewed as an

advantage in the 787 chase[.]


An article in the Charleston

Business Journal asserted that Charleston might be a better

choice in the event of decertification because of its

potentially tamer work force instead of the Washington

workers with a history of walk[ing] off the job.

On August 26, Boeing e-mailed its managers and human

resource professionals that it had notified South Carolina

that it intended to file permits for the construction of a

second 787 line but that it had not yet made a decision as to

where to locate the second line.


The following day, Boeing

and Union officials met in Portland to discuss the prospect of

a long-term agreement.
Carson informed the Union that the

only way Boeing would place the second line in Washington was

if the Union agreed to a twenty-year no-strike agreement.

Boeing suggested a series of three-year agreements with an

overarching twenty-year no-strike pledge until 2032 and

binding interest arbitration if no agreement was reached at

the end of each of the three-year contracts.


The Union said

that this was not possible, but the Union would consider a

longer agreement than the current four-year contract in return

for some sort of neutrality agreement.


At the end of the

meeting, the parties agreed to schedule negotiations for a

long-term agreement.

Meanwhile, the decertification election in South Carolina

was scheduled for September 10.


In reporting on Boeings

permit filings in South Carolina, the Puget Sound Business

Journal characterized this vote as [a] wild card in Boeings

decision about where to locate the second line.


On September

2, Kight presented an hour-long video on Boeings website

(later quoted in a September 29 article in the Seattle Times).

In regard to the second line, he stated:

What do you do with the 787 second line so that we can

build up to rate and meet our commitment to customers?

... Theres a lot of issues to look at, a lot being

studied, no decision has been made.


But truthfully, it

is very clear that this triennial disruption, our

The Union filed a Section 8(a)(5) charge alleging that

Boeing unilaterally changed its access rules but withdrew the

charge following the election.

NLRB-FOIA-00010201

Case 19-CA-32431

- 7 -

customers cant live with it anymore.


So weve become an

unreliable supplier....
So we look at how do we become a

reliable supplier.
How do we ensure production

continuity so that we can meet our commitments to our

customers in a timely way and thats what were trying to

do.

The Union lost the election in South Carolina eight days later

and was decertified on September 18.

As a follow-up to the parties August 27 meeting in

Portland, CEO McNerney wrote to IAM International President

Buffenbarger on September 21 that Boeing planned to make a

decision on the second lines location by the end of October

and wanted the Unions input within the next three to four

weeks.
He stated, I look forward to our respective teams

engaging in fruitful dialog.


Two days later, Boeing filed an

application for a storm water permit with the City of North

Charleston and an overall site plan with the State of South

Carolina.
On October 1, Boeing applied to North Charleston

for a site clearing permit.

The Parties Meet over a Long-Term Agreement

The parties opened negotiations for a long-term agreement

on October 1.
At the start of negotiations, Boeing explained

that placement of the second line in Washington depended on a

long-term agreement to insure no further disruptions in

deliveries to customers.
The Union responded that in exchange

for giving up the right to strike, the parties would need to

resolve economic issues for the long term rather than through

interest arbitration every three years.

The parties met again on October 7, 8, and 15.


The Union

maintains that Boeing never submitted a written proposal or

counter-proposal, that it was in the dark as to what Boeing

wanted, and that in effect it was negotiating against itself.

For example, with respect to the length of the agreement, at

various points Boeing requested a contract ending in 2020 or

2022 but at other times, demanded a twenty-year agreement.


In

terms of wages, Boeing wanted to reduce general wage increases

and move toward a profit-sharing incentive program.


The Union

was not adverse to this concept but requested information to

insure that Boeings measures of productivity were tied to

employee performance and not events beyond the employees

control.
At one point, Boeing stated that the general wage

increase and COLA could not exceed 3.5%.


When a Union

negotiator asked what would happen if the cost of living

increased more than 3.5%, Boeing responded that employees

would get more.


On October 15, for the first time, Boeing

said that it wanted a lower wage structure for new hires and a

NLRB-FOIA-00010202

Case 19-CA-32431

- 8 -

defined contribution plan for them rather than the defined

benefit pension plan that the existing employees enjoyed.

The Union repeatedly raised the issues of job security

and Employer opposition to the Union elsewhere.


The Union

argued that in return for giving up the right to strike during

the long-term, employees needed enhanced job security.


Also,

if the parties relationship were to improve, the Union did

not want to face the type of anti-union conduct Boeing had

engaged in during the decertification campaign in South

Carolina.

At the October 15 session, Conner informed the Union that

the Board of Directors would be meeting on October 26 and he

wanted to give the Board a progress report on the

negotiations.
The Union asserts that Boeing never described

the Board of Directors meeting as a deadline for resolving the

outstanding bargaining issues.


Moreover, Boeing never

provided a concrete proposal that could be put to the unit

employees for a vote.

The parties met again on October 20 and 21.


Conner

stated that Boeing was getting close to making its decision on

the location of the second line and it would be discussed at

the Board meeting on October 26.


By the end of the parties

October 21 session, the Union orally had proposed the

following: an extension of the existing contract to 2020, 3%

annual wage increases plus a 1% COLA, ratification bonuses for

unit employees, an incentive pay program, health cost sharing

towards the end of the contract, annual increases in pension

benefits starting in 2013, and neutrality in connection with

Union organizing campaigns.


In addition, the Union presented

Boeing with a two-page document entitled Rough Draft on

Concepts for a long-term agreement and a joint partnership

committee.
This Draft called for retention of current unit

work; location of the second line in the Puget Sound area; and

six-month advance notice and good-faith bargaining over any

decision to establish an assembly operation for any next

generation product.
Boeing asserts that this rough draft

was the Unions last and final offer, but the Union

disagrees and also maintains that its negotiators had no idea

that this would be the parties final session.


Indeed, the

Union negotiator involved in working out the details of the

incentive pay program sent an e-mail to Kight on October 27

requesting further information.


Kight responded that he would

get back to him.

Meanwhile, on October 21, Boeing posted its quarterly

earnings conference call on its intranet site for employees.

With respect to locating the second line in South Carolina,

CEO McNerney stated:

NLRB-FOIA-00010203

Case 19-CA-32431

- 9 -

[T]here would be some duplication.


We would obviously

work to minimize that.


But I think having said all of

that, diversifying our labor pool and our labor

relationship has some benefits.


...
And so some of the

modest inefficiencies, for example, associated with the

move to Charleston, are certainly more than overcome by

strikes happening every three or four years in Puget

Sound.
And the very negative financial impact of [sic]

the company, our balance sheet would be 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....

And I dont blame this totally on the union. We just

havent figured out a way - the mix doesnt - isnt

working well yet. So, weve either got to satisfy

ourselves that the mix is different or we have to

diversify our labor base.

McNerney stated that a decision would be made in the next

couple of weeks.

Two days later, IAM General Vice President Michalski

called Conner to ask about the status of the negotiations.

Conner stated that the Unions economic terms and demand for

neutrality were unacceptable to Boeing.


Michalski explained

that the Union was not asking for a traditional neutrality

agreement but rather, as explained during negotiations, a code

of conduct.
Michalski stated that the Union was willing to

meet at any time for additional negotiations, but Conner did

not respond.
On October 24, Michalski called Senior Vice

President of Operations Tim Keating to reiterate that the

Union was not seeking a true neutrality agreement.


He wanted

to clear up any misunderstanding if that issue was blocking

the parties ability to reach an agreement.


Keating did not

respond, and no further negotiations were ever scheduled.

Meanwhile, the governmental bodies in South Carolina were

moving quickly to facilitate the second lines placement in

their State.
On October 23, North Charleston approved

Boeings request for a storm water permit, and the State of

South Carolina approved Boeings overall site plan.


On

October 27, the South Carolina legislature, in a special

session, approved $170 million in taxpayer-backed bonds for

Boeings startup costs and tax breaks totaling $450 million in

exchange for Boeings agreement to create at least 3,800 jobs

and invest more than $750 million in the State within the next

seven years.
That same day, North Charleston approved

Boeings site clearing permit.

Boeing contends that it entered these negotiations with a

good-faith intention to reach a long-term agreement that would

have resulted in placing the second line in Washington, but

NLRB-FOIA-00010204

Case 19-CA-32431

- 10 -

the Unions economic demands were too costly and its

insistence upon neutrality and job security were unacceptable.

The Union asserts, however, that Boeings failure to submit

any proposals, its rejection of the Unions serious efforts to

address Boeings purported concerns, and then its precipitous

halting of negotiations as soon as the South Carolina

legislature awarded it a generous tax and subsidy package

demonstrate that the negotiations were in fact a sham.

Boeing Announces its Decisions to Locate the Second Line in

South Carolina and to Establish a Dual-Sourcing Program

On October 28, Boeing announced its decision to locate

the second 787 assembly line in South Carolina.


In a press

release and internal e-mails, Boeing stated that the Board of

Directors had just approved the selection of North Charleston.

Boeing also announced that it intended to build a surge line

in Everett - a temporary second assembly line that would be

phased out once the South Carolina line was up and running.

Boeing issued a memo to its managers on October 28 that

provided answers to anticipated questions from employees and

talking points regarding its decision.


The managers were

advised to inform employees, among other things, that the

decision to locate the second line in Charleston would

provide economic advantages by improving our competitiveness

and reducing vulnerability to delivery disruptions due to a

host of factors, from natural disasters to homeland security

issues and work stoppages.


The memo further stated, In the

final analysis, this came down to ensuring our long-term

global competitiveness and diversifying the company to protect

against the risk of production disruption ... from natural

disasters, to homeland security threats, to work stoppages.

On December 3, Boeing notified its fabrication managers

that it intended to create a dual-sourcing program and

contract separate suppliers for the South Carolina assembly

line.
As a result, employees in the Puget Sound and Portland

units who produce parts for the 787 assembly line are likely

to suffer a loss of work.


Articles that appeared in the

Seattle Times on December 7 and the Puget Sound Business

Journal on December 8 discussed this announcement.


The

Seattle Times quoted Boeing spokesman Jim Proulx as stating,

Repeated labor disruptions have affected our performance in

our customers eyes.


We have to show our customers we can be

a reliable supplier to them.


[The second production] line has

to be able to go on regardless of whats happening over here.

The Puget Sound Business Journal quoted Conner as follows:

Dual-sourcing and co-production will allow us to maintain

production stability and be a reliable supplier to our

customers.

NLRB-FOIA-00010205

Case 19-CA-32431

- 11 -

On March 2, 2010, a Seattle Times journalist conducted a

videotaped interview of Boeings new Commercial Airplanes CEO,

Jim Albaugh.
(Albaugh had moved over from his position as

Integrated Defense Systems CEO to replace Carson.)


The

interviewer asked Albaugh some hard questions on behalf of

the Washington community about Boeings decision to locate the

second 787 line in Charleston.


In explaining Boeings

decision, Albaugh repeatedly referenced the Unions strike

history.
For example, he stated:

The issue last fall was really about, you know, how

we could ensure production stability and how we

could ensure that we were competitive over the long

haul.
And we had some very productive discussions

with the union.


And unfortunately, we just didnt

come to an agreement where we felt we could ensure

production stability.
And read [sic] that is [sic]

getting away from the frequent strikes that we were

having and also could we stop the rate of escalation

of wages.
And we just could not get to a place

where we both felt it was a win for both ourselves

and the union so we made the decision to go to

Charleston.

[W]eve had strikes three out of the last four times

weve had a labor negotiation with the IAM.


... And

weve got to get to a position where we can ensure

our customers that every three years theyre not

going to have a protracted shutdown.

It was about ensuring to our customers that when we

commit to deliver airplanes on certain dates that we

actually do deliver.
And we have lost our

customers have lost confidence in our ability to do

that, because of the strikes.

When asked whether going to Charleston, in light of the

expense and risk, made business sense, he responded:

Theres no question that whenever you go to a green field

site, theres risk involved.


At the same time, with the

protracted labor stoppage that we had ... the fall of

2008, I mean that cost the company billions of dollars.

And I think if you compare, you know, what it cost

because of the stoppages versus the cost and the risk of

starting a new line in Charleston, I think the investment

certainly is the right one for us to make.4

Once again, a Boeing CEO grossly exaggerated the burden of

the Unions strike activity.


Boeing had alleged elsewhere

that the 2008 strike reduced its earnings by $1.8 million, far

NLRB-FOIA-00010206

Case 19-CA-32431

- 12 -

At one point, Albaugh summed up the basis of Boeings

decision as follows:

[t]he overriding factor was not the business climate.

And it was not the wages were paying today.


It was that

we cannot afford to have a work stoppage, you know, every

three years.
We cannot afford to continue the rate of

escalation of wages....

Albaugh also implicitly threatened the loss of additional work

because of Union strikes, stating, [w]ell do work here if we

can make sure that we have the stability of the production

lines and that we can be competitive over the long haul.

Production is now approximately three years behind

schedule.
Approximately 2,900 Puget Sound unit employees

currently work on the 787 assembly line.


Approximately 1,740

of them are working on out-of-sequence assembly work, away

from the main assembly line. Once supply issues are resolved

and assembly can be accomplished in sequence on the line, it

is anticipated that the number of employees will drop by

approximately 60%.
Boeing asserts that the South Carolina

plant will be ready to begin assembly work in mid 2011.

Approximately 1,000 mechanic and flight line jobs will be

added in South Carolina at that time.

ACTION

This case involves Boeings transfer of work from an

experienced unionized workforce to a new, nonunion facility.

Boeings decision was motivated by antiunion considerations.

From the time of the Unions strike in the fall of 2008,

Boeing made clear to its unionized workforce that it would not

countenance further strikes.


Time and again, in e-mails to

employees, on its intranet site, in the media, and in talks

with the Union, Boeing tied its ability to compete to the

avoidance of future strike activity.


Then, when Boeing

purchased the Vought facility in South Carolina, its officials

denied the Union access to employees at the facility.


It also

let the employees know that it preferred to deal with them

directly rather than through their Union and their receipt of

the second line hinged on their vote in a decertification

election.
Simultaneously, Boeing officials told the Puget

Sound unit employees that they could retain all of the 787

assembly work only by waiving their right to strike for twenty

years.
Although the Union entered negotiations with Boeing

less than the billions of dollars that Albaugh claimed in

this interview.

NLRB-FOIA-00010207

Case 19-CA-32431

- 13 -

and made major concessions in an effort to address its stated

concerns, once the Union was decertified in South Carolina,

Boeing courted the South Carolina legislature and applied for

the necessary permits from the South Carolina regulatory

bodies - even as it continued the motions of negotiating with

the Union.
As soon as South Carolina approved the financial

incentives for Boeing, Boeing called off negotiations and

announced its decision.


Boeings CEO admitted that the

overriding factor for moving work to South Carolina was the

employees strike activity.


Moreover, to reinforce the

message to unit employees, he intimated that the continuation

of any work in Washington was contingent on the stability of

the production lines, a veiled threat designed to coerce

employees to abstain from future strikes.


Nor could Boeing

credibly blame the 787 production delays on employees 2008

strike activity, which halted production for approximately two

months.
Rather, the delay resulted primarily from its own

business decision to outsource the manufacture of the aircraft

components to various suppliers and from unexpected software

problems.

Further, the fact that it made little practical sense to

locate this second line in South Carolina, despite a two-and-

a-half-year delay in the production of its new 787 aircraft,

rather than its existing facilities in Washington, supports a

finding of unlawful motivation.


While South Carolina would

not be ready for production for two years because of the need

for substantial capital improvements and the hiring and

training of a new workforce, Washington was already up and

running, with the space, the necessary equipment, and a

significant complement of trained employees.

On these facts, we conclude that the Region should issue

a complaint alleging: independent violations of Section

8(a)(1) based upon Boeings coercive and threatening

statements to employees on the intranet and through the media;

and a violation of Section 8(a)(3) based upon Boeings

decision to place the second line in South Carolina and to

establish a dual-sourcing supply program in order to retaliate

against the unit employees for engaging in protected Union

activity.
We would also argue, in the alternative, that

Boeings actions were inherently destructive of employee

rights.
But the Region should dismiss the Section 8(a)(5)

allegations because the Union waived its right to bargain

about Boeings decision to offload unit work to a facility not

covered by the parties agreement.


Finally, to remedy the

Section 8(a)(1) and (3) violations, the Region should seek: a

notice reading by a high-level Boeing official in addition to

the traditional remedies; and an order requiring Boeing to

assemble in the Puget Sound area the first ten 787 aircraft

that it produces each month and to maintain the supply lines

for those aircraft in the Puget Sound and Portland facilities.

NLRB-FOIA-00010208

Case 19-CA-32431

- 14 -

I. The Employer Violated Section 8(a)(1)

The Supreme Court long ago delineated the line between

employer speech protected under Section 8(c) of the Act and

threats of reprisals violative of Section 8(a)(1).5


The Court

ruled in Gissel that an employer may make a prediction as to

the effects of unionization but that prediction must be

carefully phrased on the basis of objective fact to convey an

employers belief as to demonstrably probable consequences

beyond his control[.]6


On the other hand, threats of

economic reprisal to be taken solely on [the employers] own

volition violate Section 8(a)(1).7

In General Electric Company, the Board applied the Gissel

test to set aside an election because the employer threatened

a long-term loss of work based on the possibility of a strike

at some future time.8


Faced with a union organizing drive,

the employer gave multiple speeches touting its two-source

supplier strategy.9
The employer stated that it had

established its nonunion plant so that customers could get the

motors they needed during the seven strikes at its union

plant.
The employer also made clear that the plants nonunion

status was the reason it had experienced a rise in

employment.10
And the employer conveyed the message that the

plant remaining nonunion was an important, if not a decisive,

factor in any company decision to choose that plant as a

second manufacturing facility for the new motor the employer

planned to introduce.11
The Board concluded that although the

employer might want to insure itself against production

interruptions caused by employee concerted activity, no such

insurance is legally possible, for the simple reason that

employees have a federally protected right to engage in such

activity.12
The Board expressly distinguished an employers

right to take defensive action when threatened with an

See NLRB v. Gissel Packing Co., 395 U.S. 575, 618 (1969).

Ibid.

Id. at 619 (citation omitted).

See 215 NLRB 520, 522-23, fn. 6 (1974).

See id. at 520.

10

See id. at 520-21.

11

See id. at 521.

12

See id. at 522.

NLRB-FOIA-00010209

Case 19-CA-32431

- 15 -

imminent strike from threats to transfer work merely because

of the possibility of a strike at some speculative future

date.13

The Board repeatedly has held that an employer violates

Section 8(a)(1) by threatening to withhold work opportunities

because of the exercise of Section 7 rights.14


Thus, telling

employees that they will lose their jobs if they join a strike

violates Section 8(a)(1).15


Similarly, in Kroger Co., the

employer unlawfully threatened to put its plan to build a new

freezer facility for its distribution center on hold because

of intraunion unrest and labor disputes.16

Further, where an employer unconditionally predicts a

loss of customers due to unionization or strike disruptions

without any factual basis, its predictions amount to

unlawful threats.17
Rather, an employers predictions of

customer disaffection must be based on objective facts.18

Thus, in Curwood, Inc., an employer lawfully related its

13

See id. at 522, fn. 6.

14

See, e.g., Kroger Co., 311 NLRB 1187, 1200 (1993), affd.

th
mem. 50 F.3d 1037 (11
Cir. 1995); General Electric Co., 321

NLRB 662, fn. 5 (1996), enf. denied 117 F.3d 627 (D.C. Cir.

1997).

15

Aelco Corp., 326 NLRB 1262, 1265 (1998).


See also Dorsey

Trailers, Inc., 327 NLRB 835, 851 (1999), enfd. in pertinent

th
part 233 F.3d 831 (4
Cir. 2000) (threat to close the plant if

the employees went out on strike).

16

311 NLRB at 1200.


See also General Electric Co., 321 NLRB

at 662, fn. 5 (employer conveyed to employees that

unionization could result in the withholding of further

investment in the plant or its closure).

17

See, e.g., Tawas Industries, 336 NLRB 318, 321 (2001) (no

objective basis for prediction that customers, fearing

strikes, would not give their business to the employer if the

employees independent union affiliated with the UAW);

Tradewaste Incineration, 336 NLRB 902, 907-08 (2001)

(prediction that 90% of the customers would not deal with a

union facility because of fear of a work stoppage was not

based on objective facts); Debbie Reynolds Hotel, 332 NLRB

466, 466 (2000) (no factual basis for statements about having

to move productions and equipment elsewhere because customers

would not be able to afford employers facilities if employees

unionized).

18

Curwood, Inc., 339 NLRB 1137, 1137-38 (2003).

NLRB-FOIA-00010210

Case 19-CA-32431

- 16 -

customers concerns about strikes, where the employer produced

written inquiries from customers seeking information about its

contingency plans in the event of a strike.19


An employer may

also reference the possibility that unionization, including

strikes, might harm relationships with consumers, as opposed

to predicting
unavoidable consequences.20

Here, the Union has alleged that several statements by

Boeing officials violated Section 8(a)(1).


Some statements

were posted by Boeing on its website or intranet.


Others were

reprinted in newspaper articles as direct quotes; although

such a quotation is hearsay, it would be admissible as an

admission (an exception to the hearsay rule), if the reporter

testifies.21
By contrast, reporter summaries cannot form the

basis for a Section 8(a)(1) violation.


And statements

recounted by political figures within newspaper articles are

in effect double hearsay and inherently unreliable.

Based on these principles, we find that the following

constitute unlawful threats under the Gissel standard:

(1)
Boeing posted its quarterly earnings conference call

on its intranet for employees on October 21.


During the call,

CEO McNerney made an extended statement about diversifying

our labor pool and moving work to South Carolina because of

strikes happening every three or four years in Puget

Sound.22
His comments were indistinguishable from the

comments regarding a two-source supplier strategy found

violative in General Electric.23

(2)
Boeings October 28 memo to managers advised them to

inform employees that it decided to locate the second line in

South Carolina in order to reduce vulnerability to delivery

disruptions caused by, among other things, strikes.


The

thrust of Boeings message to employees was that Boeing had

19

See id. 339 NLRB at 1137.

20

E.g., Miller Industries Towing Equipment, Inc., 342 NLRB

1074, 1075-76 (2004) (employer did not predict unavoidable

consequences).

21

Cf. Sheet Metal Workers Local 15 (Brandon Regional Medical

Center), 346 NLRB 199, 201-02 (2006), enf. denied on other

grounds 491 F.3d 429 (D.C. Cir. 2007) (newspaper report of

party admission is inadmissible hearsay because the reporter

was not available for cross-examination).

22

These same comments were quoted in the Seattle Times.

23

See 215 NLRB 520, 522-23 (1974).

NLRB-FOIA-00010211

Case 19-CA-32431

- 17 -

removed jobs from Puget Sound because employees had struck and

that they would lose work if they struck again.24

(3)
In articles that appeared in the Seattle Times and

the Puget Sound Business Journal on December 7 and 8

respectively, Boeing officials attributed the plan to use a

dual-sourcing system and contract separate suppliers for the

South Carolina line to past strikes and implicitly threatened

the loss of future work opportunities in the event of future

strikes.25

(4)
In a video-taped interview on March 2, Boeing

Commercial Airplanes CEO Albaugh expressly attributed the

Employers decision to locate the second line in South

Carolina to employee strikes and threatened the loss of future

work opportunities in retaliation for such protected

activity.26

The above statements, disseminated through various

channels to unionized and nonunionized employees nationwide,

drove home the message: union activity could cost them their

jobs, while a decision to reject union representation could

bring those jobs to their communities.

II.

The Employer Violated Section 8(a)(3)

The Employers decision to locate the second 787 line at

a nonunion facility and to establish a dual-sourcing program

to support that line violated Section 8(a)(3) because the

Employer acted in retaliation for the employees Union

activity and not for a legitimate business reason.

Initially, despite Boeings assertions that its decision

to locate a second 787 assembly line in South Carolina will

not adversely impact any current unit employees, there is no

question that the decision will direct work away from Puget

Sound employees with consequent adverse effects.


Instead of

24

The Region should insure that this message was communicated

to employees.

25

The authors of these articles will need to testify.


If

they resist testifying, and it becomes necessary to seek

subpoena enforcement, the Region should contact Advice.

26

Vice President Kights video-taped comments that Boeings

customers could not live with this triennial disruption and

that Boeing was looking to insure production continuity

cannot be alleged as an independent violation because they

were first posted on Boeings website on September 2, outside

the Section 10(b) period.

NLRB-FOIA-00010212

Case 19-CA-32431

- 18 -

assembling all of the 787 planes in Washington as originally

planned, once the second line opens in South Carolina, a

significant portion of the remaining 787 orders will be filled

by planes produced in North Charlestown.


Future work

opportunities will be lost for employees on the surge line,

as well as unit employees waiting to transfer into the more

desirable 787 jobs.


There are likely to be transfers to

older, less desirable aircraft assembly lines, demotions, and

layoffs.
Moreover, Boeings adoption of its new dual-

sourcing program means that the Puget Sound and Portland unit

employees will produce parts only for planes assembled in

Washington and not for those planes assembled in South

Carolina, also causing the loss of employment opportunities

for unit employees and the likelihood of demotions and

layoffs.
If no unit employees have been harmed yet, it is

merely because Boeings retaliatory decision has not yet been

implemented.

Recently, in Pittsburg & Midway Coal Mining Co., the

Board expressly reaffirmed that an actual financial loss is

not necessary to establish a Section 8(a)(3) violation.27


In

that case, the employer revised its bonus policy in

retaliation for the employees use of contractual memorial

days to engage in work stoppages.


Even though no employees

thereafter suffered a diminution of their bonuses, the Board

found a Section 8(a)(3) violation based upon the employers

retaliatory motive.28

Moreover, the Board specifically has held that an

employer may not, for unlawfully motivated reasons, divert

unit work to a nonunion plant even where there is no immediate

impact on unit employees.29


In Adair Standish Corp., the

employer refused to take delivery of a new press ordered for

its newly-organized Standish plant and installed it instead at

its nonunion plant.


The Board noted that diversion of the

press from Standish could reasonably result in diversion of

new work from Standish and therefore violated Section 8(a)(3)

even though there was no immediate impact on the unit

employees.30
Similarly, in Cold Heading Co., the employer

unlawfully relocated equipment to a newly-purchased nonunion

facility and changed its plans to install new equipment in its

27

See 355 NLRB No. 197, slip op. at 5, fn. 8 (2010).

28

Ibid.

29

See Adair Standish Corp., 290 NLRB 317, 318-19 (1988), enfd

th
in pertinent part 912 F.2d 854 (6
Cir. 1990).

30

See id. at 319.

NLRB-FOIA-00010213

Case 19-CA-32431

- 19 -

union facility after its employees independent union

representative sought to affiliate with the UAW.31

Here, as in Adair Standish and Cold Heading, there is a

diversion of unit work that the unit employees otherwise would

have performed.
And as in Pittsburg & Midway Coal Mining Co.,

the fact that unit employees may not yet have experienced the

financial impact of Boeings decision is no defense to a

Section 8(a)(3) violation.

Further, Boeing made this decision for unlawful reasons.

Boeing admits that the overriding factor in its decision to

place the second line in a nonunion facility was the

employees strike history.


An employers discouragement of

its employees participation in a legitimate strike

constitutes discouragement of union membership within the

meaning of Section 8(a)(3).32


This applies to employer

conduct designed to retaliate against employees for having

engaged in a strike in the past,33 as well as employer conduct

designed to forestall employees from exercising their right to

strike in the future.34


Indeed, the Board recently reaffirmed

that an employer violates the Act when it acts to prevent

future protected activity.35


Comparing such conduct to the

31 See 332 NLRB 956, fn. 5, 975-76 (2000).


See also

Associated Constructors, 325 NLRB 998, 998-1000 (1998), enfd.

sub nom. ODovero v. NLRB, 193 F.3d 532 (D.C. Cir. 1999)

(double-breasted employer unlawfully diverted work from its

union entity to its nonunion entity in retaliation for the

unions efforts to organize the nonunion entity and to escape

the collective-bargaining agreement).

32

Capehorn Industry, 336 NLRB 364, 365 (2001).

33

See id. at 365-67 (employer violated Section 8(a)(3) by

failing to immediately reinstate strikers upon unconditional

offer to return to work where there was no legitimate business

justification for entering into a permanent subcontract).

34

See Century Air Freight, 284 NLRB 730, 732 (1987) (employer

violated Section 8(a)(3) by permanently subcontracting unit

work and discharging unit employees in order to forestall the

exercise of their right to strike); Westpac Electric, 321 NLRB

1322, 1374 (1996) (employer violated Section 8(a)(3) by

isolating employee in retaliation for his previous striking

activities and also in anticipation that he would participate

in a strike in the future).

35

See Parexel International, LLC, 356 NLRB No. 82, slip op.

at 4 and cases cited therein (2011) (employer violated Section

NLRB-FOIA-00010214

Case 19-CA-32431

- 20 -

erection of a dam at the source of supply of potential,

protected activity, the Board reasoned that, the suppression

of future protected activity is exactly what lies at the heart

of most unlawful retaliation against past protected

activity.36

Boeing concedes that it is removing work from the unit

employees based upon their past exercise of their right to

strike.
However, Boeing relies upon the Supreme Courts

decision in NLRB v. Brown Food Store37 to argue that it is

privileged to move work outside the unit to avoid the

disruptive consequences of future strikes and that this is a

sufficient business justification to permit its actions.

In Brown Food Store, the Court held that an employer was

privileged to lock out its employees and use temporary

replacements to carry on its business in the face of a whipsaw

strike.38
Specifically, the Court found that the use of a

lockout and the hiring of temporary replacements to bring

pressure to bear in support of its bargaining position after

an impasse in negotiations was not an unfair labor practice.39

Rather than finding the use of this economic weapon

discriminatory, the Court concluded that it was a legitimate

defensive measure to preserve the multiemployer group in the

face of a whipsaw strike.40

Boeings attempt to extend the holding of Brown to

legitimatize any action that an employer takes to protect

itself against future, wholly speculative, strikes would

vitiate the Section 13 right to strike.


And the Board has

made it clear that an employer cannot rely upon Brown to

justify discriminatory conduct based upon the exercise of the

right to strike.
Thus, in National Fabricators, the Board

expressly rejected the employers attempt to use Brown and

other lockout cases to justify its decision to lay off those

employees who were likely to honor a union picket line in the

8(a)(1) by discharging an employee to prevent her from

discussing wages with other employees).

36

Ibid. (citation omitted).

37

380 U.S. 278 (1965).

38

See id. at 283-85.

39

See id. at 284.

40

See ibid.

NLRB-FOIA-00010215

Case 19-CA-32431

- 21 -

future.41 Instead, the Board found that disfavoring employees

who were likely to engage in protected union activities was

proscribed by Section 8(a)(3) and the employers business

justification - to avoid investing money in employees who

were going to cease work later -- was neither legitimate nor

substantial.42

Boeings concession that choosing South Carolina will

result in duplication and economic inefficiencies further

demonstrates that Boeings actions were retaliatory and not a

legitimate business decision.


In addition, Commercial

Airplanes CEO Albaugh conceded that going to South Carolina,

a green field site, involves significant risks.


Boeing has

the capacity, equipment, and trained workforce to handle the

second assembly line in the Puget Sound area.


The substantial

investment required to build and equip the South Carolina

facility therefore will be duplicative.


In addition, Boeing

will have to recruit and train a new workforce in South

Carolina, while ultimately laying off experienced employees in

Washington.
Exaggerating the disruptive effects of prior

strikes, Boeing maintains that the inefficiencies associated

with moving work to South Carolina will be counterbalanced by

the avoidance of strike disruptions in the future. However,

there are other nonretaliatory and less costly means of

dealing with the potential of relatively short disruptions

caused by employee strikes, such as concluding negotiations

with the Union for a long-term no-strike agreement.


In

addition, Boeings claim that it took this action to avoid

strike disruptions is belied by Boeings rejection of the

Unions efforts to negotiate a long-term no strike agreement.

Accordingly, the Region should proceed on the theory that

Boeing violated Section 8(a)(3) by retaliating against the

unit employees for engaging in the protected activity of

striking.

We also conclude that Boeings conduct was inherently

destructive of employee interests.43


Conduct is inherently

destructive when it carries with it unavoidable

consequences which the employer not only foresaw but which he

must have intended and thus bears its own indicia of

th

41

See 295 NLRB 1095, 1095 (1989), enfd. 903 F.2d 396 (5

1990), cert. denied 498 U.S. 1024 (1991).

42

Cir.

See 295 NLRB at 1095-96.

43

See NLRB v. Great Dane Trailers, Inc., 388 U.S. 26, 33

(1967) (citation omitted).

NLRB-FOIA-00010216

Case 19-CA-32431

- 22 -

intent.44
In International Paper Co., the Board set forth

four fundamental guiding principles for determining whether

employer conduct is inherently destructive of employee

rights.45
First, the Board looks to the severity of the harm

to employees Section 7 rights.


Second, the Board considers

the temporal impact of the employers conduct, i.e. whether

the conduct merely influences the outcome of a particular

dispute or whether it has far reaching effects which would

hinder future bargaining.


Third, the Board distinguishes

between conduct intended to support an employers bargaining

position as opposed to conduct demonstrating hostility to the

process of collective bargaining.


And finally, the Board

assesses whether the employees conduct discourages collective

bargaining by making it seem a futile exercise in the eyes of

the employees.46
Even if the employees conduct is

inherently destructive, the Board weighs the employers

asserted business justification against the invasion of

employee rights.47

Boeings actions were inherently destructive of employee

rights under the four principles articulated in International

Paper.
First, the harm to employees Section 7 rights was

severe; employees got the distinct message that if they engage

in another strike, unit work will be moved to a nonunion

facility and unit jobs will be lost.


Second, Boeings

decision was designed to have far-reaching effects and not

just to influence the outcome of a particular dispute, namely,

to take away employee support for the Unions most effective

economic weapon, and for the Union itself, and thereby hinder

any future collective bargaining.


Third, Boeings conduct

demonstrated hostility to the very process of collective

bargaining and not just to support a specific bargaining

position.
Finally, bargaining was made to seem a futile

44

Ibid., quoting NLRB v. Erie Resistor Corp., 373 U.S. 221,

228, 231 (1963).


See also Dorsey Trailers, Inc., 327 NLRB

835, 863-64 (1999), enf. denied in pertinent part 233 F.3d 831

th
(4
Cir. 2000).

45

See 319 LRB 1253, 1269 (1995), enf. denied 115 F.3d 1045

(D.C. Cir. 1997).

46

Id. at 1269-70 (citations omitted).

47

Id. at 1273 (finding no justification for employers

inherently destructive conduct of permanently subcontracting

bargaining unit work during a lawful lockout).


See also

Dorsey Trailers, 327 NLRB at 863-64 (employers closing of

facility during strike and relocation of unit work to newly

purchased facility outside the unions jurisdiction was

inherently destructive of employee rights).

NLRB-FOIA-00010217

Case 19-CA-32431

- 23 -

exercise without the possibility of a strike to support the

Unions position at the bargaining table.

The unavoidable consequence of Boeings decision to place

the second line in its newly-purchased, nonunion facility,

accompanied by official comments on the intranet and in the

media, was to severely chill its employees exercise of

Section 7 rights in the future - whether it be the Puget

Sound employees, the South Carolina employees, or Boeing

employees elsewhere.
Employees will correctly fear that

engaging in such protected activity could cause them to lose

their jobs to nonunionized workers.


Others may be encouraged

to file or support decertification petitions.


And the many

unrepresented Boeing employees will be discouraged from

organizing or voting in support of union representation if

they believe that exercising their right to concerted activity

justifies moving commercial production elsewhere.

Moreover, even if the effect on employee rights was only

comparatively slight, Boeing had no legitimate business

justification. Its only justification was its desire to insure

against its employees exercise of their Section 7 rights, and

that is not a legitimate justification.

The Board recently held in Arc Bridges, Inc. that an

employers conduct was inherently destructive where its stated

reason for withholding a regularly-scheduled wage increase

from represented employees was that it was in negotiations

with the union.48


The Board found that the employers stated

reason - that it wanted to enhance its bargaining position

with the union -- was an admission that it withheld the

increase because employees chose union representation.49

Likewise, Boeings stated reason for its decision - that it

wanted to avoid strike disruptions - was an admission that it

decided to locate the second line in South Carolina because

the Puget Sound employees chose union representation and the

South Carolina employees did not.


Accordingly, Boeings

decision coupled with its public pronouncements emphasizing

the motivation for its decision was inherently destructive of

its employees rights to engage in union activity and violated

Section 8(a)(3).

III. The Union Waived its Right to Bargain

The Unions allegation that Boeing failed to bargain in

good faith over its decision as to where to locate the second

787 line raises two preliminary issues: (1) whether Boeings

decision was a mandatory subject of bargaining; and (2) if so,

48

See 355 NLRB No. 199, slip op. at 3-4 (2010).

49

See id., slip op. at 3.

NLRB-FOIA-00010218

Case 19-CA-32431

- 24 -

whether the Union waived its right to bargain over that

subject.
Although we conclude that the decision was a

mandatory subject of bargaining and there is substantial

evidence that Boeing did not bargain in good faith to a valid

impasse, the Region should dismiss the Section 8(a)(5)

allegations on the ground that the Union waived it right to

bargain, applying Provena.50

A.

Mandatory Subject of Bargaining

Under Dubuque Packing Co., a decision to relocate unit

work that is not accompanied by a basic change in the

employers operation is a mandatory subject of bargaining

unless the employer can establish that: the work performed at

the new location varies significantly from the work performed

at the prior location; the work performed at the former

location is discontinued entirely and not moved to the new

location; or the employers decision involved a change in the

enterprises scope and direction.51


Alternatively, the

employer can defend by showing that: labor costs were not a

factor in the decision; or if labor costs were a factor, the

union could not have offered sufficient concessions to change

the employers decision.52


Applying the Dubuque test, the

Board repeatedly has found relocation decisions to constitute

a mandatory subject of bargaining.53

In addition, the Board has held that a decision may be a

mandatory subject even though there is no immediate loss of

unit jobs.54
For example, in Quickway Transportation, Inc.,

50

Provena St. Joseph Medical Center, 350 NLRB 808 (2007).

51

303 NLRB 386, 391 (1991), enfd. sub nom. Food & Commercial

Workers Local 150-A v. NLRB, 1 F.3d 24 (D.C. Cir. 1993).

52

Ibid.

53

See, e.g., Titan Tire Corp., 333 NLRB 1156, 1164-65 (2001)

(decision to permanently relocate equipment and jobs in

reaction to strike); Owens-Brockway Plastic Products, 311 NLRB

519, 521-23 (1993) (decision to close plant and transfer work

to other facilities).

54

See, e.g., Overnite Transportation Co., 330 NLRB 1275, 1276

(2000), revd. mem. 248 F.3d 1131 (3d Cir. 2000) (We think it

plain that the bargaining unit is adversely affected whenever

bargaining unit work is given away to nonunion employees,

regardless of whether the work would otherwise have been

performed by employees already in the unit or by new

employees).

NLRB-FOIA-00010219

Case 19-CA-32431

- 25 -

the Board found that the employers decision to contract with

independent owner-operators rather than expand the unit, as it

had originally planned, was mandatory because that decision

obviously constrained the work opportunities available to the

bargaining unit.55
Likewise, in Spurlino Materials, LLC, the

Administrative Law Judge, in a decision adopted by the Board,

found that even though no unit employees suffered a loss of

work as a result of the employers subcontracting, existing

employees might have otherwise been given overtime or the

employer might have hired additional unit employees, resulting

in benefits for the Union and current unit employees in having

an expanded unit.56
And in Dorsey Trailers, Inc., the Board

found that subcontracting work to reduce a backlog in orders

was a mandatory subject because the potential loss of

overtime or reasonably anticipated work opportunities poses a

detriment to unit employees even if no employees lost their

jobs.57

Here, the decision to locate the second 787 assembly line

in South Carolina amounted to a relocation of unit work.


Even

though no unit employees have yet to lose work, as in Dorsey

Trailers the assignment of unit work to nonunit employees in

order to reduce an order backlog presents a potential loss of

overtime or reasonably anticipated work opportunities and

therefore poses a detriment to unit employees.58


The work

that will be performed in South Carolina is identical to that

performed on the first line and the surge line in Everett by

unit employees.
The decision did not involve a basic change

in Boeings operation or any change in the enterprises scope

or direction; Boeing does not intend to change its production

methods or its products.59


Boeing did not demonstrate that

labor costs were not a factor in the decision.


In fact,

according to Boeings CEO, the decision was motivated

primarily by a desire to avoid strikes and secondarily because

the Employer cannot afford the rate at which unit wages are

escalating.
Boeing also did not demonstrate that the Union

could not have offered sufficient concessions to change its

55

See 355 NLRB No. 140 (2010), incorporating by reference the

rationale of 354 NLRB No. 80, slip op. at 2 (2009).

56

See 355 NLRB No. 77 (2010), incorporating by reference the

rational of 353 NLRB 1198, 1219 (2009).

57

See 321 NLRB 616, 617 (1996), enf. denied in relevant part

134 F.3d 125 (3d Cir. 1998).


Accord Acme Die Casting, 315

NLRB 202, fn. 1, 209 (1994).

58

See 321 NLRB at 617.

59

See Owens-Brockway Plastic Products, 311 NLRB at 522.

NLRB-FOIA-00010220

Case 19-CA-32431

- 26 -

decision; the Union


the strike and wage
2009.
Accordingly,
where to locate the
bargaining.

B.

was willing to make concessions on both

issues during negotiations in the fall of

we conclude that Boeings decision as to

second 787 line was a mandatory subject of

Waiver of the Right to Bargain

The Board applies a clear and unmistakable waiver

standard to determine whether a union has waived its right to

bargain about a mandatory subject of bargaining during the

term of a collective-bargaining agreement.60


The Board will

find a waiver if the contract either expressly or by

necessary implication confers on management a right to

unilaterally take the action in question.61


In interpreting

the parties agreement, the relevant factors include: (1) the

wording of pertinent contractual provisions; (2) the parties

bargaining history; and (3) the parties past practice.62

The Board has found a waiver based on contract language

where there is an express reference to the specific type of

decision that the employer has implemented unilaterally.63

Thus, in Ingham Regional Medical Center, the Board adopted an

Administrative Law Judges decision that the union waived its

right to bargain about a subcontracting decision where the

contractual management-rights clause expressly reserved to

management the right to use outside assistance or engage

independent contractors to perform any of the Employers

operations or phases thereof (subcontracting)[.]64


This

right was vested exclusively in the Employer and was not

60

See Provena St. Joseph Medical Center, 350 NLRB at 810-11.

61

See id. at 812, fn. 19.

62

See Johnson-Bateman Co., 295 NLRB 180, 184-89 (1989) (no

waiver of right to bargain about drug/alcohol testing

requirement where the management rights clause was generally

worded, issue was not fully discussed and consciously

explored during negotiations, and past practice of union

acquiescence to other unilateral work rule changes did not

waive the right to bargain about such changes for all time).

63 See, e.g., Ingham Regional Medical Center, 342 NLRB 1259,

1261-62 (2004) (under the management-rights clause, the

employer expressly reserved the right to subcontract); Allison

Corp., 330 NLRB 1363, 1364-65 (2000) (management-rights clause

specifically, precisely, and plainly granted the employer

the exclusive right ... to subcontract).

64

See 342 NLRB at 1260, 1261-62.

NLRB-FOIA-00010221

Case 19-CA-32431

- 27 -

subject to arbitration.65
Although another contractual

provision required the employer to provide 60 days notice and

discuss with the union any subcontracting decision that

would cause unit employees to be laid off, the words discuss

and bargain were found not synonymous in the parties

contract.66

In this case, Section 21.7 of the parties agreement

specifically, precisely, and plainly67 granted Boeing the

right to offload work to a facility not covered by the

agreement.
As in Ingham Regional Medical Center, the other

provisions of Section 21.7 that required Boeing to provide the

Union notice and an opportunity to review and recommend

alternatives did not require the Employer to bargain over an

offloading decision.

The Union does not dispute that Section 21.7 contains a

waiver but asserts instead that the Employer may not take

advantage of the waiver.


Specifically, the Union maintains

that a contractual waiver cannot be applied to a decision that

is unlawfully motivated.
But there is no authority for the

proposition that an unlawful motive negates a contractual

waiver; rather, the cases on which the Region and Union rely

hold that a contractual waiver is no defense to a Section

8(a)(3) violation.68

The Unions other arguments against application of the

waiver are also unavailing.


Thus, the Union asserts that the

contractual waiver does not apply because the parties entered

negotiations for a new contract.


However, during those mid-

term negotiations, their existing contract -- including

Section 21.7 -- continued in effect.


The Union also contends

65

Id. at 1260.

66

Id. at 1262.

67

See Allison Corp., 330 NLRB at 1365.

68

See Reno Hilton, 326 NLRB 1421, 1430 (1998), enfd. 196 F.3d

1275 (D.C. Cir. 1999) (merely because the Respondent has

negotiated the unfettered right in a collective-bargaining

agreement to contract out work at any time, such right ...

does not unfetter and insulate the Respondent from the

sanctions of the Act prohibiting it from discriminating); RGC

th
(USA) Mineral Sands, Inc. v. NLRB, 281 F.3d 442, 450 (4
Cir.

2002) (enforcing Board decision finding Section 8(a)(3)

violation on grounds that, even if contract authorized

employer to unilaterally alter shift assignments, an employer

cannot exercise contractual rights to punish employees for

protected activity).

NLRB-FOIA-00010222

Case 19-CA-32431

- 28 -

that the waiver cannot extend to work transferred after the

contracts expiration in September 2012, but Boeing made its

final decision in 2009 and expects to open the second line in

South Carolina in mid 2011.69


The Unions estoppel argument

also lacks merit.


While Boeing took the position that the

notice and review provisions in Article 21.7 did not apply

because no employees will be laid off, Boeing is not thereby

estopped from asserting the waiver provision.

Moreover, Boeings request to negotiate mid-term changes

to the parties agreement did not subject it to the

traditional Section 8(a)(5) bargaining obligations.70


Absent

a contractual reopener provision, parties are under no

obligation to bargain over proposals for mid-term

modifications.71
For this reason, we do not reach the

question of whether Boeing engaged in surface bargaining in

the fall of 2009, bargained to a valid impasse, or unlawfully

failed to provide information relevant to those negotiations.

IV. The Appropriate Remedy

We conclude that special remedies must be fashioned in

the unusual circumstances of this case.

First, with respect to the Section 8(a)(1) violations,

which had a particularly chilling impact upon employees, the

Region should seek a notice reading by a high-level Boeing

official, to insure that employees learn about their statutory

69

Thus, if there is a duty to bargain over a relocation

decision, it arises when the decision is announced and not

when it is ultimately implemented.


See, e.g., Bell Atlantic

Corp., 336 NLRB 1076, 1086-89 (2001) (union waived right to

bargain over employers decision to close facility and

transfer work to nonunion facility where it received notice of

decision in August and did not request bargaining until

December, even though no unit work would be relocated before

the following April).

70

See St. Barnabas Medical Center, 341 NLRB 1325, 1325 (2004)

(union did not incur traditional bargaining obligations by

requesting that employer meet to discuss feasibility of wage

reopener, and employer violated Section 8(a)(5) by

unilaterally implementing wage increases after an impasse in

those negotiations).

71

See Boeing Co., 337 NLRB 758, 763 (2002) (employer did not

incur bargaining obligation by agreeing to unions request to

consider midterm modification); Connecticut Power Co., 271

NLRB 766, 766-67 (Section 8(d) does not require an employer

who suggests a midterm contract change to negotiate about it).

NLRB-FOIA-00010223

Case 19-CA-32431

- 29 -

rights and gain assurance that Boeing will respect those

rights.72
The notice reading is particularly effective if

read by an official who personally committed some of the

violations, or read by a Board agent in his presence, in order

to dispel the atmosphere of intimidation he created.73

Finally, to remedy the Section 8(a)(3) violation, the

Region should seek an order requiring Boeing to maintain the

second line in Washington.


At the time of the discriminatory

conduct, Boeing intended to use the second line to assemble

three 787 aircraft each month, while assembling seven 787

aircraft each month on the first line in Everett.


At present,

even the first line is not producing up to capacity because of

problems with suppliers and FAA certification.


Thus, the

Region should seek an order requiring that, as Boeing

production increases, the first ten aircraft assembled each

72

See, e.g., Homer D. Bronson Co., 349 NLRB 512, 515 (2007),

enfd. 273 F. Appx 32 (2d Cir. 2008) (notice reading is an

effective but moderate way to let in a warming wind of

information, and more important, reassurance); Federated

Logistics & Operations, 340 NLRB 255, 258 (2003), affd. 400

F.3d 920 (D.C. Cir. 2005) (employees will perceive that the

Respondent and its managers are bound by the requirements of

the Act).

73

Three Sisters Sportswear Co., 312 NLRB 853, 853 (1993),

enfd. mem. 55 F3d 684 (D.C. Cir. 1995), cert. denied 516 U.S.

1093 (1996).
See also, e.g., Homer D. Bronson Co., 349 NLRB

at 515 (reading by president of manufacturing, who personally

delivered speeches threatening plant closure or relocation);

Texas Super Foods, 303 NLRB 209, 209 (1991) notice reading by

owner and president who signed unlawful letters to unit

employees, drafted unlawful speech threatening job losses, and

personally gave the speech to at least two groups of

employees).

NLRB-FOIA-00010224

Case 19-CA-32431

- 30 -

month be assembled by the Puget Sound unit employees and that

the supply lines for these aircraft be maintained in the Puget

Sound and Portland facilities.74

B.J.K.

ROFs - 9

H:ADV.19-CA-32431.Response2.Boeing.dlw

74

At this time, we do not reach a decision on the Unions

request for preliminary injunctive relief.


The Region should

reassess whether Section 10(j) relief is warranted after the

case is tried before the Administrative Law Judge.


In the

meantime, the Region should put evidence in the record

regarding the chilling impact of Boeings violative statements

and conduct to support the notice-reading remedy.


This will

facilitate use of the administrative record to demonstrate in

a subsequent Section 10(j) proceeding that preliminary

injunctive relief is just and proper.

NLRB-FOIA-00010225

Microsoft Outlook

From:
Sent:
To:
Subject:
Attachments:

Jablonski, Colleen G.

Tuesday, May 25, 2010 8:07 PM

Kobe, James

FW : Boeing Company, Case 19-CA-32431

ADV.19-CA-32431.Boeing.Memo to Advice and Special Lit. req. Permission to Subpoena

Video Tape.pdf

From: Estep, Susan C.

Sent: Tuesday, May 25, 2010 5:16 PM

To: Jablonski, Colleen G.; Todd, Dianne; Perkins, Victoria

Subject: FW: Boeing Company, Case 19-CA-32431

See attached.

Susan C. Estep, Secretary to the Regional Director

NLRB, Region 19, Seattle

206.220.6333; FAX 206. 220.6305

From: Estep, Susan C.

Sent: Tuesday, May 25, 2010 2:12 PM

To: Kearney, Barry J.; Moskowitz, Eric G.

Cc: Baniszewski, Joseph; Ahearn, Richard L.

Subject: Boeing Company, Case 19-CA-32431

Per Regional Director Ahearns instructions, attached is a memo requesting guidance in the above case.

Susan C. Estep, Secretary to the Regional Director

NLRB, Region 19, Seattle

206.220.6333; FAX 206. 220.6305

NLRB-FOIA-00010226

U N IT E D S T A T E S G O V E R N M E N T

N a tio n a lLa b o r R elations B o a rd

M em orandum

B arry J. K earney, A ssociate G eneral C ounsel

D ivision of A dvice

TO :

DATE:

M a y 25, 2 010

E ric G . M oskow itz, A ssistan t G eneral C ounsel

S pecial Litigation B ranch

FR O M :

R ichard L. A hearn, R egional D irector

R egion 1 9, S eattle, W A

S U B JE C T :

B oeing C om pany

C ase 1 9-C A -32431

T his R egion is currently investigating charge 1 9-C A -32431 filed b y the IA M & A W a gainst

T he B oeing C om pany. A s part of the investigation, the assigned B oard A gent is

seeking a v ideo tape from the S eattle T im es new spaper. A s C H M 11770.4 requires

clearance from H eadquarters p rior to the issuance o f an investigative s ubpoena w here

"the subpoena s eeks e vidence from a m em ber of the p ress to e licit testim ony relating to

inform ation gained in his or h er p rofessional capacity o r requiring the production of

m aterials secured a s a result of new s g athering a ctivities," I am subm itting this request.

T he E m ployer, a m anufacturer of airplanes, a nnounced in O ctober 2009 that it w ould be

placing a s econd assem bly line for the 787 D ream liner in S outh C arolina a t its non-

union facility instead of at its u nion-represented facility in E verett, W ashington w here the

first assem bly line is located. T he charge alleges, am ong other item s, that the

E m ployer p laced the s econd line in S outh C arolina in retaliation for the u nit e m ployees

engaging in strikes in 2008 a nd p rior years.

In M arch 2010, a local reporter for the S eattle T im es new spaper video-taped his

interview w ith Jim A lbaugh, C E O of B oeing C om m ercial A irplanes. In that three-part

interview , M r. A lbaugh states B oeing's reasons for placing the second line in S outh

C arolina - labor strife a nd increased w ages. T hus, the R egion s eeks p ossession o f the

video as it contains d irect statem ents from a B oeing o fficialregarding B oeing's reasons

for placing the s econd line in S . C arolina.

W e requested the v ideo from the S eattle T im es, w hich is available for p urchase a t$ 35

for each o f three tapes, b ut the follow ing restrictions w ere p laced on the u se o f the video

under those circum stances.

P urchase of video d o e s n o t transfer copyright and is fo r personalu se o nly.

N o m odelo r property release e xists.

O nly S eattle T im es sta ff produced video is fo r purchase.

V ideos a re d igitalfon nat, b urned on a D V D a t least 640 resolution or m ore.

NLRB-FOIA-00010227

C ase 1 9-C A -32431

M ay 25 ,2 0 1 0

-2-

N o posting online, w ebsite or use in blogs.

V ideo is intended for editorialu se and n ot to b e u sed for prom otion or advertisem ent.

V ideo is p rovided to you a s is for your personalu se o nly a nd m ay not b e c opied, reproduced, d istributed. b roadcast, d isplayed,

sold, licensed or otherw ise e xploited for any other purpose w hatsoever.

Ifyou a re interested in licensing video content for com m ercialu se, please contact us at eedens@ seattletim es.com .

A s such, w e w ish to subpoena the video tape in order to not be lim ited by the

new spaper's use restrictions.

P lease advise.

R . L. A .

cc:

Joe B aniszew ski, D eputy A G e

D ivision o f O perations M anagem ent

NLRB-FOIA-00010228

Microsoft Outlook

From:
Sent:
To:
Subject:

Jablonski, Colleen G.

W ednesday, May 26, 2010 6:11 PM

Kobe, James

FW : Boeing Company, Case 19-CA-32431

fyi

From: Ahearn, Richard L.

Sent: Wednesday, May 26, 2010 6:05 PM

To: Moskowitz, Eric G.

Cc: Kearney, Barry J.; Platt, Nancy; Flanagan, Kevin P.

Subject: RE: Boeing Company, Case 19-CA-32431

Many thanks; look forward to your response.

rich

From: Moskowitz, Eric G.

Sent: Wednesday, May 26, 2010 1:57 PM

To: Ahearn, Richard L.

Cc: Kearney, Barry J.; Platt, Nancy; Flanagan, Kevin P.

Subject: RE: Boeing Company, Case 19-CA-32431

Off the cuff, I do not think this raises

Exemption 5

Nancy Platt and Kevin Flanagan are looking into this.

Eric

From: Ahearn, Richard L.

Sent: Tuesday, May 25, 2010 7:09 PM

To: Moskowitz, Eric G.

Subject: RE: Boeing Company, Case 19-CA-32431

Eric,

We (in the metaphorical sense)did not attempt to determine that; in fact it was Andrew Martin of our library who

made the request. However we thought it would be

Exemption 5

Rich

From: Moskowitz, Eric G.

Sent: Tuesday, May 25, 2010 2:36 PM

To: Ahearn, Richard L.

Subject: FW: Boeing Company, Case 19-CA-32431

Rich:

Question: Has anyone in the Region determined from the Seattle Times what they mean by

Exemption 5

Eric

NLRB-FOIA-00010229

From: Estep, Susan C.

Sent: Tuesday, May 25, 2010 5:12 PM

To: Kearney, Barry J.; Moskowitz, Eric G.

Cc: Baniszewski, Joseph; Ahearn, Richard L.

Subject: Boeing Company, Case 19-CA-32431

Per Regional Director Ahearns instructions, attached is a memo requesting guidance in the above case.

Susan C. Estep, Secretary to the Regional Director

NLRB, Region 19, Seattle

206.220.6333; FAX 206. 220.6305

NLRB-FOIA-00010230

Microsoft Outlook

From:
Sent:
To:
Subject:

CA-32431

Kobe, James

Thursday, July 08, 2010 8:50 PM

Estep, Susan C.

THese are the last ?? heh heh

Boeing Company

On 5/25/10 Regional Memo to Advice and Special Litigation

submitted per CHM Section 11770.4 seeking clearance to issue

a subpoena as the Region proposes issuing a subpoena to

members of the press requiring the production of materials

secured as a result of news gathering activities.

non-responsive

NLRB-FOIA-00010231

non-responsive

NLRB-FOIA-00010232

non-responsive

NLRB-FOIA-00010233

non-responsive

Jim Kobe

ARD, Region 19

206-220-6314

NLRB-FOIA-00010234

Microsoft Outlook

From:

Kobe, James

Sent:

Monday, February 07, 2011 5:04 PM

To:

Estep, Susan C.

Subject:

First draft of EOM Excuses

Attachments:

OALIST for JAn 11 jrk edited.doc

Jim Kobe

ARD, Region 19

206-220-6314

NLRB-FOIA-00010235

Cases Pending Disposition

Non-Responsive

NLRB-FOIA-00010236

Fn

Docket No.

Case Name

Date Filed

Overage

Category

Non-Responsive

Page 2

NLRB-FOIA-00010237

Fn

Docket No.

Case Name

Date Filed

Overage

Category

Non-Responsive

Page 3

NLRB-FOIA-00010238

Fn

Docket No.

Case Name

Date Filed

Overage

Category

Non-Responsive

9.

19-CA-32811)

Boeing Company
Last month: This charge involves allegations that are intimately

related to and parallel with the allegations contained in 19-CA-32431

which is currently before Advice.

11/1/10

The first, and primary charge (19-CA-32431) concerned allegations by

the Union that Boeing unlawfully announced and began planning (and,

in fact, had begun initial construction) for a new, nonunion facility in

South Carolina to manufacture 787 airplanes when, at the same time,

there was ongoing 787 construction in Everett, W ashington with a

unionized force that was covered by a collective bargaining

agreement. Such initial charge also included the GENERAL allegation

that the Employer also violated the Act by outsourcing/subcontracting

the production of ancillary parts and equipment (e.g., airplane seats,

etc.) to third parties. That case is currently still in Advice with oral

presentations by the parties having been scheduled. In the instant

charge, i.e., CA-32811, the Union further (and relatedly) alleges the

Employer unlawfully announced the SPECIFICS of its intentions to

outsource/subcontract specific fabrication of specific ancillary parts

and equipment to third parties.

Non-Responsive

Page 4

NLRB-FOIA-00010239

Fn

Docket No.

Case Name

Date Filed

Overage

Category

Non-Responsive

Page 5

NLRB-FOIA-00010240

Fn

Docket No.

Case Name

Date Filed

Overage

Category

Non-Responsive

Page 6

NLRB-FOIA-00010241

Fn

Docket No.

Case Name

Date Filed

Overage

Category

Non-Responsive

Page 7

NLRB-FOIA-00010242

Microsoft Outlook

From:

Kobe, James

Sent:

Monday, February 07, 2011 7:01 PM

To:

Estep, Susan C.

Subject:

Further excuses (in RED)

Attachments:

OALIST for JAn 11 jrk edited.doc

Jim Kobe

ARD, Region 19

206-220-6314

NLRB-FOIA-00010243

Cases Pending Disposition

Non-Responsive

NLRB-FOIA-00010244

Fn

Docket No.

Case Name

Date Filed

Overage

Category

Non-Responsive

Page 2

NLRB-FOIA-00010245

Fn

Docket No.

Case Name

Date Filed

Overage

Category

Non-Responsive

Page 3

NLRB-FOIA-00010246

Fn

Docket No.

Case Name

Date Filed

Overage

Category

Non-Responsive

9.

19-CA-32811)

Boeing Company
Last month: This charge involves allegations that are intimately

related to and parallel with the allegations contained in 19-CA-32431

which is currently before Advice.

11/1/10

The first, and primary charge (19-CA-32431) concerned allegations by

the Union that Boeing unlawfully announced and began planning (and,

in fact, had begun initial construction) for a new, nonunion facility in

South Carolina to manufacture 787 airplanes when, at the same time,

there was ongoing 787 construction in Everett, W ashington with a

unionized force that was covered by a collective bargaining

agreement. Such initial charge also included the GENERAL allegation

that the Employer also violated the Act by outsourcing/subcontracting

the production of ancillary parts and equipment (e.g., airplane seats,

etc.) to third parties. That case is currently still in Advice with oral

presentations by the parties having been scheduled. In the instant

charge, i.e., CA-32811, the Union further (and relatedly) alleges the

Employer unlawfully announced the SPECIFICS of its intentions to

outsource/subcontract specific fabrication of specific ancillary parts

and equipment to third parties.

Non-Responsive

Page 4

NLRB-FOIA-00010247

Fn

Docket No.

Case Name

Date Filed

Overage

Category

Non-Responsive

Page 5

NLRB-FOIA-00010248

Fn

Docket No.

Case Name

Date Filed

Overage

Category

Non-Responsive

Page 6

NLRB-FOIA-00010249

Fn

Docket No.

Case Name

Date Filed

Overage

Category

Non-Responsive

Page 7

NLRB-FOIA-00010250

Microsoft Outlook

Non-Responsive

From: Szapiro, Miriam

Sent: Monday, November 22, 2010 11:49 AM

To: Martin, Andrew

Subject: book order request

Hi Andrew, Advice needs the following book in relation to a current case. Can the library

order it for us?

Turbulence: Boeing and the State of American Workers and Managers

http://www.amazon.com/Turbulence-Boeing-American-Workers-Managers/dp/0300154615

Thanks,

Miriam Szapiro

Miriam Szapiro

Supervisory attorney

NLRB Division of Advice

202-273-0998

Miriam.Szapiro@nlrb.gov

NLRB-FOIA-00010251

Microsoft Outlook

From:
Sent:
To:
Subject:

Martin, Andrew

Monday, November 22, 2010 12:00 PM

Szapiro, Miriam

RE: book order request

Ive passed this on to the Powers That Be. Im sure youll be shocked to learn that there are some bureaucratic hoops to

jump through, but hopefully well be able to get this for you soon.

From: Szapiro, Miriam

Sent: Monday, November 22, 2010 11:49 AM

To: Martin, Andrew

Subject: book order request

Hi Andrew, Advice needs the following book in relation to a current case. Can the library

order it for us?

Turbulence: Boeing and the State of American Workers and Managers

http://www.amazon.com/Turbulence-Boeing-American-Workers-Managers/dp/0300154615

Thanks,

Miriam Szapiro

Miriam Szapiro

Supervisory attorney

NLRB Division of Advice

202-273-0998

Miriam.Szapiro@nlrb.gov

NLRB-FOIA-00010252

Microsoft Outlook

Nonresponsive

From: Szapiro, Miriam

Sent: Monday, November 22, 2010 11:49 AM

To: Martin, Andrew

Subject: book order request

Hi Andrew, Advice needs the following book in relation to a current case. Can the library

order it for us?

Turbulence: Boeing and the State of American Workers and Managers

http://www.amazon.com/Turbulence-Boeing-American-Workers-Managers/dp/0300154615

Thanks,

Miriam Szapiro

Miriam Szapiro

Supervisory attorney

NLRB Division of Advice

202-273-0998

Miriam.Szapiro@nlrb.gov

NLRB-FOIA-00010253

Microsoft Outlook

Nonresponsive

From: Szapiro, Miriam

Sent: Monday, November 22, 2010 11:49 AM

To: Martin, Andrew

Subject: book order request

Hi Andrew, Advice needs the following book in relation to a current case. Can the library

order it for us?

Turbulence: Boeing and the State of American Workers and Managers

http://www.amazon.com/Turbulence-Boeing-American-Workers-Managers/dp/0300154615

Thanks,

Miriam Szapiro

Miriam Szapiro

Supervisory attorney

NLRB Division of Advice

202-273-0998

Miriam.Szapiro@nlrb.gov

NLRB-FOIA-00010254

Microsoft Outlook

Nonresponsive

From: Szapiro, Miriam

Sent: Monday, November 22, 2010 11:49 AM

To: Martin, Andrew

Subject: book order request

Hi Andrew, Advice needs the following book in relation to a current case. Can the library

order it for us?

Turbulence: Boeing and the State of American Workers and Managers

http://www.amazon.com/Turbulence-Boeing-American-Workers-Managers/dp/0300154615

Thanks,

Miriam Szapiro

Miriam Szapiro

Supervisory attorney

NLRB Division of Advice

202-273-0998

Miriam.Szapiro@nlrb.gov

NLRB-FOIA-00010255

Microsoft Outlook

Nonresponsive

From: Szapiro, Miriam

Sent: Monday, November 22, 2010 11:49 AM

To: Martin, Andrew

Subject: book order request

Hi Andrew, Advice needs the following book in relation to a current case. Can the library

order it for us?

Turbulence: Boeing and the State of American Workers and Managers

http://www.amazon.com/Turbulence-Boeing-American-Workers-Managers/dp/0300154615

Thanks,

Miriam Szapiro

Miriam Szapiro

NLRB-FOIA-00010256

Supervisory attorney

NLRB Division of Advice

202-273-0998

Miriam.Szapiro@nlrb.gov

NLRB-FOIA-00010257

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:
Attachments:

Estep, Susan C.

Tuesday, May 25, 2010 5:12 PM

Kearney, Barry J.; Moskowitz, Eric G.

Baniszewski, Joseph; Ahearn, Richard L.

Boeing Company, Case 19-CA-32431

ADV.19-CA-32431.Boeing.Memo to Advice and Special Lit. req. Permission to Subpoena

Video Tape.pdf

Per Regional Director Ahearns instructions, attached is a memo requesting guidance in the above case.

Susan C. Estep, Secretary to the Regional Director

NLRB, Region 19, Seattle

206.220.6333; FAX 206. 220.6305

NLRB-FOIA-00010258

U N IT E D S T A T E S G O V E R N M E N T

N a tio n a lLa b o r R elations B o a rd

M em orandum

B arry J. K earney, A ssociate G eneral C ounsel

D ivision of A dvice

TO :

DATE:

M a y 25, 2 010

E ric G . M oskow itz, A ssistan t G eneral C ounsel

S pecial Litigation B ranch

FR O M :

R ichard L. A hearn, R egional D irector

R egion 1 9, S eattle, W A

S U B JE C T :

B oeing C om pany

C ase 1 9-C A -32431

T his R egion is currently investigating charge 1 9-C A -32431 filed b y the IA M & A W a gainst

T he B oeing C om pany. A s part of the investigation, the assigned B oard A gent is

seeking a v ideo tape from the S eattle T im es new spaper. A s C H M 11770.4 requires

clearance from H eadquarters p rior to the issuance o f an investigative s ubpoena w here

"the subpoena s eeks e vidence from a m em ber of the p ress to e licit testim ony relating to

inform ation gained in his or h er p rofessional capacity o r requiring the production of

m aterials secured a s a result of new s g athering a ctivities," I am subm itting this request.

T he E m ployer, a m anufacturer of airplanes, a nnounced in O ctober 2009 that it w ould be

placing a s econd assem bly line for the 787 D ream liner in S outh C arolina a t its non-

union facility instead of at its u nion-represented facility in E verett, W ashington w here the

first assem bly line is located. T he charge alleges, am ong other item s, that the

E m ployer p laced the s econd line in S outh C arolina in retaliation for the u nit e m ployees

engaging in strikes in 2008 a nd p rior years.

In M arch 2010, a local reporter for the S eattle T im es new spaper video-taped his

interview w ith Jim A lbaugh, C E O of B oeing C om m ercial A irplanes. In that three-part

interview , M r. A lbaugh states B oeing's reasons for placing the second line in S outh

C arolina - labor strife a nd increased w ages. T hus, the R egion s eeks p ossession o f the

video as it contains d irect statem ents from a B oeing o fficialregarding B oeing's reasons

for placing the s econd line in S . C arolina.

W e requested the v ideo from the S eattle T im es, w hich is available for p urchase a t$ 35

for each o f three tapes, b ut the follow ing restrictions w ere p laced on the u se o f the video

under those circum stances.

P urchase of video d o e s n o t transfer copyright and is fo r personalu se o nly.

N o m odelo r property release e xists.

O nly S eattle T im es sta ff produced video is fo r purchase.

V ideos a re d igitalfon nat, b urned on a D V D a t least 640 resolution or m ore.

NLRB-FOIA-00010259

C ase 1 9-C A -32431

M ay 25 ,2 0 1 0

-2-

N o posting online, w ebsite or use in blogs.

V ideo is intended for editorialu se and n ot to b e u sed for prom otion or advertisem ent.

V ideo is p rovided to you a s is for your personalu se o nly a nd m ay not b e c opied, reproduced, d istributed. b roadcast, d isplayed,

sold, licensed or otherw ise e xploited for any other purpose w hatsoever.

Ifyou a re interested in licensing video content for com m ercialu se, please contact us at eedens@ seattletim es.com .

A s such, w e w ish to subpoena the video tape in order to not be lim ited by the

new spaper's use restrictions.

P lease advise.

R . L. A .

cc:

Joe B aniszew ski, D eputy A G e

D ivision o f O perations M anagem ent

NLRB-FOIA-00010260

Microsoft Outlook

From:
Sent:
To:
Subject:
Attachments:

Moskowitz, Eric G.

Tuesday, May 25, 2010 5:36 PM

Ahearn, Richard L.

FW : Boeing Company, Case 19-CA-32431

ADV.19-CA-32431.Boeing.Memo to Advice and Special Lit. req. Permission to Subpoena

Video Tape.pdf

Rich:

Question: Has anyone in the Region determined from the Seattle Times what they mean by

Exemption 5

Eric

From: Estep, Susan C.

Sent: Tuesday, May 25, 2010 5:12 PM

To: Kearney, Barry J.; Moskowitz, Eric G.

Cc: Baniszewski, Joseph; Ahearn, Richard L.

Subject: Boeing Company, Case 19-CA-32431

Per Regional Director Ahearns instructions, attached is a memo requesting guidance in the above case.

Susan C. Estep, Secretary to the Regional Director

NLRB, Region 19, Seattle

206.220.6333; FAX 206. 220.6305

NLRB-FOIA-00010261

U N IT E D S T A T E S G O V E R N M E N T

N a tio n a lLa b o r R elations B o a rd

M em orandum

B arry J. K earney, A ssociate G eneral C ounsel

D ivision of A dvice

TO :

DATE:

M a y 25, 2 010

E ric G . M oskow itz, A ssistan t G eneral C ounsel

S pecial Litigation B ranch

FR O M :

R ichard L. A hearn, R egional D irector

R egion 1 9, S eattle, W A

S U B JE C T :

B oeing C om pany

C ase 1 9-C A -32431

T his R egion is currently investigating charge 1 9-C A -32431 filed b y the IA M & A W a gainst

T he B oeing C om pany. A s part of the investigation, the assigned B oard A gent is

seeking a v ideo tape from the S eattle T im es new spaper. A s C H M 11770.4 requires

clearance from H eadquarters p rior to the issuance o f an investigative s ubpoena w here

"the subpoena s eeks e vidence from a m em ber of the p ress to e licit testim ony relating to

inform ation gained in his or h er p rofessional capacity o r requiring the production of

m aterials secured a s a result of new s g athering a ctivities," I am subm itting this request.

T he E m ployer, a m anufacturer of airplanes, a nnounced in O ctober 2009 that it w ould be

placing a s econd assem bly line for the 787 D ream liner in S outh C arolina a t its non-

union facility instead of at its u nion-represented facility in E verett, W ashington w here the

first assem bly line is located. T he charge alleges, am ong other item s, that the

E m ployer p laced the s econd line in S outh C arolina in retaliation for the u nit e m ployees

engaging in strikes in 2008 a nd p rior years.

In M arch 2010, a local reporter for the S eattle T im es new spaper video-taped his

interview w ith Jim A lbaugh, C E O of B oeing C om m ercial A irplanes. In that three-part

interview , M r. A lbaugh states B oeing's reasons for placing the second line in S outh

C arolina - labor strife a nd increased w ages. T hus, the R egion s eeks p ossession o f the

video as it contains d irect statem ents from a B oeing o fficialregarding B oeing's reasons

for placing the s econd line in S . C arolina.

W e requested the v ideo from the S eattle T im es, w hich is available for p urchase a t$ 35

for each o f three tapes, b ut the follow ing restrictions w ere p laced on the u se o f the video

under those circum stances.

P urchase of video d o e s n o t transfer copyright and is fo r personalu se o nly.

N o m odelo r property release e xists.

O nly S eattle T im es sta ff produced video is fo r purchase.

V ideos a re d igitalfon nat, b urned on a D V D a t least 640 resolution or m ore.

NLRB-FOIA-00010262

C ase 1 9-C A -32431

M ay 25 ,2 0 1 0

-2-

N o posting online, w ebsite or use in blogs.

V ideo is intended for editorialu se and n ot to b e u sed for prom otion or advertisem ent.

V ideo is p rovided to you a s is for your personalu se o nly a nd m ay not b e c opied, reproduced, d istributed. b roadcast, d isplayed,

sold, licensed or otherw ise e xploited for any other purpose w hatsoever.

Ifyou a re interested in licensing video content for com m ercialu se, please contact us at eedens@ seattletim es.com .

A s such, w e w ish to subpoena the video tape in order to not be lim ited by the

new spaper's use restrictions.

P lease advise.

R . L. A .

cc:

Joe B aniszew ski, D eputy A G e

D ivision o f O perations M anagem ent

NLRB-FOIA-00010263

Microsoft Outlook

From:
Sent:
To:
Subject:

Eric,

Ahearn, Richard L.

Tuesday, May 25, 2010 7:09 PM

Moskowitz, Eric G.

RE: Boeing Company, Case 19-CA-32431

We (in the metaphorical sense)did not attempt to determine that; in fact it was Andrew Martin of our library who

made the request. However we thought it would be

Exemption 5

Rich

From: Moskowitz, Eric G.

Sent: Tuesday, May 25, 2010 2:36 PM

To: Ahearn, Richard L.

Subject: FW: Boeing Company, Case 19-CA-32431

Rich:

Question: Has anyone in the Region determined from the Seattle Times what they mean by

Exemption 5

Eric

From: Estep, Susan C.

Sent: Tuesday, May 25, 2010 5:12 PM

To: Kearney, Barry J.; Moskowitz, Eric G.

Cc: Baniszewski, Joseph; Ahearn, Richard L.

Subject: Boeing Company, Case 19-CA-32431

Per Regional Director Ahearns instructions, attached is a memo requesting guidance in the above case.

Susan C. Estep, Secretary to the Regional Director

NLRB, Region 19, Seattle

206.220.6333; FAX 206. 220.6305

NLRB-FOIA-00010264

Microsoft Outlook

From:
Sent:
To:
Subject:

Moskowitz, Eric G.

W ednesday, May 26, 2010 12:16 PM

Platt, Nancy; Flanagan, Kevin P.

FW : Boeing Company, Case 19-CA-32431

From: Ahearn, Richard L.

Sent: Tuesday, May 25, 2010 7:09 PM

To: Moskowitz, Eric G.

Subject: RE: Boeing Company, Case 19-CA-32431

Eric,

We (in the metaphorical sense)did not attempt to determine that; in fact it was Andrew Martin of our library who

made the request. However we thought it would be

Exemption 5

Rich

From: Moskowitz, Eric G.

Sent: Tuesday, May 25, 2010 2:36 PM

To: Ahearn, Richard L.

Subject: FW: Boeing Company, Case 19-CA-32431

Rich:

Question: Has anyone in the Region determined from the Seattle Times what they mean by

Exemption 5

Eric

From: Estep, Susan C.

Sent: Tuesday, May 25, 2010 5:12 PM

To: Kearney, Barry J.; Moskowitz, Eric G.

Cc: Baniszewski, Joseph; Ahearn, Richard L.

Subject: Boeing Company, Case 19-CA-32431

Per Regional Director Ahearns instructions, attached is a memo requesting guidance in the above case.

Susan C. Estep, Secretary to the Regional Director

NLRB, Region 19, Seattle

206.220.6333; FAX 206. 220.6305

NLRB-FOIA-00010265

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:

Moskowitz, Eric G.

W ednesday, May 26, 2010 4:57 PM

Ahearn, Richard L.

Kearney, Barry J.; Platt, Nancy; Flanagan, Kevin P.

RE: Boeing Company, Case 19-CA-32431

Off the cuff, I do not think this raises

Exemption 5

Nancy Platt and Kevin Flanagan are looking into this.

Eric

From: Ahearn, Richard L.

Sent: Tuesday, May 25, 2010 7:09 PM

To: Moskowitz, Eric G.

Subject: RE: Boeing Company, Case 19-CA-32431

Eric,

We (in the metaphorical sense)did not attempt to determine that; in fact it was Andrew Martin of our library who

made the request. However we thought it would be

Exemption 5

Rich

From: Moskowitz, Eric G.

Sent: Tuesday, May 25, 2010 2:36 PM

To: Ahearn, Richard L.

Subject: FW: Boeing Company, Case 19-CA-32431

Rich:

Question: Has anyone in the Region determined from the Seattle Times what they mean by

Exemption 5

Eric

From: Estep, Susan C.

Sent: Tuesday, May 25, 2010 5:12 PM

To: Kearney, Barry J.; Moskowitz, Eric G.

Cc: Baniszewski, Joseph; Ahearn, Richard L.

Subject: Boeing Company, Case 19-CA-32431

Per Regional Director Ahearns instructions, attached is a memo requesting guidance in the above case.

Susan C. Estep, Secretary to the Regional Director

NLRB, Region 19, Seattle

206.220.6333; FAX 206. 220.6305

NLRB-FOIA-00010266

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:

Ahearn, Richard L.

W ednesday, May 26, 2010 6:05 PM

Moskowitz, Eric G.

Kearney, Barry J.; Platt, Nancy; Flanagan, Kevin P.

RE: Boeing Company, Case 19-CA-32431

Many thanks; look forward to your response.

rich

From: Moskowitz, Eric G.

Sent: Wednesday, May 26, 2010 1:57 PM

To: Ahearn, Richard L.

Cc: Kearney, Barry J.; Platt, Nancy; Flanagan, Kevin P.

Subject: RE: Boeing Company, Case 19-CA-32431

Off the cuff, I do not think this raises

Exemption 5

Nancy Platt and Kevin Flanagan are looking into this.

Eric

From: Ahearn, Richard L.

Sent: Tuesday, May 25, 2010 7:09 PM

To: Moskowitz, Eric G.

Subject: RE: Boeing Company, Case 19-CA-32431

Eric,

We (in the metaphorical sense)did not attempt to determine that; in fact it was Andrew Martin of our library who

made the request. However we thought it would be

Exemption 5

Rich

From: Moskowitz, Eric G.

Sent: Tuesday, May 25, 2010 2:36 PM

To: Ahearn, Richard L.

Subject: FW: Boeing Company, Case 19-CA-32431

Rich:

Question: Has anyone in the Region determined from the Seattle Times what they mean by

Exemption 5

Eric

From: Estep, Susan C.

Sent: Tuesday, May 25, 2010 5:12 PM

To: Kearney, Barry J.; Moskowitz, Eric G.

Cc: Baniszewski, Joseph; Ahearn, Richard L.

Subject: Boeing Company, Case 19-CA-32431

Per Regional Director Ahearns instructions, attached is a memo requesting guidance in the above case.

NLRB-FOIA-00010267

Susan C. Estep, Secretary to the Regional Director

NLRB, Region 19, Seattle

206.220.6333; FAX 206. 220.6305

NLRB-FOIA-00010268

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:

Kearney, Barry J.

W ednesday, May 26, 2010 6:10 PM

Ahearn, Richard L.; Moskowitz, Eric G.

Platt, Nancy; Flanagan, Kevin P.; Sophir, Jayme

Re: Boeing Company, Case 19-CA-32431

Exemption 5
--------------------------

Sent from my BlackBerry Wireless Handheld

From: Ahearn, Richard L.

To: Moskowitz, Eric G.

Cc: Kearney, Barry J.; Platt, Nancy; Flanagan, Kevin P.

Sent: Wed May 26 18:05:25 2010

Subject: RE: Boeing Company, Case 19-CA-32431

Many thanks; look forward to your response.

rich

From: Moskowitz, Eric G.

Sent: Wednesday, May 26, 2010 1:57 PM

To: Ahearn, Richard L.

Cc: Kearney, Barry J.; Platt, Nancy; Flanagan, Kevin P.

Subject: RE: Boeing Company, Case 19-CA-32431

Off the cuff, I do not think this raises

Exemption 5

Nancy Platt and Kevin Flanagan are looking into this.

Eric

From: Ahearn, Richard L.

Sent: Tuesday, May 25, 2010 7:09 PM

To: Moskowitz, Eric G.

Subject: RE: Boeing Company, Case 19-CA-32431

Eric,

We (in the metaphorical sense)did not attempt to determine that; in fact it was Andrew Martin of our library who

made the request. However we thought it would be

Exemption 5

Rich

From: Moskowitz, Eric G.

Sent: Tuesday, May 25, 2010 2:36 PM

To: Ahearn, Richard L.

Subject: FW: Boeing Company, Case 19-CA-32431

Rich:

Question: Has anyone in the Region determined from the Seattle Times what they mean by
Exemption 5

NLRB-FOIA-00010269

Eric

From: Estep, Susan C.

Sent: Tuesday, May 25, 2010 5:12 PM

To: Kearney, Barry J.; Moskowitz, Eric G.

Cc: Baniszewski, Joseph; Ahearn, Richard L.

Subject: Boeing Company, Case 19-CA-32431

Per Regional Director Ahearns instructions, attached is a memo requesting guidance in the above case.

Susan C. Estep, Secretary to the Regional Director

NLRB, Region 19, Seattle

206.220.6333; FAX 206. 220.6305

NLRB-FOIA-00010270

Microsoft Outlook

From:
Sent:
To:
Subject:

Flanagan, Kevin P.

Thursday, May 27, 2010 9:43 AM

Moskowitz, Eric G.; Platt, Nancy

RE: Boeing Company, Case 19-CA-32431

Heres my take:

Exemption 5

(1)

Exemption 5

(2) A separate issue

Exemption 5

NLRB-FOIA-00010271

Exemption 5

From: Moskowitz, Eric G.

Sent: Wednesday, May 26, 2010 4:57 PM

To: Ahearn, Richard L.

Cc: Kearney, Barry J.; Platt, Nancy; Flanagan, Kevin P.

Subject: RE: Boeing Company, Case 19-CA-32431

Off the cuff, I do not think this raises

Exemption 5

Nancy Platt and Kevin Flanagan are looking into this.

Eric

From: Ahearn, Richard L.

Sent: Tuesday, May 25, 2010 7:09 PM

To: Moskowitz, Eric G.

Subject: RE: Boeing Company, Case 19-CA-32431

Eric,

We (in the metaphorical sense)did not attempt to determine that; in fact it was Andrew Martin of our library who

made the request. However we thought it would be

Exemption 5

Rich

From: Moskowitz, Eric G.

Sent: Tuesday, May 25, 2010 2:36 PM

To: Ahearn, Richard L.

Subject: FW: Boeing Company, Case 19-CA-32431

Rich:

Question: Has anyone in the Region determined from the Seattle Times what they mean by

Exemption 5

Eric

From: Estep, Susan C.

Sent: Tuesday, May 25, 2010 5:12 PM

To: Kearney, Barry J.; Moskowitz, Eric G.

Cc: Baniszewski, Joseph; Ahearn, Richard L.

Subject: Boeing Company, Case 19-CA-32431

Per Regional Director Ahearns instructions, attached is a memo requesting guidance in the above case.

Susan C. Estep, Secretary to the Regional Director

NLRB, Region 19, Seattle

206.220.6333; FAX 206. 220.6305

NLRB-FOIA-00010272

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:

Ahearn, Richard L.

Thursday, May 27, 2010 3:21 PM

Kearney, Barry J.; Moskowitz, Eric G.

Platt, Nancy; Flanagan, Kevin P.; Sophir, Jayme

RE: Boeing Company, Case 19-CA-32431

We havent asked that question; I understand Special Lit will be inquiring.

Rich

From: Kearney, Barry J.

Sent: Wednesday, May 26, 2010 3:10 PM

To: Ahearn, Richard L.; Moskowitz, Eric G.

Cc: Platt, Nancy; Flanagan, Kevin P.; Sophir, Jayme

Subject: Re: Boeing Company, Case 19-CA-32431

Exemption 5
--------------------------

Sent from my BlackBerry Wireless Handheld

From: Ahearn, Richard L.

To: Moskowitz, Eric G.

Cc: Kearney, Barry J.; Platt, Nancy; Flanagan, Kevin P.

Sent: Wed May 26 18:05:25 2010

Subject: RE: Boeing Company, Case 19-CA-32431

Many thanks; look forward to your response.

rich

From: Moskowitz, Eric G.

Sent: Wednesday, May 26, 2010 1:57 PM

To: Ahearn, Richard L.

Cc: Kearney, Barry J.; Platt, Nancy; Flanagan, Kevin P.

Subject: RE: Boeing Company, Case 19-CA-32431

Off the cuff, I do not think this raises

Exemption 5

Nancy Platt and Kevin Flanagan are looking into this.

Eric

From: Ahearn, Richard L.

Sent: Tuesday, May 25, 2010 7:09 PM

To: Moskowitz, Eric G.

Subject: RE: Boeing Company, Case 19-CA-32431

Eric, We (in the metaphorical sense)did not attempt to determine that; in fact it was Andrew Martin of our library who

made the request. However we thought it would be


Exemption 5

NLRB-FOIA-00010273

Rich

From: Moskowitz, Eric G.

Sent: Tuesday, May 25, 2010 2:36 PM

To: Ahearn, Richard L.

Subject: FW: Boeing Company, Case 19-CA-32431

Rich:

Question: Has anyone in the Region determined from the Seattle Times what they mean by
Exemption 5

Eric

From: Estep, Susan C.

Sent: Tuesday, May 25, 2010 5:12 PM

To: Kearney, Barry J.; Moskowitz, Eric G.

Cc: Baniszewski, Joseph; Ahearn, Richard L.

Subject: Boeing Company, Case 19-CA-32431

Per Regional Director Ahearns instructions, attached is a memo requesting guidance in the above case.

Susan C. Estep, Secretary to the Regional Director

NLRB, Region 19, Seattle

206.220.6333; FAX 206. 220.6305

NLRB-FOIA-00010274

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:

Flanagan, Kevin P.

Tuesday, June 01, 2010 5:29 PM

Ahearn, Richard L.

Moskowitz, Eric G.; Platt, Nancy

FW : Extended Interview with Boeing CEO Jim Albaugh

Rich We received the following response from the Seattle Times. They seem willing to work with us,

but we need to clarify a few things.

Exemption 5

I plan on contacting Edens again to make sure the Times understands this process. Before I do, it would

be helpful to know what is the minimum number of copies you think we will need (assuming the case

goes to hearing)? Also, you mentioned in our last conversation that the Region would make a transcript

from the videos. How many copies of the transcript would need to be made?

Thanks,

Kevin

From: Evelyn Edens [mailto:eedens@seattletimes.com]

Sent: Tuesday, June 01, 2010 2:41 PM

To: Flanagan, Kevin P.

Subject: RE: Extended Interview with Boeing CEO Jim Albaugh

Hello Kevin,

Thank you for your inquiry. We would be willing to burn the video interviews as they appear on our website for your limited

use. W e would require no duplication, no posting on any website and for the exclusive purpose of internal use and

possible entering into evidence. W e would charge the fee of $35.00 per disc ( 3 discs). Let me know if that will work for

your focused request.

Regards,

Evelyn Edens

News Business Development Manager

The Seattle Times

206-464-2299

From: Flanagan, Kevin P. [mailto:Kevin.Flanagan@nlrb.gov]

Sent: Friday, May 28, 2010 6:23 AM

To: Evelyn Edens

Subject: Extended Interview with Boeing CEO Jim Albaugh

NLRB-FOIA-00010275

Dear Ms. Edens: The National Labor Relations Board (NLRB) is interested in acquiring copies of the extended video

interview Dominic Gates conducted with Boeing CEO Jim Albaugh. The video is available online at the following

URL: http://seattletimes.nwsource.com/html/businesstechnology/2011673748_video%20_albaugh.html. You

previously referred our law librarian, Andrew Martin, to a website containing terms and conditions for personal use.

The NLRB intends to use these videos as part of an ongoing investigation. Furthermore, if necessary, the NLRB intends

to introduce copies of the videos into evidence during a potential hearing involving alleged violations of the National

Labor Relations Act. As such, the terms and conditions for personal use do not appear to contemplate the NLRBs

intended uses. Please let me know whether the Seattle Times would agree to these uses of the videos--that is, whether

the NLRB may acquire the videos without the restrictions for personal use.

Thanks,

Kevin

__

Kevin Flanagan

National Labor Relations Board

Special Litigation Branch

1099 14th Street, NW

Washington, DC 20570

Phone: (202) 273-2938 Fax: (202) 273-1799

Kevin.Flanagan@nlrb.gov

NLRB-FOIA-00010276

Microsoft Outlook

From:

Flanagan, Kevin P.

Sent:

Thursday, June 03, 2010 9:29 AM

To:

Ahearn, Richard L.

Cc:

Moskowitz, Eric G.; Platt, Nancy

Subject:

Contact with Dominic Gates re: Boeing Co., 19-CA-32431

Rich: Ive confirmed with Eric that he doesnt have a problem with you responding to Dominic Gatess

inquiry into the nature of the pending investigation.

__

Kevin P. Flanagan

Special Litigation Branch

National Labor Relations Board

1099 14th Street, N.W., Suite 8600

Washington, DC 20570

phone: (202) 273-2938

fax: (202) 273-1799

e-mail: Kevin.Flanagan@nlrb.gov

NLRB-FOIA-00010277

Microsoft Outlook

From:
Sent:
To:
Subject:

Moskowitz, Eric G.

Friday, June 04, 2010 9:32 AM

Flanagan, Kevin P.; Platt, Nancy

RE: Boeing Company, Case 19-CA-32431

Advice called. They have not and will not be doing anything on this submission; and are closing the case on their docket.

Are we waiting to hear from Ahearn?

From: Flanagan, Kevin P.

Sent: Thursday, May 27, 2010 9:43 AM

To: Moskowitz, Eric G.; Platt, Nancy

Subject: RE: Boeing Company, Case 19-CA-32431

Heres my take:

Exemption 5

(1)

Exemption 5

(2) A separate issue

Exemption 5

NLRB-FOIA-00010278

Exemption 5

From: Moskowitz, Eric G.

Sent: Wednesday, May 26, 2010 4:57 PM

To: Ahearn, Richard L.

Cc: Kearney, Barry J.; Platt, Nancy; Flanagan, Kevin P.

Subject: RE: Boeing Company, Case 19-CA-32431

Off the cuff, I do not think this raises

Exemption 5

Nancy Platt and Kevin Flanagan are looking into this.

Eric

From: Ahearn, Richard L.

Sent: Tuesday, May 25, 2010 7:09 PM

To: Moskowitz, Eric G.

Subject: RE: Boeing Company, Case 19-CA-32431

Eric, We (in the metaphorical sense)did not attempt to determine that; in fact it was Andrew Martin of our library who

made the request. However we thought it would be


Exemption 5

Rich

From: Moskowitz, Eric G.

Sent: Tuesday, May 25, 2010 2:36 PM

To: Ahearn, Richard L.

Subject: FW: Boeing Company, Case 19-CA-32431

Rich:

Question: Has anyone in the Region determined from the Seattle Times what they mean by

Exemption 5

Eric

From: Estep, Susan C.

Sent: Tuesday, May 25, 2010 5:12 PM

To: Kearney, Barry J.; Moskowitz, Eric G.

Cc: Baniszewski, Joseph; Ahearn, Richard L.

Subject: Boeing Company, Case 19-CA-32431

NLRB-FOIA-00010279

Per Regional Director Ahearns instructions, attached is a memo requesting guidance in the above case.

Susan C. Estep, Secretary to the Regional Director

NLRB, Region 19, Seattle

206.220.6333; FAX 206. 220.6305

NLRB-FOIA-00010280

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:

Flanagan, Kevin P.

Tuesday, June 08, 2010 3:35 PM

'Evelyn Edens'

Ahearn, Richard L.; Snook, Dennis

RE: Extended Interview with Boeing CEO Jim Albaugh

Evelyn I have confirmed that the terms you outlined on June 1st will work. At this time, the NLRB

intends to purchase only one copy of the videos but may purchase additional copies as the investigation

proceeds. Dennis Snook in our Seattle regional office will contact you to arrange for payment and

acquisition of the videos.

Thanks,

Kevin

From: Evelyn Edens [mailto:eedens@seattletimes.com]

Sent: Tuesday, June 01, 2010 2:41 PM

To: Flanagan, Kevin P.

Subject: RE: Extended Interview with Boeing CEO Jim Albaugh

Hello Kevin,

Thank you for your inquiry. We would be willing to burn the video interviews as they appear on our website for your limited

use. W e would require no duplication, no posting on any website and for the exclusive purpose of internal use and

possible entering into evidence. W e would charge the fee of $35.00 per disc ( 3 discs). Let me know if that will work for

your focused request.

Regards,

Evelyn Edens

News Business Development Manager

The Seattle Times

206-464-2299

From: Flanagan, Kevin P. [mailto:Kevin.Flanagan@nlrb.gov]

Sent: Friday, May 28, 2010 6:23 AM

To: Evelyn Edens

Subject: Extended Interview with Boeing CEO Jim Albaugh

Dear Ms. Edens: The National Labor Relations Board (NLRB) is interested in acquiring copies of the extended video

interview Dominic Gates conducted with Boeing CEO Jim Albaugh. The video is available online at the following

URL: http://seattletimes.nwsource.com/html/businesstechnology/2011673748_video%20_albaugh.html. You

previously referred our law librarian, Andrew Martin, to a website containing terms and conditions for personal use.

The NLRB intends to use these videos as part of an ongoing investigation. Furthermore, if necessary, the NLRB intends

to introduce copies of the videos into evidence during a potential hearing involving alleged violations of the National

Labor Relations Act. As such, the terms and conditions for personal use do not appear to contemplate the NLRBs

intended uses. Please let me know whether the Seattle Times would agree to these uses of the videos--that is, whether

the NLRB may acquire the videos without the restrictions for personal use.

NLRB-FOIA-00010281

Thanks,

Kevin

__

Kevin Flanagan

National Labor Relations Board

Special Litigation Branch

1099 14th Street, NW

Washington, DC 20570

Phone: (202) 273-2938 Fax: (202) 273-1799

Kevin.Flanagan@nlrb.gov

NLRB-FOIA-00010282

Microsoft Outlook

From:

Willen, Debra L

Sent:

Thursday, October 14, 2010 2:09 PM

To:

Omberg, Bob

Subject:

Boeing memo

Attachments:

ADV.19-CA-32431.GCAgenda.Boeing.dlw.doc

I didnt forget --

NLRB-FOIA-00010283

Exemption 5

NLRB-FOIA-00010284

Exemption 5

NLRB-FOIA-00010285

Exemption 5

NLRB-FOIA-00010286

Exemption 5

NLRB-FOIA-00010287

Exemption 5

NLRB-FOIA-00010288

Exemption 5

NLRB-FOIA-00010289

Exemption 5

NLRB-FOIA-00010290

Exemption 5

NLRB-FOIA-00010291

Exemption 5

NLRB-FOIA-00010292

Exemption 5

NLRB-FOIA-00010293

Exemption 5

NLRB-FOIA-00010294

Exemption 5

NLRB-FOIA-00010295

Exemption 5

NLRB-FOIA-00010296

Exemption 5

NLRB-FOIA-00010297

Exemption 5

NLRB-FOIA-00010298

Exemption 5

NLRB-FOIA-00010299

Exemption 5

NLRB-FOIA-00010300

Exemption 5

NLRB-FOIA-00010301

Exemption 5

NLRB-FOIA-00010302

Exemption 5

NLRB-FOIA-00010303

Exemption 5

NLRB-FOIA-00010304

Exemption 5

NLRB-FOIA-00010305

Exemption 5

NLRB-FOIA-00010306

Exemption 5

NLRB-FOIA-00010307

Exemption 5

NLRB-FOIA-00010308

Microsoft Outlook

From:

Omberg, Bob

Sent:

Thursday, October 14, 2010 2:11 PM

To:

Willen, Debra L

Subject:

RE: Boeing memo

Thanks!

From: Willen, Debra L

Sent: Thursday, October 14, 2010 2:09 PM

To: Omberg, Bob

Subject: Boeing memo

I didnt forget --

NLRB-FOIA-00010309

Microsoft Outlook

From:

Omberg, Bob

Sent:

Friday, October 15, 2010 10:29 AM

To:

Katz, Judy

Subject:

FW: Boeing memo for Monday GC agenda

Attachments:

ADV.19-CA-32431.GCAgenda.Boeing.dlw.doc

Tracking:
Tracking

Recipient

Read

Katz, Judy

Read: 10/15/2010 11:18 AM

From: Willen, Debra L

Sent: Thursday, October 14, 2010 2:09 PM

To: Omberg, Bob

Subject: Boeing memo

I didnt forget --

NLRB-FOIA-00010310

Exemption 5

NLRB-FOIA-00010311

Exemption 5

NLRB-FOIA-00010312

Exemption 5

NLRB-FOIA-00010313

Exemption 5

NLRB-FOIA-00010314

Exemption 5

NLRB-FOIA-00010315

Exemption 5

NLRB-FOIA-00010316

Exemption 5

NLRB-FOIA-00010317

Exemption 5

NLRB-FOIA-00010318

Exemption 5

NLRB-FOIA-00010319

Exemption 5

NLRB-FOIA-00010320

Exemption 5

NLRB-FOIA-00010321

Exemption 5

NLRB-FOIA-00010322

Exemption 5

NLRB-FOIA-00010323

Exemption 5

NLRB-FOIA-00010324

Exemption 5

NLRB-FOIA-00010325

Exemption 5

NLRB-FOIA-00010326

Exemption 5

NLRB-FOIA-00010327

Exemption 5

NLRB-FOIA-00010328

Exemption 5

NLRB-FOIA-00010329

Exemption 5

NLRB-FOIA-00010330

Exemption 5

NLRB-FOIA-00010331

Exemption 5

NLRB-FOIA-00010332

Exemption 5

NLRB-FOIA-00010333

Exemption 5

NLRB-FOIA-00010334

Exemption 5

NLRB-FOIA-00010335

Microsoft Outlook

From:
Sent:
To:
Subject:

W illen, Debra L

Monday, October 18, 2010 1:29 PM

Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam; Katz, Judy; Omberg, Bob

As work begins on 1,000th 767, what is the airplane's future? | KING5.com | Seattle Business

and Technology News

This article indicates that the surge line was not yet up and running as of Sept. 7, 2010.

http://www.king5.com/news/business/Boeing-starts-work-on-1000-767-102358284.html

NLRB-FOIA-00010336

Microsoft Outlook

From:
Sent:
To:
Subject:

Just heard that Lafe

W illen, Debra L

Tuesday, October 19, 2010 12:07 PM

Katz, Judy; Omberg, Bob

Boeing

Exemption 5

Boeing an opportunity to come in.

NLRB-FOIA-00010337

Microsoft Outlook

From:
Sent:
To:
Subject:

W illen, Debra L

Friday, October 22, 2010 2:31 PM

Omberg, Bob; Katz, Judy

Boeing Co.

I talked briefly to Rich Ahearn today and

Exemption 5

. The investigating attorney was not in today, so he wants to put off discussing this. But he will be in Washington

next week and wants to arrange a call then with us and the investigator.

NLRB-FOIA-00010338

Microsoft Outlook

From:
Sent:
To:
Subject:

W illen, Debra L

Thursday, October 28, 2010 8:20 AM

Omberg, Bob

FW : Link to SC Boeing articles

From: Kearney, Barry J.

Sent: Thursday, October 28, 2010 6:46 AM

To: Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam; Willen, Debra L

Subject: FW: Link to SC Boeing articles

From: Ferguson, John H.

Sent: Wednesday, October 27, 2010 3:40 PM

To: Kearney, Barry J.

Subject: Link to SC Boeing articles

Your team is probably well beyond needing this, being more cognizant than I am of web resources, but just in case

Andrew Martins FYI legal news of today had an article from a South Carolina papers website, which has a whole section

devoted to news articles about Boeings move to South Carolina. The link is

http://www.postandcourier.com/stories/2009/oct/29/boeing-co-lands-lowcountry/

One of the articles says Boeing has lost more orders than it has booked because of customer cancellations. Another said

its profits dropped 21% and that layoffs are likely.

NLRB-FOIA-00010339

Microsoft Outlook

From:
Sent:
To:
Subject:
Attachments:

W illen, Debra L

W ednesday, November 10, 2010 12:23 PM

Omberg, Bob

FW : Boeing Co.

DOC001.PDF

-----Original Message-----

From: Willen, Debra L

Sent: Wednesday, November 10, 2010 11:59 AM

To: Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam

Subject: Boeing Co.

I've been reviewing the Employer's position statements and exhibits.

Thought you would be interested in the attached e-mail -Exemption 5

NLRB-FOIA-00010340

NLRB-FOIA-00010341

Arguably Ex. 4
Arguably Ex. 4
Arguably Ex. 4
Arguably Ex. 4

Arguably Ex. 4

Arguably Ex. 4
Arguably Ex. 4
Arguably Ex. 4

NLRB-FOIA-00010342

Microsoft Outlook

From:

Willen, Debra L

Sent:

Tuesday, November 23, 2010 10:04 AM

To:

Katz, Judy; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Omberg, Bob; Szapiro, Miriam

Subject:

Boeing's South Carolina facility

Attachments:

1109001312.jpg

Our on-the-scene investigator Judy Katz snapped this picture in Charleston last week.

NLRB-FOIA-00010343

NLRB-FOIA-00010344

Microsoft Outlook

From:

Kearney, Barry J.

Sent:

Thursday, December 02, 2010 8:15 AM

To:

Katz, Judy; Omberg, Bob

Subject:

FW: I know I told you so

Sorry about that

From: Willen, Debra L

Sent: Thursday, December 02, 2010 8:13 AM

To: Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam

Cc: Katz, Judy; Omberg, Bob

Subject: RE: I know I told you so

Could you please add Bob and Judy to these e-mails?

From: Kearney, Barry J.

Sent: Thursday, December 02, 2010 8:10 AM

To: Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam; Willen, Debra L

Subject: I know I told you so

Conner, the lead negotiator for Boeing, is having a dinner meeting with the IAM in Chicago Monday night. In order to

avoid a red eye into W ashington for the Tuesday meeting the meeting is being moved to Wednesday at 10. We will

receive their position paper mid day Tuesday. Look for it. Email to me, Ahearn, Lafe and Celeste. W e will discuss on the

13th

NLRB-FOIA-00010345

Microsoft Outlook

From:

Willen, Debra L

Sent:

Thursday, December 02, 2010 8:24 AM

To:

Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam

Cc:

Katz, Judy; Omberg, Bob

Subject:

RE: I know I told you so

A RED EYE from Chicago???

From: Kearney, Barry J.

Sent: Thursday, December 02, 2010 8:10 AM

To: Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam; Willen, Debra L

Subject: I know I told you so

Conner, the lead negotiator for Boeing, is having a dinner meeting with the IAM in Chicago Monday night. In order to

avoid a red eye into W ashington for the Tuesday meeting the meeting is being moved to Wednesday at 10. We will

receive their position paper mid day Tuesday. Look for it. Email to me, Ahearn, Lafe and Celeste. W e will discuss on the

13th

NLRB-FOIA-00010346

Microsoft Outlook

From:
Sent:
To:
Subject:
Attachments:

W illen, Debra L

Tuesday, December 07, 2010 3:20 PM

Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam; Katz, Judy; Omberg, Bob

Boeing

DOC001.PDF

I've just finished reviewing the new book Miriam found entitled "Turbulence: Boeing and the

State of American Workers and Managers."

Exemption 5

NLRB-FOIA-00010347

Exemption 5

NLRB-FOIA-00010348

Exemption 5

NLRB-FOIA-00010349

Exemption 5

NLRB-FOIA-00010350

Exemption 5

NLRB-FOIA-00010351

Exemption 5

NLRB-FOIA-00010352

Exemption 5

NLRB-FOIA-00010353

Exemption 5

NLRB-FOIA-00010354

Exemption 5

NLRB-FOIA-00010355

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:

Omberg, Bob

W ednesday, December 15, 2010 9:12 AM

Eddins, Rosalind Elaine

Roy, Christopher

RE: Ozburn-Hessey Logistics 26-CA-23497

Hi Rosalind & Chris sorry I didnt get back to you yesterday, but I was in meetings most of yesterday preparatory to

outside counsel coming in this morning on a big case (Boeing moving of unit work to South Carolina).

Nonresponsive

Nonresponsive

Thanks

Bob

Nonresponsive

Tracking:

NLRB-FOIA-00010356

Recipient

Read

Eddins, Rosalind Elaine

Read: 12/15/2010 10:20 AM

Roy, Christopher

Read: 12/15/2010 9:13 AM

NLRB-FOIA-00010357

Microsoft Outlook

Nonresponsive

From: Omberg, Bob

Sent: Wednesday, December 15, 2010 8:12 AM

To: Eddins, Rosalind Elaine

Cc: Roy, Christopher

Subject: RE: Ozburn-Hessey Logistics 26-CA-23497

Hi Rosalind & Chris sorry I didnt get back to you yesterday, but I was in meetings most of yesterday preparatory to

outside counsel coming in this morning on a big case (Boeing moving of unit work to South Carolina).
Nonresponsive
Nonresponsive

Thanks

Bob

Nonresponsive

NLRB-FOIA-00010358

Nonresponsive

From: Omberg, Bob

Sent: Wednesday, December 15, 2010 8:12 AM

To: Eddins, Rosalind Elaine

Cc: Roy, Christopher

Subject: RE: Ozburn-Hessey Logistics 26-CA-23497

Hi Rosalind & Chris sorry I didnt get back to you yesterday, but I was in meetings most of yesterday preparatory to

outside counsel coming in this morning on a big case (Boeing moving of unit work to South Carolina).
Nonresponsive
Nonresponsive

Thanks

Bob

Nonresponsive

NLRB-FOIA-00010359

Recipient

Read

Roy, Christopher

Read: 12/15/2010 12:55 PM

NLRB-FOIA-00010360

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:
Attachments:

W illen, Debra L

Monday, March 14, 2011 2:59 PM

Solomon, Lafe E.

Mattina, Celeste J.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Katz, Judy; Szapiro,

Miriam; Omberg, Bob; Baniszewski, Joseph

Boeing Co.

ADV.19-CA-32431.factsheet.Boeing.dlw.doc; ADV.19-CA-32431.Response2.Boeing.dlw.doc

I am attaching our Fact Sheet and the latest version of our Advice Memorandum

Exemption 5

Please let me know if there is anything else you need.

Thanks,

Deb Willen

NLRB-FOIA-00010361

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00010362

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00010363

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00010364

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00010365

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00010366

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00010367

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00010368

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00010369

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00010370

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00010371

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00010372

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00010373

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00010374

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00010375

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00010376

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00010377

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00010378

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00010379

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00010380

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00010381

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00010382

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00010383

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00010384

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00010385

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00010386

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00010387

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00010388

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00010389

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00010390

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00010391

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00010392

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00010393

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00010394

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00010395

Exemption 5

NLRB-FOIA-00010396

Exemption 5

NLRB-FOIA-00010397

Exemption 5

NLRB-FOIA-00010398

Microsoft Outlook

From:

Omberg, Bob

Sent:

Wednesday, April 13, 2011 9:55 AM

To:

Katz, Judy; Canas, Heather

Cc:

Willen, Debra L

Subject:

Boeing 19-CA-32431 advice merits case closed 4/11; 10j case also closed

Tracking:
Tracking

Recipient

Read

Katz, Judy

Read: 4/13/2011 11:05 AM

Canas, Heather

Read: 4/13/2011 10:02 AM

Willen, Debra L

The RAB memo went out in Boeing on 4/11/11; so the ILB case comes off deferral and is also closed 4/11 as a no 10j

now decision awaiting the ALJ hearing the memo has this final footnote:

At this time, we do not reach a decision on the Unions request for

preliminary injunctive relief.

The Region should reassess whether Section

10(j) relief is warranted after the case is tried before the

Administrative Law Judge.

In the meantime, the Region should put evidence

in the record regarding the chilling impact of Boeings violative

statements and conduct to support the notice-reading remedy.

This will

facilitate use of the administrative record to demonstrate in a subsequent

Section 10(j) proceeding that preliminary injunctive relief is just and

proper.

NLRB-FOIA-00010399

T hursday, O ctober 14, 2010- P age updated at 09:43 A N 1 -.

P erm ission to reprint or copy this article or photo, other than personaluse, m ust be obtained from

T he S eattle T im es. C all206-464-31_13 or e-m ailresale@ seattletim es.com w ith your request.

JO H N LO K / T H E S E A T T LE T IM E S

T hree B oeing D ream liners sit near the F utu re of F ligh t A viation C ente r, w ith tw o slated fo r R oyal M aro c A irlines

and one b ound for Japa n A irlines. T he grow in g num b er of 78 7s parke d at P aine F ield w on't go an yw here u ntil the

F ede ral A viatio n A dm inistra tion certifies the new jet.

B o ein g 787s stack u p at P ain e F ield aw aitin g F A A

ap p ro val

B y D om in ic G ates

S eattle T im es aerospace reporter

T he edges of E verett's P aine F ield are turning into an overflow airplane parking lot as 787

D ream liners roll out of B oeing's assem bly plant. T he planes aren't flying anyw here soon: Instead

of engines, they have big yellow concrete blocks hanging from the w ing pylons.

O n W edne_sday, 1 3 p ro d u ctio n D re a m lin e rs a n d o n e flig h t-te st a irp la n e w e re p rke d a t P a in e

F ield. F our m ore com pleted planes are in storage. B y m id-F ebruary, at least 10 additional

D ream liners could roll out and need a tem porary parking space.
,---..

B oeing m ust continue to churn out the jets in anticipation of federal certification and the beginning

of deliveries in m id-F ebruary.

--.........

S ix flight-test airplanes are flying, and one of the production m odels is expected to fly as an add-

on to the flight-test program som etim e next m onth. T he other planes w ill likely sit there until the

F ederal A viation A dm inistration certifies the jet early next year.

W ith the B oeing flight line full, five D ream liners are now parked in unaccustom ed spots.

"..r

.. . 1 ......I........0 0 ..w

B oe ing has leased space fro m the a irp ort on the w est side of the run w ay outsid e the F uture o f

F light aviation center, w here tw o R oyal M aroc,787s and one Japan A irlines (JA L) 787 sit in a new

airplane-parking area. A nother tw o 787s, one for JA L and one for LA N A irlines of C hile, are

parked next to H ighw ay 526 outside B oeing's giant assem bly building.

NLRB-FOIA-00010400

In antidipation of the rush of 787s ahead of first delivery and to allow for expansion, S nohom ish

C ounty spent $5.5 m illion to build a taxiw ay around the north end of the airfield that connects to

the new ram p area adjacent to the Future of Flight.

NLRB-FOIA-00010401

Microsoft Outlook

non-responsive

From: Estep, Susan C.

Sent: Tuesday, May 25, 2010 5:12 PM

To: Kearney, Barry J.; Moskowitz, Eric G.

Cc: Baniszewski, Joseph; Ahearn, Richard L.

Subject: Boeing Company, Case 19-CA-32431

Per Regional Director Ahearns instructions, attached is a memo requesting guidance in the above case.

Susan C. Estep, Secretary to the Regional Director

NLRB, Region 19, Seattle

206.220.6333; FAX 206. 220.6305

NLRB-FOIA-00010402

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:

Moskowitz, Eric G.

W ednesday, May 26, 2010 4:57 PM

Ahearn, Richard L.

Kearney, Barry J.; Platt, Nancy; Flanagan, Kevin P.

RE: Boeing Company, Case 19-CA-32431

Off the cuff, I do not think this raises

Exemption 5

Nancy Platt and Kevin Flanagan are looking into this.

Eric

From: Ahearn, Richard L.

Sent: Tuesday, May 25, 2010 7:09 PM

To: Moskowitz, Eric G.

Subject: RE: Boeing Company, Case 19-CA-32431

Eric,

We (in the metaphorical sense)did not attempt to determine that; in fact it was Andrew Martin of our library who

made the request. However we thought it would be

Exemption 5

Rich

From: Moskowitz, Eric G.

Sent: Tuesday, May 25, 2010 2:36 PM

To: Ahearn, Richard L.

Subject: FW: Boeing Company, Case 19-CA-32431

Rich:

Question: Has anyone in the Region determined from the Seattle Times what they mean by

Exemption 5

Eric

From: Estep, Susan C.

Sent: Tuesday, May 25, 2010 5:12 PM

To: Kearney, Barry J.; Moskowitz, Eric G.

Cc: Baniszewski, Joseph; Ahearn, Richard L.

Subject: Boeing Company, Case 19-CA-32431

Per Regional Director Ahearns instructions, attached is a memo requesting guidance in the above case.

Susan C. Estep, Secretary to the Regional Director

NLRB, Region 19, Seattle

206.220.6333; FAX 206. 220.6305

NLRB-FOIA-00010403

Microsoft Outlook

From:

Ahearn, Richard L.

Sent:

Thursday, June 03, 2010 10:08 AM

To:

Flanagan, Kevin P.

Cc:

Moskowitz, Eric G.; Platt, Nancy

Subject:

Re: Contact with Dominic Gates re: Boeing Co., 19-CA-32431

Will do. Thx.

Rich

-------------------------Sent from my BlackBerry Wireless Handheld

From: Flanagan, Kevin P.

To: Ahearn, Richard L.

Cc: Moskowitz, Eric G.; Platt, Nancy

Sent: Thu Jun 03 09:28:40 2010

Subject: Contact with Dominic Gates re: Boeing Co., 19-CA-32431

Rich: Ive confirmed with Eric that he doesnt have a problem with you responding to Dominic Gatess

inquiry into the nature of the pending investigation.

__

Kevin P. Flanagan

Special Litigation Branch

National Labor Relations Board

1099 14th Street, N.W., Suite 8600

Washington, DC 20570

phone: (202) 273-2938

fax: (202) 273-1799

e-mail: Kevin.Flanagan@nlrb.gov

NLRB-FOIA-00010404

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:
Attachments:

Albertsen, Mary

Tuesday, August 31, 2010 7:21 PM

Advice; Injunction Litigation Branch; Kearney, Barry J.; Katz, Judy

Baniszewski, Joseph; Ahearn, Richard L.; Pomerantz, Anne

Boeing Company, 19-CA-32431, Submission

ADV.19-CA-32431.Boeing.Request for Advice and Auth to Seek 10(j) Inj Relief.pdf

Attached please find a Request for Advice and Authorization to Seek Section 10(j) Injunctive Relief in the above case.

Mary Albertsen, AOM

Region 19 - Seattle, W A

(206) 220-6318

NLRB-FOIA-00010405

Exemption 5

NLRB-FOIA-00010406

Exemption 5

NLRB-FOIA-00010407

Exemption 5

NLRB-FOIA-00010408

Exemption 5

NLRB-FOIA-00010409

Exemption 5

NLRB-FOIA-00010410

Exemption 5

NLRB-FOIA-00010411

Exemption 5

NLRB-FOIA-00010412

Exemption 5

NLRB-FOIA-00010413

Exemption 5

NLRB-FOIA-00010414

Exemption 5

NLRB-FOIA-00010415

Exemption 5

NLRB-FOIA-00010416

Exemption 5

NLRB-FOIA-00010417

Exemption 5

NLRB-FOIA-00010418

Exemption 5

NLRB-FOIA-00010419

Exemption 5

NLRB-FOIA-00010420

Exemption 5

NLRB-FOIA-00010421

Exemption 5

NLRB-FOIA-00010422

Exemption 5

NLRB-FOIA-00010423

Exemption 5

NLRB-FOIA-00010424

Exemption 5

NLRB-FOIA-00010425

Exemption 5

NLRB-FOIA-00010426

Exemption 5

NLRB-FOIA-00010427

Exemption 5

NLRB-FOIA-00010428

Exemption 5

NLRB-FOIA-00010429

Exemption 5

NLRB-FOIA-00010430

Exemption 5

NLRB-FOIA-00010431

Exemption 5

NLRB-FOIA-00010432

Exemption 5

NLRB-FOIA-00010433

Exemption 5

NLRB-FOIA-00010434

Exemption 5

NLRB-FOIA-00010435

Exemption 5

NLRB-FOIA-00010436

Exemption 5

NLRB-FOIA-00010437

Exemption 5

NLRB-FOIA-00010438

Exemption 5

NLRB-FOIA-00010439

Exemption 5

NLRB-FOIA-00010440

Exemption 5

NLRB-FOIA-00010441

Exemption 5

NLRB-FOIA-00010442

Exemption 5

NLRB-FOIA-00010443

Exemption 5

NLRB-FOIA-00010444

Exemption 5

NLRB-FOIA-00010445

Exemption 5

NLRB-FOIA-00010446

Exemption 5

NLRB-FOIA-00010447

Exemption 5

NLRB-FOIA-00010448

Exemption 5

NLRB-FOIA-00010449

Exemption 5

NLRB-FOIA-00010450

Exemption 5

NLRB-FOIA-00010451

Exemption 5

NLRB-FOIA-00010452

Exemption 5

NLRB-FOIA-00010453

Exemption 5

NLRB-FOIA-00010454

Exemption 5

NLRB-FOIA-00010455

Exemption 5

NLRB-FOIA-00010456

Exemption 5

NLRB-FOIA-00010457

Exemption 5

NLRB-FOIA-00010458

Exemption 5

NLRB-FOIA-00010459

Exemption 5

NLRB-FOIA-00010460

Exemption 5

NLRB-FOIA-00010461

Exemption 5

NLRB-FOIA-00010462

Exemption 5

NLRB-FOIA-00010463

Exemption 5

NLRB-FOIA-00010464

Exemption 5

NLRB-FOIA-00010465

Exemption 5

NLRB-FOIA-00010466

Exemption 5

NLRB-FOIA-00010467

Exemption 5

NLRB-FOIA-00010468

Exemption 5

NLRB-FOIA-00010469

Exemption 5

NLRB-FOIA-00010470

Exemption 5

NLRB-FOIA-00010471

Exemption 5

NLRB-FOIA-00010472

Exemption 5

NLRB-FOIA-00010473

Exemption 5

NLRB-FOIA-00010474

Exemption 5

NLRB-FOIA-00010475

Exemption 5

NLRB-FOIA-00010476

Exemption 5

NLRB-FOIA-00010477

Exemption 5

NLRB-FOIA-00010478

Exemption 5

NLRB-FOIA-00010479

Microsoft Outlook

From:
Sent:
To:
Subject:
Attachments:

Pomerantz, Anne

Tuesday, August 31, 2010 7:23 PM

Jablonski, Colleen G.; Todd, Dianne

FW : Boeing Company, 19-CA-32431, Submission

ADV.19-CA-32431.Boeing.Request for Advice and Auth to Seek 10(j) Inj Relief.pdf

FYI -- We are filed electronically.

Dianne,

Thanks for all your hard work in pulling this together.

Anne

From: Albertsen, Mary

Sent: Tuesday, August 31, 2010 4:21 PM

To: Advice; Injunction Litigation Branch; Kearney, Barry J.; Katz, Judy

Cc: Baniszewski, Joseph; Ahearn, Richard L.; Pomerantz, Anne

Subject: Boeing Company, 19-CA-32431, Submission

Attached please find a Request for Advice and Authorization to Seek Section 10(j) Injunctive Relief in the above case.

Mary Albertsen, AOM

Region 19 - Seattle, W A

(206) 220-6318

NLRB-FOIA-00010480

Exemption 5

NLRB-FOIA-00010481

Exemption 5

NLRB-FOIA-00010482

Exemption 5

NLRB-FOIA-00010483

Exemption 5

NLRB-FOIA-00010484

Exemption 5

NLRB-FOIA-00010485

Exemption 5

NLRB-FOIA-00010486

Exemption 5

NLRB-FOIA-00010487

Exemption 5

NLRB-FOIA-00010488

Exemption 5

NLRB-FOIA-00010489

Exemption 5

NLRB-FOIA-00010490

Exemption 5

NLRB-FOIA-00010491

Exemption 5

NLRB-FOIA-00010492

Exemption 5

NLRB-FOIA-00010493

Exemption 5

NLRB-FOIA-00010494

Exemption 5

NLRB-FOIA-00010495

Exemption 5

NLRB-FOIA-00010496

Exemption 5

NLRB-FOIA-00010497

Exemption 5

NLRB-FOIA-00010498

Exemption 5

NLRB-FOIA-00010499

Exemption 5

NLRB-FOIA-00010500

Exemption 5

NLRB-FOIA-00010501

Exemption 5

NLRB-FOIA-00010502

Exemption 5

NLRB-FOIA-00010503

Exemption 5

NLRB-FOIA-00010504

Exemption 5

NLRB-FOIA-00010505

Exemption 5

NLRB-FOIA-00010506

Exemption 5

NLRB-FOIA-00010507

Exemption 5

NLRB-FOIA-00010508

Exemption 5

NLRB-FOIA-00010509

Exemption 5

NLRB-FOIA-00010510

Exemption 5

NLRB-FOIA-00010511

Exemption 5

NLRB-FOIA-00010512

Exemption 5

NLRB-FOIA-00010513

Exemption 5

NLRB-FOIA-00010514

Exemption 5

NLRB-FOIA-00010515

Exemption 5

NLRB-FOIA-00010516

Exemption 5

NLRB-FOIA-00010517

Exemption 5

NLRB-FOIA-00010518

Exemption 5

NLRB-FOIA-00010519

Exemption 5

NLRB-FOIA-00010520

Exemption 5

NLRB-FOIA-00010521

Exemption 5

NLRB-FOIA-00010522

Exemption 5

NLRB-FOIA-00010523

Exemption 5

NLRB-FOIA-00010524

Exemption 5

NLRB-FOIA-00010525

Exemption 5

NLRB-FOIA-00010526

Exemption 5

NLRB-FOIA-00010527

Exemption 5

NLRB-FOIA-00010528

Exemption 5

NLRB-FOIA-00010529

Exemption 5

NLRB-FOIA-00010530

Exemption 5

NLRB-FOIA-00010531

Exemption 5

NLRB-FOIA-00010532

Exemption 5

NLRB-FOIA-00010533

Exemption 5

NLRB-FOIA-00010534

Exemption 5

NLRB-FOIA-00010535

Exemption 5

NLRB-FOIA-00010536

Exemption 5

NLRB-FOIA-00010537

Exemption 5

NLRB-FOIA-00010538

Exemption 5

NLRB-FOIA-00010539

Exemption 5

NLRB-FOIA-00010540

Exemption 5

NLRB-FOIA-00010541

Exemption 5

NLRB-FOIA-00010542

Exemption 5

NLRB-FOIA-00010543

Exemption 5

NLRB-FOIA-00010544

Exemption 5

NLRB-FOIA-00010545

Exemption 5

NLRB-FOIA-00010546

Exemption 5

NLRB-FOIA-00010547

Exemption 5

NLRB-FOIA-00010548

Exemption 5

NLRB-FOIA-00010549

Exemption 5

NLRB-FOIA-00010550

Exemption 5

NLRB-FOIA-00010551

Exemption 5

NLRB-FOIA-00010552

Exemption 5

NLRB-FOIA-00010553

Exemption 5

NLRB-FOIA-00010554

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:
Attachments:

Pomerantz, Anne

W ednesday, September 01, 2010 5:05 PM

Advice; Karsh, Aaron

Albertsen, Mary

RE: Boeing Company, 19-CA-32431, Submission

ADV.19-CA-32431.Boeing Memo to Advice and Special Lit re decision and 10j.doc

Aaron,

Mary forwarded your e-mail to me for response. The files in this case are quite voluminous, as you may have already

gathered from the submission. We anticipate having all the materials to you next week. Meanwhile, I have attached a

copy of the submission in Word, which Mary informed me you had asked for, and below is the link to the electronic case

file on Region 19s H drive: R19COM\R19COM\REGION 19 C CASES\19-CA-32431 Boeing.

Please feel free to contact me should you require anything else.

Anne

From: Albertsen, Mary

Sent: Wednesday, September 01, 2010 1:55 PM

To: Pomerantz, Anne

Subject: FW: Boeing Company, 19-CA-32431, Submission

Mary Albertsen, AOM

Region 19 - Seattle, W A

(206) 220-6318

From: Advice

Sent: Wednesday, September 01, 2010 8:42 AM

To: Albertsen, Mary

Subject: FW: Boeing Company, 19-CA-32431, Submission

Thanks for the submission. Please let us know on what date and in what form you will be sending us the Regional Office

Files. And, to help us with the assignment process, could you also let me know how voluminous the ROFs are and how

many there are?

Thanks -

Aaron Karsh

DAGC, Advice

From: Albertsen, Mary

Sent: Tuesday, August 31, 2010 7:21 PM

To: Advice; Injunction Litigation Branch; Kearney, Barry J.; Katz, Judy

Cc: Baniszewski, Joseph; Ahearn, Richard L.; Pomerantz, Anne

Subject: Boeing Company, 19-CA-32431, Submission

Attached please find a Request for Advice and Authorization to Seek Section 10(j) Injunctive Relief in the above case.

NLRB-FOIA-00010555

Mary Albertsen, AOM

Region 19 - Seattle, W A

(206) 220-6318

Tracking:

NLRB-FOIA-00010556

Recipient

Read

Advice

Karsh, Aaron

Read: 9/1/2010 6:52 PM

Albertsen, Mary

Read: 9/1/2010 5:15 PM

Jablonski, Colleen G.

Todd, Dianne

Read: 9/2/2010 11:42 AM

NLRB-FOIA-00010557

Exemption 5

NLRB-FOIA-00010558

Exemption 5

NLRB-FOIA-00010559

Exemption 5

NLRB-FOIA-00010560

Exemption 5

NLRB-FOIA-00010561

Exemption 5

NLRB-FOIA-00010562

Exemption 5

NLRB-FOIA-00010563

Exemption 5

NLRB-FOIA-00010564

Exemption 5

NLRB-FOIA-00010565

Exemption 5

NLRB-FOIA-00010566

Exemption 5

NLRB-FOIA-00010567

Exemption 5

NLRB-FOIA-00010568

Exemption 5

NLRB-FOIA-00010569

Exemption 5

NLRB-FOIA-00010570

Exemption 5

NLRB-FOIA-00010571

Exemption 5

NLRB-FOIA-00010572

Exemption 5

NLRB-FOIA-00010573

Exemption 5

NLRB-FOIA-00010574

Exemption 5

NLRB-FOIA-00010575

Exemption 5

NLRB-FOIA-00010576

Exemption 5

NLRB-FOIA-00010577

Exemption 5

NLRB-FOIA-00010578

Exemption 5

NLRB-FOIA-00010579

Exemption 5

NLRB-FOIA-00010580

Exemption 5

NLRB-FOIA-00010581

Exemption 5

NLRB-FOIA-00010582

Exemption 5

NLRB-FOIA-00010583

Exemption 5

NLRB-FOIA-00010584

Exemption 5

NLRB-FOIA-00010585

Exemption 5

NLRB-FOIA-00010586

Exemption 5

NLRB-FOIA-00010587

Exemption 5

NLRB-FOIA-00010588

Exemption 5

NLRB-FOIA-00010589

Exemption 5

NLRB-FOIA-00010590

Exemption 5

NLRB-FOIA-00010591

Exemption 5

NLRB-FOIA-00010592

Exemption 5

NLRB-FOIA-00010593

Exemption 5

NLRB-FOIA-00010594

Exemption 5

NLRB-FOIA-00010595

Exemption 5

NLRB-FOIA-00010596

Exemption 5

NLRB-FOIA-00010597

Exemption 5

NLRB-FOIA-00010598

Exemption 5

NLRB-FOIA-00010599

Exemption 5

NLRB-FOIA-00010600

Exemption 5

NLRB-FOIA-00010601

Exemption 5

NLRB-FOIA-00010602

Exemption 5

NLRB-FOIA-00010603

Exemption 5

NLRB-FOIA-00010604

Exemption 5

NLRB-FOIA-00010605

Exemption 5

NLRB-FOIA-00010606

Exemption 5

NLRB-FOIA-00010607

Exemption 5

NLRB-FOIA-00010608

Exemption 5

NLRB-FOIA-00010609

Exemption 5

NLRB-FOIA-00010610

Exemption 5

NLRB-FOIA-00010611

Exemption 5

NLRB-FOIA-00010612

Exemption 5

NLRB-FOIA-00010613

Exemption 5

NLRB-FOIA-00010614

Exemption 5

NLRB-FOIA-00010615

Exemption 5

NLRB-FOIA-00010616

Exemption 5

NLRB-FOIA-00010617

Exemption 5

NLRB-FOIA-00010618

Exemption 5

NLRB-FOIA-00010619

Exemption 5

NLRB-FOIA-00010620

Exemption 5

NLRB-FOIA-00010621

Exemption 5

NLRB-FOIA-00010622

Exemption 5

NLRB-FOIA-00010623

Exemption 5

NLRB-FOIA-00010624

Exemption 5

NLRB-FOIA-00010625

Exemption 5

NLRB-FOIA-00010626

Exemption 5

NLRB-FOIA-00010627

Exemption 5

NLRB-FOIA-00010628

Exemption 5

NLRB-FOIA-00010629

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:

Pomerantz, Anne

Thursday, September 02, 2010 4:47 PM

Advice; Karsh, Aaron

Lundgren, Cynthia A

RE: Boeing Company, 19-CA-32431, Submission

Aaron,

Cynthia Lundgren in our office has been assembling the documents for submission as per the below. In an effort to

conserve resources and expedite your receipt, she will begin sending you the press releases/news articles and position

statements electronically. She will send them both to you and to the Advice mailbox. Please let Cynthia and/or me know

if there is any problem with receipt or access to that sent. Thanks.

Anne

From: Pomerantz, Anne

Sent: Wednesday, September 01, 2010 2:05 PM

To: Advice; Karsh, Aaron

Cc: Albertsen, Mary

Subject: RE: Boeing Company, 19-CA-32431, Submission

Aaron,

Mary forwarded your e-mail to me for response. The files in this case are quite voluminous, as you may have already

gathered from the submission. We anticipate having all the materials to you next week. Meanwhile, I have attached a

copy of the submission in Word, which Mary informed me you had asked for, and below is the link to the electronic case

file on Region 19s H drive: R19COM\R19COM\REGION 19 C CASES\19-CA-32431 Boeing.

Please feel free to contact me should you require anything else.

Anne

From: Albertsen, Mary

Sent: Wednesday, September 01, 2010 1:55 PM

To: Pomerantz, Anne

Subject: FW: Boeing Company, 19-CA-32431, Submission

Mary Albertsen, AOM

Region 19 - Seattle, W A

(206) 220-6318

From: Advice

Sent: Wednesday, September 01, 2010 8:42 AM

To: Albertsen, Mary

Subject: FW: Boeing Company, 19-CA-32431, Submission

Thanks for the submission. Please let us know on what date and in what form you will be sending us the Regional Office

Files. And, to help us with the assignment process, could you also let me know how voluminous the ROFs are and how

many there are?

NLRB-FOIA-00010630

Thanks -

Aaron Karsh

DAGC, Advice

From: Albertsen, Mary

Sent: Tuesday, August 31, 2010 7:21 PM

To: Advice; Injunction Litigation Branch; Kearney, Barry J.; Katz, Judy

Cc: Baniszewski, Joseph; Ahearn, Richard L.; Pomerantz, Anne

Subject: Boeing Company, 19-CA-32431, Submission

Attached please find a Request for Advice and Authorization to Seek Section 10(j) Injunctive Relief in the above case.

Mary Albertsen, AOM

Region 19 - Seattle, W A

(206) 220-6318

Tracking:

NLRB-FOIA-00010631

Recipient

Read

Advice

Read: 9/2/2010 4:59 PM

Karsh, Aaron

Read: 9/2/2010 4:57 PM

Lundgren, Cynthia A

Read: 9/3/2010 10:52 AM

Jablonski, Colleen G.

Read: 9/2/2010 6:22 PM

Todd, Dianne

Read: 9/2/2010 4:52 PM

Ahearn, Richard L.

Read: 9/2/2010 4:47 PM

NLRB-FOIA-00010632

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:

Karsh, Aaron

Thursday, September 02, 2010 4:58 PM

Pomerantz, Anne

Lundgren, Cynthia A; W illen, Debra L; Szapiro, Miriam

RE: Boeing Company, 19-CA-32431, Submission

That should be ok, Anne -- but rather than me, please send them to Debra Willen - she, with Miriam Szapiro

supervising, has been assigned to the case.

Aaron

From: Pomerantz, Anne

Sent: Thursday, September 02, 2010 4:47 PM

To: Advice; Karsh, Aaron

Cc: Lundgren, Cynthia A

Subject: RE: Boeing Company, 19-CA-32431, Submission

Aaron,

Cynthia Lundgren in our office has been assembling the documents for submission as per the below. In an effort to

conserve resources and expedite your receipt, she will begin sending you the press releases/news articles and position

statements electronically. She will send them both to you and to the Advice mailbox. Please let Cynthia and/or me know

if there is any problem with receipt or access to that sent. Thanks.

Anne

From: Pomerantz, Anne

Sent: Wednesday, September 01, 2010 2:05 PM

To: Advice; Karsh, Aaron

Cc: Albertsen, Mary

Subject: RE: Boeing Company, 19-CA-32431, Submission

Aaron,

Mary forwarded your e-mail to me for response. The files in this case are quite voluminous, as you may have already

gathered from the submission. We anticipate having all the materials to you next week. Meanwhile, I have attached a

copy of the submission in Word, which Mary informed me you had asked for, and below is the link to the electronic case

file on Region 19s H drive: R19COM\R19COM\REGION 19 C CASES\19-CA-32431 Boeing.

Please feel free to contact me should you require anything else.

Anne

From: Albertsen, Mary

Sent: Wednesday, September 01, 2010 1:55 PM

To: Pomerantz, Anne

Subject: FW: Boeing Company, 19-CA-32431, Submission

NLRB-FOIA-00010633

Mary Albertsen, AOM

Region 19 - Seattle, W A

(206) 220-6318

From: Advice

Sent: Wednesday, September 01, 2010 8:42 AM

To: Albertsen, Mary

Subject: FW: Boeing Company, 19-CA-32431, Submission

Thanks for the submission. Please let us know on what date and in what form you will be sending us the Regional Office

Files. And, to help us with the assignment process, could you also let me know how voluminous the ROFs are and how

many there are?

Thanks -

Aaron Karsh

DAGC, Advice

From: Albertsen, Mary

Sent: Tuesday, August 31, 2010 7:21 PM

To: Advice; Injunction Litigation Branch; Kearney, Barry J.; Katz, Judy

Cc: Baniszewski, Joseph; Ahearn, Richard L.; Pomerantz, Anne

Subject: Boeing Company, 19-CA-32431, Submission

Attached please find a Request for Advice and Authorization to Seek Section 10(j) Injunctive Relief in the above case.

Mary Albertsen, AOM

Region 19 - Seattle, W A

(206) 220-6318

NLRB-FOIA-00010634

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:

Pomerantz, Anne

Thursday, September 02, 2010 5:02 PM

Karsh, Aaron

Lundgren, Cynthia A; W illen, Debra L; Szapiro, Miriam

RE: Boeing Company, 19-CA-32431, Submission

Will do. Thanks.

From: Karsh, Aaron

Sent: Thursday, September 02, 2010 1:58 PM

To: Pomerantz, Anne

Cc: Lundgren, Cynthia A; Willen, Debra L; Szapiro, Miriam

Subject: RE: Boeing Company, 19-CA-32431, Submission

That should be ok, Anne -- but rather than me, please send them to Debra Willen - she, with Miriam Szapiro

supervising, has been assigned to the case.

Aaron

From: Pomerantz, Anne

Sent: Thursday, September 02, 2010 4:47 PM

To: Advice; Karsh, Aaron

Cc: Lundgren, Cynthia A

Subject: RE: Boeing Company, 19-CA-32431, Submission

Aaron,

Cynthia Lundgren in our office has been assembling the documents for submission as per the below. In an effort to

conserve resources and expedite your receipt, she will begin sending you the press releases/news articles and position

statements electronically. She will send them both to you and to the Advice mailbox. Please let Cynthia and/or me know

if there is any problem with receipt or access to that sent. Thanks.

Anne

From: Pomerantz, Anne

Sent: Wednesday, September 01, 2010 2:05 PM

To: Advice; Karsh, Aaron

Cc: Albertsen, Mary

Subject: RE: Boeing Company, 19-CA-32431, Submission

Aaron,

Mary forwarded your e-mail to me for response. The files in this case are quite voluminous, as you may have already

gathered from the submission. We anticipate having all the materials to you next week. Meanwhile, I have attached a

copy of the submission in Word, which Mary informed me you had asked for, and below is the link to the electronic case

file on Region 19s H drive: R19COM\R19COM\REGION 19 C CASES\19-CA-32431 Boeing.

Please feel free to contact me should you require anything else.

Anne

NLRB-FOIA-00010635

From: Albertsen, Mary

Sent: Wednesday, September 01, 2010 1:55 PM

To: Pomerantz, Anne

Subject: FW: Boeing Company, 19-CA-32431, Submission

Mary Albertsen, AOM

Region 19 - Seattle, W A

(206) 220-6318

From: Advice

Sent: Wednesday, September 01, 2010 8:42 AM

To: Albertsen, Mary

Subject: FW: Boeing Company, 19-CA-32431, Submission

Thanks for the submission. Please let us know on what date and in what form you will be sending us the Regional Office

Files. And, to help us with the assignment process, could you also let me know how voluminous the ROFs are and how

many there are?

Thanks -

Aaron Karsh

DAGC, Advice

From: Albertsen, Mary

Sent: Tuesday, August 31, 2010 7:21 PM

To: Advice; Injunction Litigation Branch; Kearney, Barry J.; Katz, Judy

Cc: Baniszewski, Joseph; Ahearn, Richard L.; Pomerantz, Anne

Subject: Boeing Company, 19-CA-32431, Submission

Attached please find a Request for Advice and Authorization to Seek Section 10(j) Injunctive Relief in the above case.

Mary Albertsen, AOM

Region 19 - Seattle, W A

(206) 220-6318

Tracking:

NLRB-FOIA-00010636

Recipient

Read

Karsh, Aaron

Read: 9/2/2010 5:03 PM

Lundgren, Cynthia A

Read: 9/3/2010 10:52 AM

Willen, Debra L

Read: 9/3/2010 8:04 AM

Szapiro, Miriam

Ahearn, Richard L.

Read: 9/2/2010 5:13 PM

Jablonski, Colleen G.

Read: 9/2/2010 6:23 PM

Todd, Dianne

Read: 9/2/2010 6:26 PM

NLRB-FOIA-00010637

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:

Omberg, Bob

Monday, October 18, 2010 11:49 AM

Ahearn, Richard L.; Pomerantz, Anne

Katz, Judy

Boeing 19-CA-32431

Hi Rich & Anne I just left a message for Rich but am also writing this in case hes out in advance of the 2:00 (11:00

PDT) GC agenda this afternoon on the 787 work in South Carolina case, at which were sure 10j will come up, we just

wanted to know if in fact the surge line at Everett was actually up and running producing 3 planes a month [at the time of

your memo it sounded like it was still being prepared/under construction).

Thanks

Bob

NLRB-FOIA-00010638

Microsoft Outlook

Ahearn, Richard L.

Monday, October 25, 2010 12:35 AM

Pomerantz, Anne

Jablonski, Colleen G.; Todd, Dianne

Boeing

From:
Sent:
To:
Cc:
Subject:

Anne,

Just a reminder...during your many hours of free time next week, please consider the

concerns from Advice re.

Exemption 5

Many thanks!

Rich

--------------------------

Sent from my BlackBerry Wireless Handheld

NLRB-FOIA-00010639

Microsoft Outlook

From:
Sent:
To:
Subject:

Pomerantz, Anne

Tuesday, November 02, 2010 3:30 PM

Ahearn, Richard L.; Jablonski, Colleen G.; Todd, Dianne

RE: Boeing Interim Draft Order Revisions

Works for me.

From: Ahearn, Richard L.

Sent: Tuesday, November 02, 2010 11:57 AM

To: Pomerantz, Anne; Jablonski, Colleen G.; Todd, Dianne

Subject: Boeing Interim Draft Order Revisions

My suggestions in track changes.

Your thoughts?

R.

Tracking:

NLRB-FOIA-00010640

Recipient

Read

Ahearn, Richard L.

Read: 11/2/2010 3:37 PM

Jablonski, Colleen G.

Read: 11/3/2010 11:37 AM

Todd, Dianne

NLRB-FOIA-00010641

Microsoft Outlook

From:

Estep, Susan C.

Sent:

Thursday, April 14, 2011 2:09 PM

To:

Ahearn, Richard L.; Pomerantz, Anne; Kobe, James; Jablonski, Colleen G.; Todd, Dianne;

Subject:

The Boeing Company, 19-CA-32431

Attachments:

ADV.19-CA-32431.Boeing Response 2 Boeing dlw.doc

Perkins, Victoria

See attached Advice decision.

Susan C. Estep, Secretary to the Regional Director

NLRB, Region 19, Seattle

206.220.6333; FAX 206. 220.6305

NLRB-FOIA-00010642

United States Government

National Labor Relations Board

OFFICE OF THE GENERAL COUNSEL

Advice Memorandum

DATE:

April 11, 2011

S.A.M.

TO:

Richard L. Ahearn, Regional Director

Region 19

FROM:

Barry J. Kearney, Associate General Counsel

Division of Advice

SUBJECT:

The Boeing Company


Case 19-CA-32431

512-5006-5062
512-5006-5067
512-5036-8387
512-5036-8389
524-0167-1033
524-5029-5037
524-0167-1033
524-506

524-8307-1600

524-8307-5300

530-6050-0825-3300

530-6067-4011-4200

530-6067-4011-4600

530-6067-4011-7700

530-8054-7000

775-8731

The Region submitted this case for advice on several

issues relating to the Employers decision to place a second

assembly line at a nonunion facility rather than at the

facility where unit employees work on the original assembly

line.
Specifically the Region requested advice as to whether:

(1) the Employer violated Section 8(a)(1) by threatening to

place the second assembly line at a nonunion facility unless

the Union agreed to a long-term no-strike clause and by

repeatedly stating that its decision to place the second line

elsewhere was based on the units strike history; (2) the

Employer violated Section 8(a)(3) by deciding to place the

second assembly line at a nonunion facility because of the

units strike history, even though no unit employees have yet

to lose their jobs; and (3) the Employer violated Section

8(a)(5) by failing to bargain in good faith over its decision

about where to locate the second assembly line or whether the

Union waived its right to bargain under the parties

collective-bargaining agreement.

We conclude that the Region should issue a complaint

alleging: independent Section 8(a)(1) violations based on the

Employers coercive and threatening statements; and a Section

8(a)(3) violation based on the Employers decision to locate

the second line at a nonunion facility and to establish a

dual-sourcing supply program in retaliation for protected

activity.
However, the Region should dismiss the Section

8(a)(5) allegations because under the contract, the Union

expressly waived its right to bargain about the Employers

decision to offload unit work to a facility not covered by

the agreement.
To remedy the chilling effect of Boeings

Section 8(a)(1) statements, the Region should request, in

addition to the traditional remedies,


a notice reading by a

NLRB-FOIA-00010643

Case 19-CA-32431

- 2 -

high-level Boeing official.


To remedy the Section 8(a)(3)

violation, the Region should seek an order that would require

Boeing to maintain the surge line in the Puget Sound area.

Specifically, Boeing intended for the second line to assemble

three aircraft each month in South Carolina, while assembling

seven planes on the first line.


Thus, the Region should seek

an order requiring Boeing to assemble in the Puget Sound area

the first ten 787 aircraft that it produces each month and to

maintain the supply lines for those aircraft where they

currently exist, in the Puget Sound and Portland facilities.

FACTS

The Boeing Company is an international corporation

engaged primarily in developing and producing military and

commercial aircraft. Boeing has a long-established collective-

bargaining relationship with the International Association of

Machinists and Aerospace Workers (IAM) and certain IAM

District and Local Lodges.


The parties current collective-

bargaining agreement is effective November 2, 2008 through

September 8, 2012 and covers three separate bargaining units

of production and maintenance employees in three geographical

areas, the Puget Sound area in Washington; Portland, Oregon;

and Wichita, Kansas.

Section 21.7 of that agreement, entitled

Subcontracting, sets forth various notice periods and an

opportunity for the Union to review and recommend alternatives

to Boeing proposals to subcontract or offload unit work.

[O]ffloading work is defined as moving work from one

Company facility to another Company facility not covered by

this Agreement[.]
Less stringent notice requirements apply

to subcontracting and offloading decisions affecting less than

ten employees.
In addition, the notice and review process

does not cover certain work transfers listed in subsections

(a) through (d), including [d]ecisions to subcontract or

offload work due to lack of capability or capacity, or to

prevent production schedule slippage[.]


Section 21.7

concludes with the following language:

Anything in this Section 21.7 to the contrary

notwithstanding, it is agreed that ... the Company has

the right to subcontract and offload work, to make and

carry out decisions in (a) through (d) above, to enter

offsets and offset arrangements, and to designate the

work to be performed by the Company and the places where

it is to be performed, which rights shall not be subject

to arbitration. ...

NLRB-FOIA-00010644

Case 19-CA-32431

- 3 -

Boeing Introduces the 787 Dreamliner

The Puget Sound unit is comprised of approximately 18,000

employees working in Washington.


Historically these employees

have performed the final assembly of all Boeing planes.


In

late 2003, Boeing announced that it would place the assembly

line for its new 787 Dreamliner airplane in Everett,

Washington after the Washington State Legislature passed a tax

and subsidy incentive package totaling more than $3.2 billion.

That line opened in May 2007, with the capacity for producing

seven planes each month.

With the 787, Boeing departed from its previous practice

of manufacturing most of the aircraft parts with its own

employees and instead outsourced parts production to other

suppliers in the southeast U.S. and abroad.


For example,

Boeing contracted with Vought Aircraft Industries in North

Charleston, South Carolina for the manufacture of the aft

fuselage and with Mitsubishi Heavy Industries in Japan for the

manufacture of the wings.


Boeing repeatedly has had to

postpone the delivery dates for the aircraft, due primarily to

problems with suppliers and software issues.

Starting in mid 2008, the media began reporting that

Boeing would need to add a second 787 assembly line because of

its growing order backlog.


At about the same time, Boeing

entered negotiations with the Union for a successor

collective-bargaining agreement.
During those negotiations,

Company officials noted the need for a second assembly line

but did not discuss the matter further.

The 2008 Strike and Its Aftermath

On September 6, 2008, the employees struck in support of

the Unions bargaining position.


On October 6, 2008, Boeings

stock dropped to a four-year low.


That same day, CEO Jim

McNerney sent a long e-mail to Boeing employees about the

strike.
McNerney stated that he understood and shared the

frustration so many of you feel when we dont have the whole

team together working to meet the commitments weve made to

our customers and competing to win the new business that will

sustain and grow Boeing jobs[.]


McNerney went on to state,

[t]he issue of competitiveness as it relates to this strike

is a big deal[.]
He also tied labor disputes to problems

with Boeings customer relationships.


After asserting that

the Union had recommended that its members reject contract

offers and go on strike four of the last five negotiations

going back to 1995, he wrote, we believe this track record of

repeated union work stoppages is earning us a reputation as an

NLRB-FOIA-00010645

Case 19-CA-32431

- 4 -

unreliable supplier to our customers who ultimately provide

job security by buying our airplanes.1

The following day, Boeings Vice President for Government

and Community Relations Fred Kiga spoke at an aerospace

conference in Everett.
In a Seattle Times article, he was

quoted as stating, We cant afford to become known as the

strike zone[.]
He reportedly also told the conference that

labor unrest could drive Boeings decision on where to build

planes in the future.


In an interview after his speech, Kiga

reportedly stated that his strike zone comments had been

cleared by Boeing Commercial Airplanes CEO Scott Carson.


Kiga

noted that he and Carson grew up in and shared a love for the

Northwest; Kiga then said that they would hate to lose a

treasure like Boeing.

The strike lasted 57 days and ended on November 1, 2008,

when the parties signed the current contract. During the

negotiations, the Union had proposed to amend Section 21.7 to,

among other things, eliminate the waiver language quoted

above.
Boeing refused to agree to such an amendment, and the

language remained in the contract.

In early 2009,2 the media again began publishing reports

that Boeing needed to establish a second 787 assembly line.

On February 9, the Seattle Times reported that Washington

Senator Patty Murray had met with Boeings Senior Vice

President of Government Operations; he had informed her that

the CEO was sick and tired of the unions strikes and was

looking to put the second 787 line elsewhere.

On April 16, Boeing and IAM officials held their annual

summit in Chicago.
Management officials attending included

CEO McNerney, Boeing Commercial Airplanes CEO Carson,

Integrated Defense Systems CEO Jim Albaugh, and for the first

time, Vice President and General Manager of Supply Chain

Management & Operations Ray Conner.


IAM representatives

included International President Tom Buffenbarger, General

Vice President Rich Michalski, and the Directing Business

Representatives who represented Boeing employees, including

District 751 DBR Tom Wroblewski.


This was the first

opportunity for the parties to meet since the strike had

ended.
McNerney and Buffenbarger were the lead speakers.

McNerney stated that Boeings customers were losing confidence

1 In his
that the
occurred
1989 (48
2

e-mail, CEO McNerney exaggerated the number of times

Union had struck.


In actuality, prior strikes

in 1948 (140 days), 1965 (19 days), 1977 (45 days),

days), 1995 (69 days), and 2005 (28 days).

Dates are in 2009 unless otherwise noted.

NLRB-FOIA-00010646

Case 19-CA-32431

- 5 -

in the Company because of past strikes and the possibility of

future strikes.
He said that the parties had to come up with

a way to stop having labor disputes.


The general theme was

that management and labor should continue to meet to find ways

to avoid the problems of the past.

As a follow-up to this summit, Wroblewski and IAM

Aerospace Coordinator Mark Blondin met on June 23 in Seattle

with Conner and Boeings Vice President of Human Resources

Doug Kight.
The parties focused on how to build a better

relationship and improve communication. While Wroblewski had

an established relationship with Kight, Conner was new to

labor relations.
Wroblewski thought that one of the purposes

of the meeting was to get to know Conner.


At a subsequent

meeting on June 30 between Wroblewski and Conner, Conner

expressed Boeings concern that its customers did not have

confidence it could make timely deliveries because it had

experienced two strikes in the last five years and had

supplier issues.
For the first time, Conner raised the

prospect of a long-term collective-bargaining agreement as a

way to gain the customers confidence that they would get

their aircraft on time.

In early July, Boeing announced its intent to purchase

the Vought plant in North Charleston, South Carolina.


IAM

Local Lodge 183 represented the Vought production,

maintenance, and quality employees.


Boeing agreed to

recognize the Union but wanted to negotiate a new collective-

bargaining agreement.

On July 8, the Seattle Times reported that Boeings CEO

had informed Washington Congressmen Norm Dicks and Jay Inslee

that as a result of past strikes, the Company would place the

second line outside the Puget Sound area unless it could reach

a long-term contract with the Union. Boeing told the

Congressmen that South Carolina was the main competitor.

Wroblewski, Blondin, Kight, and Conner met again twice in

July, on July 7 and July 23.


At each of these meetings,

Conner and Kight emphasized that strikes had to stop for

Boeing to be viable.
They stated that Boeing needed a long-

term agreement with no-strike language to satisfy their

customers.
At this point, Boeing was two years behind

schedule and had approximately 850 787 planes on back order as

a result of supplier and software problems.

Then, on July 30, the same date that Boeing announced

that it had purchased Voughts plant, a South Carolina

employee filed a decertification petition.


During August,

Boeing denied the Union access to the employees in the North

Charleston plant and wrote a memorandum to the employees

stating that it preferred to deal with employees directly

NLRB-FOIA-00010647

Case 19-CA-32431

- 6 -

without intermediaries.3
Boeing also issued a FAQ document

to the employees stating that the mass layoffs that took place

at the Vought plant in late 2008 were due to the unique

situation created by the Everett strike.


Meanwhile, the

South Carolina press was reporting that a decertification

decision could influence where Boeing located the second 787

assembly line.
For example, The Post and the Courier reported

that South Carolinas low unionization rate is viewed as an

advantage in the 787 chase[.]


An article in the Charleston

Business Journal asserted that Charleston might be a better

choice in the event of decertification because of its

potentially tamer work force instead of the Washington

workers with a history of walk[ing] off the job.

On August 26, Boeing e-mailed its managers and human

resource professionals that it had notified South Carolina

that it intended to file permits for the construction of a

second 787 line but that it had not yet made a decision as to

where to locate the second line.


The following day, Boeing

and Union officials met in Portland to discuss the prospect of

a long-term agreement.
Carson informed the Union that the

only way Boeing would place the second line in Washington was

if the Union agreed to a twenty-year no-strike agreement.

Boeing suggested a series of three-year agreements with an

overarching twenty-year no-strike pledge until 2032 and

binding interest arbitration if no agreement was reached at

the end of each of the three-year contracts.


The Union said

that this was not possible, but the Union would consider a

longer agreement than the current four-year contract in return

for some sort of neutrality agreement.


At the end of the

meeting, the parties agreed to schedule negotiations for a

long-term agreement.

Meanwhile, the decertification election in South Carolina

was scheduled for September 10.


In reporting on Boeings

permit filings in South Carolina, the Puget Sound Business

Journal characterized this vote as [a] wild card in Boeings

decision about where to locate the second line.


On September

2, Kight presented an hour-long video on Boeings website

(later quoted in a September 29 article in the Seattle Times).

In regard to the second line, he stated:

What do you do with the 787 second line so that we can

build up to rate and meet our commitment to customers?

... Theres a lot of issues to look at, a lot being

studied, no decision has been made.


But truthfully, it

is very clear that this triennial disruption, our

The Union filed a Section 8(a)(5) charge alleging that

Boeing unilaterally changed its access rules but withdrew the

charge following the election.

NLRB-FOIA-00010648

Case 19-CA-32431

- 7 -

customers cant live with it anymore.


So weve become an

unreliable supplier....
So we look at how do we become a

reliable supplier.
How do we ensure production

continuity so that we can meet our commitments to our

customers in a timely way and thats what were trying to

do.

The Union lost the election in South Carolina eight days later

and was decertified on September 18.

As a follow-up to the parties August 27 meeting in

Portland, CEO McNerney wrote to IAM International President

Buffenbarger on September 21 that Boeing planned to make a

decision on the second lines location by the end of October

and wanted the Unions input within the next three to four

weeks.
He stated, I look forward to our respective teams

engaging in fruitful dialog.


Two days later, Boeing filed an

application for a storm water permit with the City of North

Charleston and an overall site plan with the State of South

Carolina.
On October 1, Boeing applied to North Charleston

for a site clearing permit.

The Parties Meet over a Long-Term Agreement

The parties opened negotiations for a long-term agreement

on October 1.
At the start of negotiations, Boeing explained

that placement of the second line in Washington depended on a

long-term agreement to insure no further disruptions in

deliveries to customers.
The Union responded that in exchange

for giving up the right to strike, the parties would need to

resolve economic issues for the long term rather than through

interest arbitration every three years.

The parties met again on October 7, 8, and 15.


The Union

maintains that Boeing never submitted a written proposal or

counter-proposal, that it was in the dark as to what Boeing

wanted, and that in effect it was negotiating against itself.

For example, with respect to the length of the agreement, at

various points Boeing requested a contract ending in 2020 or

2022 but at other times, demanded a twenty-year agreement.


In

terms of wages, Boeing wanted to reduce general wage increases

and move toward a profit-sharing incentive program.


The Union

was not adverse to this concept but requested information to

insure that Boeings measures of productivity were tied to

employee performance and not events beyond the employees

control.
At one point, Boeing stated that the general wage

increase and COLA could not exceed 3.5%.


When a Union

negotiator asked what would happen if the cost of living

increased more than 3.5%, Boeing responded that employees

would get more.


On October 15, for the first time, Boeing

said that it wanted a lower wage structure for new hires and a

NLRB-FOIA-00010649

Case 19-CA-32431

- 8 -

defined contribution plan for them rather than the defined

benefit pension plan that the existing employees enjoyed.

The Union repeatedly raised the issues of job security

and Employer opposition to the Union elsewhere.


The Union

argued that in return for giving up the right to strike during

the long-term, employees needed enhanced job security.


Also,

if the parties relationship were to improve, the Union did

not want to face the type of anti-union conduct Boeing had

engaged in during the decertification campaign in South

Carolina.

At the October 15 session, Conner informed the Union that

the Board of Directors would be meeting on October 26 and he

wanted to give the Board a progress report on the

negotiations.
The Union asserts that Boeing never described

the Board of Directors meeting as a deadline for resolving the

outstanding bargaining issues.


Moreover, Boeing never

provided a concrete proposal that could be put to the unit

employees for a vote.

The parties met again on October 20 and 21.


Conner

stated that Boeing was getting close to making its decision on

the location of the second line and it would be discussed at

the Board meeting on October 26.


By the end of the parties

October 21 session, the Union orally had proposed the

following: an extension of the existing contract to 2020, 3%

annual wage increases plus a 1% COLA, ratification bonuses for

unit employees, an incentive pay program, health cost sharing

towards the end of the contract, annual increases in pension

benefits starting in 2013, and neutrality in connection with

Union organizing campaigns.


In addition, the Union presented

Boeing with a two-page document entitled Rough Draft on

Concepts for a long-term agreement and a joint partnership

committee.
This Draft called for retention of current unit

work; location of the second line in the Puget Sound area; and

six-month advance notice and good-faith bargaining over any

decision to establish an assembly operation for any next

generation product.
Boeing asserts that this rough draft

was the Unions last and final offer, but the Union

disagrees and also maintains that its negotiators had no idea

that this would be the parties final session.


Indeed, the

Union negotiator involved in working out the details of the

incentive pay program sent an e-mail to Kight on October 27

requesting further information.


Kight responded that he would

get back to him.

Meanwhile, on October 21, Boeing posted its quarterly

earnings conference call on its intranet site for employees.

With respect to locating the second line in South Carolina,

CEO McNerney stated:

NLRB-FOIA-00010650

Case 19-CA-32431

- 9 -

[T]here would be some duplication.


We would obviously

work to minimize that.


But I think having said all of

that, diversifying our labor pool and our labor

relationship has some benefits.


...
And so some of the

modest inefficiencies, for example, associated with the

move to Charleston, are certainly more than overcome by

strikes happening every three or four years in Puget

Sound.
And the very negative financial impact of [sic]

the company, our balance sheet would be 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....

And I dont blame this totally on the union. We just

havent figured out a way - the mix doesnt - isnt

working well yet. So, weve either got to satisfy

ourselves that the mix is different or we have to

diversify our labor base.

McNerney stated that a decision would be made in the next

couple of weeks.

Two days later, IAM General Vice President Michalski

called Conner to ask about the status of the negotiations.

Conner stated that the Unions economic terms and demand for

neutrality were unacceptable to Boeing.


Michalski explained

that the Union was not asking for a traditional neutrality

agreement but rather, as explained during negotiations, a code

of conduct.
Michalski stated that the Union was willing to

meet at any time for additional negotiations, but Conner did

not respond.
On October 24, Michalski called Senior Vice

President of Operations Tim Keating to reiterate that the

Union was not seeking a true neutrality agreement.


He wanted

to clear up any misunderstanding if that issue was blocking

the parties ability to reach an agreement.


Keating did not

respond, and no further negotiations were ever scheduled.

Meanwhile, the governmental bodies in South Carolina were

moving quickly to facilitate the second lines placement in

their State.
On October 23, North Charleston approved

Boeings request for a storm water permit, and the State of

South Carolina approved Boeings overall site plan.


On

October 27, the South Carolina legislature, in a special

session, approved $170 million in taxpayer-backed bonds for

Boeings startup costs and tax breaks totaling $450 million in

exchange for Boeings agreement to create at least 3,800 jobs

and invest more than $750 million in the State within the next

seven years.
That same day, North Charleston approved

Boeings site clearing permit.

Boeing contends that it entered these negotiations with a

good-faith intention to reach a long-term agreement that would

have resulted in placing the second line in Washington, but

NLRB-FOIA-00010651

Case 19-CA-32431

- 10 -

the Unions economic demands were too costly and its

insistence upon neutrality and job security were unacceptable.

The Union asserts, however, that Boeings failure to submit

any proposals, its rejection of the Unions serious efforts to

address Boeings purported concerns, and then its precipitous

halting of negotiations as soon as the South Carolina

legislature awarded it a generous tax and subsidy package

demonstrate that the negotiations were in fact a sham.

Boeing Announces its Decisions to Locate the Second Line in

South Carolina and to Establish a Dual-Sourcing Program

On October 28, Boeing announced its decision to locate

the second 787 assembly line in South Carolina.


In a press

release and internal e-mails, Boeing stated that the Board of

Directors had just approved the selection of North Charleston.

Boeing also announced that it intended to build a surge line

in Everett - a temporary second assembly line that would be

phased out once the South Carolina line was up and running.

Boeing issued a memo to its managers on October 28 that

provided answers to anticipated questions from employees and

talking points regarding its decision.


The managers were

advised to inform employees, among other things, that the

decision to locate the second line in Charleston would

provide economic advantages by improving our competitiveness

and reducing vulnerability to delivery disruptions due to a

host of factors, from natural disasters to homeland security

issues and work stoppages.


The memo further stated, In the

final analysis, this came down to ensuring our long-term

global competitiveness and diversifying the company to protect

against the risk of production disruption ... from natural

disasters, to homeland security threats, to work stoppages.

On December 3, Boeing notified its fabrication managers

that it intended to create a dual-sourcing program and

contract separate suppliers for the South Carolina assembly

line.
As a result, employees in the Puget Sound and Portland

units who produce parts for the 787 assembly line are likely

to suffer a loss of work.


Articles that appeared in the

Seattle Times on December 7 and the Puget Sound Business

Journal on December 8 discussed this announcement.


The

Seattle Times quoted Boeing spokesman Jim Proulx as stating,

Repeated labor disruptions have affected our performance in

our customers eyes.


We have to show our customers we can be

a reliable supplier to them.


[The second production] line has

to be able to go on regardless of whats happening over here.

The Puget Sound Business Journal quoted Conner as follows:

Dual-sourcing and co-production will allow us to maintain

production stability and be a reliable supplier to our

customers.

NLRB-FOIA-00010652

Case 19-CA-32431

- 11 -

On March 2, 2010, a Seattle Times journalist conducted a

videotaped interview of Boeings new Commercial Airplanes CEO,

Jim Albaugh.
(Albaugh had moved over from his position as

Integrated Defense Systems CEO to replace Carson.)


The

interviewer asked Albaugh some hard questions on behalf of

the Washington community about Boeings decision to locate the

second 787 line in Charleston.


In explaining Boeings

decision, Albaugh repeatedly referenced the Unions strike

history.
For example, he stated:

The issue last fall was really about, you know, how

we could ensure production stability and how we

could ensure that we were competitive over the long

haul.
And we had some very productive discussions

with the union.


And unfortunately, we just didnt

come to an agreement where we felt we could ensure

production stability.
And read [sic] that is [sic]

getting away from the frequent strikes that we were

having and also could we stop the rate of escalation

of wages.
And we just could not get to a place

where we both felt it was a win for both ourselves

and the union so we made the decision to go to

Charleston.

[W]eve had strikes three out of the last four times

weve had a labor negotiation with the IAM.


... And

weve got to get to a position where we can ensure

our customers that every three years theyre not

going to have a protracted shutdown.

It was about ensuring to our customers that when we

commit to deliver airplanes on certain dates that we

actually do deliver.
And we have lost our

customers have lost confidence in our ability to do

that, because of the strikes.

When asked whether going to Charleston, in light of the

expense and risk, made business sense, he responded:

Theres no question that whenever you go to a green field

site, theres risk involved.


At the same time, with the

protracted labor stoppage that we had ... the fall of

2008, I mean that cost the company billions of dollars.

And I think if you compare, you know, what it cost

because of the stoppages versus the cost and the risk of

starting a new line in Charleston, I think the investment

certainly is the right one for us to make.4

Once again, a Boeing CEO grossly exaggerated the burden of

the Unions strike activity.


Boeing had alleged elsewhere

that the 2008 strike reduced its earnings by $1.8 million, far

NLRB-FOIA-00010653

Case 19-CA-32431

- 12 -

At one point, Albaugh summed up the basis of Boeings

decision as follows:

[t]he overriding factor was not the business climate.

And it was not the wages were paying today.


It was that

we cannot afford to have a work stoppage, you know, every

three years.
We cannot afford to continue the rate of

escalation of wages....

Albaugh also implicitly threatened the loss of additional work

because of Union strikes, stating, [w]ell do work here if we

can make sure that we have the stability of the production

lines and that we can be competitive over the long haul.

Production is now approximately three years behind

schedule.
Approximately 2,900 Puget Sound unit employees

currently work on the 787 assembly line.


Approximately 1,740

of them are working on out-of-sequence assembly work, away

from the main assembly line. Once supply issues are resolved

and assembly can be accomplished in sequence on the line, it

is anticipated that the number of employees will drop by

approximately 60%.
Boeing asserts that the South Carolina

plant will be ready to begin assembly work in mid 2011.

Approximately 1,000 mechanic and flight line jobs will be

added in South Carolina at that time.

ACTION

This case involves Boeings transfer of work from an

experienced unionized workforce to a new, nonunion facility.

Boeings decision was motivated by antiunion considerations.

From the time of the Unions strike in the fall of 2008,

Boeing made clear to its unionized workforce that it would not

countenance further strikes.


Time and again, in e-mails to

employees, on its intranet site, in the media, and in talks

with the Union, Boeing tied its ability to compete to the

avoidance of future strike activity.


Then, when Boeing

purchased the Vought facility in South Carolina, its officials

denied the Union access to employees at the facility.


It also

let the employees know that it preferred to deal with them

directly rather than through their Union and their receipt of

the second line hinged on their vote in a decertification

election.
Simultaneously, Boeing officials told the Puget

Sound unit employees that they could retain all of the 787

assembly work only by waiving their right to strike for twenty

years.
Although the Union entered negotiations with Boeing

less than the billions of dollars that Albaugh claimed in

this interview.

NLRB-FOIA-00010654

Case 19-CA-32431

- 13 -

and made major concessions in an effort to address its stated

concerns, once the Union was decertified in South Carolina,

Boeing courted the South Carolina legislature and applied for

the necessary permits from the South Carolina regulatory

bodies - even as it continued the motions of negotiating with

the Union.
As soon as South Carolina approved the financial

incentives for Boeing, Boeing called off negotiations and

announced its decision.


Boeings CEO admitted that the

overriding factor for moving work to South Carolina was the

employees strike activity.


Moreover, to reinforce the

message to unit employees, he intimated that the continuation

of any work in Washington was contingent on the stability of

the production lines, a veiled threat designed to coerce

employees to abstain from future strikes.


Nor could Boeing

credibly blame the 787 production delays on employees 2008

strike activity, which halted production for approximately two

months.
Rather, the delay resulted primarily from its own

business decision to outsource the manufacture of the aircraft

components to various suppliers and from unexpected software

problems.

Further, the fact that it made little practical sense to

locate this second line in South Carolina, despite a two-and-

a-half-year delay in the production of its new 787 aircraft,

rather than its existing facilities in Washington, supports a

finding of unlawful motivation.


While South Carolina would

not be ready for production for two years because of the need

for substantial capital improvements and the hiring and

training of a new workforce, Washington was already up and

running, with the space, the necessary equipment, and a

significant complement of trained employees.

On these facts, we conclude that the Region should issue

a complaint alleging: independent violations of Section

8(a)(1) based upon Boeings coercive and threatening

statements to employees on the intranet and through the media;

and a violation of Section 8(a)(3) based upon Boeings

decision to place the second line in South Carolina and to

establish a dual-sourcing supply program in order to retaliate

against the unit employees for engaging in protected Union

activity.
We would also argue, in the alternative, that

Boeings actions were inherently destructive of employee

rights.
But the Region should dismiss the Section 8(a)(5)

allegations because the Union waived its right to bargain

about Boeings decision to offload unit work to a facility not

covered by the parties agreement.


Finally, to remedy the

Section 8(a)(1) and (3) violations, the Region should seek: a

notice reading by a high-level Boeing official in addition to

the traditional remedies; and an order requiring Boeing to

assemble in the Puget Sound area the first ten 787 aircraft

that it produces each month and to maintain the supply lines

for those aircraft in the Puget Sound and Portland facilities.

NLRB-FOIA-00010655

Case 19-CA-32431

- 14 -

I. The Employer Violated Section 8(a)(1)

The Supreme Court long ago delineated the line between

employer speech protected under Section 8(c) of the Act and

threats of reprisals violative of Section 8(a)(1).5


The Court

ruled in Gissel that an employer may make a prediction as to

the effects of unionization but that prediction must be

carefully phrased on the basis of objective fact to convey an

employers belief as to demonstrably probable consequences

beyond his control[.]6


On the other hand, threats of

economic reprisal to be taken solely on [the employers] own

volition violate Section 8(a)(1).7

In General Electric Company, the Board applied the Gissel

test to set aside an election because the employer threatened

a long-term loss of work based on the possibility of a strike

at some future time.8


Faced with a union organizing drive,

the employer gave multiple speeches touting its two-source

supplier strategy.9
The employer stated that it had

established its nonunion plant so that customers could get the

motors they needed during the seven strikes at its union

plant.
The employer also made clear that the plants nonunion

status was the reason it had experienced a rise in

employment.10
And the employer conveyed the message that the

plant remaining nonunion was an important, if not a decisive,

factor in any company decision to choose that plant as a

second manufacturing facility for the new motor the employer

planned to introduce.11
The Board concluded that although the

employer might want to insure itself against production

interruptions caused by employee concerted activity, no such

insurance is legally possible, for the simple reason that

employees have a federally protected right to engage in such

activity.12
The Board expressly distinguished an employers

right to take defensive action when threatened with an

See NLRB v. Gissel Packing Co., 395 U.S. 575, 618 (1969).

Ibid.

Id. at 619 (citation omitted).

See 215 NLRB 520, 522-23, fn. 6 (1974).

See id. at 520.

10

See id. at 520-21.

11

See id. at 521.

12

See id. at 522.

NLRB-FOIA-00010656

Case 19-CA-32431

- 15 -

imminent strike from threats to transfer work merely because

of the possibility of a strike at some speculative future

date.13

The Board repeatedly has held that an employer violates

Section 8(a)(1) by threatening to withhold work opportunities

because of the exercise of Section 7 rights.14


Thus, telling

employees that they will lose their jobs if they join a strike

violates Section 8(a)(1).15


Similarly, in Kroger Co., the

employer unlawfully threatened to put its plan to build a new

freezer facility for its distribution center on hold because

of intraunion unrest and labor disputes.16

Further, where an employer unconditionally predicts a

loss of customers due to unionization or strike disruptions

without any factual basis, its predictions amount to

unlawful threats.17
Rather, an employers predictions of

customer disaffection must be based on objective facts.18

Thus, in Curwood, Inc., an employer lawfully related its

13

See id. at 522, fn. 6.

14

See, e.g., Kroger Co., 311 NLRB 1187, 1200 (1993), affd.

th
mem. 50 F.3d 1037 (11
Cir. 1995); General Electric Co., 321

NLRB 662, fn. 5 (1996), enf. denied 117 F.3d 627 (D.C. Cir.

1997).

15

Aelco Corp., 326 NLRB 1262, 1265 (1998).


See also Dorsey

Trailers, Inc., 327 NLRB 835, 851 (1999), enfd. in pertinent

th
part 233 F.3d 831 (4
Cir. 2000) (threat to close the plant if

the employees went out on strike).

16

311 NLRB at 1200.


See also General Electric Co., 321 NLRB

at 662, fn. 5 (employer conveyed to employees that

unionization could result in the withholding of further

investment in the plant or its closure).

17

See, e.g., Tawas Industries, 336 NLRB 318, 321 (2001) (no

objective basis for prediction that customers, fearing

strikes, would not give their business to the employer if the

employees independent union affiliated with the UAW);

Tradewaste Incineration, 336 NLRB 902, 907-08 (2001)

(prediction that 90% of the customers would not deal with a

union facility because of fear of a work stoppage was not

based on objective facts); Debbie Reynolds Hotel, 332 NLRB

466, 466 (2000) (no factual basis for statements about having

to move productions and equipment elsewhere because customers

would not be able to afford employers facilities if employees

unionized).

18

Curwood, Inc., 339 NLRB 1137, 1137-38 (2003).

NLRB-FOIA-00010657

Case 19-CA-32431

- 16 -

customers concerns about strikes, where the employer produced

written inquiries from customers seeking information about its

contingency plans in the event of a strike.19


An employer may

also reference the possibility that unionization, including

strikes, might harm relationships with consumers, as opposed

to predicting
unavoidable consequences.20

Here, the Union has alleged that several statements by

Boeing officials violated Section 8(a)(1).


Some statements

were posted by Boeing on its website or intranet.


Others were

reprinted in newspaper articles as direct quotes; although

such a quotation is hearsay, it would be admissible as an

admission (an exception to the hearsay rule), if the reporter

testifies.21
By contrast, reporter summaries cannot form the

basis for a Section 8(a)(1) violation.


And statements

recounted by political figures within newspaper articles are

in effect double hearsay and inherently unreliable.

Based on these principles, we find that the following

constitute unlawful threats under the Gissel standard:

(1)
Boeing posted its quarterly earnings conference call

on its intranet for employees on October 21.


During the call,

CEO McNerney made an extended statement about diversifying

our labor pool and moving work to South Carolina because of

strikes happening every three or four years in Puget

Sound.22
His comments were indistinguishable from the

comments regarding a two-source supplier strategy found

violative in General Electric.23

(2)
Boeings October 28 memo to managers advised them to

inform employees that it decided to locate the second line in

South Carolina in order to reduce vulnerability to delivery

disruptions caused by, among other things, strikes.


The

thrust of Boeings message to employees was that Boeing had

19

See id. 339 NLRB at 1137.

20

E.g., Miller Industries Towing Equipment, Inc., 342 NLRB

1074, 1075-76 (2004) (employer did not predict unavoidable

consequences).

21

Cf. Sheet Metal Workers Local 15 (Brandon Regional Medical

Center), 346 NLRB 199, 201-02 (2006), enf. denied on other

grounds 491 F.3d 429 (D.C. Cir. 2007) (newspaper report of

party admission is inadmissible hearsay because the reporter

was not available for cross-examination).

22

These same comments were quoted in the Seattle Times.

23

See 215 NLRB 520, 522-23 (1974).

NLRB-FOIA-00010658

Case 19-CA-32431

- 17 -

removed jobs from Puget Sound because employees had struck and

that they would lose work if they struck again.24

(3)
In articles that appeared in the Seattle Times and

the Puget Sound Business Journal on December 7 and 8

respectively, Boeing officials attributed the plan to use a

dual-sourcing system and contract separate suppliers for the

South Carolina line to past strikes and implicitly threatened

the loss of future work opportunities in the event of future

strikes.25

(4)
In a video-taped interview on March 2, Boeing

Commercial Airplanes CEO Albaugh expressly attributed the

Employers decision to locate the second line in South

Carolina to employee strikes and threatened the loss of future

work opportunities in retaliation for such protected

activity.26

The above statements, disseminated through various

channels to unionized and nonunionized employees nationwide,

drove home the message: union activity could cost them their

jobs, while a decision to reject union representation could

bring those jobs to their communities.

II.

The Employer Violated Section 8(a)(3)

The Employers decision to locate the second 787 line at

a nonunion facility and to establish a dual-sourcing program

to support that line violated Section 8(a)(3) because the

Employer acted in retaliation for the employees Union

activity and not for a legitimate business reason.

Initially, despite Boeings assertions that its decision

to locate a second 787 assembly line in South Carolina will

not adversely impact any current unit employees, there is no

question that the decision will direct work away from Puget

Sound employees with consequent adverse effects.


Instead of

24

The Region should insure that this message was communicated

to employees.

25

The authors of these articles will need to testify.


If

they resist testifying, and it becomes necessary to seek

subpoena enforcement, the Region should contact Advice.

26

Vice President Kights video-taped comments that Boeings

customers could not live with this triennial disruption and

that Boeing was looking to insure production continuity

cannot be alleged as an independent violation because they

were first posted on Boeings website on September 2, outside

the Section 10(b) period.

NLRB-FOIA-00010659

Case 19-CA-32431

- 18 -

assembling all of the 787 planes in Washington as originally

planned, once the second line opens in South Carolina, a

significant portion of the remaining 787 orders will be filled

by planes produced in North Charlestown.


Future work

opportunities will be lost for employees on the surge line,

as well as unit employees waiting to transfer into the more

desirable 787 jobs.


There are likely to be transfers to

older, less desirable aircraft assembly lines, demotions, and

layoffs.
Moreover, Boeings adoption of its new dual-

sourcing program means that the Puget Sound and Portland unit

employees will produce parts only for planes assembled in

Washington and not for those planes assembled in South

Carolina, also causing the loss of employment opportunities

for unit employees and the likelihood of demotions and

layoffs.
If no unit employees have been harmed yet, it is

merely because Boeings retaliatory decision has not yet been

implemented.

Recently, in Pittsburg & Midway Coal Mining Co., the

Board expressly reaffirmed that an actual financial loss is

not necessary to establish a Section 8(a)(3) violation.27


In

that case, the employer revised its bonus policy in

retaliation for the employees use of contractual memorial

days to engage in work stoppages.


Even though no employees

thereafter suffered a diminution of their bonuses, the Board

found a Section 8(a)(3) violation based upon the employers

retaliatory motive.28

Moreover, the Board specifically has held that an

employer may not, for unlawfully motivated reasons, divert

unit work to a nonunion plant even where there is no immediate

impact on unit employees.29


In Adair Standish Corp., the

employer refused to take delivery of a new press ordered for

its newly-organized Standish plant and installed it instead at

its nonunion plant.


The Board noted that diversion of the

press from Standish could reasonably result in diversion of

new work from Standish and therefore violated Section 8(a)(3)

even though there was no immediate impact on the unit

employees.30
Similarly, in Cold Heading Co., the employer

unlawfully relocated equipment to a newly-purchased nonunion

facility and changed its plans to install new equipment in its

27

See 355 NLRB No. 197, slip op. at 5, fn. 8 (2010).

28

Ibid.

29

See Adair Standish Corp., 290 NLRB 317, 318-19 (1988), enfd

th
in pertinent part 912 F.2d 854 (6
Cir. 1990).

30

See id. at 319.

NLRB-FOIA-00010660

Case 19-CA-32431

- 19 -

union facility after its employees independent union

representative sought to affiliate with the UAW.31

Here, as in Adair Standish and Cold Heading, there is a

diversion of unit work that the unit employees otherwise would

have performed.
And as in Pittsburg & Midway Coal Mining Co.,

the fact that unit employees may not yet have experienced the

financial impact of Boeings decision is no defense to a

Section 8(a)(3) violation.

Further, Boeing made this decision for unlawful reasons.

Boeing admits that the overriding factor in its decision to

place the second line in a nonunion facility was the

employees strike history.


An employers discouragement of

its employees participation in a legitimate strike

constitutes discouragement of union membership within the

meaning of Section 8(a)(3).32


This applies to employer

conduct designed to retaliate against employees for having

engaged in a strike in the past,33 as well as employer conduct

designed to forestall employees from exercising their right to

strike in the future.34


Indeed, the Board recently reaffirmed

that an employer violates the Act when it acts to prevent

future protected activity.35


Comparing such conduct to the

31 See 332 NLRB 956, fn. 5, 975-76 (2000).


See also

Associated Constructors, 325 NLRB 998, 998-1000 (1998), enfd.

sub nom. ODovero v. NLRB, 193 F.3d 532 (D.C. Cir. 1999)

(double-breasted employer unlawfully diverted work from its

union entity to its nonunion entity in retaliation for the

unions efforts to organize the nonunion entity and to escape

the collective-bargaining agreement).

32

Capehorn Industry, 336 NLRB 364, 365 (2001).

33

See id. at 365-67 (employer violated Section 8(a)(3) by

failing to immediately reinstate strikers upon unconditional

offer to return to work where there was no legitimate business

justification for entering into a permanent subcontract).

34

See Century Air Freight, 284 NLRB 730, 732 (1987) (employer

violated Section 8(a)(3) by permanently subcontracting unit

work and discharging unit employees in order to forestall the

exercise of their right to strike); Westpac Electric, 321 NLRB

1322, 1374 (1996) (employer violated Section 8(a)(3) by

isolating employee in retaliation for his previous striking

activities and also in anticipation that he would participate

in a strike in the future).

35

See Parexel International, LLC, 356 NLRB No. 82, slip op.

at 4 and cases cited therein (2011) (employer violated Section

NLRB-FOIA-00010661

Case 19-CA-32431

- 20 -

erection of a dam at the source of supply of potential,

protected activity, the Board reasoned that, the suppression

of future protected activity is exactly what lies at the heart

of most unlawful retaliation against past protected

activity.36

Boeing concedes that it is removing work from the unit

employees based upon their past exercise of their right to

strike.
However, Boeing relies upon the Supreme Courts

decision in NLRB v. Brown Food Store37 to argue that it is

privileged to move work outside the unit to avoid the

disruptive consequences of future strikes and that this is a

sufficient business justification to permit its actions.

In Brown Food Store, the Court held that an employer was

privileged to lock out its employees and use temporary

replacements to carry on its business in the face of a whipsaw

strike.38
Specifically, the Court found that the use of a

lockout and the hiring of temporary replacements to bring

pressure to bear in support of its bargaining position after

an impasse in negotiations was not an unfair labor practice.39

Rather than finding the use of this economic weapon

discriminatory, the Court concluded that it was a legitimate

defensive measure to preserve the multiemployer group in the

face of a whipsaw strike.40

Boeings attempt to extend the holding of Brown to

legitimatize any action that an employer takes to protect

itself against future, wholly speculative, strikes would

vitiate the Section 13 right to strike.


And the Board has

made it clear that an employer cannot rely upon Brown to

justify discriminatory conduct based upon the exercise of the

right to strike.
Thus, in National Fabricators, the Board

expressly rejected the employers attempt to use Brown and

other lockout cases to justify its decision to lay off those

employees who were likely to honor a union picket line in the

8(a)(1) by discharging an employee to prevent her from

discussing wages with other employees).

36

Ibid. (citation omitted).

37

380 U.S. 278 (1965).

38

See id. at 283-85.

39

See id. at 284.

40

See ibid.

NLRB-FOIA-00010662

Case 19-CA-32431

- 21 -

future.41 Instead, the Board found that disfavoring employees

who were likely to engage in protected union activities was

proscribed by Section 8(a)(3) and the employers business

justification - to avoid investing money in employees who

were going to cease work later -- was neither legitimate nor

substantial.42

Boeings concession that choosing South Carolina will

result in duplication and economic inefficiencies further

demonstrates that Boeings actions were retaliatory and not a

legitimate business decision.


In addition, Commercial

Airplanes CEO Albaugh conceded that going to South Carolina,

a green field site, involves significant risks.


Boeing has

the capacity, equipment, and trained workforce to handle the

second assembly line in the Puget Sound area.


The substantial

investment required to build and equip the South Carolina

facility therefore will be duplicative.


In addition, Boeing

will have to recruit and train a new workforce in South

Carolina, while ultimately laying off experienced employees in

Washington.
Exaggerating the disruptive effects of prior

strikes, Boeing maintains that the inefficiencies associated

with moving work to South Carolina will be counterbalanced by

the avoidance of strike disruptions in the future. However,

there are other nonretaliatory and less costly means of

dealing with the potential of relatively short disruptions

caused by employee strikes, such as concluding negotiations

with the Union for a long-term no-strike agreement.


In

addition, Boeings claim that it took this action to avoid

strike disruptions is belied by Boeings rejection of the

Unions efforts to negotiate a long-term no strike agreement.

Accordingly, the Region should proceed on the theory that

Boeing violated Section 8(a)(3) by retaliating against the

unit employees for engaging in the protected activity of

striking.

We also conclude that Boeings conduct was inherently

destructive of employee interests.43


Conduct is inherently

destructive when it carries with it unavoidable

consequences which the employer not only foresaw but which he

must have intended and thus bears its own indicia of

th

41

See 295 NLRB 1095, 1095 (1989), enfd. 903 F.2d 396 (5

1990), cert. denied 498 U.S. 1024 (1991).

42

Cir.

See 295 NLRB at 1095-96.

43

See NLRB v. Great Dane Trailers, Inc., 388 U.S. 26, 33

(1967) (citation omitted).

NLRB-FOIA-00010663

Case 19-CA-32431

- 22 -

intent.44
In International Paper Co., the Board set forth

four fundamental guiding principles for determining whether

employer conduct is inherently destructive of employee

rights.45
First, the Board looks to the severity of the harm

to employees Section 7 rights.


Second, the Board considers

the temporal impact of the employers conduct, i.e. whether

the conduct merely influences the outcome of a particular

dispute or whether it has far reaching effects which would

hinder future bargaining.


Third, the Board distinguishes

between conduct intended to support an employers bargaining

position as opposed to conduct demonstrating hostility to the

process of collective bargaining.


And finally, the Board

assesses whether the employees conduct discourages collective

bargaining by making it seem a futile exercise in the eyes of

the employees.46
Even if the employees conduct is

inherently destructive, the Board weighs the employers

asserted business justification against the invasion of

employee rights.47

Boeings actions were inherently destructive of employee

rights under the four principles articulated in International

Paper.
First, the harm to employees Section 7 rights was

severe; employees got the distinct message that if they engage

in another strike, unit work will be moved to a nonunion

facility and unit jobs will be lost.


Second, Boeings

decision was designed to have far-reaching effects and not

just to influence the outcome of a particular dispute, namely,

to take away employee support for the Unions most effective

economic weapon, and for the Union itself, and thereby hinder

any future collective bargaining.


Third, Boeings conduct

demonstrated hostility to the very process of collective

bargaining and not just to support a specific bargaining

position.
Finally, bargaining was made to seem a futile

44

Ibid., quoting NLRB v. Erie Resistor Corp., 373 U.S. 221,

228, 231 (1963).


See also Dorsey Trailers, Inc., 327 NLRB

835, 863-64 (1999), enf. denied in pertinent part 233 F.3d 831

th
(4
Cir. 2000).

45

See 319 LRB 1253, 1269 (1995), enf. denied 115 F.3d 1045

(D.C. Cir. 1997).

46

Id. at 1269-70 (citations omitted).

47

Id. at 1273 (finding no justification for employers

inherently destructive conduct of permanently subcontracting

bargaining unit work during a lawful lockout).


See also

Dorsey Trailers, 327 NLRB at 863-64 (employers closing of

facility during strike and relocation of unit work to newly

purchased facility outside the unions jurisdiction was

inherently destructive of employee rights).

NLRB-FOIA-00010664

Case 19-CA-32431

- 23 -

exercise without the possibility of a strike to support the

Unions position at the bargaining table.

The unavoidable consequence of Boeings decision to place

the second line in its newly-purchased, nonunion facility,

accompanied by official comments on the intranet and in the

media, was to severely chill its employees exercise of

Section 7 rights in the future - whether it be the Puget

Sound employees, the South Carolina employees, or Boeing

employees elsewhere.
Employees will correctly fear that

engaging in such protected activity could cause them to lose

their jobs to nonunionized workers.


Others may be encouraged

to file or support decertification petitions.


And the many

unrepresented Boeing employees will be discouraged from

organizing or voting in support of union representation if

they believe that exercising their right to concerted activity

justifies moving commercial production elsewhere.

Moreover, even if the effect on employee rights was only

comparatively slight, Boeing had no legitimate business

justification. Its only justification was its desire to insure

against its employees exercise of their Section 7 rights, and

that is not a legitimate justification.

The Board recently held in Arc Bridges, Inc. that an

employers conduct was inherently destructive where its stated

reason for withholding a regularly-scheduled wage increase

from represented employees was that it was in negotiations

with the union.48


The Board found that the employers stated

reason - that it wanted to enhance its bargaining position

with the union -- was an admission that it withheld the

increase because employees chose union representation.49

Likewise, Boeings stated reason for its decision - that it

wanted to avoid strike disruptions - was an admission that it

decided to locate the second line in South Carolina because

the Puget Sound employees chose union representation and the

South Carolina employees did not.


Accordingly, Boeings

decision coupled with its public pronouncements emphasizing

the motivation for its decision was inherently destructive of

its employees rights to engage in union activity and violated

Section 8(a)(3).

III. The Union Waived its Right to Bargain

The Unions allegation that Boeing failed to bargain in

good faith over its decision as to where to locate the second

787 line raises two preliminary issues: (1) whether Boeings

decision was a mandatory subject of bargaining; and (2) if so,

48

See 355 NLRB No. 199, slip op. at 3-4 (2010).

49

See id., slip op. at 3.

NLRB-FOIA-00010665

Case 19-CA-32431

- 24 -

whether the Union waived its right to bargain over that

subject.
Although we conclude that the decision was a

mandatory subject of bargaining and there is substantial

evidence that Boeing did not bargain in good faith to a valid

impasse, the Region should dismiss the Section 8(a)(5)

allegations on the ground that the Union waived it right to

bargain, applying Provena.50

A.

Mandatory Subject of Bargaining

Under Dubuque Packing Co., a decision to relocate unit

work that is not accompanied by a basic change in the

employers operation is a mandatory subject of bargaining

unless the employer can establish that: the work performed at

the new location varies significantly from the work performed

at the prior location; the work performed at the former

location is discontinued entirely and not moved to the new

location; or the employers decision involved a change in the

enterprises scope and direction.51


Alternatively, the

employer can defend by showing that: labor costs were not a

factor in the decision; or if labor costs were a factor, the

union could not have offered sufficient concessions to change

the employers decision.52


Applying the Dubuque test, the

Board repeatedly has found relocation decisions to constitute

a mandatory subject of bargaining.53

In addition, the Board has held that a decision may be a

mandatory subject even though there is no immediate loss of

unit jobs.54
For example, in Quickway Transportation, Inc.,

50

Provena St. Joseph Medical Center, 350 NLRB 808 (2007).

51

303 NLRB 386, 391 (1991), enfd. sub nom. Food & Commercial

Workers Local 150-A v. NLRB, 1 F.3d 24 (D.C. Cir. 1993).

52

Ibid.

53

See, e.g., Titan Tire Corp., 333 NLRB 1156, 1164-65 (2001)

(decision to permanently relocate equipment and jobs in

reaction to strike); Owens-Brockway Plastic Products, 311 NLRB

519, 521-23 (1993) (decision to close plant and transfer work

to other facilities).

54

See, e.g., Overnite Transportation Co., 330 NLRB 1275, 1276

(2000), revd. mem. 248 F.3d 1131 (3d Cir. 2000) (We think it

plain that the bargaining unit is adversely affected whenever

bargaining unit work is given away to nonunion employees,

regardless of whether the work would otherwise have been

performed by employees already in the unit or by new

employees).

NLRB-FOIA-00010666

Case 19-CA-32431

- 25 -

the Board found that the employers decision to contract with

independent owner-operators rather than expand the unit, as it

had originally planned, was mandatory because that decision

obviously constrained the work opportunities available to the

bargaining unit.55
Likewise, in Spurlino Materials, LLC, the

Administrative Law Judge, in a decision adopted by the Board,

found that even though no unit employees suffered a loss of

work as a result of the employers subcontracting, existing

employees might have otherwise been given overtime or the

employer might have hired additional unit employees, resulting

in benefits for the Union and current unit employees in having

an expanded unit.56
And in Dorsey Trailers, Inc., the Board

found that subcontracting work to reduce a backlog in orders

was a mandatory subject because the potential loss of

overtime or reasonably anticipated work opportunities poses a

detriment to unit employees even if no employees lost their

jobs.57

Here, the decision to locate the second 787 assembly line

in South Carolina amounted to a relocation of unit work.


Even

though no unit employees have yet to lose work, as in Dorsey

Trailers the assignment of unit work to nonunit employees in

order to reduce an order backlog presents a potential loss of

overtime or reasonably anticipated work opportunities and

therefore poses a detriment to unit employees.58


The work

that will be performed in South Carolina is identical to that

performed on the first line and the surge line in Everett by

unit employees.
The decision did not involve a basic change

in Boeings operation or any change in the enterprises scope

or direction; Boeing does not intend to change its production

methods or its products.59


Boeing did not demonstrate that

labor costs were not a factor in the decision.


In fact,

according to Boeings CEO, the decision was motivated

primarily by a desire to avoid strikes and secondarily because

the Employer cannot afford the rate at which unit wages are

escalating.
Boeing also did not demonstrate that the Union

could not have offered sufficient concessions to change its

55

See 355 NLRB No. 140 (2010), incorporating by reference the

rationale of 354 NLRB No. 80, slip op. at 2 (2009).

56

See 355 NLRB No. 77 (2010), incorporating by reference the

rational of 353 NLRB 1198, 1219 (2009).

57

See 321 NLRB 616, 617 (1996), enf. denied in relevant part

134 F.3d 125 (3d Cir. 1998).


Accord Acme Die Casting, 315

NLRB 202, fn. 1, 209 (1994).

58

See 321 NLRB at 617.

59

See Owens-Brockway Plastic Products, 311 NLRB at 522.

NLRB-FOIA-00010667

Case 19-CA-32431

- 26 -

decision; the Union


the strike and wage
2009.
Accordingly,
where to locate the
bargaining.

B.

was willing to make concessions on both

issues during negotiations in the fall of

we conclude that Boeings decision as to

second 787 line was a mandatory subject of

Waiver of the Right to Bargain

The Board applies a clear and unmistakable waiver

standard to determine whether a union has waived its right to

bargain about a mandatory subject of bargaining during the

term of a collective-bargaining agreement.60


The Board will

find a waiver if the contract either expressly or by

necessary implication confers on management a right to

unilaterally take the action in question.61


In interpreting

the parties agreement, the relevant factors include: (1) the

wording of pertinent contractual provisions; (2) the parties

bargaining history; and (3) the parties past practice.62

The Board has found a waiver based on contract language

where there is an express reference to the specific type of

decision that the employer has implemented unilaterally.63

Thus, in Ingham Regional Medical Center, the Board adopted an

Administrative Law Judges decision that the union waived its

right to bargain about a subcontracting decision where the

contractual management-rights clause expressly reserved to

management the right to use outside assistance or engage

independent contractors to perform any of the Employers

operations or phases thereof (subcontracting)[.]64


This

right was vested exclusively in the Employer and was not

60

See Provena St. Joseph Medical Center, 350 NLRB at 810-11.

61

See id. at 812, fn. 19.

62

See Johnson-Bateman Co., 295 NLRB 180, 184-89 (1989) (no

waiver of right to bargain about drug/alcohol testing

requirement where the management rights clause was generally

worded, issue was not fully discussed and consciously

explored during negotiations, and past practice of union

acquiescence to other unilateral work rule changes did not

waive the right to bargain about such changes for all time).

63 See, e.g., Ingham Regional Medical Center, 342 NLRB 1259,

1261-62 (2004) (under the management-rights clause, the

employer expressly reserved the right to subcontract); Allison

Corp., 330 NLRB 1363, 1364-65 (2000) (management-rights clause

specifically, precisely, and plainly granted the employer

the exclusive right ... to subcontract).

64

See 342 NLRB at 1260, 1261-62.

NLRB-FOIA-00010668

Case 19-CA-32431

- 27 -

subject to arbitration.65
Although another contractual

provision required the employer to provide 60 days notice and

discuss with the union any subcontracting decision that

would cause unit employees to be laid off, the words discuss

and bargain were found not synonymous in the parties

contract.66

In this case, Section 21.7 of the parties agreement

specifically, precisely, and plainly67 granted Boeing the

right to offload work to a facility not covered by the

agreement.
As in Ingham Regional Medical Center, the other

provisions of Section 21.7 that required Boeing to provide the

Union notice and an opportunity to review and recommend

alternatives did not require the Employer to bargain over an

offloading decision.

The Union does not dispute that Section 21.7 contains a

waiver but asserts instead that the Employer may not take

advantage of the waiver.


Specifically, the Union maintains

that a contractual waiver cannot be applied to a decision that

is unlawfully motivated.
But there is no authority for the

proposition that an unlawful motive negates a contractual

waiver; rather, the cases on which the Region and Union rely

hold that a contractual waiver is no defense to a Section

8(a)(3) violation.68

The Unions other arguments against application of the

waiver are also unavailing.


Thus, the Union asserts that the

contractual waiver does not apply because the parties entered

negotiations for a new contract.


However, during those mid-

term negotiations, their existing contract -- including

Section 21.7 -- continued in effect.


The Union also contends

65

Id. at 1260.

66

Id. at 1262.

67

See Allison Corp., 330 NLRB at 1365.

68

See Reno Hilton, 326 NLRB 1421, 1430 (1998), enfd. 196 F.3d

1275 (D.C. Cir. 1999) (merely because the Respondent has

negotiated the unfettered right in a collective-bargaining

agreement to contract out work at any time, such right ...

does not unfetter and insulate the Respondent from the

sanctions of the Act prohibiting it from discriminating); RGC

th
(USA) Mineral Sands, Inc. v. NLRB, 281 F.3d 442, 450 (4
Cir.

2002) (enforcing Board decision finding Section 8(a)(3)

violation on grounds that, even if contract authorized

employer to unilaterally alter shift assignments, an employer

cannot exercise contractual rights to punish employees for

protected activity).

NLRB-FOIA-00010669

Case 19-CA-32431

- 28 -

that the waiver cannot extend to work transferred after the

contracts expiration in September 2012, but Boeing made its

final decision in 2009 and expects to open the second line in

South Carolina in mid 2011.69


The Unions estoppel argument

also lacks merit.


While Boeing took the position that the

notice and review provisions in Article 21.7 did not apply

because no employees will be laid off, Boeing is not thereby

estopped from asserting the waiver provision.

Moreover, Boeings request to negotiate mid-term changes

to the parties agreement did not subject it to the

traditional Section 8(a)(5) bargaining obligations.70


Absent

a contractual reopener provision, parties are under no

obligation to bargain over proposals for mid-term

modifications.71
For this reason, we do not reach the

question of whether Boeing engaged in surface bargaining in

the fall of 2009, bargained to a valid impasse, or unlawfully

failed to provide information relevant to those negotiations.

IV. The Appropriate Remedy

We conclude that special remedies must be fashioned in

the unusual circumstances of this case.

First, with respect to the Section 8(a)(1) violations,

which had a particularly chilling impact upon employees, the

Region should seek a notice reading by a high-level Boeing

official, to insure that employees learn about their statutory

69

Thus, if there is a duty to bargain over a relocation

decision, it arises when the decision is announced and not

when it is ultimately implemented.


See, e.g., Bell Atlantic

Corp., 336 NLRB 1076, 1086-89 (2001) (union waived right to

bargain over employers decision to close facility and

transfer work to nonunion facility where it received notice of

decision in August and did not request bargaining until

December, even though no unit work would be relocated before

the following April).

70

See St. Barnabas Medical Center, 341 NLRB 1325, 1325 (2004)

(union did not incur traditional bargaining obligations by

requesting that employer meet to discuss feasibility of wage

reopener, and employer violated Section 8(a)(5) by

unilaterally implementing wage increases after an impasse in

those negotiations).

71

See Boeing Co., 337 NLRB 758, 763 (2002) (employer did not

incur bargaining obligation by agreeing to unions request to

consider midterm modification); Connecticut Power Co., 271

NLRB 766, 766-67 (Section 8(d) does not require an employer

who suggests a midterm contract change to negotiate about it).

NLRB-FOIA-00010670

Case 19-CA-32431

- 29 -

rights and gain assurance that Boeing will respect those

rights.72
The notice reading is particularly effective if

read by an official who personally committed some of the

violations, or read by a Board agent in his presence, in order

to dispel the atmosphere of intimidation he created.73

Finally, to remedy the Section 8(a)(3) violation, the

Region should seek an order requiring Boeing to maintain the

second line in Washington.


At the time of the discriminatory

conduct, Boeing intended to use the second line to assemble

three 787 aircraft each month, while assembling seven 787

aircraft each month on the first line in Everett.


At present,

even the first line is not producing up to capacity because of

problems with suppliers and FAA certification.


Thus, the

Region should seek an order requiring that, as Boeing

production increases, the first ten aircraft assembled each

72

See, e.g., Homer D. Bronson Co., 349 NLRB 512, 515 (2007),

enfd. 273 F. Appx 32 (2d Cir. 2008) (notice reading is an

effective but moderate way to let in a warming wind of

information, and more important, reassurance); Federated

Logistics & Operations, 340 NLRB 255, 258 (2003), affd. 400

F.3d 920 (D.C. Cir. 2005) (employees will perceive that the

Respondent and its managers are bound by the requirements of

the Act).

73

Three Sisters Sportswear Co., 312 NLRB 853, 853 (1993),

enfd. mem. 55 F3d 684 (D.C. Cir. 1995), cert. denied 516 U.S.

1093 (1996).
See also, e.g., Homer D. Bronson Co., 349 NLRB

at 515 (reading by president of manufacturing, who personally

delivered speeches threatening plant closure or relocation);

Texas Super Foods, 303 NLRB 209, 209 (1991) notice reading by

owner and president who signed unlawful letters to unit

employees, drafted unlawful speech threatening job losses, and

personally gave the speech to at least two groups of

employees).

NLRB-FOIA-00010671

Case 19-CA-32431

- 30 -

month be assembled by the Puget Sound unit employees and that

the supply lines for these aircraft be maintained in the Puget

Sound and Portland facilities.74

B.J.K.

ROFs - 9

H:ADV.19-CA-32431.Response2.Boeing.dlw

74

At this time, we do not reach a decision on the Unions

request for preliminary injunctive relief.


The Region should

reassess whether Section 10(j) relief is warranted after the

case is tried before the Administrative Law Judge.


In the

meantime, the Region should put evidence in the record

regarding the chilling impact of Boeings violative statements

and conduct to support the notice-reading remedy.


This will

facilitate use of the administrative record to demonstrate in

a subsequent Section 10(j) proceeding that preliminary

injunctive relief is just and proper.

NLRB-FOIA-00010672

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:
Attachments:

Ahearn, Richard L.

Sunday, April 17, 2011 2:19 PM

Kearney, Barry J.

Farrell, Ellen; Sophir, Jayme

Complaint

Boeing complaint post RA revised draft 4-16-11.doc; ATT00001..htm

Barry, I have attached a ROUGH draft for the Boeing complaint. Id greatly appreciate any suggestions,

corrections, improvements, etc.

A few observations, questions:

Ex. 5 Deliberative

Many thanks; look forward to your insights.

Rich

NLRB-FOIA-00010673

NLRB-FOIA-00010674

Ex. 5 Deliberative

NLRB-FOIA-00010675

Ex. 5 Deliberative

NLRB-FOIA-00010676

Ex. 5 Deliberative

NLRB-FOIA-00010677

Ex. 5 Deliberative

NLRB-FOIA-00010678

Ex. 5 Deliberative

NLRB-FOIA-00010679

Ex. 5 Deliberative

NLRB-FOIA-00010680

Ex. 5 Deliberative

NLRB-FOIA-00010681

Ex. 5 Deliberative

NLRB-FOIA-00010682

Ex. 5 Deliberative

NLRB-FOIA-00010683

Ex. 5 Deliberative

NLRB-FOIA-00010684

Ex. 5 Deliberative

NLRB-FOIA-00010685

Ex. 5 Deliberative

NLRB-FOIA-00010686

Ex. 5 Deliberative

NLRB-FOIA-00010687

Ex. 5 Deliberative

NLRB-FOIA-00010688

Ex. 5 Deliberative

NLRB-FOIA-00010689

Ex. 5 Deliberative

NLRB-FOIA-00010690

Ex. 5 Deliberative

NLRB-FOIA-00010691

Ex. 5 Deliberative

NLRB-FOIA-00010692

Microsoft Outlook

From:

Ahearn, Richard L.

Sent:

Monday, April 18, 2011 2:35 PM

To:

Pomerantz, Anne

Subject:

FW: Boeing Co.

Attachments:

ADV.19-CA-32431.Complaint.Boeing.4-18-11.doc

From: Willen, Debra L

Sent: Monday, April 18, 2011 11:34 AM

To: Ahearn, Richard L.

Cc: Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam

Subject: Boeing Co.

Rich

Attached is a marked-up version of the Regions draft complaint with our changes. I fear that Ive messed up the

formatting, so someone will need to fix that.

Please let us know if you have any questions.

Thanks,

Deb Willen

NLRB-FOIA-00010693

Exemption 5

NLRB-FOIA-00010694

Exemption 5

NLRB-FOIA-00010695

Exemption 5

NLRB-FOIA-00010696

Exemption 5

NLRB-FOIA-00010697

Exemption 5

NLRB-FOIA-00010698

Exemption 5

NLRB-FOIA-00010699

Exemption 5

NLRB-FOIA-00010700

Exemption 5

NLRB-FOIA-00010701

Exemption 5

NLRB-FOIA-00010702

Exemption 5

NLRB-FOIA-00010703

Exemption 5

NLRB-FOIA-00010704

Exemption 5

NLRB-FOIA-00010705

Exemption 5

NLRB-FOIA-00010706

Exemption 5

NLRB-FOIA-00010707

Exemption 5

NLRB-FOIA-00010708

Microsoft Outlook

From:

Pomerantz, Anne

Sent:

Monday, April 18, 2011 3:39 PM

To:

Ahearn, Richard L.

Subject:

RE: Boeing Co.

Attachments:

CPT.19-CA-32431.Boeing 4-18-11 at 12-30pm.doc

Tracking:
Tracking

Recipient

Read

Ahearn, Richard L.

Read: 4/18/2011 3:40 PM

Here is our revision. Ill scan in the contracts two pages and send them over.

From: Ahearn, Richard L.

Sent: Monday, April 18, 2011 11:35 AM

To: Pomerantz, Anne

Subject: FW: Boeing Co.

From: Willen, Debra L

Sent: Monday, April 18, 2011 11:34 AM

To: Ahearn, Richard L.

Cc: Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam

Subject: Boeing Co.

Rich

Attached is a marked-up version of the Regions draft complaint with our changes. I fear that Ive messed up the

formatting, so someone will need to fix that.

Please let us know if you have any questions.

Thanks,

Deb Willen

NLRB-FOIA-00010709

Exemption 5

NLRB-FOIA-00010710

Exemption 5

NLRB-FOIA-00010711

Exemption 5

NLRB-FOIA-00010712

Exemption 5

NLRB-FOIA-00010713

Exemption 5

NLRB-FOIA-00010714

Exemption 5

NLRB-FOIA-00010715

Exemption 5

NLRB-FOIA-00010716

Exemption 5

NLRB-FOIA-00010717

Exemption 5

NLRB-FOIA-00010718

Exemption 5

NLRB-FOIA-00010719

Microsoft Outlook

From:

Ahearn, Richard L.

Sent:

Monday, April 18, 2011 3:49 PM

To:

Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Willen, Debra L

Cc:

Pomerantz, Anne

Subject:

Boeing Co.

Attachments:

CPT.19-CA-32431.Boeing 4-18-11 at 12-30pm.doc

Pleaae see::

Exemption 5

NLRB-FOIA-00010720

Exemption 5

NLRB-FOIA-00010721

Exemption 5

NLRB-FOIA-00010722

Exemption 5

NLRB-FOIA-00010723

Exemption 5

NLRB-FOIA-00010724

Exemption 5

NLRB-FOIA-00010725

Exemption 5

NLRB-FOIA-00010726

Exemption 5

NLRB-FOIA-00010727

Exemption 5

NLRB-FOIA-00010728

Exemption 5

NLRB-FOIA-00010729

Exemption 5

NLRB-FOIA-00010730

Microsoft Outlook

From:

Pomerantz, Anne

Sent:

Monday, April 18, 2011 7:15 PM

To:

Ahearn, Richard L.

Subject:

Draft for submission to Advice

Attachments:

CPT.19-CA-32431.Boeing 4-18-11 at 4-14pm.doc

Importance:

High

Tracking:
Tracking

Recipient

Read

Ahearn, Richard L.

Read: 4/18/2011 7:34 PM

Assuming you are alright with it.

Anne P. Pomerantz

Regional Attorney | National Labor Relations Board | Region 19

2948 Jackson Federal Building, 915 Second Ave., Seattle, WA 98174

anne.pomerantz@nlrb.gov | (206) 220-6311 | (206) 220-6305

Please consider the environment before printing this email

NLRB-FOIA-00010731

e Ch

Exemption 5

e Ch

NLRB-FOIA-00010732

Exemption 5

NLRB-FOIA-00010733

Exemption 5

NLRB-FOIA-00010734

Exemption 5

NLRB-FOIA-00010735

Exemption 5

NLRB-FOIA-00010736

Exemption 5

NLRB-FOIA-00010737

Exemption 5

NLRB-FOIA-00010738

Exemption 5

NLRB-FOIA-00010739

Exemption 5

NLRB-FOIA-00010740

Exemption 5

NLRB-FOIA-00010741

Microsoft Outlook

From:

Ahearn, Richard L.

Sent:

Monday, April 18, 2011 8:14 PM

To:

Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam; Willen, Debra L

Cc:

Pomerantz, Anne

Subject:

Draft for submission to Advice

Attachments:

CPT.19-CA-32431.Boeing 4-18-11 at 4-14pm.doc

Importance:

High

I have a few other comments Ill send later tonight.

Rich

NLRB-FOIA-00010742

e Ch

Exemption 5

e Ch

NLRB-FOIA-00010743

Exemption 5

NLRB-FOIA-00010744

Exemption 5

NLRB-FOIA-00010745

Exemption 5

NLRB-FOIA-00010746

Exemption 5

NLRB-FOIA-00010747

Exemption 5

NLRB-FOIA-00010748

Exemption 5

NLRB-FOIA-00010749

Exemption 5

NLRB-FOIA-00010750

Exemption 5

NLRB-FOIA-00010751

Exemption 5

NLRB-FOIA-00010752

Microsoft Outlook

From:
Sent:
To:
Subject:

Ahearn, Richard L.

Friday, April 29, 2011 10:48 AM

Pomerantz, Anne; Anzalone, Mara-Louise; Finch, Peter G.; Jablonski, Colleen G.; Todd,

Dianne

FW : boeing operations in s.c.

From: Cleeland, Nancy

Sent: Friday, April 29, 2011 7:40 AM

To: Solomon, Lafe E.; Ahearn, Richard L.; Kearney, Barry J.

Cc: Wagner, Anthony R.

Subject: boeing operations in s.c.

Interesting piece in the clips today about Boeings 787 production getting back on track. The story mentions other

operations Boeing maintains in North Charleston, which really undercuts the argument that were telling Boeing they cant

do business there:

http://www.postandcourier.com/news/2011/apr/28/good-boeing-news/

In North Charleston, two side-by-side Boeing factories produce major fuselage sections for the 787, which to date has

racked up 835 orders.

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

NLRB-FOIA-00010753

Microsoft Outlook

From:
Sent:
To:
Subject:

Ex. 6, 7(C)
W ednesday, June 22, 2011 11:53 AM

Pomerantz, Anne

Re: Trying to Contact you

Anne,

Please leave a message as to what you are interested in if I am unavailable.

Ex. 6, 7(C)

Thanks.

Ex. 6, 7(C)

Sent from my Android phone with K-9 Mail.

"Pomerantz, Anne" <Anne.Pomerantz@nlrb.gov> wrote:

Ex. 6, 7(C)

I was reading in our

Ex. 6, 7(C)
magazine about your work at the
I am the

Ex. 6, 7(C)
Regional Attorney for the National Labor Relations Board in Seattle, Washington. We are currently litigating a case

against Boeing. I am interested in speaking with you, but was unable to get through on the phone number listed in your

Ex. 6, 7(C)

. Please contact me at your earliest convenience.

Thank you.

Anne Pomerantz

Regional Attorney

Region 19, NLRB

915 Second Avenue

Seattle, WA 98174

206-220-6311

NLRB-FOIA-00010754

Microsoft Outlook

Pomerantz, Anne

Monday, June 27, 2011 1:23 PM

Ahearn, Richard L.

greatest hits ??

From:
Sent:
To:
Subject:

(1)

(2)

(3)

(4)

(5)
(6)

Nonresponsive

(7)

(8)
(9)
(10

(11
(12
(13

(14
(15

(16)I have acted as the liaison with the Court of Appeals for the Boeing matter; procuring and facilitating use of

the space.

Anne P. Pomerantz

Regional Attorney | National Labor Relations Board | Region 19

2948 Jackson Federal Building, 915 Second Ave., Seattle, WA 98174

anne.pomerantz@nlrb.gov | (206) 220-6311 | (206) 220-6305

NLRB-FOIA-00010755

Please consider the environment before printing this email

NLRB-FOIA-00010756

Microsoft Outlook

From:
Sent:
To:
Subject:

Ahearn, Richard L.

Monday, June 27, 2011 1:25 PM

Pomerantz, Anne

RE: greatest hits ??

Thx.

From: Pomerantz, Anne

Sent: Monday, June 27, 2011 10:23 AM

To: Ahearn, Richard L.

Subject: greatest hits ??

(1)

(2)

(3)

(4)

(5)
(6)

Nonresponsive

(7)

(8)
(9)
(10)

(11)
(12)
(13)

(14)

NLRB-FOIA-00010757

(15

Nonresponsive

(16)I have acted as the liaison with the Court of Appeals for the Boeing matter; procuring and facilitating use of

the space.

Anne P. Pomerantz

Regional Attorney | National Labor Relations Board | Region 19

2948 Jackson Federal Building, 915 Second Ave., Seattle, WA 98174

anne.pomerantz@nlrb.gov | (206) 220-6311 | (206) 220-6305

Please consider the environment before printing this email

NLRB-FOIA-00010758

Microsoft Outlook

From:
Sent:
To:

David Campbell [campbell@workerlaw.com]

W ednesday, June 29, 2011 2:41 PM

Pomerantz, Anne

Now, you asked specifically about one decision that was made by the National Labor Relations Board, or the NLRB,

and this relates toBoeing. Essentially, the NLRB made a -- a finding that Boeing had not followed the law in making a

decision to move a plant. And, you know, it's an independent agency. It's going before a judge. So I don't want to

get into the details of the case. I don't know all the facts. That's going to be up to a judge to decide.

What I do know is this: that as a general proposition, companies need to have the freedom to relocate -- they

have to follow the law, but that's part of our system. And if they're choosing to relocate here in the United States,

that's a good thing. And what it doesn't make -- what -- what I think defies common sense would be a notion that we

would be shutting down a plant or laying off workers because labor and management can't come to a sensible

agreement.

So my hope is, is that even as this thing is working its way through, everybody steps back for a second and says:

Look, if jobs are being created here in the United States, let's make sure that we're encouraging that. And we can't

afford to have labor and management fighting all the time, at a time when we're competing against Germany and

China and other countries that want to sell goods all around the world. And obviously, the air -- airplane industry is

an area where we still have a huge advantage. I want to make sure that we keep it.

Thanks, Dave

Sincerely, David Campbell

campbell@workerlaw.com

Schwerin Campbell Barnard Iglitzin & Lavitt

18 W Mercer Suite 400

Seattle, W ashington 98119-3971

Phone (206)257-6001: FAX (206)378-4132

This communication is protected by the attorney client and attorney work-product privileges. Please do not copy, forward

or append.

NLRB-FOIA-00010759

Microsoft Outlook

From:
Sent:
To:
Subject:

Pomerantz, Anne

W ednesday, June 29, 2011 3:19 PM

Ahearn, Richard L.

unofficial transcript of Obama's remarks

Now, you asked specifically about one decision that was made by the National Labor Relations Board, or the NLRB,

and this relates to Boeing. Essentially, the NLRB made a -- a finding that Boeing had not followed the law in making a

decision to move a plant. And, you know, it's an independent agency. It's going before a judge. So I don't want to

get into the details of the case. I don't know all the facts. That's going to be up to a judge to decide.

What I do know is this: that as a general proposition, companies need to have the freedom to relocate -- they

have to follow the law, but that's part of our system. And if they're choosing to relocate here in the United States,

that's a good thing. And what it doesn't make -- what -- what I think defies common sense would be a notion that we

would be shutting down a plant or laying off workers because labor and management can't come to a sensible

agreement.

So my hope is, is that even as this thing is working its way through, everybody steps back for a second and says:

Look, if jobs are being created here in the United States, let's make sure that we're encouraging that. And we can't

afford to have labor and management fighting all the time, at a time when we're competing against Germany and

China and other countries that want to sell goods all around the world. And obviously, the air -- airplane industry is

an area where we still have a huge advantage. I want to make sure that we keep it.

Tracking:

NLRB-FOIA-00010760

Recipient

Read

Ahearn, Richard L.

Read: 6/29/2011 5:55 PM

NLRB-FOIA-00010761

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:
Attachments:

Frankl, Joseph F.

Tuesday, June 22, 2010 4:24 PM

Purcell, Anne G.

Baniszewski, Joseph; Posner, Charles

D-IV Top Issues for GC

D-IV Top Issues for GC.doc

NLRB-FOIA-00010762

Non-Responsive

Region 19 Seattle and Subregion 36 Portland (Rich Ahearn)

Non-Responsive

and an imminent high-profile Advice submission involving Boeing Aircrafts

decision to transfer one of two 787 Dreamliner assembly lines to a new plant

in South Carolina.

NLRB-FOIA-00010763

Non-Responsive

NLRB-FOIA-00010764

Non-Responsive

NLRB-FOIA-00010765

Non-Responsive

NLRB-FOIA-00010766

UNITED STATES GOVERNMENT

National Labor Relations Board

Memorandum

TO:

Barry J. Kearney, Associate General Counsel


Division of Advice

DATE:

May 25, 2010

Eric G. Moskowitz, Assistant General Counsel

Special Litigation Branch

FROM:

Richard L. Ahearn, Regional Director

Region 19, Seattle, WA

SUBJECT:

Boeing Company

Case 19-CA-32431

This Region is currently investigating charge 19-CA-32431 filed by the IAM&AW against

The Boeing Company. As part of the investigation, the assigned Board Agent is

seeking a video tape from the Seattle Times newspaper. As CHM 11770.4 requires

clearance from Headquarters prior to the issuance of an investigative subpoena where

the subpoena seeks evidence from a member of the press to elicit testimony relating to

information gained in his or her professional capacity or requiring the production of

materials secured as a result of news gathering activities, I am submitting this request.

The Employer, a manufacturer of airplanes, announced in October 2009 that it would be

placing a second assembly line for the 787 Dreamliner in South Carolina at its non-

union facility instead of at its union-represented facility in Everett, Washington where the

first assembly line is located. The charge alleges, among other items, that the

Employer placed the second line in South Carolina in retaliation for the unit employees

engaging in strikes in 2008 and prior years.

In March 2010, a local reporter for the Seattle Times newspaper video-taped his

interview with Jim Albaugh, CEO of Boeing Commercial Airplanes. In that three-part

interview, Mr. Albaugh states Boeings reasons for placing the second line in South

Carolina labor strife and increased wages. Thus, the Region seeks possession of the

video as it contains direct statements from a Boeing official regarding Boeings reasons

for placing the second line in S. Carolina.

We requested the video from the Seattle Times, which is available for purchase at $35

for each of three tapes, but the following restrictions were placed on the use of the video

under those circumstances.

Purchase of video does not transfer copyright and is for personal use only.

No model or property release exists.

Only Seattle Times staff produced video is for purchase.

Videos are digital format, burned on a DVD at least 640 resolution or more.

NLRB-FOIA-00010767

Case 19-CA-32431

-2-

May 25, 2010

No posting online, website or use in blogs.

Video is intended for editorial use and not to be used for promotion or advertisement.

Video is provided to you as is for your personal use only and may not be copied, reproduced, distributed. broadcast, displayed,

sold, licensed or otherwise exploited for any other purpose whatsoever.

If you are interested in licensing video content for commercial use, please contact us at eedens@seattletimes.com.

As such, we wish to subpoena the video tape in order to not be limited by the

newspapers use restrictions.

Please advise.

R. L. A.

cc:

Joe Baniszewski, Deputy AGC

Division of Operations Management

NLRB-FOIA-00010768

U N IT E D S T A T E S G O V E R N M E N T

N a tio n a lLa b o r R elations B o a rd

M em orandum

B arry J. K earney, A ssociate G eneral C ounsel

D ivision of A dvice

TO :

DATE:

M a y 25, 2 010

E ric G . M oskow itz, A ssistan t G eneral C ounsel

S pecial Litigation B ranch

FR O M :

R ichard L. A hearn, R egional D irector

R egion 1 9, S eattle, W A

S U B JE C T :

B oeing C om pany

C ase 1 9-C A -32431

T his R egion is currently investigating charge 1 9-C A -32431 filed b y the IA M & A W a gainst

T he B oeing C om pany. A s part of the investigation, the assigned B oard A gent is

seeking a v ideo tape from the S eattle T im es new spaper. A s C H M 11770.4 requires

clearance from H eadquarters p rior to the issuance o f an investigative s ubpoena w here

"the subpoena s eeks e vidence from a m em ber of the p ress to e licit testim ony relating to

inform ation gained in his or h er p rofessional capacity o r requiring the production of

m aterials secured a s a result of new s g athering a ctivities," I am subm itting this request.

T he E m ployer, a m anufacturer of airplanes, a nnounced in O ctober 2009 that it w ould be

placing a s econd assem bly line for the 787 D ream liner in S outh C arolina a t its non-

union facility instead of at its u nion-represented facility in E verett, W ashington w here the

first assem bly line is located. T he charge alleges, am ong other item s, that the

E m ployer p laced the s econd line in S outh C arolina in retaliation for the u nit e m ployees

engaging in strikes in 2008 a nd p rior years.

In M arch 2010, a local reporter for the S eattle T im es new spaper video-taped his

interview w ith Jim A lbaugh, C E O of B oeing C om m ercial A irplanes. In that three-part

interview , M r. A lbaugh states B oeing's reasons for placing the second line in S outh

C arolina - labor strife a nd increased w ages. T hus, the R egion s eeks p ossession o f the

video as it contains d irect statem ents from a B oeing o fficialregarding B oeing's reasons

for placing the s econd line in S . C arolina.

W e requested the v ideo from the S eattle T im es, w hich is available for p urchase a t$ 35

for each o f three tapes, b ut the follow ing restrictions w ere p laced on the u se o f the video

under those circum stances.

P urchase of video d o e s n o t transfer copyright and is fo r personalu se o nly.

N o m odelo r property release e xists.

O nly S eattle T im es sta ff produced video is fo r purchase.

V ideos a re d igitalfon nat, b urned on a D V D a t least 640 resolution or m ore.

NLRB-FOIA-00010769

C ase 1 9-C A -32431

M ay 25 ,2 0 1 0

-2-

N o posting online, w ebsite or use in blogs.

V ideo is intended for editorialu se and n ot to b e u sed for prom otion or advertisem ent.

V ideo is p rovided to you a s is for your personalu se o nly a nd m ay not b e c opied, reproduced, d istributed. b roadcast, d isplayed,

sold, licensed or otherw ise e xploited for any other purpose w hatsoever.

Ifyou a re interested in licensing video content for com m ercialu se, please contact us at eedens@ seattletim es.com .

A s such, w e w ish to subpoena the video tape in order to not be lim ited by the

new spaper's use restrictions.

P lease advise.

R . L. A .

cc:

Joe B aniszew ski, D eputy A G e

D ivision o f O perations M anagem ent

NLRB-FOIA-00010770

Page I of I

null

(A 7vC A TIO N W EEK

00

I.m Click i _ Print

B M ichael M echarn

T he first steel colum n for B oeing's C harleston, S.C ., 787 final as.,

line has been erected o n a construction site next door to w here th,

com pany m akes and assem bles com posite fuselage sections for t]

jet.

T he 1.2 m illion-sq.-ft. building is expected to open in July 2011.

production aircraft is to roll out in the first quarter 2012. B oeing:

90% of the planV s contract d ollars are going to S outh C arolind

com panies.

B oeing also plans to refurbish parts of its E verett, W ash., w idebody aircraftfactory to include a surge lin,

provide supplem ental assem bly capacity for the 787 program . W hen the South C arolina factory com es or

w ill give B oeing the capacity to operate three final assem bly lines, if necessary.

Four of six 787 test aircraft are now flying, and the program is scheduled to achieve FA A certification an

its first delivery late this year.

B oeing elected to build its second assem bly line outside of the Seattle area because of repeated strikes by

m achinists, including one in 2008 that the com pany says cost it $4.3 billion. T he South C arolina plant, w

w orkers voted the m achinists union out last year, w ill help ensure that itsuffers "no disruptions" in

m anufacturing, B oeing says.

T he com pany originally established its presence in South C arolina indirectly five years ago, w hen V ough

A ircraft and A lenia A eronautica built factories adjacent to the city's airport in N orth C harleston to suppl

and center fuselage sections.

B ut B oeing ended up buying both factories to relieve the suppliers of financial pressures they felt as the

schedule slipped by m ore than tw o years.

B oeing uses a fleet of m odified 747 transports to haul w ing and fuselage sections to its final a ssem bly lin

W hen its C harleston operation begins, som e fuselage sections w ill sim ply be rolled next door to feed its J

assem bly line, w hile others w ill be flow n to E verett to feed the original line.

C opyright ? 2010 A viation W eek, a d ivision of T he M cG raw -H ill C om panies.

All rights reserved, T erm s of U se IErivac R qU L gy

NLRB-FOIA-00010771

BOEING COMPANY

19-CA-32431

INDEX OF CITATIONS

1. )

Mc Daniel Electric, 313 NLRB 126, 127

2. )

Gitano Group, Inc., 308 NLRB 1172

3. )

NLRB v. Wooster Division of Borg-Warner Corp., 356 US 342, 349

4. )

Arrow Automotive Industries, Inc., 853 F.2d 223, 231-32

5. )

NLRB v. International Harvester Co., 618 F.2d 85, 87

6. )

NLRB v. Transmarine Navigation Corp., 380 F.2d 933, 939

7. )

West Virginia Baking Co., 299 NLRB 306, 313

8. )

General Motors Corp., 191 NLRB 951, 952

9. )

Georgia Power Co., 325 NLRB 420, 420-21

10.)

Connecticut Light and Power Co., 271 NLRB 766

11.)

Chevron Chemical Co., 261 NLRB 44, 45

12.)

Salem College, 261 NLRB 327

13.)

The Lange Co., 222 NLRB 558, 563

14.)

Whitesell Corp., 352 NLRB 1196, 1197

15.)

Day Automotive Group, 348 NLRB 1257, 1262-63

16.)

Gissel Packing Co., 395 US 575

17.)

David Van Os & Associates, 346 NLRB 804, 806

18.)

Tri-Cast, 274 NLRB 377

19.)

Crown Cork & Seal Company, 36 F.3d 1130

20.)

American Ship Building Co., 380 US 300, 311

21.)

DaimlerChrysler Corp., 344 NLRB 1324, 1327

22.)

Pollock Electric, 349 NLRB 708, 709

23.)

Northeast Iowa Telephone Co., 346 NLRB 465, 475-76

24.)

FES, 331 NLRB 9

25.)

Radio Officers Union of Commercial Telegraphers Union, AFL, v.

26.)

NLRB v. Great Dane Trailers, 338 US 26, 33-34

27.)

NLRB v. Brown, 380 US 278

28.)

Griffith-Hope Company, 275 NLRB 487

29.)

Harter Equipment, 280 NLRB 597

30.)

Sun Transport, 340 NLRB 70

31.)

American Ship Builders, 380 US at 313

NLRB, 347 US 17, 42-43

NLRB-FOIA-00010772

10

11

INTERVIEW OF

12

JIM ALBAUGH

13

BOEING COMMERCIAL AIRCRAFT

14

BY

15

THE SEATTLE TIMES REPORTER

16

17

18

19

20

21

22

23

24

25

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska

99503

(907) 276-3554

NLRB-FOIA-00010773

(Beginning of proceedings.)

But, you know, I feel impelled to ask some hard

questions on behalf of basically the community in

Washington

Sure.

as a result of last year. Last year, we had the

decision to locate the second 787 line in Charleston.

Uh-huh (affirmative).

And then subsequently, you announced that all 787 work

10

from the Puget Sound area would be duplicated

11

elsewhere. So I think the local community is clearly

12

worried about Boeings future here. And thats

13

something thats followed on from, you know, you moved

14

the headquarters in 2001 and there have been repeated

15

threats that future work might not be here. So last

16

year seemed to really increase that feeling. So what

17

is Boeings commitment to Washington state?

18

Well this is the headquarters of Boeing Commercial

19

Aircraft and it will be, I think, for probably

20

forever. The issue last fall was really about, you

21

know, how we could ensure production stability and how

22

we could ensure that we were competitive over the long

23

haul. And we had some very productive discussions with

24

the union. And unfortunately, we just didnt come to

25

an agreement where we felt we could ensure production

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska

99503

(907) 276-3554

NLRB-FOIA-00010774

stability. And read that is getting away from the

frequent strikes that we were having and also could we

stop the rate of escalation of wages. And we just

could not get to a place where we both felt it was a

win for both ourselves and the union so we made the

decision to go to Charleston. Now its my hope, and I

will tell you, Dominique, you know my preference is to

do the work here in the future. But well do work here

if we can make sure that we have the stability of the

10

production lines and that we can be competitive over

11

the long haul. And those are the two things that I

12

think I have to ensure, you know, our customers, and I

13

have to ensure, also, the stockholders of the Boeing

14

Company.

15

So looking out into the future, now that you have

16

decided on having this other plant in Charleston, how

17

do you see the geographic shape of Boeing and the

18

balance there between those two bicoastal plants in

19

the future?

20

Well I guess I dont really see it as a balance. You

21

know, clearly the center of gravity is here in Puget

22

Sound and will continue to be here in Puget Sound. And

23

Im very hopeful as we, you know, continue to have

24

discussions with the union that, you know, well be

25

able to come up with ways of being competitive here,

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska

99503

(907) 276-3554

NLRB-FOIA-00010775

and we can come up with ways of ensuring that were

not going to have labor strikes. And if we can get

through those two hurdles, were going to be doing

work here for a long, long time. And there are no

discussions of moving any work thats currently here

out of Puget Sound.

Right. But, of course, its future work that people

are worried about. I mean what are the chances that

the next new jet, after the 787, will be built here?

10

Yeah. Ill tell you, the commitment that I can give

11

you is that the first preference is to put the work

12

here. But we have to ensure ourselves that were going

13

to have a stable production line, and we have to

14

ensure that we can be competitive over the long haul.

15

You know, if we dont, were not going to be selling

16

any airplanes. And I think thats the worst outcome

17

for Puget Sound, and thats the worst outcome for the

18

company.

19

Well so when the time comes to announce the launch of

20

a new airplane program, which could come in a few

21

years, that you would say right, youre going to

22

build the next one and announce some plan for it? Are

23

we going are the people of this state once again

24

going to face the competition with other states in the

25

U.S. to win it?

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska

99503

(907) 276-3554

NLRB-FOIA-00010776

You know, I guess I dont really view it as a

competition.

But it was last time.

I dont think it was. It was not a competition. What

it was, was again, weve had strikes three out of

the last four times weve had a labor negotiation with

the IAM. And Im not blaming that on the IAM. I mean

that is an issue between management, created by

management, and created by labor. You know, we need to

10

improve the relationship that we have. And weve got

11

to get to a position where we can ensure our customers

12

that every three years theyre not going to have a

13

protracted shutdown. You know, we have customers right

14

now that are telling us that in contracts they dont

15

want to write in excusable delays for strikes. I mean

16

thats not a situation thats good for us. Its not a

17

good situation for them. Its not a good situation for

18

labor. And if one projects out another 15 years, were

19

not just going to be competing against the Europeans,

20

well be competing against the Europeans, the

21

Brazilians, the Canadians, the Chinese, and the

22

Russians. And we have an obligation to make sure that

23

as we compete again not just one, but compete against

24

four, you know, we have got a cost structure and a

25

productivity capability that will allow us to continue

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska

99503

(907) 276-3554

NLRB-FOIA-00010777

to compete.

In saying that it wasnt a competition, clearly youre

referring to the Charleston decision last year. But I

was referring to the 2003 competition when Boeing

actually had a formal competition to find out where

they were going to build the 787.

Yeah. Well I wasnt involved in that one and

So the question is will there be another competition

like that when you build the next airplane?

10

I dont think I would if Im involved, Im not going

11

to have a competition like that, I can tell you that.

12

But what we are going to do is study very hard, with

13

the first option being here, is to make sure that we

14

do the right thing for the customer, which means not

15

have labor stoppages; and do the right thing for the

16

customer to give them the kind of value that they want

17

in the airplanes.

18

Just on the to dwell on the Charleston expansion for

19

a moment. It does seem to me that the complexity and

20

expense and risk attached to doing all that there is

21

is something thats hard to justify. Does it really

22

make business sense?

23

Yeah. Theres no question that whenever you go to a

24

green field site, theres risk involved. At the same

25

time, with the protracted labor stoppage that we had

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska

99503

(907) 276-3554

NLRB-FOIA-00010778

back last I guess it was the fall of 2008, I mean

that cost the company billions of dollars. And I think

if you compare, you know, what it cost because of the

stoppages versus the cost and the risk of starting a

new line in Charleston, I think the investment

certainly is the right one for us to make.

UNIDENTIFIED FEMALE: And, Jim, the flip side of that

is all the advantages that we have right here in the Puget

Sound.

10

Yeah, absolutely. Again, my first my first

11

preference, when I started looking at this last fall,

12

was to stay here. And we just could not get over those

13

two hurdles, you know, how do we ensure stability of

14

manufacturing and how could we ensure that labor costs

15

werent going to continue to escalate.

16

Do you think a chance was missed to I mean you had a

17

labor problem. That was clear. You just had that

18

strike.

19

Yeah.

20

You had a big relationship with the union problem.

21

Potentially, you could have fixed that and got your

22

production here and not had the expense of Charleston.

23

Yeah. You know

24

Was a chance missed?

25

We tried. We did not get there. And you can blame both

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska

99503

(907) 276-3554

NLRB-FOIA-00010779

sides for that. And over the next couple of years,

were going to do everything we can to work with the

union to make sure that we dont have another

stoppage, and that we have a path to competitiveness

over the long haul, and that we get the kind of

relationship with the union where we dont have to

worry about labor stoppages in the future. You know,

this is a great workforce here. I mean they are

magicians. They do things that I dont think any labor

10

force in the world can do. And, you know, I feel my

11

job is to make sure they have jobs five years from

12

now, 10 years from now, 20 years from now. But were

13

not none of us are going to have jobs if we continue

14

to have strikes that go on for three or four months,

15

you know, every three years.

16

So to sum up the Charleston decision lets be clear,

17

the Charleston decision, it wasnt about Washingtons

18

business climate, right?

19

It was not.

20

It was not about trying to get lower labor costs,

going where work is cheap?

21

22

It

23

It was about the strikes?

24

It was about ensuring to our customers that when we

25

commit to deliver airplanes on certain dates that we

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska

99503

(907) 276-3554

NLRB-FOIA-00010780

actually do deliver. And we have lost our customers

have lost confidence in our ability to do that,

because of the strikes. The other thing is the rate of

escalation of the wages. You know, they continue to go

up in a dramatic fashion. You know, how can we flatten

that out? And those were the two things that we were

after.

Well lets just move on to talk about the union in a

little bit more detail. You know, when you came here,

9
10

I think it was last July for the rollout of the

11

Poseidon (indiscernible interrupted)

12

Yeah, yeah.

13

you talked about, you praised the men and women of

Puget Sound that made this possible.

14

15

Yep. Theyre fabulous.

16

And you just repeated that here. And yet, you know,

17

that was in July. And then in the fall it seemed

18

like a slap in the face to the people here to say well

19

were going to build it somewhere were going to

20

take the 787 work somewhere else.

21

Yeah, you see, I guess I dont see it as a slap in the

22

face, Dominique. I mean I think that if we dont have

23

a company, nobody has jobs. And if we cant meet the

24

promises we make to our customers relative to delivery

25

of aircraft, were not going to be in the business. If

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska

99503

(907) 276-3554

NLRB-FOIA-00010781

10

we continue to have costs that go up, you know, faster

than the competition, were not going to be selling

any airplanes. I mean this is about making our company

competitive over the long haul. By going to

Charleston, you know, I believe that were going to

help reduce costs here. Now you say, you know, how is

that possible? Well the average cost of an airplane

built here and the average cost of an airplane built

in Charleston goes into our program accounting. The

10

average unit price of an airplane should go down as a

11

result of our being in Charleston. That will create

12

more demand for airplanes built here and in

13

Charleston.

14

But is how big a component of that average cost of

15

an airplane is actually labor? Its not a big chunk of

16

it, is it?

17

Its not a big chunk. Its and Im not going to give

18

you the exact percentage. Its a significant

19

percentage. Its less than half, certainly. But again,

20

I think the other bigger part of it is when we commit

21

to delivering airplanes, people put together their

22

business plans based on assuming theyre going to get

23

delivery on certain dates, and when they dont get

24

delivery that impacts their ability to meet their

25

business plan to make money and to buy more airplanes

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska

99503

(907) 276-3554

NLRB-FOIA-00010782

11

over the long haul. And they will think twice the next

time they decide to buy an airplane from us or from

Airbus or 10 years from now from the Canadians or the

Chinese or the Brazilians. This is going to be a very

competitive world were in, much more competitive than

its been to date. And weve enjoyed a duopoly here.

And, you know, all the rules are going to change. And,

you know, when youre in a duopoly as we are, and

youre in second place, youre in last place. I dont

want to be in last place. I want to be in first place.

10

11

failure to reach agreement resulting in that decision

12

13

And blame that on both of us, the fact that we didnt

get there.

14

15

So given what happened with the union last year, the

Well just forgetting about blame, Im wondering well

16

let me ask about first of all, what is your attitude

17

to unions?

18

Ive always gotten along great with unions. Ive

19

worked with them. Ive walked the concrete with them.

20

Ive listened to them. Ive watched them do, you know,

21

amazing things relative to productivity. Ive seen

22

them, you know, work miracles out there in the

23

production line. You see that every day down in

24

Renton. You see that every day up in Everett on the

25

777 where theyre making huge strides relative to

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska

99503

(907) 276-3554

NLRB-FOIA-00010783

12

productivity.

Well thats the workforce. But the union itself,

Boeing has often portrayed the union as an obstacle

between itself and its workforce.

You know, where theres a where there is an issue

with the union, its thats a reflection on

management. You know, we create the environment. We

create the culture. And, you know, my hope is that we

can have good relationships at the top, you know, all

10

the way down to people on the factory floor. I was in

11

a meeting last week in Washington, D.C., you know,

12

with some of the leadership of the IAM. And we have

13

many things that we agree on. And I think as we go

14

forward, I hope theres more things we agree on,

15

because neither one of us are going to be in very good

16

shape unless were selling airplanes.

17

Was Mr. Buffenbarger there?

18

Mr. Buffenbarger was not.

19

Well but given what happened last year, I mean youre

now the new guy in the position.

20

21

Yeah.

22

And youve got all the youve got the poison that

23

entered the relationship as a result of those failed

24

talks. How do you fix it now?

25

I think you fix it by communicating. And I think that

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska

99503

(907) 276-3554

NLRB-FOIA-00010784

13

the IAM understands that were entering a global

economy, global competition. Its going to be more

than just ourselves and the Europeans. And our ability

to be productive, you know, our ability to keep the

promises that we make to our customers I mean those

are the things that are going to dictate whether or

not we have a company and whether or not were selling

airplanes in years to come. And I think that, you

know, once we agree on where we need to go together

that we can figure out a way to get there.

10

11

Well obviously youd like a better relationship with

12

IAM, and you would hope to achieve it. But does the

13

cost of labor here mean that Boeing is always going to

14

favor some non-union alternative, because it is going

15

to be cheaper?

16

You know, you look at the installed base that we have

17

here. You look at all the tooling that weve invested

18

here. You look at all the training and the skilled

19

workforce that we have here. You look at the ability

20

of this team to take cost out of an airplane. I mean

21

those count for a lot. Those count for just as much,

22

if not more, than just the wages. But again, the wages

23

have gone up dramatically. And, you know, we need to

24

have the knee of that curve inch over a little bit. We

25

cant continue to go up at the dramatic fashion we

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska

99503

(907) 276-3554

NLRB-FOIA-00010785

14

have in the past.

Id also like to point to certain irony. The tanker

competition is (indiscernible) now and youve got

heavy Congressional support on that tanker.

We do.

And that support in Congress is based on the need to

protect good American jobs.

Yeah.

And when they talk about good American jobs and well

10

paying American jobs, theyre contrasting it to non-

11

union jobs in Alabama. And the union delivered that

12

Congressional support largely well not just the

13

union, but theres a big element

14

Yeah.

15

that they those Democratic politicians who are

16

union supported, thats a big element. And so the

17

union has delivered that for you. What do you give to

18

the union?

19

Weve got 60,000 no, weve got 75,000 jobs here in

20

Puget Sound. And were going to have, you know, tens

21

of thousands of jobs for years to come. Were talking

22

about Charleston where we may have, you know, 3,000 or

23

4,000 or 5,000 people. You know, clearly the union

24

recognizes that. Certainly the politicians in the

25

state of Washington, the elected officials, understand

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska

99503

(907) 276-3554

NLRB-FOIA-00010786

15

that this is the center of gravity. And thats not

going to change. Now the 767 airplane, in its

entirety, is going to built here by the workers that

have built this airplane in the past. Nothing is going

to change in that regard. And the last time I checked

in Charleston, those were U.S. citizens down there.

But again, non-union and much lower paid jobs.

Those are well paying jobs down there.

By the way, do you have any concerns, as you look at

10

the future, what weve already youve agreed with me

11

that the business climate here wasnt a particular

12

factor in that decision last year. Of course, all the

13

states in the union right now, in the current

14

downturn, are in terrible financial trouble

15

budgetary trouble, South Carolina as well as

16

Washington. Do you have any concerns about changes

17

ahead that might affect your future here in this state

18

in terms of

19

Well I think you can probably say that about, you

20

know, about all the states in the country right now

21

with the economy being what it is.

22

Right.

23

But again, the overriding factor was not the business

24

climate, and it was not the wages were paying people

25

today. It was that we cannot afford to have a work

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska

99503

(907) 276-3554

NLRB-FOIA-00010787

16

stoppage, you know, every three years. We cannot

afford to continue the rate of escalation of wages as

we have in the past. You know, those are the

overriding factors. And my bias was to stay here, but

we could not get those two issues done, despite the

best efforts of the union and the best efforts of the

company.

Youre on the companys executive consult. There is

certainly a perception that Chief Executive McNerney

9
10

drove that Charleston decision and that some people

11

here were not too happy about it. Were you a part of

12

that decision?

13

Well I was the one that made the presentation to the

14

Board of Directors. And, you know, I went into this

15

thing feeling that if we could get it done here, we

16

could save the company a lot of money. And there were

17

two things that I needed, as I mentioned, and we

18

couldnt get those two things done. And not getting

19

those two things done, I made the recommendation, that

20

I thought was the right one, and that was to go to

21

Charleston.

22

last question.

23

24

25

So before we leave that subject entirely, just one

Somehow I knew you were going to talk about this one,

Dominique.

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska

99503

(907) 276-3554

NLRB-FOIA-00010788

17

So there are there has been talk here for many

years, Boeing is out of here, Boeing is leaving,

Boeing doesnt like us anymore. Can we as a final

question on that topic, is that put a nail in that?

You can put that one to bed. I mean weve got, you

know, a terrific workforce here. Weve got, you know,

engineers who, you know, have more depth and breathe

of knowledge about building airplanes more than any

place that Ive ever been. Weve got a talented

10

workforce. You know, this is where our people, you

11

know, want to live. This is where we want to be. Weve

12

had a great partnership with the state of Washington

13

and I hope its one that continues for a long, long

14

time to come. Again, I preface it by or I caveat it

15

by saying that it is going to be a much more

16

competitive environment out there in the future. And

17

work any place is not an entitlement.

18

It sounds like if you can fix things with the

19

machinists, the outlook for here looks an awful lot

20

rosier?

21

I sure hope it does. Thats you know, Im going to

22

be here a few years, and I would like nothing better

23

than to get a great contract with the union and, you

24

know, put to bed the concern that our customers have

25

of our ability to deliver on the promises we make.

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska

99503

(907) 276-3554

NLRB-FOIA-00010789

18

You mentioned the engineers here. I want to talk about

that. And one of the things you did when you came here

in October, you established an advisory group of sort

of old-time Boeing people, people like John Roundhill,

Joe Sutter, (indiscernible interrupted)

Yeah.

people associated with the old style of Boeing.

Yep.

And then in January, Boeing elevated nine engineering

10

leaders to in a move that was spun as harking back

11

to the early days of when (indiscernible) companies

12

were driven by engineering culture.

13

Yep.

14

So I want to ask you. I mean, youre an engineer.

15

Yeah.

16

You started as an engineer. Is that a specific goal to

reinstate the primacy of engineering within BCA?

17

18

I think decisions need to be driven more by

19

engineering and less by the what Ill call the

20

business decision makers. I think on the 787 program,

21

we made some decisions that took on much more risk

22

than we should have taken on. Some of these

23

outsourcing decisions were we did not consider the

24

extent the risk that wed take on by going outside.

25

And I think that we are, and we will, make sure that

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska

99503

(907) 276-3554

NLRB-FOIA-00010790

19

the engineers and the voice of the engineers is much

more involved in the decision making as we go forward.

You know, bringing the senior advisory group in a

lot of people left this company during the merger,

right after the merger. And a lot of people left, I

think, right after you know, 2000, 2001, because

they didnt see us developing any new programs. And we

lost a lot of the heritage of this company. And, you

know, going into the 787 program, we didnt have a

10

large group of people that had ever been through a

11

development program before. You know, the great thing

12

about 747 and the 787 is were training a whole new

13

generation of engineers and program managers on how to

14

do development programs. By bringing back, you know,

15

Sutter (ph) and Roundhill (ph) and Quinolivin (ph) and

16

those icons of the Boeing company, were getting the

17

benefit of hundreds of years of knowledge and

18

experience. And theyre people that I listen to.

19

Theyre people I want to get my team in front of so

20

they can get the benefit of their history and the

21

benefit of the things that theyve done right and the

22

things that they have done wrong over the years. You

23

know, the whole issue of the iconic engineers, you

24

know, I started that with John Tracy in the old IDS

25

organization. When I grew up, the sheriff in town was

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska

99503

(907) 276-3554

NLRB-FOIA-00010791

20

the chief engineer. You didnt do anything without

getting the chief engineer on board. And if you didnt

get him on board and you were wrong, it was not a good

situation. And I pushed John very hard that we needed

to elevate the iconic engineers in this company. They

needed to get more recognition. They needed to be more

involved. And with some of the changes that we made by

promoting by eight or nine vice presidents into

engineer into engineering does that.

10

But another aspect of the relationship with your

11

engineers is your relationship with another union,

12

which is SPEEA. And it does seem to me that that

13

relationship has been adversarial for a while.

14

Yeah. Well

15

So if you want to elevate engineers, why so

adversarial with SPEEA?

16

17

Yeah, well, you know, I dont have all the history.

18

You probably know more about it than I do, Dominique,

19

but, you know, this place doesnt run without

20

engineers and it doesnt run without machinists. And I

21

think that what we need to do with our engineering

22

organization is be real clear about, you know, what

23

part of engineering do we want to do here. And, you

24

know, I think what happened on the 787 was we

25

outsourced things without explaining to the

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska

99503

(907) 276-3554

NLRB-FOIA-00010792

21

engineering community why. And one of the things that

Ive sat down with our new chief of engineering, you

know, Mike Delaney, is we need a strategy. What are

those things? What is that IP that were going to do

here? What are those tasks that only the Boeing

Company understands and the things that we need to

hold close?

outsource that. The wings, you never outsource that.

The fuselage, the composites, dont outsource those.

10

We need to define very clearly things that we should

11

do and have to do, and those things that anybody can

12

do. And those things that we need to do to hold onto

13

our IP, we need to build the walls around those very

14

high. And I think we need to go and communicate to the

15

union of SPEEA and the IAM union, what are those

16

things that we want to hold close and hold dear. We

17

outsource too much.

18

The flight controls, you know, never

Yeah, well thats I definitely want to talk about

19

that. But I mean, you just said never outsource the

20

wings. But isnt it too late? Youve already

21

outsourced the wings to Japan.

22

Well we have. Well, well build other airplanes.

23

So Mitsubishi is not going to be building all the

wings in the future?

24

25

Well I didnt say that. I didnt say that. Those are

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska

99503

(907) 276-3554

NLRB-FOIA-00010793

22

examples. Those are examples.

Okay. Well actually you and Mr. McNerney have youve

talked repeatedly in various menus about this issue.

And what youve said is youre going to draw the lines

differently. And thats the phrase that you used.

Yeah.

And Im wondering if you could just elaborate a little

bit on what that means. In particular, for example, I

understand its already happening with the 787-9, the

10

second version of the 787, that you are outsourcing

11

less of it than you did on the -8. But how exactly? I

12

mean the wings are still being made in Japan.

13

Yeah.

14

The fuselage in Italy.

15

We lost control of the design. We lost control of the

16

interface. We didnt provide enough oversight to the

17

subcontractors that were doing the various elements of

18

engineering and manufacturing. On the -9, weve pulled

19

some of that engineering back. As you know, we took

20

over the (indiscernible) facility. We took over the

21

Global Aeronautical facility.

22

Right.

23

So we now have control of some of the fuselage of the

24

airplane. So we have pulled some back for both the -8

25

and the -9. Those lines that were going to have to

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska

99503

(907) 276-3554

NLRB-FOIA-00010794

23

redraw, were in the process of redrawing those right

now. If you look at a product strategy, a

manufacturing strategy, an outsourcing strategy, an

engineering strategy, all those are very interrelated.

And were in the process of defining those strategies

right now.

One thing that you did on the 87 was you not only had

Mitsubishi build the wings in Japan, but you had them

do the detailed design of the interior of the wing.

And is that continuing on the -9?

10

11

I believe it is. Its not the same wing. The new wing

12

is its the same length, but its a stiffer wing and

13

its got carries more load. So its a different

14

wing. I think that theyre still doing the wing design

15

on the -9. We can check that for you.

16

But, you know, given what happened with the 87, and I

17

think if I read what you just said is, you know, an

18

admission that it didnt work very well and that you

19

did make mistakes in outsourcing the work.

20

Well we learned a lot.

21

And you paid for it.

22

We paid for it.

23

Youve had two years delay. So isnt that an argument

24

for theres some surprise that despite that, Boeing

25

is nevertheless insisting that the 787 supply chain

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska

99503

(907) 276-3554

NLRB-FOIA-00010795

24

model is the one for the future. Youll draw the lines

slightly differently, but youll stick to that model.

Why when it didnt work so well?

Well

Or how do you change it to make it work?

I mean its really easy in hindsight to second guess

decisions that were made. And I think they made a lot

of good decisions on the 787. One that they got the

airplane right. I mean this is going to be an airplane

10

thats very efficient. This is going to be an airplane

11

that I know people are going to want to buy. And this

12

is going to be an airplane that changes the way people

13

travel and changes the way that airplanes are built.

14

But I think we outsourced elements of the airplane to

15

people that didnt have a lot of experience at it. We

16

didnt provide them the kind of oversight and support

17

that was necessary. And we lost control of some of the

18

interfaces. So what do we have to do differently or

19

better going forward? Well again, were going to

20

redraw those line. And we have to treat any

21

subcontractor in the future as an external factory, as

22

an external design team. And we need to look at them

23

as more than just a company that we throw a

24

specification over the wall to. We need to be much

25

more but I think that if you talk to me, if you talk

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska

99503

(907) 276-3554

NLRB-FOIA-00010796

25

to Jim McNerney, well both say that we moved up the

value chain too far and we took on too much risk.

Well I think that strategy is, in part, connected with

what had been a mantra at Boeing for some years,

including at IDS where you were leading, which was

that Boeing was shifting towards large scale systems

integration.

Right. It was a little different at IDS. You see, we

yeah, complex large scale systems integration is what

10

this company does. At IDS, this whole idea of best of

11

industry and being the integrator was not an act of

12

inspiration, it was an act of desperation, in that we

13

didnt have any verticals. We werent vertically

14

integrated to begin with. And that was a strategy that

15

we put together, because we had no other at our

16

disposal, other than to go out and buy a bunch of

17

companies to get vertically integrated. I think the

18

difference over here is they started off being

19

reasonably vertically integrated and moved up the

20

value chain. And I think in hindsight, we probably

21

moved up a little too far.

22

Well some people definitely saw that, if we can find

23

ourselves just speaking about BCA, saw this strategy

24

as a move away from the actual building of the

25

airplane towards a more architectural, conceptual

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska

99503

(907) 276-3554

NLRB-FOIA-00010797

26

approach early in the stages, deciding the doing the

marketing analysis, deciding on the market

Yeah.

and architecting it. And of course, final assembling

it, but final assembly was relegated to a snap-

together airplane in theory.

Yeah.

At least it hasnt worked out quite like that, but

but the actual building of the airplanes here in Puget

9
10

Sound factories was something that was less important

11

it was work that seemed to be designated lower level

12

work that others could do. Is that the way it goes in

13

future or is that

14

You see, I you know, I would not subscribe to that.

15

You know, my view is there is certain things that you

16

have to keep within your company, you know, those

17

pieces of intellectual property that nobody else in

18

the world understands or knows how to do. And those

19

are things, both from a manufacturing and design

20

standpoint, that you need to keep inside. And then

21

there are other things, seats, galleys, some of the

22

much of the machining, you know, anybody can do those

23

things. But, you know, why do people come to you? They

24

come to you because you understand things better than

25

anybody in the world understands about airplanes. And

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska

99503

(907) 276-3554

NLRB-FOIA-00010798

27

we need to define what those things are, and we need

to hold those things very close. You know, the other

issue that I feel pretty strongly about is if all

youre doing is systems integration then how do you

train the engineers of the future to be systems

integrators? And I think engineers need to come in and

design something. They need to design a part. They

need to see how a part goes into a subsystem, how a

subsystem goes into a system, and how systems of

10

systems interact. You have to have some degree of

11

basic design so you can train the systems integrators

12

of the future.

13

And too much of out that the engineers here didnt

14

have enough to do. So the things you want to protect

15

include the wings?

16

I think that we understand how to build wings as well

17

as anybody in the world, and I think were

18

demonstrating that on the 737 program where, you know,

19

were building, what, I guess 62 wings a month. Thats

20

pretty good production.

21

All right, good. Well the question about your own

22

taking over at BCA. It seems to me, looking on from

23

the outside, that you have approached your job, your

24

new job, eager to shake things up. After some months

25

of review, you had a major management shuffle of

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska

99503

(907) 276-3554

NLRB-FOIA-00010799

28

putting different people in different places. You

organized your management retreat and got everybody on

the same page. So Im just wondering, it does seem

that you are, in some sense, about change. And what

needed changing and whats ahead?

Well I guess first of all, I didnt see that that

management shake-up that we had as being, you know,

that dramatic. You know, what did we do? We formed an

organization called, you know, Program Management to

10

ensure that we bring the program management and

11

execution discipline necessary to all the programs.

12

And we put them under Howard Chambers, somebody thats

13

been doing development programs for 40 years. I also

14

had a view that we were focused a lot on 787 and 747,

15

and appropriately so. But at the same time, I had a

16

view that we had to be thinking, you know, longer

17

term. You know, what do we need to do on the single

18

isle airplanes? What do we need to do in terms of

19

upgrading the 777 or a brand new 777-size airplanes?

20

And thats why I asked Mike Bair to go focus on the

21

new single isle airplane or an upgraded 737. And you

22

say why Mike? Well, you know, Mike got the

23

configuration of 787 correct, and hes very good at

24

that, and hes very analytical in his thinking. And I

25

know that the decision we make on the 37 will be the

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska

99503

(907) 276-3554

NLRB-FOIA-00010800

29

right one. And then we took Lars Anderson and talked

him into coming out of retirement and asked Lars to

focus on the 777 next generation or a new 300 to 400

seat airplane. And Lars was good enough to come out of

retirement to do that. So I would say this

reorganization was really about finding the future,

but also bringing more discipline to how we executive

existing programs. Most of the key players and the

program managers, they didnt change. We had a couple

10

of people retire, so we moved some people around. But

11

I would not call that a major, major change in the

12

organization, other than the focus on the future and

13

the program management discipline. You know, on the

14

off-site and Im a new guy on the block and I felt

15

that, you know, the whole team, all the executives,

16

needed to understand what I thought was important. And

17

what I tried to achieve from that meeting was to get

18

alignment of the entire staff on where we needed to

19

go, what the challenges were, what the issues were,

20

and what we all needed to do together. And, you know,

21

there really are only four things. I try to keep

22

things pretty simple for the team. What we have to do

23

is weve got to continue to add value to our

24

customers, thats why they keep coming back. We need

25

to find the future for the Boeing Company. We need to

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska

99503

(907) 276-3554

NLRB-FOIA-00010801

30

develop the leadership team of the future. And we need

to meet the plan. And those are the four things that

we talked about.

The appointment of Howard Chambers to oversee program

management thats specifically, I think, just to

manage projects it does seem that thats the

perception is Boeing has failed in that here over a

couple of years

You see, I

10

and they havent kept control of the programs.

11

Yeah, its interesting. I think that BCA is

12

extraordinary in their ability to manage production

13

programs. And I dont think anybody, you know, manages

14

a supply chain as well as they do. And just the fact

15

that were doing 31.5 737s a month and we set a record

16

last year with 88 777s being delivered. We do a great

17

job of program management on production programs. I

18

think the issue was on the development programs, the

19

fact that we hadnt done a major development program

20

in a long, long time and the fact that a lot of the

21

people that had, had retired. And some of the

22

decisions we made on the program were business driven

23

as opposed to being driven by you know, by the

24

engineering community. And we just took on too much

25

risk.

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska

99503

(907) 276-3554

NLRB-FOIA-00010802

31

UNIDENTIFIED FEMALE: Jim, you might also want to

contrast the difference between all the many, many programs

at IDS.

Yeah.

UNIDENTIFIED FEMALE: And the program management is

really just another function and discipline.

Yeah. At IDS, we had 300 programs. And the vast

majority of the programs are development programs. You

know, an ABL program, thats all it is, is a

10

development program. The Space Station was a

11

development program that went for 10 years. The

12

Ground-based Midcourse Missile Defense Program is a

13

test bed, became a development program, and finally

14

were installing it. But, you know, how you do program

15

management and development programs is something that

16

Howard understands very well, and I think I understand

17

pretty well. And were trying to bring many of those

18

disciplines to the BCA side. At the same time, were

19

trying to bring a lot of the talents that BCA has,

20

relative to supply chain management, in over to the

21

IDS side. So, I mean, theres great synergy within

22

this company. And, you know, one of things that I hope

23

to achieve being over here is to encourage even more

24

of that.

25

Youve talked about potential competitors in the

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska

99503

(907) 276-3554

NLRB-FOIA-00010803

32

future. Id like to move on and talk about China. I

believe youre making a second trip to China or have

you just made it?

I think Im going the last week of this month. Yeah.

Thats your second trip, right?

Yeah.

So I find it interesting, Boeing, like the United

States itself, has an ambivalent view of Chinas

enormous growth. Its often portrayed as a potential

10

massive market. Its also portrayed as a potential

11

threat. And when you were head of the defense side of

12

Boeing, perhaps you had to view China one way. But now

13

youre head of BCA and youre making trips to China to

14

sell airplanes. So, you know, recently the U.S. sold

15

arms to Taiwan, which resulted in a threat from China

16

to boycott any companies involved, including Boeing

17

had a small part in that, the missiles.

18

Yeah.

19

Then last week there was a Wall Street Journal piece

20

saying that we should build more F-22s, which of

21

course Boeing builds a big part of here in Seattle,

22

because of the potential threat from China one day. So

23

the question is how do you, in the position youre in

24

now, how do you handle this complex relationship

25

between the U.S. and China and between Boeing and

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska

99503

(907) 276-3554

NLRB-FOIA-00010804

33

China?

Well and Ill tell you, theres not a lot that the

Boeing Company can do about the relationship between

China and the United States. I mean the decision to

sell arms was country to country. It was not a

decision that the Boeing Company, in any way, you

know, got involved in. I think the only thing that I

can do is try to be the best customer to the Chinese

airlines and the best partner to some of the joint

10

ventures that we have in China that we can be. And I

11

dont worry a lot about things I cant control. What I

12

can control is the relationship that we have with the

13

airlines in China. And were going to work very hard

14

on those. You know, China is going to have a GDP as

15

big as ours, you know, within the next 20 years. Its

16

an economy that is going to need airplanes. Theyre

17

developing 34 new airports right now, large airports.

18

And were developing one here in the United States.

19

Theyre going to be buying about 200 airplanes a year

20

for the next 20 years. Its a big market for us.

21

Theyre going to be building their own airplanes. And

22

I have full confidence that theyll build a very good

23

airplane. Maybe not the first time, but eventually

24

theyll get it right. And I spent a lot of time in the

25

space business so I know that going to outer space is

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska

99503

(907) 276-3554

NLRB-FOIA-00010805

34

a difficult thing. Youve got to go from zero to

22,000 feet in 8.5 minutes 22,000 feet per second in

8.5 minutes. They did it a lot faster than anybody

thought they could. They have made a national

commitment to building commercial airplanes. Theyre

going to invest billions of dollars in developing that

capability. They have, you know, many, many times as

many engineers coming out of their colleges as we do.

And theyre going to develop a good airplane over

10

time. So, you know, we have to we have to figure

11

out, and were working very hard on, what kind of a

12

relationship do we want to have with industry over

13

there and what kind of relationship do we want to have

14

with the airlines in China.

15

And so how much of a threat is the C-919 narrow body

16

jetliner that theyre developing? Its supposed to be,

17

I think, 180 seats approximately. Its supposed to

18

enter service in 2016. How big a threat is that to

19

Boeing?

20

Well, theyre going to put some of the new engines on

21

them and, you know, theyre more efficient engines.

22

And assuming they get the airplane right, and it

23

probably wont be, you know, perfect the first time

24

through, they could have an airplane that competes

25

with the 737, yes.

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska

99503

(907) 276-3554

NLRB-FOIA-00010806

35

And what do you do about that?

Well we need to do several things about it. You know,

one you know, the Boeing Company gets a premium for

the airplanes that they sell. And we get a premium on

the airplanes that we sell, because we create value

for our customer. And thats one of the assignments

that Mike Bair has. You know, what does the next

generation 737 or the next generation single isle

airplane look like? Is it a re-engined 37 next

10

generation or is it a brand new airplane? And we are

11

actively looking at both of those options right now.

12

And we are looking at, you know, having a capability,

13

you know, towards the end of this decade. And its not

14

just the Chinese. Its also the Canadians with the C

15

Series. Its also Embraer who will have an airplane.

16

And potentially the Russians as well.

17

So where do you stand on this? As part of the national

18

debate, I think people would be interested to know

19

what a chief executive of Boeing thinks in terms of

20

this threat or market, which is China to the U.S.? Is

21

it a military threat or is it a vast market we need to

22

tap into?

23

Youre not going to get the head of commercial

24

airplanes talking about Chinas military threat, you

25

know, Dominique. Ill leave again, Ill leave that

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska

99503

(907) 276-3554

NLRB-FOIA-00010807

36

to the people in the Pentagon, and Ill leave that to

the policymakers in Washington, D.C. You know, you

think about China and the United States, you know, our

economies are dependent on each other now, and will be

for the long haul. And you look at how far this

relationship has come, you know, over the last I

guess its 35 years since Nixon first went over there.

And I think, you know, every day, you know, we get

closer and closer together and our economies get more

10

tightly entwined. Its not to say that we dont have

11

the periodic bump in the road. And, yes, were having

12

one of those right now. But I think theres a lot to

13

be lost on both sides if we dont have a good

14

relationship with China. And I think that China has a

15

lot of lose if they dont have a good relationship

16

with the United States.

17

You know, Bill Boeings first engineer was Chinese

18

born, Wong Tsoo. And its been noted before that for a

19

global company, Boeings executive ranks dont have

20

a surprising lack of diversity. Now I look, for

21

example, at your Indian operations and I see the

22

success Dinesh Keskar has had there, an Indian-born

23

executive and president of BCA in India. But I dont

24

see that in China. Theres very few Chinese-American

25

executives, which is a little surprising given that

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska

99503

(907) 276-3554

NLRB-FOIA-00010808

37

were in Seattle, were on the Pacific Rim

Yeah.

and weve got a great Asian-American community here.

And think of the cultural impact of Gary Locke, the

governor of Washington, going to China trying to help

sell Boeing airplanes. How come you dont have more

such faces?

And it wont be long and well give you a call.

10

Stay tuned. Youll be the first person we call, okay?

Okay, thanks. Were running out of time so a few

11

important topics to cover. One of them is tanker. You

12

and other Boeing executives have talked about the

13

unique Boeing advantage of building both commercial

14

platforms and the military systems and how you

15

leveraged that. You did it for the Poseidon and

16

Yeah.

17

(indiscernible) thats built in Renton. So you

18

installed all the militarys hardware inline on

19

(indiscernible) assembly.

20

Yeah.

21

Is that whats going to happen on tanker, if you win

it? Will you do that in Everett?

22

23

We will do as much as we can in Everett. Well make

24

all the structural modifications that we can. Well

25

install some of the mission-specific equipment that we

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska

99503

(907) 276-3554

NLRB-FOIA-00010809

38

need to make it a tanker. But the hoses and the drogs

(ph) and the bladders, some of those things will be

installed in Wichita. But as much as we can install

up-front inline, you know, that will drive the cost of

doing business down. And thats what we plan on doing.

Well the tanker RFP that just came out, in the

estimation of outside observers, puts you in the

favored position to win that.

You know, Im very intrigued by that. You know, its

10

very hard to write an RFP for dissimilar airplanes.

11

And I think the U.S. Air Force did a pretty good job

12

of doing that. I mean there are things in that RFP

13

that we dont like. And, you know, I understand from

14

what I read in the paper, there are things that

15

Northrop doesnt like. But its not a perfect RFP for

16

either one of us and they are puts and takes for both.

17

You know, I read that thing and, you know, I dont

18

read it as a lay-down hand for the Boeing Company. And

19

Im assuming that (indiscernible) is going to bid.

20

Well is there any sense of embarrassment at the

21

company that should you win it this time, youve done

22

it by a political backlash that caused them to rerun

23

the competition?

24

25

I guess I dont understand. I dont think that theres

political backlash that caused this thing to be re-

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska

99503

(907) 276-3554

NLRB-FOIA-00010810

39

competed. I think the GAO took a look at the decision

making process and felt that there were errors in how

they came to the decision they came to. I mean lets

review the lets review the tape here. We had 98

strengths, they had 30. We had one weakness, they had

five. There was no credit to be given for fuel offload

above a certain threshold level, they were given that.

And the GAO looked at the decision making process and

it was flawed. Thats why theyre doing the re-

compete. It has nothing to do with politics.

10

11

back as early as the early 2000s, were

12

13

But the Congressional support that you have you, way

You know, I appreciate Congressional support. But I

14

dont think theres been a competition that Ive been

15

involved in, in my career, that has been decided by

16

people on Capitol Hill. It gets decided by the

17

procurement people in the Pentagon based on their RFP.

18

And where they dont make their decision based on the

19

RFP, you know, companies have the opportunity to

20

protest, which we did, and in which we do very

21

infrequently. And they found in our favor.

22

One political issue thats come into the whole tanker

debate is WTO, and Id like to go to that now.

23

24

Yeah.

25

The WTO finder was guilty of taking illegal subsidies.

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska

99503

(907) 276-3554

NLRB-FOIA-00010811

40

And an outcome in the European countersuit is expected

this summer, which could find you similarly liable,

maybe, maybe no. But what I want to ask you is this.

Embraer and Bombardier went through this whole thing,

suing each other at the WTO, for illegal government

loan subsidies. They were both found guilty and it

didnt change a thing. Nothing happened. And, you

know, Bombardier is making the C Series now and

theyre getting government money to help do it. So

whats the point? Where can these WTO suits go?

10

11

Well, you know, first of all youve got to remember,

12

Dominique, that we didnt bring the WTO suit. The

13

Administration of the United States of American

14

brought that suit.

15

They wouldnt have done so if you didnt want it.

16

They brought the suit because, in their view, the

17

United States and its industries had been damaged by

18

illegal subsidies that were in violation of the WTO

19

rules. I mean thats why the lawsuit was brought. And

20

clearly the Administration feels that those subsidies

21

were illegal. And the WTO feels the same way, at least

22

thats their the preliminary judgment that theyve

23

laid down.

24

Well certainly some people see it as politics

25

Well

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska

99503

(907) 276-3554

NLRB-FOIA-00010812

41

tanker.

to block in part, it helps to try to block the

So, you know, were building the 787 the old fashioned

way. Were using our own money. On the A-330, you

know, based on the WTO case, you know, they had launch

subsidies of close to $6 billion. You know, thats a

significant advantage for them that we dont enjoy.

You know, we have to cover our own costs. And, you

know, we would have like to have seen something in the

10

RFP that accommodated the launch subsidies that they

11

got. Its not there. And were competing. Were not

12

crying foul. Were going to do the best we can with

13

the proposal.

14

Do you have any expectation about the outcome of the

15

countersuit, which is pending this summer, where

16

Boeing is accused of illegal subsidies (indiscernible

17

interrupted)?

18

Based on everything I know, I feel pretty good about

19

the outcome. Of course then again, Dominique, I

20

thought we were going to win the tanker contest last

21

time. As Ive told people, theres only one more one

22

person more surprised that we lost the tanker than me

23

and that was (indiscernible) that they won.

24

25

You mentioned earlier in this conversation that being

number two in a duopoly puts you in last place and you

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska

99503

(907) 276-3554

NLRB-FOIA-00010813

42

dont want to be in last place. So since were

discussing this rivalry with Airbus, where do you see

that how do you see that playing out in the next few

years?

When we start delivering the 787s in quantity, and

thats going to start in 2012, 2013, you know, we

should, you know, take the number one position, you

know, relative to airplane deliveries. We ought to

overtake them in 2012, 2013, that timeframe. But I

10

think, you know, longer term, its easy to get the

11

most orders and its easy to make the most deliveries.

12

All you have to do is just give the airplanes away.

13

Were not going to do that. If I look at, you know, 10

14

years from now, were going to have a brand new 47;

15

were going to have a brand new 87; were going to

16

have a major upgrade of the 737 or a new small

17

airplane; and were going to have a major upgrade to

18

the 777 or were going to have a new 300 to 400

19

passenger airplane. I mean were going to have a whole

20

new set of products in the marketplace. And these are

21

products that are going to create great value for our

22

customer. And when you create value for the customer,

23

youre going to sell airplanes. And we should be

24

number one for a long time to come. And you know why

25

were going to be number one? Its because of those

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska

99503

(907) 276-3554

NLRB-FOIA-00010814

43

75,000 people here in Puget Sound that get up in the

morning and put their badge on and walk through the

doors. I mean those are the people that make it

happen. And I could go tomorrow, and they could

replace me pretty quick. But its the collective

knowledge of our team that allows us to do the things

that we do. And theyre the ones that will make it

happen.

Theres an expectation of restraint today in corporate

10

executive bonuses. Boeing -- a lot of Boeings money,

11

half of its revenues, comes from the government. And

12

youre laying off thousands of people right now, but

13

you got a special $3 million bonus on top of your

14

regular bonus for staying for switching jobs. How is

15

that justified (indiscernible interrupted).

16

No, they didnt make me any promises when I came here.

17

And I didnt ask the Board of the Comp Committee for

18

this. And I certainly appreciate, you know, what

19

theyve done, but its not something that I asked them

20

to do. And, you know, I do intend to continue to work

21

here as long as the company will let me stay.

22

Do you understand why it doesnt look good to workers

23

getting laid off when executives get million-dollar

24

bonuses?

25

Well my job is to make sure that workers dont get

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska

99503

(907) 276-3554

NLRB-FOIA-00010815

44

laid off. I mean I think that Ive got an unwritten

bond with the employees that my job is to profitably

grow this place. And at the same time Im asking them

to be more efficient, that allows us to sell our

planes for less, that allows us to sell more planes,

that allows us to create jobs or at least keep the

level of jobs at the same number that its at today.

And thats what I think my job is.

Okay. Im going to stop there.

10

Okay.

11

Thank you very much.

12

All right, Dominique. Thanks.

13

(End of proceeding.)

14

15

16

17

18

19

20

21

22

23

24

25

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska

99503

(907) 276-3554

NLRB-FOIA-00010816

45

TRANSCRIBER'S CERTIFICATE

1
2

I, Gloria Schein, hereby certify that the foregoing

pages numbered 2 through 44 are a true, accurate and

complete transcript of Interview of Jim Albaugh,

transcribed by me from a copy of the digital sound

recording to the best of my knowledge and ability.

8
9

________________

_______________________________

Date

Gloria Schein

KRON ASSOCIATES

1113 W. Fireweed Lane, Suite 200

Anchorage, Alaska

99503

(907) 276-3554

NLRB-FOIA-00010817

Page I of I

T odd, D ianne

F rom :

D avid C am pbell [cam pbell@ w orkerlaw .com ]

S ent:

W ednesday, June 09, 2010 12:22 PM

T o:

T odd, D ianne

C c:

Jude B ryan; K athy B arnard-, C arson G lickm an-F lora

S u b ject:

N ew s Info

A ttach m en ts: infoclip.pdf

A ttached is a copy o f w hat the B oeing N ew s C lips looks like daily on the B oeing internal w eb

ThanksDave

S incerely, D avid C am pbell

cam pbell@ w orkerlam conn

S chw erin C am pbell B arnard Iglitzin & Lavitt

18 W M ercer S uite 400

S eattle, W ashington 98119-3971

P hone (206)285-2828: FA X (206)378-4132

T his com m unication is protected by the attorney client and attorney w ork-product privileges. P lease do not copy, forw ard

orappend

6/9/2010

NLRB-FOIA-00010818

111owing N e'vs C lips,

O 'i

V 775K

E nter your B oeing em ail

address to receive N ew s

U p s by em ail and/or

m anage your account

W cA nesday, Ju n . 09, 2010

C lick the checkbox for each story you w ould like to display, print or em ail

then click:

r--B oeing S ays It's I

T l c 787 7)r -x'% ners

B loom berg
06/08/2010 -- F Susa ina P.1v

B oeing Co. received the first com pietk , secLion br its 23rd 787

'.-iQ the new com posite

D ream liner and is ready 1to resurn:


-! - ,
planes, after halting dc4.,-r:es m i
t r a m onth ago to let suppliers

get caught up.

E verett H erald

i..si ness brie's


F kF3
06/09/2010

:k s

'let; ra.;i

The 14/a/1 SU .,-etJournal


In a battle of superjuf,,ibl-,
--ld
additional A irbus
deal in G erriany'D eutscf ie I h a

,L rr
F Ern i
o

Sinjc;,W c,--

F!"o

By D anjc M ichaels

D u",-"s Em ir A es A irline ordered 32

L :;[, .inncjur -%d the $11.5 billion

flag carrier

dc, Jg 4
06/09/2010

B usiness Tinnes

zv

C -,1!

0(,!09/201.0

o, al

L,-

W eile 06/08/2010

06/08/201,0

R euters N ew s

'J

C '

NLRB-FOIA-00010819

Page I of I

T odd, D ianne

F rom :

D avid C am pbell [cam pbell@ w orkerlaw .com ]

S ent:

W ednesday, June 09, 2010 12:34 PM

T o:

T odd, D ianne

C c:

C arson G lickm an-Flora; Jude B ryan; K athy B arnard

S ubject: R E: B oeing 19-C A -32431, w itnesses

W e're still looking but see this speech in w hich D eM int acknow ledges touring the im pact of the decert election.

w w w .youtube.com /w atch?v=Y 9dsA N O U nEA

ThanksDave

Sincerely, D avid C am pbell

cam P bell(q)w orkerlaw .com

Schw erin C am pbell B arnard Iglitzin & Lavitt

18 W M ercer Suite 400

S eattle, W ashington 98119-3971

P hone (206)285-282& FA X (206)378-4132

T his com m unication is protected by the attorney client and attorney w ork-product privileges. P lease do not copy, forw ard

orappend.

F rom : T odd, D ianne [m ailto:D ianne.T odd@ nlrb.gov]

S en t: T uesday, June 08, 2010 4:31 PM

T o: D avid C am pbell

S u b ject: B oeing 19-C A -32431, w itnesses

D ave,

D uring the investigation, itcam e to light that Senator D eM int visited the V oughtp lant in 2009 after the

decertification petition w as filed and allegedly m ade com m ents to em ployees that becom ing non-

union w ould be an incentive for B oeing to place the 787 2nd line to C harleston. C an you present

w itnesses regarding this visit?

Thanks,

D cay

T 'od&

B oard A gent

N LRB, R egion 19

P h: 206-220-6319

F ax: 206-220-6305

6/9/2010

NLRB-FOIA-00010820

Page I of I

T odd, D ianne

F rom :

D avid C am pbell [cam pbell@ w orkerlaw .com ]

S ent:

W ednesday, June 09, 2010 12:27 PM

T o:

T odd, D ianne

C c:

C arson G lickm an-Flora; Jude B ryan; K athy B arnard

S ubject: R E: B oeing 19-C A -32431, w itnesses

W e are w orking on this.

ThanksDave

Sincerely, D avid C am pbell

cam pbell@ w orkerlaw .com

Schw erin C am pbell B arnard Iglitzin & Lavitt

18 W M ercer Suite 400

S eattle, W ashington 98119-3971

P hone (206)285-2828: FA X (206)378-4132

T his com m unication is protected by the attorney client and attorney w ork-product privileges. P lease do not copy, forw ard

orappend.

F rom : T odd, D ianne [m ailto:D ianne.T odd@ nlrb.gov]

S en t: T uesday, June 08, 2010 4 :31 PM

T o: D avid C am pbell

S u b ject: B oeing 19-C A -32431, w itnesses

D ave,

D uring the investigation, itcam e to light that Senator D eM int visited the V ought plant in 2009 after the

decertification petition w as filed and allegedly m ade com m ents to em ployees that becom ing non-

union w ould be an incentive for B oeing to place the 787 2nd line to C harleston. C an you present

w itnesses regarding this visit?

Thanks,

D6

T od&

B oard A gent

N LRB, R egion 19

P h: 206-220-6319

F ax: 206-220-6305

6/9/2010

NLRB-FOIA-00010821

M1C

@ o

Pr10poled 2008 (ontrac


tSixem ent

0 Between 1AM&AW Districts 24, 70 & 751

and Boeing

Y O U R N E G O T IA T IN G T E A M R E C O M M E N D S: A C C E P T

O ur U nion has delivered w hat few A m ericans have - econom ic certainty and quality benefits for the next four years. This

battle w as not just about m oney, but about ethics, integrity, and respect. E ach of you stood up and did your part to w in this

baffle. A s you k now negotiations are about give and take. T hese negotiations w ere very difficult as they alw ays are w ith this

C om pany. By any m easure, this contract proposal is a good offer. D id itget everything, no. H ow ever, w e m ade significant

gains w ith respect to job security and the ability to help guide this C om pany into the future.

All year w e heard m em bers say that the best w ages and benefits m ean nothing ifyou aren't on the payroll to collect them .

T hat is how im portant job security is. T his new offer stopped the C om pany from im plem enting their plan to expand v endors

throughout the factory. W e recaptured the scope of w ork


'-;-Jh,-_90_02_agreem ent and contained it to 787 final

assem bly (R em em ber since w e have already given up Ju


itallow ed to reclaim it or fightfor it

- w hich is w hy itw as so im portant to stop itbefore itexp(1


17 and LO U #2 provide job security

to over 5,000 m em bers that B oeing otherw ise could hav


U

Iitractors inside the factory gates.

T he econom ics in the new proposal contain im provem el


T he takeaw av laaquacie-tb;:,J-,,,--,,-:--'- '---'-ig h o u t th(I
)m otiona

Exemption 5

45

nges throughout the contract.

ie - survivor benefits are returned,

s on.

;ecurity

ing B oeing from chipping aw ay at our

iately a I_ _ _ _

rength as a U nion w ould be diluted.

costs structure tH at-has-L )"-% --,-,-,,,.,.---ince 2002 - ensuring no new out-

of the lum p sum paym ent w ould have been spent to pay for m edical cost

pocket. W ould w e have liked im provem ents in the plan? A bsolutely, but at

beat them back.

ishifting m ore costs onto the w orkers, and you helped


eryone in progression on top of G W I's in all 4 years ofthe contract.

for four years, m em bers h ave guaranteed w age increases in each of the

earnings or $5,000 w ill be paid on or before N ovem ber 7, 2008.

)0, w hich can be diverted into the V IP to enhance pension savings.

!s),w as the C om pany's attack on our already retired m em bers. Y our solidarity

loposal. T his is huge and protected this benefit for existing retirees.

'd $2 additional (in final year) is largest dollar increase in U nion history and

M any generations of w orkers before us sacrificed by w ithholding their labor giving us the m any benefits w e currently enjoy,

w hich som e take for granted. Itis critical that you understand these benefits are not w on overnight.T hey are hard fought

battles leaving scars on everyone, but people can look back proudly and say they helped w in that benefit or held the line to

ensure those w ho cam e after u s have it better than w e did. T hat's how contracts evolve.

W hen you look at this contract as a w hole, itis m uch better than the previous offer. Itis som ething to be proud of know ing

you held the line and said a resounding N O to takeaw ays and Y E S to a better future for generations to com e. T his contract

is in the hands of the m em bership. Itw as im portant that this negotiating com m ittee not w alk aw ay from the im provem ents

that w ere fought for and w on. W e certainly w anted to m ake m ore gains, but it w ould have been irresponsible to w alk aw ay

from the table and not allow you the opportunity to decide for yourself. W e stand by this contract as a g ood offer and now the

m em bership can evaluate it as a w hole and vote.

Study the proposal. E very m em ber can hold their head up high and b e proud of w hat w e have accom plished together - for

you, your fam ilies and future w orkers. B ecause of all of us, our U nion is stronger. Y ou stood together scored a m ajor victory

for w orking fam ilies across the country, as true fighting M achinists.

In Solidarity,

Y our U nion L eadership

NLRB-FOIA-00010822

C oN paring the O ffers

Issue
Job Security

9/3/08 L ast, B est and Final


C om pany added language to inform
Site R eps - notification only.

G eneral W age Increase


L um p Sum Ist Y ear

5% ,3% ,3%
6% of previous year's earnings or
$2,500 (w hichever is greater) +
$2,500 R atification B onus

L um p Sum 2nd Y ear


L um p Sum 3rd Y ear
E ntry Level W ages
P rogression

Pension
H ealth C are

R etiree M edical

C O LA Form ula
Incentive Plan
D uration

11/1/08 Im proved O ffer

- U nion can bid for w ork being outsourced to non-

union B oeing facilities. A lso tooling w ork is now

included in review process. (A rticle 21.7)

-Job protection for over 5,000 m em bers in parts deliv-

ery and facilities m aintenance. (LOU #2 & #37)

-V endors can only deliver parts inside the factory.

From there our m em bers willtrack use, disbursem ent,

acquisition, and/or inventory of parts. (LOU #37)

5% ,3% , 3% ,4% (4th year)

10% of previous year's earnings or $5,000 (w hichever

is greater) payable on or before N ovem ber 7, 2008

$1,500 and option to divertto V IP to bolster pension

savings

0
$1,500 and option to divertto V IP to bolster pension

savings

Increased $2.28
Increased $2.28

M em bers in progression w ho are above the new m ini-

M em bers in progression below the


m um receive $1 per hour after the G W I is applied (un-

new m inim um w ould be raised to


new m inim um (after G W I is applied). less the em ployee is less than $1 from the m axim um

T hose in progression above the new rate). All m em bers in progression increased to the

new m inim um rate or $1 per hour w hatever is greater.

m inim um s w ould receive nothing.


$80 effective 1/1/09
$81 effective 1/1/09

$83 effective 1/1/12

R evert to 2005 language. N o increase in deductibles,

H uge cost shifting w ith increased


deductibles, increased co-pays,
co-pays, or prescriptions. Fam ily out-of-pocket m axi-

m um rem ained the sam e. M onthly prem ium calcula-

increased prem ium s and m andatory generic prescriptions.C om pany tion rem ains the sam e w ith low cost plan being paid in

rem oved survivor and bridge benefit. full by C om pany. Survivor and bridge benefitrem ains

in contract.

L anguage w ould have endangered


R everts to 2005 language. Preserved coverage for

coverage for existing retirees by


existing retirees, w ho could have been rem oved from

rem oving them from scope of A gree- the A greem ent.

m ent. C overage for active em ploy-

ees w ho retire could have expired at

end of the contract.

O nly change is to add additional quarters for 4th year

N o change. C om pany refused to


pay 400 for quarter generated M ay, of agreem ent. C om pany will not pay 400 for quarter

June and July 2008.


generated M ay,June and July 2008.

C om pany offered incentive plan,


9/3/08 plan w ithdraw n. Parties will w ork together to

w hich m ay have paid out in last year develop an Incentive Plan.

of contract. nothing guaranteed.

L3 year agreem ent


14 year agreem ent

m o o l: ;U G

,A

M.

1,10,% b](D

V oting at the P ortland, O regon, location w ill take place on S aturday, N ovem ber 1, 2008, at D istrict

L odge N o. 2 4 's offices, located at 3645 SE 32nd A venue in P ortland. M em bers m ay v ote anytim e

betw een the hours of 9 A M and 4 PM .

NLRB-FOIA-00010823

I:

& H gu g

Economics -Improved
G E N E R A L W A G E IN C R E A SE S

1 sty ear-5 %
2 n d y ear-3 %
3rd year - 3%
4th year - 4%
LU M P S U M PA Y M EN TS:

1st year 10% of previous years earnings or $5,000, w hichever is greater - payable on or before N ovem ber 7, 2008

2nd year -$1,500 lum p sum - payable D ecem ber 1,2009


3rd year -$1,500 lum p sum - payable D ecem ber 1,2010
S econd and third year lum p sum can be diverted into V IP to
bolster m em bers'pension savings.
L um p sum s w ill now cover those on m ilitary leave of absence longer than 90 days.

IN C EN TIV E PLA N . P roposed plan in 9/3/08 proposal w as


w ithdraw n. A greem ent that parties w ill w ork together to
develop an Incentive Plan.
R A TE R A N G E M IN IM U M S -All rate range m inim um s
increased by $2.28.
PR O G R E SSIO N : T hose in progression w ill receive a supplem ental w age increase after the G W I sufficient to bring
them to the new rate range m inim um for their labor grade
or $1 per hour, w hichever is greater. T his m eans m em bers
in progression earning above the new m inim um w ill receive
$1 per hour after the G W I is applied (unless the em ployee is
less than $1 from the m axim um rate). T his am ounts to over
$2,000 m ore per year for m em bers in progression.

Duration -4 year Agreem ent

C ontract expiration S aturday, S eptem ber 8, 2012

Job Security - Improved


Letter of Understanding #2 Facilities
M aintenance - Improved
U pdated date in L etter of U nderstanding #2. In the Facilities and M aintenance areas, w e w ere able to protect m em bers hired through S eptem ber 3, 2008. T his date change

to the L etter of U nderstanding w ill now protect som e 2,200


m em bers for the life of the A greem ent.

Article 21.7 Subcontracting Improved

E xpanded the scope of our subcontracting review .R eview

process now includes tooling w ork and notification of p roposed offload. A lso secured the ability to com pete for w ork
that m oves from one B oeing facility to another B oeing
facility not covered by this bargaining agreem ent.

Job Security - Improved (continued)

Letter of Understanding #37

M aterial Delivery -im proved

(see language on page 6 & clarification letter below)

LO U 37 - M aterials D elivery - Itis im portant to under-

stand that in the 2002 contract w e lost all jurisdiction

over m aterials delivery inside the factories. W e can be

proud that w e w ere able to gain jurisdiction back for every

airplane program except the 787 final assem bly area and

som e ID S w ork (lim ited to inventory transactions). W e

w ould never have been able to lim it the expansion of sup-

pliers inside our factory w alls w ithout going on strike. This

new language lim its supplier activity to delivery only w hile

preserving our right to conduct inventory, issue, disburse,

and acquire parts and supplies in all other program s. This

protects nearly 3,000 m em bers and stops B oeing from

expanding their use of vendors inside the factory gates.

R evised language w ith the follow ing protections.

- Forklift D rivers, M PR F's, Factory C onsurnables H andlers,

E nvironm ental C ontrol W orkers and Shipping/D istribution

w ill not be laid off or rem oved from their job classification

and grade as a result of M aterials D elivery and Inventory

P rocess. T his revision expanded protection to 2,920 jobs

for the life of the A greem ent.

- E xcept for 787 final assem bly and som e ID S w ork

(lim ited to inventory transactions), vendors are lim ited to

delivering products to designated areas only. From there,

bargaining unit em ployees w ill track use, disbursem ent,

acquisition, and/or inventory of parts, m aterials, tools, kits

and other goods or products.

- Jointly w ork w ith the C om pany to im prove m aterial deliv-

ery process and ensure our m em bers grow w ith the new

technology and innovations.

- P arties w ill explore options for retraining or reassigning

bargaining unit em ployees to equal level jobs w hen em -

ployees are im pacted by process and technology changes.

(larification side letter regarding LOU #37

- O n C om m ercial A irplane program s other than the 787

E verett, internal and external suppliers, vendors, etc. m ay

continue to perform all transactions relating to the M ateri-

als D elivery and Inventory process that they w ere perform -

ing as of S eptem ber 3, 2008.

- O n the 787 E verett and ID S program s, internal and

external suppliers, vendors, etc. m ay perform the inventory

transactions described in LO U 37 of the 2005-2008 collec-

tive bargaining agreem ent.

NLRB-FOIA-00010824

M edical Coverage No CostShifting/No Takeaways

W orkforce Administration -

W ithdrew Takeaway Proposals

- R eturned to current coverage in 2002 & 2005 contract language. T he end result is your co-pays and deductibles w ill
notincrease - keeping your existing health care cost structure
through 2012 (no change in 10 years).W hile other com panies
that offer health care plans are regularly increasing em loyee
costs, yours w ill rem ain frozen at 2002 levels. A t the end of
the day, you gained m uch m ore by standing together.

A rticle 14.4 - R einstatem ent of S eniority L oss by

R eason of D uration of L ayoff.A greed to return to 2005

language w ith the exception of the date change. T his pro-

vision has provided several hundred m em bers w ho are

rehired after their C ategory A rights expired w ith reinstate-

m ent of their seniority.

- O nly change is the Plan year w ill convert to calendar year


beginning January 1,2010.
- Y our resolve m ade B oeing w ithdraw their increases in
deductibles, co-pays, m onthly prem ium contribution form ula
and prescription drug coverage. B oeing's m andatory generic
program and specialty care pharm acy program language is
rem oved.
" Survivor and bridge benefit rem ains in contract.
" By securing the sam e m edical coverage as the 2002 &
2005 language, the m oney that w ould have been spent on
additional m edical costs w ill now stay in your pocket.

Pension - Increased $11 & $13


Increased pension benefit from current $70 benefit to:
* $81 effective 1/1/09 - nearly 16% increase

* $83 effective 1/1 /12 - nearly 19% increase

Retiree M edical- Preserved for


Existing Retirees
- B oeing's veiled attem pt w ith carefully crafted retiree

m edical language w as recognized by your bargaining com m ittee as a threat by the C om pany to elim inate current re-

tiree m edical coverage. In its latest proposal, the C om pany


backed off these language changes, language reverts to

2005 contract, and existing retirees are protected. T his is a


huge w in - especially for those existing retirees.
- B oeing's language, as printed in their 9/3/08 offer,w ould
have taken those w ho are already retired (current retirees)
out ofthe scope of the A greem ent -threatening their coverage. Just as disturbing is the im plication this language
w ould have had on current active m em bers. T he C om pany's 9/3/08 language provided coverage only for active
em ployees w ho retire during the term of this A greem ent.
O nce the three-year agreem ent has expired, so w ould the
contractual guarantee for retiree m edical benefits of those
new ly retired m em bers. Itw as very im portant to ensure
this language w ent back to the 2005 language to protect
this benefit for existing retirees as w ell as future retirees.

A rticle 22.3 - S urplusing P ro ced u res - N um bers of

R etentions A llow ed. A greed to return to 2005 language.

T his provides seniority bands so retentions cannot

be used across the board w ithout regard to seniority.

C om pany's 9/3/08 proposal w ould have elim inated these

seniority bands and given them m ore freedom to layoff

senior m em bers.

A rticle 22.13 - P rom otional P ro ced u res - E ffect of R e-

fusing Prom otion. R eturned to 2005 language. C om pany

proposed on 9/3/08 changing from "particular location

and shift" to job. U nder the C om pany's 9/3/08 proposal

ifa person declines an E R T prom otion to any location or

shift, they w ould not be eligible for any other prom otion to

that job for 90 days. By reverting back to current lan-

guage, they are still eligible for other shifts and locations

-just not the shift or location they declined.

Health & Safety

W ithdrew Takeaway

S ection 16.2 - S ite C om m ittee S tructure and R esponsi-

bilities. R eturned to 2005 contract language w ith the ex-

ception of changing "SH E A "to "E H S." E lim inates proposed

tw o and three y ear rotation so continuity continues w ith the

safety program .

@ M W

gm

&

In the 9/3/08 offer,there w ere individual areas of benefit

im provem ents; how ever, the cost shifting the C om pany

w anted w as too great and did notjustify the im provem ents.

By defeating B oeing's cost-shifting proposal, your m edi-

cal plan costs w ill not increase for a total of 10 years. The

follow ing benefits return to the 2002 & 2005 contract levels

rather than the changes reflected in the S eptem ber 3, 2008

proposal:

- Increase for routine physicals

- H earing A id
- L ifetim e m axim um on m edical

- V ision
- D ental C overage - W eekly D isability

- C overage im provem ents for organ transplants

- Im provem ents to neurological developm ent coverage

- Provide coverage for sam e-gender dom estic partners

- Life Insurance, A ccidental D eath & D ism em berm ent

NLRB-FOIA-00010825

om (M D AM A T

P lum ber M aintenance


A greem ent to revise 81109 job description to incorporate the
requirem ent for a S team Fifter/PipeFifter license. In som e cases, upon m eeting the m inim um qualifications/requirem ents,
the prom otion m ay be im m ediate/otherw ise by E R T
P ainter D ecorative C om m ercial A ircraft

All current em ployees assigned to job num ber 01307 w ill be


prom oted to a new revised 01308 job code. A pproxim ately
275 em ployees w ill be upgraded upon ratification.
Inspector Integral F uel C ells
All current em ployees assigned to job num ber 59006 w ill be
upgraded to 59007. A pproxim ately 175 em ployees w ill be
upgraded upon ratification.
B oring F ixture M echanic/M achining A ssem bly T echnician

A greem ent to upgrade em ployees currently assigned to job

num ber 56906 to job num ber 73907. T his A greem ent w ill
result in approxim ately 12 em ployees upgraded to G rade 7
upon ratification. (A pplies to Portland only.)
A ssem bler Installer S tru ctu res/A ssem bier Installer W ingL
Structures

A greem ent to review the job package differences betw een


know ledge, skills, and responsibilities to determ ine a higher
level ofw ork statem ent in the 305xx/31 O xx job fam ilies. If
both parties determ ine there is a h igher graded w ork statem ent, the parties agree to utilize a new , m odified inline
prom otion LO U . T his A greem ent m ay result in up to 250
upgrades from G rade 4 to G rade 6.

IAM /Boeing Joint Program s Sam e as 9/3/08 offer


L etter of U nderstanding LQ Q X X
T his L etter of U nderstanding addresses the need for both
U nion and C om pany to w ork together to achieve a better understanding of C ontinuous Im provem ent concepts and strategies. W e acknow lege that the future of our jobs and our
industry relies on m aintaining an efficient and cost effective
daily business system . T he C om pany and U nion propose
to establish a productivity center that w ill be responsible for
training and im plem enting a joint approach to productivity
issues.
A rticle 16 ch an g es:
-A dded language that addresses environm ental care to
reflect the im portance this has on the health and safety of
our m em bers.

COLA - Sam e as 9/3/08 offer except


added dates for (OLA calculations for 4th
year.

M oonshine S hop R eview s

A greem ent to review the job assignm ents and differ-

ences betw een the various m oonshine shops across

the bargaining unit. E valuation of w ork being perform ed

and proper classification m ay result in som e job up-

grades.

W ichita A ir F ram e and/or P ow er P lant L icense

A greem ent

E m ployees in job num ber's U 3404/07, U 01 08/10,

92007/09/11, U 1207, 51807/09, 53809/11 w ho obtain

their A ir F ram e and/or P ow er Plant L icense w ill receive

prem ium pay in the am ount of $.50 per hour for each

license obtained (up to $1.00). W ill result in additional

pay for approxim ately 20 m em bers assigned in these

job titles. (A pplies to W ichita only).

Inspector P recision A ssem bly (PSD )

A greem ent to review w ork statem ent of 509xx job

fam ily. Ifrevisions are m ade the labor grade(s) w ill be

determ ined in accordance w ith A rticle 13 ofthe C ollec-

tive B argaining A greem ent/possible higher labor grade

w ork being perform ed.

A ssem bler P ow er P lant (PSD )

A greem ent to revise the 91106 job description. The

G rade 6 revisions w ill incorporate a h igher level of w ork

described. U pon installation ofthe revised job descrip-

tion, the C om pany w ill staff to the higher level as ap-

propriate, w hich m ay result in m ultiple upgrades.

W orkforce Administration -

Same as 9/3/08 offer

22.1 (a)(7) C ategory A ri


ghts w ill be increased as listed

below :

C urrent R ecall N ew R ecall

Y ears of C o
R ights

R ights
Service
3 years

year
1

year
0-1
3 years

3 years
1-3 years
5 years

5 years
3-5 years
8 years

7 years
5+ years
22.11 - Prom otional P rocedures - A dded language

restricting em ployees to 12 m onths in their present job

before they are eligible for E R T (previously in a C om pany

PR O ) w ith exceptions w hen in the C om pany's best inter-

est. U nion opposed this; how ever, itis in B oeing's last

and final offer.

22.12 - Prom otional P rocedures - G raduate A pprentices

-A dded C om posite M anufacturing T echnician to appren-

job num ber)

ticeship tables. A lso, C 4808 added (Portland


22.18(a)(3) -A llow s supervisors returning to hourly pay-

roll to return to any low er-graded job.

NLRB-FOIA-00010826

Holidays - Added dates for4 yrcontraCt


2008 H olidays

Thanksgiving D ay
Friday following

W
W
W
W
W
W

T hanksgiving
inter B reak
inter B reak
inter B reak

inter B reak
inter B reak
inter B reak

D ate of O b serv an ce

Thurs., N ov.27, 2008


Fri., N ov. 28, 2008
W ed., D ec. 24, 2008
T hurs, D ec. 25, 2008
Fri., D ec. 26, 2008

M on., D ec. 29, 2008

T ues., D ec. 30, 2008

W ed., D ec. 31, 2008

2009 H olidays
W inter B reak
M em orial D ay
Independence D ay
L abor D ay
T hanksgiving D ay
F riday follow ing
T hanksgiving
W inter B reak
W inter B reak
W inter B reak
W inter B reak
W inter B reak
W inter B reak

D ate of O b serv an ce
T hurs., Jan. 1,2009
M on., M ay 25, 2009
F riday, July 3, 2009
M on., S ept. 7, 2009

T hurs., N ov. 26, 2009

2010 H olidays
W inter B reak
M em orial D ay
Independence D ay
L abor D ay
T hanksgiving D ay
F riday follow ing
T hanksgiving
W inter B reak
W inter B reak
W inter B reak
W inter B reak
W inter B reak
W inter B reak

D ate of O b serv an ce
Fri., Jan 1, 2010
M on., M ay 31, 2010
M on., July 5, 2010
M on., S ept. 6, 2010
T hurs, N ov. 25, 2010

2011 H olidays
W inter B reak
M em orial D ay
Independence D ay
L abor D ay
T hanksgiving D ay
F riday follow ing
T hanksgiving
W inter B reak
W inter B reak
W inter B reak
W inter B reak
W inter B reak
W inter B reak

D ate of O b serv an ce
M on., Jan. 3, 2011
M on., M ay 30, 2011
M on., July 4, 2011
M on., S ept 5, 2011
T hurs., N ov. 24, 2011

2012 H olidays
W inter B reak
M em orial D ay
Independence D ay
L abor D ay

D
M
M
W
M

Fri, N ov. 27, 2009


T hurs., D ec. 24, 2009
F riday, D ec. 25, 2009
M on., D ec. 28, 2009
T ues., D ec. 29, 2009
W ed., D ec. 30,2009
T hurs., D ec. 31, 2009

Fri., N ov.26, 2010


Fri, D ec. 2 4, 2010
M on., D ec. 27, 2010
T ues, D ec. 28, 2010

W ed., D ec. 29, 2010


T hurs, D ec. 30, 2010
Fri., D ec. 31, 2010

Fri., N ov. 25, 2011


Fri., D ec. 23, 2011
M on., D ec. 26, 2011

T ues., D ec. 27, 2011


W ed., D ec. 28, 2011
T hurs., D ec. 29, 2011
Fri., D ec. 30, 2011
ate of O b serv an ce
on., January 2, 2012
on., M ay 28, 2012
ed., July 4, 2012

on., S ept. 3, 2012

#37. N
ew language highlighted in red. D eleted

LOUhrough.
ow is the
lBel
anguage
hasnew
strike-t
L E T T E R O F U N D E R ST A N D IN G

N O . 37

SU B JE C T . M A T E R IA L S

D ELIV ERY AND INVENTORY PR O C ESS

T he C om pany and the U nion agree that parts, m aterials, tools, kits and

other goods or products furnished by an internal or external supplier,

vendor, c ontractor, or subcontractor m ay be delivered or presented to the

C om pany at any location to be designated by the C om pany, including but

not lim ited to local receiving areas, staging areas, parts control areas,

m aterials and tool storage areas, and/or factory locations w here parts or

assem blies are installed. S u ch lo catio n s w ill b e staffed , as n ecessary ,

w ith C o m p an y em p lo y ees, including b arg ain in g unit em p lo y ees in

classificatio n s resp o n sib le for receiving an d d istrib u tio n , an d job

fu n ctio n s p erfo rm ed by em p lo y ees th at fall w ithin b arg ain in g unit

job d escrip tio n (s) w ill co n tin u e to be p erform ed by su ch b arg ain in g

unit em p lo y ees. Im addition,

O n C om m ercial A irplane p ro g ram s o th er th an 787-E vereft, internal

and external suppliers, vendors, contractors, or subcontractors m ay, at

the C om pany's request, perform inventory transactions related to g o o d s

o r p ro d u cts th ey are delivering o r fu rn ish in g to th e C o m p an y ,

w hich m ay4nehtdiow ith b arg ain in g unit em p lo y ees tracking use,

disbursem ent, acquisition, and/or inventory of parts, m aterials, tools,

kits, and other goods or products co n sisten t w ith b arg ain in g unit job

d escrip tio n s.

T he C om pany's M aterials D elivery G roup P ro cess O w ner w ill eanduet

a quarterly review co n su lt w ith the U nion S ite R ep resen tativ es on a

m onthly b asis to provide status an the previous quarter's d iscu ss

activities an d issu es related to th e M aterials D elivery an d In v en to ry

p ro cess an d to d iscu ss T he review s m ay im eltide a disetissiam a

process,

opportunities to im prove the M aterials D elivery and Inven"


including th e m o st efficient u se of B oeing em p lo y ees an d reso u rces

an d th e im p lem entatio n o f new tech n o lo g y . U pon th e U nion's

req u est, th e C om p an y w ill co n d u ct a q u arterly review to d iscu ss

d ecisio n s o r issu es w ith th e M aterials D elivery an d In v en to ry

p ro cess from th e p rev io u s q u arter's activity.

T he p arties w ill explore o p tio n s for retraining o r reassig n in g bargaining

unit em p lo y ees to equal leveljo b s w hen b arg ain in g unit em p lo y ees are

im pacted by th e C o m pan y 's im plem entation of p ro cess an d tech n o lo g y .

ch an g es. In ad d itio n , forklift d riv ers (419 classificatio n ), M P R F s (614

classificatio n ), F acto ry C o n su m ab les, H an d lers (607 classificatio n ),

E n v iro n m ental C ontrol W orkers (H azM at - 855 classificatio n ), an d

S h ip p in g /D istrib u tio n (611 classificatio n ) as of S ep tem b er 3, 2008 w ill

not be laid off o r rem o v ed from th eir job classificatio n an d g rad e as a

resu lt of th e M aterials D elivery an d Inventory p ro cess.

N othing in this L etter of U nderstanding w ill be construed to perm it suppliers

or vendors to install parts or com ponents on the airplane, unless the vendors

or suppliers are correcting errors or perform ing w arranty w ork.

T he G arnpam y ag rees that bargaining unit em playees w ill not be land o

as a direet restilt of the G ernpany's conversiom to the M aterials D eliveFy

and Inventory P reeess, um less the erm pleyees are unw i ling to ehange jobs

(ineludim g a daw m grsde), shifts, or locations w ithin the bargainim g unit.

E m ployees w ho are ernployed 85 fffklift drivers as of S eptem ber 2, 2005

w ill eom tom ue their Fegular assignm ents for the teffln of the eentroet, ineluding

but not "n9oted to the rnevernent of supplier am d vendor parts fref" local

ores w0them the faetery.

NLRB-FOIA-00010827

O ther m provem ents R em aW ng from 9/3/08

B E R E A V E M E N T LEA V E
6.4(c) - B ereavem ent leave benefit for m em bers on LO A of
90 days or less. Previously only available to m em bers on the
payroll. In addition bereavem ent leave can be taken w ithin 30
calendar days of death (or evidence of belated notification of
death) - previously w ithin 20 calendar d ays. A dded sam e gen-

der dom estic partner to definition of "im m ediate fam ily."

A R T IC L E 14 - SE N IO R IT Y
14.1 (b)(1 0) Increase seniority C ategory A to 8 years from
7 years. U pon com pletion of orientation, your w ill receive

3 years of C ategory A recall rights.

LO U #36 -TEA M L E A D E R

- Increased prem ium from $1.75 to $2.00.

-A dded a com m ittee to review training requirem ents.

-A dded right to grieve, but not arbitrate team leader

decisions.

A R T IC L E 5 -SH IFT PR E FE R E N C E

5.4(a)(2) - U nion notification w hen em ployees are

displaced from their shift.

5.4(d) L ow est B E M S ID w ill determ ine shift preference

if tw o m em bers have the sam e seniority.

W ithdraw n L etters of U nderstanding

Follow ing
" LO U
" LO U
" LO U

letters w ere w ithdraw n:

X X - First V ote R atification B onus

X X - Incentive Plan

X X - L um p Sum P aym ent (new one replaced it)

Q uestion & A nsw ers

W ill m ed ica lco sts in cu rred d u rin g th e strike b e co vered


o r reim b u rsed ?
A: Y es, in the Strike S ettlem ent A greem ent benefits are considered continuous w ithout interruption for em ployees and
their dependents. All C O B R A prem ium s and valid insurance

claim s w ill be paid.


W hath a p p en ed to th e S u rvivio r b en efit?
A: Since w e reverted to the 2005 language, the Survivor
and T ransition B ridge B enefit are restored.
W hat h a p p en ed to th e life in su ra n ce?

A: Itreverted to the 2005 contract language level of $32,000


and w ill cover anyone w ho passed aw ay during the strike.
D id a n yth in g ch a n g e in M edical?

A: T he only change w as a form at change for A ttachm ent A &


B. Itsim ply m irrors the current form at ofthe sum m ary plan
descriptions - m aking iteasier to read.
Is S electio n s stilla h ea lth p la n ch o ice?
A. Y es and m onthly prem ium costs w ill rem ain the sam e
as w hat you currently pay until the next open enrollm ent
period in M ay w hen itw ill be recalculated under the current
form ula.

Is the 400 CO LA g en era ted in th e la st q u a rterin the

n ew offer?

A. T he U nion pushed hard for this, but at this tim e B oeing

w as unw illing to include itin the offer.

W hen w ill th e vote b e?

A. V oting at the Portland, O regon, location w ill take place

on S aturday, N ovem ber 1,2008, at D istrict L odge N o.

24's offices, located at 3645 SE 32nd A venue in Portland.

M em bers m ay vote anytim e betw een the hours of 9 A M

and 4 PM .

ff w e turn it dow n by 50% + 1, w h a th a p p en s?

A: T he strike continues. U nion negotiators w ill push for

another round of talks w ith the C om pany.

H ow lo n g w ill w e h a ve to retu rn to w ork?

A: In the Strike S ettlem ent agreem ent, w e pushed for a

later return date, but B oeing w ould only agree to N ovem -

ber 10th (9 days to return). Ifyou need additional tim e,

you should contact your m anagem ent and request the

additional tim e to return. Ifratified, m em bers can return

to w ork as early as third shift S unday, N ovem ber 2nd or

M onday, N ovem ber 3rd for 1st and 2nd shift m em bers.

W hat h a p p en ed to th e p rescrip tio n d ru g ta kea w a ys?

A: Since w e reverted to 2005 language, B oeing's m andatory

generic program and S pecialty C are Program language is

rem oved.

NLRB-FOIA-00010828

2008 S trike S ettlem ent A greem ent

T he B oeing C om pany ("C om pany") and the International


A ssociation of M achinists and A erospace W orkers, A FLC IO , on its ow n behalf and on behalf of its D istrict L odges
24, 70, and 751 (hereinafter collectively referred to as the
"U nion") agree as follow s:

1. U pon ratification of the p arties 2008 - 2012 collective


bargaining agreem ent, the union w ill term inate its strike and

picketing against the C om pany.


2. All com pany em ployees on strike shall be returned

to the sam e job they held prior to the strike and the tim e
spent on strike w ill be c ounted for the follow ing purposes:

seniority, seniority progression, sick leave/vacation eligibility


date, eligible m onths of participation for purposes of the
ShareV alue T rust, and, to the extent perm itted by E R ISA ,
the R etirem ent Plan.

3. All bargaining unit striking em ployees w ill be returned to


w ork com m encing on the 3rd shift on N ovem ber 2, 2008.

All em ployees w ill be returned to the shift, labor grade and


job classification they held on the last d ay ofw ork p rior to
the strike.
4. E m ployees shall be given until the beginning of their
shift on M onday, N ovem ber 10, 2008 to report to w ork.
E m ployees w ho are unable to return to w ork because

of m edical reasons w ill be review ed for m edical leave of

absence on a case-by-case basis. Further, em ployees


w ho are unable to return to w ork because of unavoidable

and com pelling reasons w ill also be review ed on a caseby-case basis. O ther em ploym ent during the strike w ill not
be considered as an unavoidable and com pelling reason to
delay reporting to w ork.

5. T he C om pany shall be u nder no o bligation to reinstate


em ployees w ho do n ot return to w ork in accordance
w ith paragraph 4, above, and such em ployees w ill be
considered to have voluntarily resigned their em ploym ent.
Such em ployees w ill be placed on a Preferential H iring
list ifthey notify the C om pany, in w riting, of their desire
to be reconsidered for em ploym ent. Individuals on the
Preferential H iring listw ill be hired by their job, labor
grade, and seniority as of S eptem ber 3, 2008 before n ew

em ployees a re hired. Individuals w ill be rem oved from the


Preferential H iring list ifthey refuse a job offer from the
C om pany. T he Preferential H iring listshall autom atically
term inate on S eptem ber 3, 2009.
6. E m ployees w ho prior to the strike scheduled vacations
w hich w ould have occurred during the strike w ill be

given priority in vacation scheduling. E m ployees m ay


request vacation pay in lieu of tim e off in accordance w ith

established practices.
7. E m ployee group b enefits shall be reinstated effective
N ovem ber 3, 2008 for em ployees w ho return to w ork. The

C om pany shall return all insurance prem ium s w hich have

been paid to it. In addition, insurance eligibility shall be

considered continuous for all returning em ployees and

their dependants, w ithout interruption since S eptem ber

3, 2008, and all valid insurance claim s w ill be paid,

including those of em ployees w ho m ay have died during

the strike. N orm al payroll contributions for the m onth of

O ctober w ill be collected from a future paycheck.

8. N o striking em ployee or union official shall be issued

corrective action by the C om pany for any activity taking

place during the strike except ifsuch individual is

convicted of a p enal offense.

9. All authorization/dues deduction cards w ill rem ain

valid for em ployees w ho continued their U nion

m em bership throughout the strike. E m ployees (other

than those in right-to-w ork states) w ho resigned their

union m em bership during the strike w ill be required

to com ply w ith the U nion Security p rovisions of the

collective bargaining agreem ent. T he C om pany w ill

not collect funds ow ed the U nion during the strike for

program s such as the M achinists N on-P artisan Political

L eague, G uide D ogs, or U nion dues. T he C om pany w ill

not deduct funds for the G ood N eighbor Fund, C redit

U nion deductions, or Savings B ond contributions m issed

during the strike.

10. A ny grievance pending prior to the strike shall not be

affected by the strike.

11. T he C om pany and the U nion m utually pledge their

best efforts to return all operations back to norm al at the

earliest possible tim e.

12. A ny paym ents resulting from changes to base

rates, cost of living adjustm ents, shift differentials, A O G

prem ium s, team leader prem ium s, job classification

upgrades, or any other w age adjustm ents resulting from

changes m ade to w ages or prem ium s in the 2008-2012

collective bargaining agreem ent, w ill be paid on or before

D ecem ber 4, 2008, and m ay be paid in the em ployee's

regularly scheduled paycheck(s) or by separate

paycheck.

13. E ach party agrees to w ithdraw any and all legal

actions, including charges before the N LR B or the

D epartm ent of L abor filed by either party against the

other, its officers, agents, and/or m em bers, or m ay

hereafter be filed, based on activity related to the

negotiations, the strike, or connected therew ith.

14. A ny disputes concerning the application of the

provisions of this S trike S ettlem ent A greem ent w ill be

subject to the grievance and arbitration provisions of

the collective bargaining agreem ent except as stated in

paragraph 11.

D A TED this 29th day of O ctober, 2008.

NLRB-FOIA-00010829

Non-Responsive

NLRB-FOIA-00010830

Non-Responsive

NLRB-FOIA-00010831

Non-Responsive

NLRB-FOIA-00010832

Non-Responsive

NLRB-FOIA-00010833

Non-Responsive

NLRB-FOIA-00010834

Non-Responsive

NLRB-FOIA-00010835

Non-Responsive

NLRB-FOIA-00010836

..

..

..

..

...

..
..
Non-Responsive

..

..

...

..

..

NLRB-FOIA-00010837

Non-Responsive

NLRB-FOIA-00010838

Non-Responsive

..

NLRB-FOIA-00010839

Non-Responsive

NLRB-FOIA-00010840

A nother new s article fro

51 re B oeing ULP

Page I of I

T odd, D ianne

F rom :

Jude B ryan [bryan@ w orkerlaw .com ]

S ent:

Friday, A pril 23, 2010 11:05 A M

T o:

T odd, D ianne

C c:

C arson G lickm an-Flora; Jude B ryan

S ubject:

A nother new s article from M 751 re B oeing ULP

A ttachm ents: A erospace N ew s A ubrey C ohen 2009 10-21.doc

4 /2 3 /2 0 1 0

NLRB-FOIA-00010841

A ero sp ace N ew s

http://blog.seattlepi.nw source.com /aerospace/archives/1 72716.asp

IfB oeing buys V ought 787 o p s, bad new s for W ashington state

IfB oeing buys its 787 operations from V ought, as is being reported, it w ould m ean that the

com pany's second 787 assem bly line w ould alm ost surely go to South C arolina, saV s S cott

H am ilton, an aerospace consultant for L eeham C o.

V ought is a key partner in B oeing's com plex 787 D ream liner production system , in w hich m uch of

the production is outsourced. V ought m akes tw o parts of the aft fuselage -- sections 47 and 48 --

in South C arolina.

T he w ay that B oeing is m aking the 787 -- w ith different parts m anufactured and assem bled all

over the w orld, then shipped back to E verett for final assem bly -- is the first tim e such a m ethod

has been attem pted.

T exas-based V ought w as the w eakest link in B oeing's outsourcing plan, H am ilton said. So it

m akes sense that B oeing w ould now insource w hat ithad outsourced.

L ast year, B oeing bought V ought's 50 percent stake in G lobal A eronautica, a fuselage sub-

assem bly in the sam e location as V ought's other 787 operations. G lobal A eronautic is now a 50-

50 aoint venture betw een B oeing and A lenia A eronautica, of Italy.

V ought and A lenia supply m ore than 60 percent of the 787 fuselage.

T here's plenty of land on the South C arolina site for expansion, H am ilton said, w hich m akes a

second 787 line a likely candidate for use of that land.

South C arolina w as a finalist for the first 787 assem bly line in 2003, but E verett eventually w on

out.

W ashington state has not done enough to preserve its aerospace industry, H am ilton said.

"T he fact that the governor did not prom ote W ashington aerospace at the P aris A ir Show w as

scandalous," H am ilton said. "T his aerospace council that she's created is too little too late."

U pdate: 12:45 p.m .

G ov. C hris G regoire's spokesm an P earse E dw ards responds

W ashington state had the largest presence ever at this year's show . T he G overnor has a ttended

the show in the past In fact, the G overnor's first-ever trade m ission as G overnor w as to the Paris

A ir Show . S he could not attend this year because the S ecretary of E ducation invited her to

m eetings on national education reform .

Like each and every G overnor ofW ashington state for the past 100 years, G overnor G regoire

has been grow ing relationships w ith the aerospace industry. T he G overnor is in frequent

conversations w ith B oeing m anagem ent and its w orkers. T he A erospace C ouncil is just another

exam ple of the G overnor's com m itm ent to entice B oeing and the industry to expand it future

operations in the state. For B oeing to rem ain com petitive in the global aerospace industry itm ust

source parts and services, and m anufacture aircraft, at locations that are the m ost cost-effective

and efficient A nd that's w hy w e're w orking very hard to m ake W ashington as attractive as

possible for aerospace com panies -- large and sm all.

NLRB-FOIA-00010842

W e have tw o big opportunities ahead of u s: M aking sure ifB oeing decides to build a second line

of the 787 -- itdecides to build ithere A nd, that B oeing w ins the A ir F orce's m id-air refueling

tanker contract.

P osted by A ndrea Jam es at July 1,2009 9.37 a.m .

NLRB-FOIA-00010843

A erospace N ew s

http://blog seattlepi.nw source com /aerospace/arch ives/1 72716.asp

IfB oeing buys V ought 787 o p s, bad new s for W ashington state

IfB oeing buys its 787 operations from V ought, as is being reported, itw ould m ean that the

com pany's second 787 assem bly line w ould alm ost sureIV go to South C arolina, says S cott

H am ilton, an aerospace consultant for L eeham C o.

V ought is a keV partner in B oeing's c om plex 787 D ream liner production sV stem , in w hich m uch of

the production is outsourced. V ought m akes tw o parts of the aft fuselage -- sections 47 and 48 --

in South C arolina.

T he w ay that B oeing is m aking the 787 -- w ith different parts m anufactured and assem bled all

over the w orld, then shipped back to E verett for final assem bly -- is the first tim e such a m ethod

has been a ttem pted.

T exas-based V ought w as the w eakest link in B oeing's outsourcing plan, H am ilton said. S o it

m akes sense that B oeing w ould now insource w hat it had outsourced.

L ast year, B oeing bought V ought's 50 percent stake in G lobal A eronautica, a fuselage sub-

assem bly in the sam e location as V ought's other 787 operations. G lobal A eronautic is now a 50-

50 Ooint venture betw een B oeing and A lenia A eronautica, of Italy.

V ought and A lpnia supply m ore than 60 percent of the 787 fuselage.

T here's plenty of land on the South C arolina site for expansion, H am ilton said, w hich m akes a

second 787 line a likely candidate for use of that land.

South C arolina w as a finalist for,the first 787 assem bly line in 2003, but E verett eventually w on

out.

W ashington state has not done enough to preserve its aerospace industry, H am ilton said.

"T he fact that the governor did not prom ote W ashington aerospace at the P aris A ir Show w as

scandalous," H am ilton said "T his aerospace COLincil that she's created is too little too late."

U pdate: 12:45 p.m .

G ov. C hris G regoire's spokesm an P earse E dw ards responds:

W ashington state had the largest presence ever at this year's show . T he G overnor has a ttended

the show in the past. In fact, the G overnor's first-ever trade m ission as G overnor w as to the Paris

A ir Show . S he could not attend this year because the S ecretary of E ducation invited her to

m eetings on national education reform .

Like each and every G overnor of W ashington state for the past 100 years, G overnor G regoire

has been grow ing relationships w ith the aerospace industry. T he G overnor is in frequent

conversations w ith B oeing m anagem ent and its w orkers. T he A erospace C ouncil is just another

exam ple of the G overnor's com m itm ent to entice B oeing and the industry to expand it future

operations in the state. For B oeing to rem ain com petitive in the global aerospace industry it m ust

source parts and services, and m anufacture aircraft, at locations that are the m ost cost-effective

and efficient. A nd that's w hy w e're w orking very hard to m ake W ashington as attractive as

possible for aerospace com panies -- large and sm all.

NLRB-FOIA-00010844

W e have tw o big opportunities ahead of us. M aking sure if B oeing decides to build a second line

of the 787 -- itdecides to build it here. A nd, that B oeing w ins the A ir F orce's m id-air refueling

tanker contract.

P osted by A ndrea Jam es at July 1,2009 9:37 a.m

NLRB-FOIA-00010845

Page I of 3

T odd, D ianne

F rom :

C arson G lickm an-Flora [flora@ w orkerlaw .com ]

S ent:

Friday, A pril 23, 2010 9:47 A M

T o:

T odd, D ianne

S ubject: Fw d: W roblew ski quote

A erospace N ew s

http://blog.seattlepi.nw source.coM /aerospace/archiveS /173301.asp

B oeing has not form ally proposed no-strike clause to union

IA M D istrict 751 President Tom W roblew ski sent the follow ing letter to m em bers

today:

July 8, 2009

D ear B rothers and S isters,

M any of you have seen the story in T he S eattle T im es w here elected

officials say they've been told by B oeing leadership th at the com pany

requires a no-strike clause from us as a condition for keeping a second 787

final assem bly here in W estern W ashington.

I w ant you to know th at:

1)B oeing has not approached us w ith any form al proposal on this;

2) W e're open to talking about anything th at will bring m ore jobs for our

m em bership, and if B oeing has proposals th at w ould ensure w e'll be

building B oeing airplanes here in Puget Sound for generations to com e,

w e'll certainly listen;

3) T oday, w e have a four-year agreem ent in place - one th at m em bers

ratified and agreed to live by and the C om pany agreed to abide by, as w ell.

4) A nd this is m ost im portant of all, your U nion leadership w ill never take

such a step w ithout consulting you. W e are and alw ays have been a

5/4/2010

NLRB-FOIA-00010846

Page 2 of 3

dem ocratic organization.

W e are w orking to im prove our relationship w ith B oeing, and the

M achinists U nion has m ade several overtures to th at effect. Im proving

the relationship to bring about a different result in bargaining is a

priority. W e plan to d edicate a lot of tim e and resources to this effo rt.

To use politicians as m icrophones to deliver a m essage, creates problem s

and does nothing to im prove the relationship. T he tw o sides need to w ork

w ithout the outside influence of politicians, analysts and reporters. M any

of B oeing's problem s w ith their em ployees have escalated because of this

type of tactic.

R ather than re-create the labor law s th at give w orkers the right to

w ithhold their labor, w e should all be w orking together to im prove the

relationship.

Several m em bers have also asked questions on m anagem ent Q & A 's

regarding the B oeing/V ought deal - specifically on the answ er that

m entioned B oeing had negotiated several agreem ents w ith the IA M this

year. T he follow ing are recent agreem ents w e have m ade to help B oeing be

m ore successful:

A llow ing partners (vendors) to com e into the factories here in Puget

ound to perf orm w arranty w ork in an effort to expedite first flight of

787 and correct m any of the challenges facing th at airplane.

help

from S t. Louis and W ichita to


em
pl
oyees
i
n
bri
ng
to
B
oei
ng
llow787,
ed as long as they w ere still hiring em ployees here.

0 Athe
on

- A greed to extended tem porary prom otions of G rade 3 to G rade 4 , w hich

m itigated W A R N notices.

In addition, to assist m em bers w ho are facing layoff, w e signed a letter of

understanding, w hich allow s laid-off or term inated em ployees the option

of continuing to m ake paym ents on their V IP loans after leaving the

payroll.

A gain, w e have a 4-year agreem ent in place,and w e are w illing to listen to

any proposals by the C om pany on any topic. To date, no proposals have

been m ade by the B oeing C om pany. W e believe everyone should rem ain

focused on getting the 787 certified, w hich is critical to the future of all

5/4/2010

NLRB-FOIA-00010847

Page 3 of 3

of us.

In Solidarity,

Tom

N otice: This m essage is intended for the addressee only and m ay contain privileged

and/or confidential inform ation, U se or dissem ination by anyone other than the intended

recipient is prohibited.

5/4/2010

NLRB-FOIA-00010848

By D O U G C A M ER O N

B oeing C o.'s chief executive said T hursday that the com pany is "effectively sold out" of new com m ercial aircraft

through 2012 and m ight consider boosting production again to m eet custom er d em and.

C hicago-based B oeing also expec ts aircraft orders and deliverie s next year to be "significantly higher" as m ore

airlines accelerate fleet plans or drop efforts to defer receiving extra capacity, C hief Financi al O fficer Jam es Bell

said.

Jim M cN erney, B oeing's chairm an and C E O ,em phasized the com m ercial-business recovery during the aircraft

m aker's annual investor day, alongside efforts to boost the grow th of the com pany's defense side by increasing

the portion of overseas sales.

W hile B oeing has been focusing on delivering the delayed new 787 jetliner, italso needs to refresh the 737 and

777 program s. M r. M cN erney said he doesn't envision having to upgrade or replace both types at the sam e tim e,

and a decision regarding next steps m ight not com e until early next year, later than previously indicated.

T he aerospace group this w eek announced plans to boost production of its best-selling 737 later this year. The

rate for other m odels also is set to rise.

M r. M cN erney said he doesn't expect the order for another delayed program -aerial refueling tankers for the U .S.

A ir F orce-to be split. B oeing is expected to bid for the contract, as is E uropean A eronautic D efence & Space

C o., the Franco-G erm an group.

In slides that w ere to accom pany his presentation T hursday, the head of B oeing's 787 program said assem bi y of

the delayed aircraft w as "im proving" despite the recent disclosure of another design snag. Pat S hanahan w as to

say that C hicago-bas ed B oeing intends to take m ore design w ork for the larger 787-9 variant of the plane in-

house, firm ing its design configuration by m idye ar w ith a view to starting production in the first quarter of 2012.

T he base 787-8 m odel m ade its first flight last D ecem ber.

B oeing plans to raise production of all 787 m odels to 10 a m onth by the end of 2013.

M r. M cN erney said a second 787 plant in South C arolina will eventually be self-sufficient, insulating the com pany

from som e of the im pact o f any industrial action at its W ashington state facility.

P rinted in The W all Street JournalA sia, page 18

NLRB-FOIA-00010849

Page I of I

T odd, D ianne

F rom :

Jude B ryan [bryan@ w orkerlaw .com ]

S ent:

M onday, M ay 24, 2010 10:48 A M

T o:

T odd, D ianne

C c:

D avid C am pbell; K athy B arnard; C arson G lickm an-Flora; Jennifer R obbins

S ubject:

IAM v. B oeing, C ase N o.: 19-C A -32431

A ttachm ents: 2010 0 5 2 1 W SJ.pdf

M s. T odd:

A ttached is a new s article w e are subm itting in support of the U nion's charge. T he link to the article is:

http-.//online.w sj com /article/S B 10001424052748703559004575256141420108422.htm lm od= W S J-Iatestheadlines

Ju d e B ryan IS chw erin C am pbell B arnard Iglitzin


L avitt LLP 1206.285 2828 iw w v w ofkeriaw COITI
T his com m unication is nterdcd for a spec& c recip;ent arin m ay
privilege

be protected by the attorney client and w ork-pro,diU

ifyw-; receive b s rnessage in erro, please perm ariently delete t and notify the sender

5 /2 4 /2 0 1 0

NLRB-FOIA-00010850

United States Government

National Labor Relations Board

OFFICE OF THE GENERAL COUNSEL

Advice Memorandum

DATE:

April 11, 2011

S.A.M.

TO:

Richard L. Ahearn, Regional Director

Region 19

FROM:

Barry J. Kearney, Associate General Counsel

Division of Advice

SUBJECT:

The Boeing Company


Case 19-CA-32431

512-5006-5062
512-5006-5067
512-5036-8387
512-5036-8389
524-0167-1033
524-5029-5037
524-0167-1033
524-506

524-8307-1600

524-8307-5300

530-6050-0825-3300

530-6067-4011-4200

530-6067-4011-4600

530-6067-4011-7700

530-8054-7000

775-8731

The Region submitted this case for advice on several

issues relating to the Employers decision to place a second

assembly line at a nonunion facility rather than at the

facility where unit employees work on the original assembly

line.
Specifically the Region requested advice as to whether:

(1) the Employer violated Section 8(a)(1) by threatening to

place the second assembly line at a nonunion facility unless

the Union agreed to a long-term no-strike clause and by

repeatedly stating that its decision to place the second line

elsewhere was based on the units strike history; (2) the

Employer violated Section 8(a)(3) by deciding to place the

second assembly line at a nonunion facility because of the

units strike history, even though no unit employees have yet

to lose their jobs; and (3) the Employer violated Section

8(a)(5) by failing to bargain in good faith over its decision

about where to locate the second assembly line or whether the

Union waived its right to bargain under the parties

collective-bargaining agreement.

We conclude that the Region should issue a complaint

alleging: independent Section 8(a)(1) violations based on the

Employers coercive and threatening statements; and a Section

8(a)(3) violation based on the Employers decision to locate

the second line at a nonunion facility and to establish a

dual-sourcing supply program in retaliation for protected

activity.
However, the Region should dismiss the Section

8(a)(5) allegations because under the contract, the Union

expressly waived its right to bargain about the Employers

decision to offload unit work to a facility not covered by

the agreement.
To remedy the chilling effect of Boeings

Section 8(a)(1) statements, the Region should request, in

addition to the traditional remedies,


a notice reading by a

NLRB-FOIA-00010851

Case 19-CA-32431

- 2 -

high-level Boeing official.


To remedy the Section 8(a)(3)

violation, the Region should seek an order that would require

Boeing to maintain the surge line in the Puget Sound area.

Specifically, Boeing intended for the second line to assemble

three aircraft each month in South Carolina, while assembling

seven planes on the first line.


Thus, the Region should seek

an order requiring Boeing to assemble in the Puget Sound area

the first ten 787 aircraft that it produces each month and to

maintain the supply lines for those aircraft where they

currently exist, in the Puget Sound and Portland facilities.

FACTS

The Boeing Company is an international corporation

engaged primarily in developing and producing military and

commercial aircraft. Boeing has a long-established collective-

bargaining relationship with the International Association of

Machinists and Aerospace Workers (IAM) and certain IAM

District and Local Lodges.


The parties current collective-

bargaining agreement is effective November 2, 2008 through

September 8, 2012 and covers three separate bargaining units

of production and maintenance employees in three geographical

areas, the Puget Sound area in Washington; Portland, Oregon;

and Wichita, Kansas.

Section 21.7 of that agreement, entitled

Subcontracting, sets forth various notice periods and an

opportunity for the Union to review and recommend alternatives

to Boeing proposals to subcontract or offload unit work.

[O]ffloading work is defined as moving work from one

Company facility to another Company facility not covered by

this Agreement[.]
Less stringent notice requirements apply

to subcontracting and offloading decisions affecting less than

ten employees.
In addition, the notice and review process

does not cover certain work transfers listed in subsections

(a) through (d), including [d]ecisions to subcontract or

offload work due to lack of capability or capacity, or to

prevent production schedule slippage[.]


Section 21.7

concludes with the following language:

Anything in this Section 21.7 to the contrary

notwithstanding, it is agreed that ... the Company has

the right to subcontract and offload work, to make and

carry out decisions in (a) through (d) above, to enter

offsets and offset arrangements, and to designate the

work to be performed by the Company and the places where

it is to be performed, which rights shall not be subject

to arbitration. ...

NLRB-FOIA-00010852

Case 19-CA-32431

- 3 -

Boeing Introduces the 787 Dreamliner

The Puget Sound unit is comprised of approximately 18,000

employees working in Washington.


Historically these employees

have performed the final assembly of all Boeing planes.


In

late 2003, Boeing announced that it would place the assembly

line for its new 787 Dreamliner airplane in Everett,

Washington after the Washington State Legislature passed a tax

and subsidy incentive package totaling more than $3.2 billion.

That line opened in May 2007, with the capacity for producing

seven planes each month.

With the 787, Boeing departed from its previous practice

of manufacturing most of the aircraft parts with its own

employees and instead outsourced parts production to other

suppliers in the southeast U.S. and abroad.


For example,

Boeing contracted with Vought Aircraft Industries in North

Charleston, South Carolina for the manufacture of the aft

fuselage and with Mitsubishi Heavy Industries in Japan for the

manufacture of the wings.


Boeing repeatedly has had to

postpone the delivery dates for the aircraft, due primarily to

problems with suppliers and software issues.

Starting in mid 2008, the media began reporting that

Boeing would need to add a second 787 assembly line because of

its growing order backlog.


At about the same time, Boeing

entered negotiations with the Union for a successor

collective-bargaining agreement.
During those negotiations,

Company officials noted the need for a second assembly line

but did not discuss the matter further.

The 2008 Strike and Its Aftermath

On September 6, 2008, the employees struck in support of

the Unions bargaining position.


On October 6, 2008, Boeings

stock dropped to a four-year low.


That same day, CEO Jim

McNerney sent a long e-mail to Boeing employees about the

strike.
McNerney stated that he understood and shared the

frustration so many of you feel when we dont have the whole

team together working to meet the commitments weve made to

our customers and competing to win the new business that will

sustain and grow Boeing jobs[.]


McNerney went on to state,

[t]he issue of competitiveness as it relates to this strike

is a big deal[.]
He also tied labor disputes to problems

with Boeings customer relationships.


After asserting that

the Union had recommended that its members reject contract

offers and go on strike four of the last five negotiations

going back to 1995, he wrote, we believe this track record of

repeated union work stoppages is earning us a reputation as an

NLRB-FOIA-00010853

Case 19-CA-32431

- 4 -

unreliable supplier to our customers who ultimately provide

job security by buying our airplanes.1

The following day, Boeings Vice President for Government

and Community Relations Fred Kiga spoke at an aerospace

conference in Everett.
In a Seattle Times article, he was

quoted as stating, We cant afford to become known as the

strike zone[.]
He reportedly also told the conference that

labor unrest could drive Boeings decision on where to build

planes in the future.


In an interview after his speech, Kiga

reportedly stated that his strike zone comments had been

cleared by Boeing Commercial Airplanes CEO Scott Carson.


Kiga

noted that he and Carson grew up in and shared a love for the

Northwest; Kiga then said that they would hate to lose a

treasure like Boeing.

The strike lasted 57 days and ended on November 1, 2008,

when the parties signed the current contract. During the

negotiations, the Union had proposed to amend Section 21.7 to,

among other things, eliminate the waiver language quoted

above.
Boeing refused to agree to such an amendment, and the

language remained in the contract.

In early 2009,2 the media again began publishing reports

that Boeing needed to establish a second 787 assembly line.

On February 9, the Seattle Times reported that Washington

Senator Patty Murray had met with Boeings Senior Vice

President of Government Operations; he had informed her that

the CEO was sick and tired of the unions strikes and was

looking to put the second 787 line elsewhere.

On April 16, Boeing and IAM officials held their annual

summit in Chicago.
Management officials attending included

CEO McNerney, Boeing Commercial Airplanes CEO Carson,

Integrated Defense Systems CEO Jim Albaugh, and for the first

time, Vice President and General Manager of Supply Chain

Management & Operations Ray Conner.


IAM representatives

included International President Tom Buffenbarger, General

Vice President Rich Michalski, and the Directing Business

Representatives who represented Boeing employees, including

District 751 DBR Tom Wroblewski.


This was the first

opportunity for the parties to meet since the strike had

ended.
McNerney and Buffenbarger were the lead speakers.

McNerney stated that Boeings customers were losing confidence

1 In his
that the
occurred
1989 (48
2

e-mail, CEO McNerney exaggerated the number of times

Union had struck.


In actuality, prior strikes

in 1948 (140 days), 1965 (19 days), 1977 (45 days),

days), 1995 (69 days), and 2005 (28 days).

Dates are in 2009 unless otherwise noted.

NLRB-FOIA-00010854

Case 19-CA-32431

- 5 -

in the Company because of past strikes and the possibility of

future strikes.
He said that the parties had to come up with

a way to stop having labor disputes.


The general theme was

that management and labor should continue to meet to find ways

to avoid the problems of the past.

As a follow-up to this summit, Wroblewski and IAM

Aerospace Coordinator Mark Blondin met on June 23 in Seattle

with Conner and Boeings Vice President of Human Resources

Doug Kight.
The parties focused on how to build a better

relationship and improve communication. While Wroblewski had

an established relationship with Kight, Conner was new to

labor relations.
Wroblewski thought that one of the purposes

of the meeting was to get to know Conner.


At a subsequent

meeting on June 30 between Wroblewski and Conner, Conner

expressed Boeings concern that its customers did not have

confidence it could make timely deliveries because it had

experienced two strikes in the last five years and had

supplier issues.
For the first time, Conner raised the

prospect of a long-term collective-bargaining agreement as a

way to gain the customers confidence that they would get

their aircraft on time.

In early July, Boeing announced its intent to purchase

the Vought plant in North Charleston, South Carolina.


IAM

Local Lodge 183 represented the Vought production,

maintenance, and quality employees.


Boeing agreed to

recognize the Union but wanted to negotiate a new collective-

bargaining agreement.

On July 8, the Seattle Times reported that Boeings CEO

had informed Washington Congressmen Norm Dicks and Jay Inslee

that as a result of past strikes, the Company would place the

second line outside the Puget Sound area unless it could reach

a long-term contract with the Union. Boeing told the

Congressmen that South Carolina was the main competitor.

Wroblewski, Blondin, Kight, and Conner met again twice in

July, on July 7 and July 23.


At each of these meetings,

Conner and Kight emphasized that strikes had to stop for

Boeing to be viable.
They stated that Boeing needed a long-

term agreement with no-strike language to satisfy their

customers.
At this point, Boeing was two years behind

schedule and had approximately 850 787 planes on back order as

a result of supplier and software problems.

Then, on July 30, the same date that Boeing announced

that it had purchased Voughts plant, a South Carolina

employee filed a decertification petition.


During August,

Boeing denied the Union access to the employees in the North

Charleston plant and wrote a memorandum to the employees

stating that it preferred to deal with employees directly

NLRB-FOIA-00010855

Case 19-CA-32431

- 6 -

without intermediaries.3
Boeing also issued a FAQ document

to the employees stating that the mass layoffs that took place

at the Vought plant in late 2008 were due to the unique

situation created by the Everett strike.


Meanwhile, the

South Carolina press was reporting that a decertification

decision could influence where Boeing located the second 787

assembly line.
For example, The Post and the Courier reported

that South Carolinas low unionization rate is viewed as an

advantage in the 787 chase[.]


An article in the Charleston

Business Journal asserted that Charleston might be a better

choice in the event of decertification because of its

potentially tamer work force instead of the Washington

workers with a history of walk[ing] off the job.

On August 26, Boeing e-mailed its managers and human

resource professionals that it had notified South Carolina

that it intended to file permits for the construction of a

second 787 line but that it had not yet made a decision as to

where to locate the second line.


The following day, Boeing

and Union officials met in Portland to discuss the prospect of

a long-term agreement.
Carson informed the Union that the

only way Boeing would place the second line in Washington was

if the Union agreed to a twenty-year no-strike agreement.

Boeing suggested a series of three-year agreements with an

overarching twenty-year no-strike pledge until 2032 and

binding interest arbitration if no agreement was reached at

the end of each of the three-year contracts.


The Union said

that this was not possible, but the Union would consider a

longer agreement than the current four-year contract in return

for some sort of neutrality agreement.


At the end of the

meeting, the parties agreed to schedule negotiations for a

long-term agreement.

Meanwhile, the decertification election in South Carolina

was scheduled for September 10.


In reporting on Boeings

permit filings in South Carolina, the Puget Sound Business

Journal characterized this vote as [a] wild card in Boeings

decision about where to locate the second line.


On September

2, Kight presented an hour-long video on Boeings website

(later quoted in a September 29 article in the Seattle Times).

In regard to the second line, he stated:

What do you do with the 787 second line so that we can

build up to rate and meet our commitment to customers?

... Theres a lot of issues to look at, a lot being

studied, no decision has been made.


But truthfully, it

is very clear that this triennial disruption, our

The Union filed a Section 8(a)(5) charge alleging that

Boeing unilaterally changed its access rules but withdrew the

charge following the election.

NLRB-FOIA-00010856

Case 19-CA-32431

- 7 -

customers cant live with it anymore.


So weve become an

unreliable supplier....
So we look at how do we become a

reliable supplier.
How do we ensure production

continuity so that we can meet our commitments to our

customers in a timely way and thats what were trying to

do.

The Union lost the election in South Carolina eight days later

and was decertified on September 18.

As a follow-up to the parties August 27 meeting in

Portland, CEO McNerney wrote to IAM International President

Buffenbarger on September 21 that Boeing planned to make a

decision on the second lines location by the end of October

and wanted the Unions input within the next three to four

weeks.
He stated, I look forward to our respective teams

engaging in fruitful dialog.


Two days later, Boeing filed an

application for a storm water permit with the City of North

Charleston and an overall site plan with the State of South

Carolina.
On October 1, Boeing applied to North Charleston

for a site clearing permit.

The Parties Meet over a Long-Term Agreement

The parties opened negotiations for a long-term agreement

on October 1.
At the start of negotiations, Boeing explained

that placement of the second line in Washington depended on a

long-term agreement to insure no further disruptions in

deliveries to customers.
The Union responded that in exchange

for giving up the right to strike, the parties would need to

resolve economic issues for the long term rather than through

interest arbitration every three years.

The parties met again on October 7, 8, and 15.


The Union

maintains that Boeing never submitted a written proposal or

counter-proposal, that it was in the dark as to what Boeing

wanted, and that in effect it was negotiating against itself.

For example, with respect to the length of the agreement, at

various points Boeing requested a contract ending in 2020 or

2022 but at other times, demanded a twenty-year agreement.


In

terms of wages, Boeing wanted to reduce general wage increases

and move toward a profit-sharing incentive program.


The Union

was not adverse to this concept but requested information to

insure that Boeings measures of productivity were tied to

employee performance and not events beyond the employees

control.
At one point, Boeing stated that the general wage

increase and COLA could not exceed 3.5%.


When a Union

negotiator asked what would happen if the cost of living

increased more than 3.5%, Boeing responded that employees

would get more.


On October 15, for the first time, Boeing

said that it wanted a lower wage structure for new hires and a

NLRB-FOIA-00010857

Case 19-CA-32431

- 8 -

defined contribution plan for them rather than the defined

benefit pension plan that the existing employees enjoyed.

The Union repeatedly raised the issues of job security

and Employer opposition to the Union elsewhere.


The Union

argued that in return for giving up the right to strike during

the long-term, employees needed enhanced job security.


Also,

if the parties relationship were to improve, the Union did

not want to face the type of anti-union conduct Boeing had

engaged in during the decertification campaign in South

Carolina.

At the October 15 session, Conner informed the Union that

the Board of Directors would be meeting on October 26 and he

wanted to give the Board a progress report on the

negotiations.
The Union asserts that Boeing never described

the Board of Directors meeting as a deadline for resolving the

outstanding bargaining issues.


Moreover, Boeing never

provided a concrete proposal that could be put to the unit

employees for a vote.

The parties met again on October 20 and 21.


Conner

stated that Boeing was getting close to making its decision on

the location of the second line and it would be discussed at

the Board meeting on October 26.


By the end of the parties

October 21 session, the Union orally had proposed the

following: an extension of the existing contract to 2020, 3%

annual wage increases plus a 1% COLA, ratification bonuses for

unit employees, an incentive pay program, health cost sharing

towards the end of the contract, annual increases in pension

benefits starting in 2013, and neutrality in connection with

Union organizing campaigns.


In addition, the Union presented

Boeing with a two-page document entitled Rough Draft on

Concepts for a long-term agreement and a joint partnership

committee.
This Draft called for retention of current unit

work; location of the second line in the Puget Sound area; and

six-month advance notice and good-faith bargaining over any

decision to establish an assembly operation for any next

generation product.
Boeing asserts that this rough draft

was the Unions last and final offer, but the Union

disagrees and also maintains that its negotiators had no idea

that this would be the parties final session.


Indeed, the

Union negotiator involved in working out the details of the

incentive pay program sent an e-mail to Kight on October 27

requesting further information.


Kight responded that he would

get back to him.

Meanwhile, on October 21, Boeing posted its quarterly

earnings conference call on its intranet site for employees.

With respect to locating the second line in South Carolina,

CEO McNerney stated:

NLRB-FOIA-00010858

Case 19-CA-32431

- 9 -

[T]here would be some duplication.


We would obviously

work to minimize that.


But I think having said all of

that, diversifying our labor pool and our labor

relationship has some benefits.


...
And so some of the

modest inefficiencies, for example, associated with the

move to Charleston, are certainly more than overcome by

strikes happening every three or four years in Puget

Sound.
And the very negative financial impact of [sic]

the company, our balance sheet would be 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....

And I dont blame this totally on the union. We just

havent figured out a way - the mix doesnt - isnt

working well yet. So, weve either got to satisfy

ourselves that the mix is different or we have to

diversify our labor base.

McNerney stated that a decision would be made in the next

couple of weeks.

Two days later, IAM General Vice President Michalski

called Conner to ask about the status of the negotiations.

Conner stated that the Unions economic terms and demand for

neutrality were unacceptable to Boeing.


Michalski explained

that the Union was not asking for a traditional neutrality

agreement but rather, as explained during negotiations, a code

of conduct.
Michalski stated that the Union was willing to

meet at any time for additional negotiations, but Conner did

not respond.
On October 24, Michalski called Senior Vice

President of Operations Tim Keating to reiterate that the

Union was not seeking a true neutrality agreement.


He wanted

to clear up any misunderstanding if that issue was blocking

the parties ability to reach an agreement.


Keating did not

respond, and no further negotiations were ever scheduled.

Meanwhile, the governmental bodies in South Carolina were

moving quickly to facilitate the second lines placement in

their State.
On October 23, North Charleston approved

Boeings request for a storm water permit, and the State of

South Carolina approved Boeings overall site plan.


On

October 27, the South Carolina legislature, in a special

session, approved $170 million in taxpayer-backed bonds for

Boeings startup costs and tax breaks totaling $450 million in

exchange for Boeings agreement to create at least 3,800 jobs

and invest more than $750 million in the State within the next

seven years.
That same day, North Charleston approved

Boeings site clearing permit.

Boeing contends that it entered these negotiations with a

good-faith intention to reach a long-term agreement that would

have resulted in placing the second line in Washington, but

NLRB-FOIA-00010859

Case 19-CA-32431

- 10 -

the Unions economic demands were too costly and its

insistence upon neutrality and job security were unacceptable.

The Union asserts, however, that Boeings failure to submit

any proposals, its rejection of the Unions serious efforts to

address Boeings purported concerns, and then its precipitous

halting of negotiations as soon as the South Carolina

legislature awarded it a generous tax and subsidy package

demonstrate that the negotiations were in fact a sham.

Boeing Announces its Decisions to Locate the Second Line in

South Carolina and to Establish a Dual-Sourcing Program

On October 28, Boeing announced its decision to locate

the second 787 assembly line in South Carolina.


In a press

release and internal e-mails, Boeing stated that the Board of

Directors had just approved the selection of North Charleston.

Boeing also announced that it intended to build a surge line

in Everett - a temporary second assembly line that would be

phased out once the South Carolina line was up and running.

Boeing issued a memo to its managers on October 28 that

provided answers to anticipated questions from employees and

talking points regarding its decision.


The managers were

advised to inform employees, among other things, that the

decision to locate the second line in Charleston would

provide economic advantages by improving our competitiveness

and reducing vulnerability to delivery disruptions due to a

host of factors, from natural disasters to homeland security

issues and work stoppages.


The memo further stated, In the

final analysis, this came down to ensuring our long-term

global competitiveness and diversifying the company to protect

against the risk of production disruption ... from natural

disasters, to homeland security threats, to work stoppages.

On December 3, Boeing notified its fabrication managers

that it intended to create a dual-sourcing program and

contract separate suppliers for the South Carolina assembly

line.
As a result, employees in the Puget Sound and Portland

units who produce parts for the 787 assembly line are likely

to suffer a loss of work.


Articles that appeared in the

Seattle Times on December 7 and the Puget Sound Business

Journal on December 8 discussed this announcement.


The

Seattle Times quoted Boeing spokesman Jim Proulx as stating,

Repeated labor disruptions have affected our performance in

our customers eyes.


We have to show our customers we can be

a reliable supplier to them.


[The second production] line has

to be able to go on regardless of whats happening over here.

The Puget Sound Business Journal quoted Conner as follows:

Dual-sourcing and co-production will allow us to maintain

production stability and be a reliable supplier to our

customers.

NLRB-FOIA-00010860

Case 19-CA-32431

- 11 -

On March 2, 2010, a Seattle Times journalist conducted a

videotaped interview of Boeings new Commercial Airplanes CEO,

Jim Albaugh.
(Albaugh had moved over from his position as

Integrated Defense Systems CEO to replace Carson.)


The

interviewer asked Albaugh some hard questions on behalf of

the Washington community about Boeings decision to locate the

second 787 line in Charleston.


In explaining Boeings

decision, Albaugh repeatedly referenced the Unions strike

history.
For example, he stated:

The issue last fall was really about, you know, how

we could ensure production stability and how we

could ensure that we were competitive over the long

haul.
And we had some very productive discussions

with the union.


And unfortunately, we just didnt

come to an agreement where we felt we could ensure

production stability.
And read [sic] that is [sic]

getting away from the frequent strikes that we were

having and also could we stop the rate of escalation

of wages.
And we just could not get to a place

where we both felt it was a win for both ourselves

and the union so we made the decision to go to

Charleston.

[W]eve had strikes three out of the last four times

weve had a labor negotiation with the IAM.


... And

weve got to get to a position where we can ensure

our customers that every three years theyre not

going to have a protracted shutdown.

It was about ensuring to our customers that when we

commit to deliver airplanes on certain dates that we

actually do deliver.
And we have lost our

customers have lost confidence in our ability to do

that, because of the strikes.

When asked whether going to Charleston, in light of the

expense and risk, made business sense, he responded:

Theres no question that whenever you go to a green field

site, theres risk involved.


At the same time, with the

protracted labor stoppage that we had ... the fall of

2008, I mean that cost the company billions of dollars.

And I think if you compare, you know, what it cost

because of the stoppages versus the cost and the risk of

starting a new line in Charleston, I think the investment

certainly is the right one for us to make.4

Once again, a Boeing CEO grossly exaggerated the burden of

the Unions strike activity.


Boeing had alleged elsewhere

that the 2008 strike reduced its earnings by $1.8 million, far

NLRB-FOIA-00010861

Case 19-CA-32431

- 12 -

At one point, Albaugh summed up the basis of Boeings

decision as follows:

[t]he overriding factor was not the business climate.

And it was not the wages were paying today.


It was that

we cannot afford to have a work stoppage, you know, every

three years.
We cannot afford to continue the rate of

escalation of wages....

Albaugh also implicitly threatened the loss of additional work

because of Union strikes, stating, [w]ell do work here if we

can make sure that we have the stability of the production

lines and that we can be competitive over the long haul.

Production is now approximately three years behind

schedule.
Approximately 2,900 Puget Sound unit employees

currently work on the 787 assembly line.


Approximately 1,740

of them are working on out-of-sequence assembly work, away

from the main assembly line. Once supply issues are resolved

and assembly can be accomplished in sequence on the line, it

is anticipated that the number of employees will drop by

approximately 60%.
Boeing asserts that the South Carolina

plant will be ready to begin assembly work in mid 2011.

Approximately 1,000 mechanic and flight line jobs will be

added in South Carolina at that time.

ACTION

This case involves Boeings transfer of work from an

experienced unionized workforce to a new, nonunion facility.

Boeings decision was motivated by antiunion considerations.

From the time of the Unions strike in the fall of 2008,

Boeing made clear to its unionized workforce that it would not

countenance further strikes.


Time and again, in e-mails to

employees, on its intranet site, in the media, and in talks

with the Union, Boeing tied its ability to compete to the

avoidance of future strike activity.


Then, when Boeing

purchased the Vought facility in South Carolina, its officials

denied the Union access to employees at the facility.


It also

let the employees know that it preferred to deal with them

directly rather than through their Union and their receipt of

the second line hinged on their vote in a decertification

election.
Simultaneously, Boeing officials told the Puget

Sound unit employees that they could retain all of the 787

assembly work only by waiving their right to strike for twenty

years.
Although the Union entered negotiations with Boeing

less than the billions of dollars that Albaugh claimed in

this interview.

NLRB-FOIA-00010862

Case 19-CA-32431

- 13 -

and made major concessions in an effort to address its stated

concerns, once the Union was decertified in South Carolina,

Boeing courted the South Carolina legislature and applied for

the necessary permits from the South Carolina regulatory

bodies - even as it continued the motions of negotiating with

the Union.
As soon as South Carolina approved the financial

incentives for Boeing, Boeing called off negotiations and

announced its decision.


Boeings CEO admitted that the

overriding factor for moving work to South Carolina was the

employees strike activity.


Moreover, to reinforce the

message to unit employees, he intimated that the continuation

of any work in Washington was contingent on the stability of

the production lines, a veiled threat designed to coerce

employees to abstain from future strikes.


Nor could Boeing

credibly blame the 787 production delays on employees 2008

strike activity, which halted production for approximately two

months.
Rather, the delay resulted primarily from its own

business decision to outsource the manufacture of the aircraft

components to various suppliers and from unexpected software

problems.

Further, the fact that it made little practical sense to

locate this second line in South Carolina, despite a two-and-

a-half-year delay in the production of its new 787 aircraft,

rather than its existing facilities in Washington, supports a

finding of unlawful motivation.


While South Carolina would

not be ready for production for two years because of the need

for substantial capital improvements and the hiring and

training of a new workforce, Washington was already up and

running, with the space, the necessary equipment, and a

significant complement of trained employees.

On these facts, we conclude that the Region should issue

a complaint alleging: independent violations of Section

8(a)(1) based upon Boeings coercive and threatening

statements to employees on the intranet and through the media;

and a violation of Section 8(a)(3) based upon Boeings

decision to place the second line in South Carolina and to

establish a dual-sourcing supply program in order to retaliate

against the unit employees for engaging in protected Union

activity.
We would also argue, in the alternative, that

Boeings actions were inherently destructive of employee

rights.
But the Region should dismiss the Section 8(a)(5)

allegations because the Union waived its right to bargain

about Boeings decision to offload unit work to a facility not

covered by the parties agreement.


Finally, to remedy the

Section 8(a)(1) and (3) violations, the Region should seek: a

notice reading by a high-level Boeing official in addition to

the traditional remedies; and an order requiring Boeing to

assemble in the Puget Sound area the first ten 787 aircraft

that it produces each month and to maintain the supply lines

for those aircraft in the Puget Sound and Portland facilities.

NLRB-FOIA-00010863

Case 19-CA-32431

- 14 -

I. The Employer Violated Section 8(a)(1)

The Supreme Court long ago delineated the line between

employer speech protected under Section 8(c) of the Act and

threats of reprisals violative of Section 8(a)(1).5


The Court

ruled in Gissel that an employer may make a prediction as to

the effects of unionization but that prediction must be

carefully phrased on the basis of objective fact to convey an

employers belief as to demonstrably probable consequences

beyond his control[.]6


On the other hand, threats of

economic reprisal to be taken solely on [the employers] own

volition violate Section 8(a)(1).7

In General Electric Company, the Board applied the Gissel

test to set aside an election because the employer threatened

a long-term loss of work based on the possibility of a strike

at some future time.8


Faced with a union organizing drive,

the employer gave multiple speeches touting its two-source

supplier strategy.9
The employer stated that it had

established its nonunion plant so that customers could get the

motors they needed during the seven strikes at its union

plant.
The employer also made clear that the plants nonunion

status was the reason it had experienced a rise in

employment.10
And the employer conveyed the message that the

plant remaining nonunion was an important, if not a decisive,

factor in any company decision to choose that plant as a

second manufacturing facility for the new motor the employer

planned to introduce.11
The Board concluded that although the

employer might want to insure itself against production

interruptions caused by employee concerted activity, no such

insurance is legally possible, for the simple reason that

employees have a federally protected right to engage in such

activity.12
The Board expressly distinguished an employers

right to take defensive action when threatened with an

See NLRB v. Gissel Packing Co., 395 U.S. 575, 618 (1969).

Ibid.

Id. at 619 (citation omitted).

See 215 NLRB 520, 522-23, fn. 6 (1974).

See id. at 520.

10

See id. at 520-21.

11

See id. at 521.

12

See id. at 522.

NLRB-FOIA-00010864

Case 19-CA-32431

- 15 -

imminent strike from threats to transfer work merely because

of the possibility of a strike at some speculative future

date.13

The Board repeatedly has held that an employer violates

Section 8(a)(1) by threatening to withhold work opportunities

because of the exercise of Section 7 rights.14


Thus, telling

employees that they will lose their jobs if they join a strike

violates Section 8(a)(1).15


Similarly, in Kroger Co., the

employer unlawfully threatened to put its plan to build a new

freezer facility for its distribution center on hold because

of intraunion unrest and labor disputes.16

Further, where an employer unconditionally predicts a

loss of customers due to unionization or strike disruptions

without any factual basis, its predictions amount to

unlawful threats.17
Rather, an employers predictions of

customer disaffection must be based on objective facts.18

Thus, in Curwood, Inc., an employer lawfully related its

13

See id. at 522, fn. 6.

14

See, e.g., Kroger Co., 311 NLRB 1187, 1200 (1993), affd.

th
mem. 50 F.3d 1037 (11
Cir. 1995); General Electric Co., 321

NLRB 662, fn. 5 (1996), enf. denied 117 F.3d 627 (D.C. Cir.

1997).

15

Aelco Corp., 326 NLRB 1262, 1265 (1998).


See also Dorsey

Trailers, Inc., 327 NLRB 835, 851 (1999), enfd. in pertinent

th
part 233 F.3d 831 (4
Cir. 2000) (threat to close the plant if

the employees went out on strike).

16

311 NLRB at 1200.


See also General Electric Co., 321 NLRB

at 662, fn. 5 (employer conveyed to employees that

unionization could result in the withholding of further

investment in the plant or its closure).

17

See, e.g., Tawas Industries, 336 NLRB 318, 321 (2001) (no

objective basis for prediction that customers, fearing

strikes, would not give their business to the employer if the

employees independent union affiliated with the UAW);

Tradewaste Incineration, 336 NLRB 902, 907-08 (2001)

(prediction that 90% of the customers would not deal with a

union facility because of fear of a work stoppage was not

based on objective facts); Debbie Reynolds Hotel, 332 NLRB

466, 466 (2000) (no factual basis for statements about having

to move productions and equipment elsewhere because customers

would not be able to afford employers facilities if employees

unionized).

18

Curwood, Inc., 339 NLRB 1137, 1137-38 (2003).

NLRB-FOIA-00010865

Case 19-CA-32431

- 16 -

customers concerns about strikes, where the employer produced

written inquiries from customers seeking information about its

contingency plans in the event of a strike.19


An employer may

also reference the possibility that unionization, including

strikes, might harm relationships with consumers, as opposed

to predicting
unavoidable consequences.20

Here, the Union has alleged that several statements by

Boeing officials violated Section 8(a)(1).


Some statements

were posted by Boeing on its website or intranet.


Others were

reprinted in newspaper articles as direct quotes; although

such a quotation is hearsay, it would be admissible as an

admission (an exception to the hearsay rule), if the reporter

testifies.21
By contrast, reporter summaries cannot form the

basis for a Section 8(a)(1) violation.


And statements

recounted by political figures within newspaper articles are

in effect double hearsay and inherently unreliable.

Based on these principles, we find that the following

constitute unlawful threats under the Gissel standard:

(1)
Boeing posted its quarterly earnings conference call

on its intranet for employees on October 21.


During the call,

CEO McNerney made an extended statement about diversifying

our labor pool and moving work to South Carolina because of

strikes happening every three or four years in Puget

Sound.22
His comments were indistinguishable from the

comments regarding a two-source supplier strategy found

violative in General Electric.23

(2)
Boeings October 28 memo to managers advised them to

inform employees that it decided to locate the second line in

South Carolina in order to reduce vulnerability to delivery

disruptions caused by, among other things, strikes.


The

thrust of Boeings message to employees was that Boeing had

19

See id. 339 NLRB at 1137.

20

E.g., Miller Industries Towing Equipment, Inc., 342 NLRB

1074, 1075-76 (2004) (employer did not predict unavoidable

consequences).

21

Cf. Sheet Metal Workers Local 15 (Brandon Regional Medical

Center), 346 NLRB 199, 201-02 (2006), enf. denied on other

grounds 491 F.3d 429 (D.C. Cir. 2007) (newspaper report of

party admission is inadmissible hearsay because the reporter

was not available for cross-examination).

22

These same comments were quoted in the Seattle Times.

23

See 215 NLRB 520, 522-23 (1974).

NLRB-FOIA-00010866

Case 19-CA-32431

- 17 -

removed jobs from Puget Sound because employees had struck and

that they would lose work if they struck again.24

(3)
In articles that appeared in the Seattle Times and

the Puget Sound Business Journal on December 7 and 8

respectively, Boeing officials attributed the plan to use a

dual-sourcing system and contract separate suppliers for the

South Carolina line to past strikes and implicitly threatened

the loss of future work opportunities in the event of future

strikes.25

(4)
In a video-taped interview on March 2, Boeing

Commercial Airplanes CEO Albaugh expressly attributed the

Employers decision to locate the second line in South

Carolina to employee strikes and threatened the loss of future

work opportunities in retaliation for such protected

activity.26

The above statements, disseminated through various

channels to unionized and nonunionized employees nationwide,

drove home the message: union activity could cost them their

jobs, while a decision to reject union representation could

bring those jobs to their communities.

II.

The Employer Violated Section 8(a)(3)

The Employers decision to locate the second 787 line at

a nonunion facility and to establish a dual-sourcing program

to support that line violated Section 8(a)(3) because the

Employer acted in retaliation for the employees Union

activity and not for a legitimate business reason.

Initially, despite Boeings assertions that its decision

to locate a second 787 assembly line in South Carolina will

not adversely impact any current unit employees, there is no

question that the decision will direct work away from Puget

Sound employees with consequent adverse effects.


Instead of

24

The Region should insure that this message was communicated

to employees.

25

The authors of these articles will need to testify.


If

they resist testifying, and it becomes necessary to seek

subpoena enforcement, the Region should contact Advice.

26

Vice President Kights video-taped comments that Boeings

customers could not live with this triennial disruption and

that Boeing was looking to insure production continuity

cannot be alleged as an independent violation because they

were first posted on Boeings website on September 2, outside

the Section 10(b) period.

NLRB-FOIA-00010867

Case 19-CA-32431

- 18 -

assembling all of the 787 planes in Washington as originally

planned, once the second line opens in South Carolina, a

significant portion of the remaining 787 orders will be filled

by planes produced in North Charlestown.


Future work

opportunities will be lost for employees on the surge line,

as well as unit employees waiting to transfer into the more

desirable 787 jobs.


There are likely to be transfers to

older, less desirable aircraft assembly lines, demotions, and

layoffs.
Moreover, Boeings adoption of its new dual-

sourcing program means that the Puget Sound and Portland unit

employees will produce parts only for planes assembled in

Washington and not for those planes assembled in South

Carolina, also causing the loss of employment opportunities

for unit employees and the likelihood of demotions and

layoffs.
If no unit employees have been harmed yet, it is

merely because Boeings retaliatory decision has not yet been

implemented.

Recently, in Pittsburg & Midway Coal Mining Co., the

Board expressly reaffirmed that an actual financial loss is

not necessary to establish a Section 8(a)(3) violation.27


In

that case, the employer revised its bonus policy in

retaliation for the employees use of contractual memorial

days to engage in work stoppages.


Even though no employees

thereafter suffered a diminution of their bonuses, the Board

found a Section 8(a)(3) violation based upon the employers

retaliatory motive.28

Moreover, the Board specifically has held that an

employer may not, for unlawfully motivated reasons, divert

unit work to a nonunion plant even where there is no immediate

impact on unit employees.29


In Adair Standish Corp., the

employer refused to take delivery of a new press ordered for

its newly-organized Standish plant and installed it instead at

its nonunion plant.


The Board noted that diversion of the

press from Standish could reasonably result in diversion of

new work from Standish and therefore violated Section 8(a)(3)

even though there was no immediate impact on the unit

employees.30
Similarly, in Cold Heading Co., the employer

unlawfully relocated equipment to a newly-purchased nonunion

facility and changed its plans to install new equipment in its

27

See 355 NLRB No. 197, slip op. at 5, fn. 8 (2010).

28

Ibid.

29

See Adair Standish Corp., 290 NLRB 317, 318-19 (1988), enfd

th
in pertinent part 912 F.2d 854 (6
Cir. 1990).

30

See id. at 319.

NLRB-FOIA-00010868

Case 19-CA-32431

- 19 -

union facility after its employees independent union

representative sought to affiliate with the UAW.31

Here, as in Adair Standish and Cold Heading, there is a

diversion of unit work that the unit employees otherwise would

have performed.
And as in Pittsburg & Midway Coal Mining Co.,

the fact that unit employees may not yet have experienced the

financial impact of Boeings decision is no defense to a

Section 8(a)(3) violation.

Further, Boeing made this decision for unlawful reasons.

Boeing admits that the overriding factor in its decision to

place the second line in a nonunion facility was the

employees strike history.


An employers discouragement of

its employees participation in a legitimate strike

constitutes discouragement of union membership within the

meaning of Section 8(a)(3).32


This applies to employer

conduct designed to retaliate against employees for having

engaged in a strike in the past,33 as well as employer conduct

designed to forestall employees from exercising their right to

strike in the future.34


Indeed, the Board recently reaffirmed

that an employer violates the Act when it acts to prevent

future protected activity.35


Comparing such conduct to the

31 See 332 NLRB 956, fn. 5, 975-76 (2000).


See also

Associated Constructors, 325 NLRB 998, 998-1000 (1998), enfd.

sub nom. ODovero v. NLRB, 193 F.3d 532 (D.C. Cir. 1999)

(double-breasted employer unlawfully diverted work from its

union entity to its nonunion entity in retaliation for the

unions efforts to organize the nonunion entity and to escape

the collective-bargaining agreement).

32

Capehorn Industry, 336 NLRB 364, 365 (2001).

33

See id. at 365-67 (employer violated Section 8(a)(3) by

failing to immediately reinstate strikers upon unconditional

offer to return to work where there was no legitimate business

justification for entering into a permanent subcontract).

34

See Century Air Freight, 284 NLRB 730, 732 (1987) (employer

violated Section 8(a)(3) by permanently subcontracting unit

work and discharging unit employees in order to forestall the

exercise of their right to strike); Westpac Electric, 321 NLRB

1322, 1374 (1996) (employer violated Section 8(a)(3) by

isolating employee in retaliation for his previous striking

activities and also in anticipation that he would participate

in a strike in the future).

35

See Parexel International, LLC, 356 NLRB No. 82, slip op.

at 4 and cases cited therein (2011) (employer violated Section

NLRB-FOIA-00010869

Case 19-CA-32431

- 20 -

erection of a dam at the source of supply of potential,

protected activity, the Board reasoned that, the suppression

of future protected activity is exactly what lies at the heart

of most unlawful retaliation against past protected

activity.36

Boeing concedes that it is removing work from the unit

employees based upon their past exercise of their right to

strike.
However, Boeing relies upon the Supreme Courts

decision in NLRB v. Brown Food Store37 to argue that it is

privileged to move work outside the unit to avoid the

disruptive consequences of future strikes and that this is a

sufficient business justification to permit its actions.

In Brown Food Store, the Court held that an employer was

privileged to lock out its employees and use temporary

replacements to carry on its business in the face of a whipsaw

strike.38
Specifically, the Court found that the use of a

lockout and the hiring of temporary replacements to bring

pressure to bear in support of its bargaining position after

an impasse in negotiations was not an unfair labor practice.39

Rather than finding the use of this economic weapon

discriminatory, the Court concluded that it was a legitimate

defensive measure to preserve the multiemployer group in the

face of a whipsaw strike.40

Boeings attempt to extend the holding of Brown to

legitimatize any action that an employer takes to protect

itself against future, wholly speculative, strikes would

vitiate the Section 13 right to strike.


And the Board has

made it clear that an employer cannot rely upon Brown to

justify discriminatory conduct based upon the exercise of the

right to strike.
Thus, in National Fabricators, the Board

expressly rejected the employers attempt to use Brown and

other lockout cases to justify its decision to lay off those

employees who were likely to honor a union picket line in the

8(a)(1) by discharging an employee to prevent her from

discussing wages with other employees).

36

Ibid. (citation omitted).

37

380 U.S. 278 (1965).

38

See id. at 283-85.

39

See id. at 284.

40

See ibid.

NLRB-FOIA-00010870

Case 19-CA-32431

- 21 -

future.41 Instead, the Board found that disfavoring employees

who were likely to engage in protected union activities was

proscribed by Section 8(a)(3) and the employers business

justification - to avoid investing money in employees who

were going to cease work later -- was neither legitimate nor

substantial.42

Boeings concession that choosing South Carolina will

result in duplication and economic inefficiencies further

demonstrates that Boeings actions were retaliatory and not a

legitimate business decision.


In addition, Commercial

Airplanes CEO Albaugh conceded that going to South Carolina,

a green field site, involves significant risks.


Boeing has

the capacity, equipment, and trained workforce to handle the

second assembly line in the Puget Sound area.


The substantial

investment required to build and equip the South Carolina

facility therefore will be duplicative.


In addition, Boeing

will have to recruit and train a new workforce in South

Carolina, while ultimately laying off experienced employees in

Washington.
Exaggerating the disruptive effects of prior

strikes, Boeing maintains that the inefficiencies associated

with moving work to South Carolina will be counterbalanced by

the avoidance of strike disruptions in the future. However,

there are other nonretaliatory and less costly means of

dealing with the potential of relatively short disruptions

caused by employee strikes, such as concluding negotiations

with the Union for a long-term no-strike agreement.


In

addition, Boeings claim that it took this action to avoid

strike disruptions is belied by Boeings rejection of the

Unions efforts to negotiate a long-term no strike agreement.

Accordingly, the Region should proceed on the theory that

Boeing violated Section 8(a)(3) by retaliating against the

unit employees for engaging in the protected activity of

striking.

We also conclude that Boeings conduct was inherently

destructive of employee interests.43


Conduct is inherently

destructive when it carries with it unavoidable

consequences which the employer not only foresaw but which he

must have intended and thus bears its own indicia of

th

41

See 295 NLRB 1095, 1095 (1989), enfd. 903 F.2d 396 (5

1990), cert. denied 498 U.S. 1024 (1991).

42

Cir.

See 295 NLRB at 1095-96.

43

See NLRB v. Great Dane Trailers, Inc., 388 U.S. 26, 33

(1967) (citation omitted).

NLRB-FOIA-00010871

Case 19-CA-32431

- 22 -

intent.44
In International Paper Co., the Board set forth

four fundamental guiding principles for determining whether

employer conduct is inherently destructive of employee

rights.45
First, the Board looks to the severity of the harm

to employees Section 7 rights.


Second, the Board considers

the temporal impact of the employers conduct, i.e. whether

the conduct merely influences the outcome of a particular

dispute or whether it has far reaching effects which would

hinder future bargaining.


Third, the Board distinguishes

between conduct intended to support an employers bargaining

position as opposed to conduct demonstrating hostility to the

process of collective bargaining.


And finally, the Board

assesses whether the employees conduct discourages collective

bargaining by making it seem a futile exercise in the eyes of

the employees.46
Even if the employees conduct is

inherently destructive, the Board weighs the employers

asserted business justification against the invasion of

employee rights.47

Boeings actions were inherently destructive of employee

rights under the four principles articulated in International

Paper.
First, the harm to employees Section 7 rights was

severe; employees got the distinct message that if they engage

in another strike, unit work will be moved to a nonunion

facility and unit jobs will be lost.


Second, Boeings

decision was designed to have far-reaching effects and not

just to influence the outcome of a particular dispute, namely,

to take away employee support for the Unions most effective

economic weapon, and for the Union itself, and thereby hinder

any future collective bargaining.


Third, Boeings conduct

demonstrated hostility to the very process of collective

bargaining and not just to support a specific bargaining

position.
Finally, bargaining was made to seem a futile

44

Ibid., quoting NLRB v. Erie Resistor Corp., 373 U.S. 221,

228, 231 (1963).


See also Dorsey Trailers, Inc., 327 NLRB

835, 863-64 (1999), enf. denied in pertinent part 233 F.3d 831

th
(4
Cir. 2000).

45

See 319 LRB 1253, 1269 (1995), enf. denied 115 F.3d 1045

(D.C. Cir. 1997).

46

Id. at 1269-70 (citations omitted).

47

Id. at 1273 (finding no justification for employers

inherently destructive conduct of permanently subcontracting

bargaining unit work during a lawful lockout).


See also

Dorsey Trailers, 327 NLRB at 863-64 (employers closing of

facility during strike and relocation of unit work to newly

purchased facility outside the unions jurisdiction was

inherently destructive of employee rights).

NLRB-FOIA-00010872

Case 19-CA-32431

- 23 -

exercise without the possibility of a strike to support the

Unions position at the bargaining table.

The unavoidable consequence of Boeings decision to place

the second line in its newly-purchased, nonunion facility,

accompanied by official comments on the intranet and in the

media, was to severely chill its employees exercise of

Section 7 rights in the future - whether it be the Puget

Sound employees, the South Carolina employees, or Boeing

employees elsewhere.
Employees will correctly fear that

engaging in such protected activity could cause them to lose

their jobs to nonunionized workers.


Others may be encouraged

to file or support decertification petitions.


And the many

unrepresented Boeing employees will be discouraged from

organizing or voting in support of union representation if

they believe that exercising their right to concerted activity

justifies moving commercial production elsewhere.

Moreover, even if the effect on employee rights was only

comparatively slight, Boeing had no legitimate business

justification. Its only justification was its desire to insure

against its employees exercise of their Section 7 rights, and

that is not a legitimate justification.

The Board recently held in Arc Bridges, Inc. that an

employers conduct was inherently destructive where its stated

reason for withholding a regularly-scheduled wage increase

from represented employees was that it was in negotiations

with the union.48


The Board found that the employers stated

reason - that it wanted to enhance its bargaining position

with the union -- was an admission that it withheld the

increase because employees chose union representation.49

Likewise, Boeings stated reason for its decision - that it

wanted to avoid strike disruptions - was an admission that it

decided to locate the second line in South Carolina because

the Puget Sound employees chose union representation and the

South Carolina employees did not.


Accordingly, Boeings

decision coupled with its public pronouncements emphasizing

the motivation for its decision was inherently destructive of

its employees rights to engage in union activity and violated

Section 8(a)(3).

III. The Union Waived its Right to Bargain

The Unions allegation that Boeing failed to bargain in

good faith over its decision as to where to locate the second

787 line raises two preliminary issues: (1) whether Boeings

decision was a mandatory subject of bargaining; and (2) if so,

48

See 355 NLRB No. 199, slip op. at 3-4 (2010).

49

See id., slip op. at 3.

NLRB-FOIA-00010873

Case 19-CA-32431

- 24 -

whether the Union waived its right to bargain over that

subject.
Although we conclude that the decision was a

mandatory subject of bargaining and there is substantial

evidence that Boeing did not bargain in good faith to a valid

impasse, the Region should dismiss the Section 8(a)(5)

allegations on the ground that the Union waived it right to

bargain, applying Provena.50

A.

Mandatory Subject of Bargaining

Under Dubuque Packing Co., a decision to relocate unit

work that is not accompanied by a basic change in the

employers operation is a mandatory subject of bargaining

unless the employer can establish that: the work performed at

the new location varies significantly from the work performed

at the prior location; the work performed at the former

location is discontinued entirely and not moved to the new

location; or the employers decision involved a change in the

enterprises scope and direction.51


Alternatively, the

employer can defend by showing that: labor costs were not a

factor in the decision; or if labor costs were a factor, the

union could not have offered sufficient concessions to change

the employers decision.52


Applying the Dubuque test, the

Board repeatedly has found relocation decisions to constitute

a mandatory subject of bargaining.53

In addition, the Board has held that a decision may be a

mandatory subject even though there is no immediate loss of

unit jobs.54
For example, in Quickway Transportation, Inc.,

50

Provena St. Joseph Medical Center, 350 NLRB 808 (2007).

51

303 NLRB 386, 391 (1991), enfd. sub nom. Food & Commercial

Workers Local 150-A v. NLRB, 1 F.3d 24 (D.C. Cir. 1993).

52

Ibid.

53

See, e.g., Titan Tire Corp., 333 NLRB 1156, 1164-65 (2001)

(decision to permanently relocate equipment and jobs in

reaction to strike); Owens-Brockway Plastic Products, 311 NLRB

519, 521-23 (1993) (decision to close plant and transfer work

to other facilities).

54

See, e.g., Overnite Transportation Co., 330 NLRB 1275, 1276

(2000), revd. mem. 248 F.3d 1131 (3d Cir. 2000) (We think it

plain that the bargaining unit is adversely affected whenever

bargaining unit work is given away to nonunion employees,

regardless of whether the work would otherwise have been

performed by employees already in the unit or by new

employees).

NLRB-FOIA-00010874

Case 19-CA-32431

- 25 -

the Board found that the employers decision to contract with

independent owner-operators rather than expand the unit, as it

had originally planned, was mandatory because that decision

obviously constrained the work opportunities available to the

bargaining unit.55
Likewise, in Spurlino Materials, LLC, the

Administrative Law Judge, in a decision adopted by the Board,

found that even though no unit employees suffered a loss of

work as a result of the employers subcontracting, existing

employees might have otherwise been given overtime or the

employer might have hired additional unit employees, resulting

in benefits for the Union and current unit employees in having

an expanded unit.56
And in Dorsey Trailers, Inc., the Board

found that subcontracting work to reduce a backlog in orders

was a mandatory subject because the potential loss of

overtime or reasonably anticipated work opportunities poses a

detriment to unit employees even if no employees lost their

jobs.57

Here, the decision to locate the second 787 assembly line

in South Carolina amounted to a relocation of unit work.


Even

though no unit employees have yet to lose work, as in Dorsey

Trailers the assignment of unit work to nonunit employees in

order to reduce an order backlog presents a potential loss of

overtime or reasonably anticipated work opportunities and

therefore poses a detriment to unit employees.58


The work

that will be performed in South Carolina is identical to that

performed on the first line and the surge line in Everett by

unit employees.
The decision did not involve a basic change

in Boeings operation or any change in the enterprises scope

or direction; Boeing does not intend to change its production

methods or its products.59


Boeing did not demonstrate that

labor costs were not a factor in the decision.


In fact,

according to Boeings CEO, the decision was motivated

primarily by a desire to avoid strikes and secondarily because

the Employer cannot afford the rate at which unit wages are

escalating.
Boeing also did not demonstrate that the Union

could not have offered sufficient concessions to change its

55

See 355 NLRB No. 140 (2010), incorporating by reference the

rationale of 354 NLRB No. 80, slip op. at 2 (2009).

56

See 355 NLRB No. 77 (2010), incorporating by reference the

rational of 353 NLRB 1198, 1219 (2009).

57

See 321 NLRB 616, 617 (1996), enf. denied in relevant part

134 F.3d 125 (3d Cir. 1998).


Accord Acme Die Casting, 315

NLRB 202, fn. 1, 209 (1994).

58

See 321 NLRB at 617.

59

See Owens-Brockway Plastic Products, 311 NLRB at 522.

NLRB-FOIA-00010875

Case 19-CA-32431

- 26 -

decision; the Union


the strike and wage
2009.
Accordingly,
where to locate the
bargaining.

B.

was willing to make concessions on both

issues during negotiations in the fall of

we conclude that Boeings decision as to

second 787 line was a mandatory subject of

Waiver of the Right to Bargain

The Board applies a clear and unmistakable waiver

standard to determine whether a union has waived its right to

bargain about a mandatory subject of bargaining during the

term of a collective-bargaining agreement.60


The Board will

find a waiver if the contract either expressly or by

necessary implication confers on management a right to

unilaterally take the action in question.61


In interpreting

the parties agreement, the relevant factors include: (1) the

wording of pertinent contractual provisions; (2) the parties

bargaining history; and (3) the parties past practice.62

The Board has found a waiver based on contract language

where there is an express reference to the specific type of

decision that the employer has implemented unilaterally.63

Thus, in Ingham Regional Medical Center, the Board adopted an

Administrative Law Judges decision that the union waived its

right to bargain about a subcontracting decision where the

contractual management-rights clause expressly reserved to

management the right to use outside assistance or engage

independent contractors to perform any of the Employers

operations or phases thereof (subcontracting)[.]64


This

right was vested exclusively in the Employer and was not

60

See Provena St. Joseph Medical Center, 350 NLRB at 810-11.

61

See id. at 812, fn. 19.

62

See Johnson-Bateman Co., 295 NLRB 180, 184-89 (1989) (no

waiver of right to bargain about drug/alcohol testing

requirement where the management rights clause was generally

worded, issue was not fully discussed and consciously

explored during negotiations, and past practice of union

acquiescence to other unilateral work rule changes did not

waive the right to bargain about such changes for all time).

63 See, e.g., Ingham Regional Medical Center, 342 NLRB 1259,

1261-62 (2004) (under the management-rights clause, the

employer expressly reserved the right to subcontract); Allison

Corp., 330 NLRB 1363, 1364-65 (2000) (management-rights clause

specifically, precisely, and plainly granted the employer

the exclusive right ... to subcontract).

64

See 342 NLRB at 1260, 1261-62.

NLRB-FOIA-00010876

Case 19-CA-32431

- 27 -

subject to arbitration.65
Although another contractual

provision required the employer to provide 60 days notice and

discuss with the union any subcontracting decision that

would cause unit employees to be laid off, the words discuss

and bargain were found not synonymous in the parties

contract.66

In this case, Section 21.7 of the parties agreement

specifically, precisely, and plainly67 granted Boeing the

right to offload work to a facility not covered by the

agreement.
As in Ingham Regional Medical Center, the other

provisions of Section 21.7 that required Boeing to provide the

Union notice and an opportunity to review and recommend

alternatives did not require the Employer to bargain over an

offloading decision.

The Union does not dispute that Section 21.7 contains a

waiver but asserts instead that the Employer may not take

advantage of the waiver.


Specifically, the Union maintains

that a contractual waiver cannot be applied to a decision that

is unlawfully motivated.
But there is no authority for the

proposition that an unlawful motive negates a contractual

waiver; rather, the cases on which the Region and Union rely

hold that a contractual waiver is no defense to a Section

8(a)(3) violation.68

The Unions other arguments against application of the

waiver are also unavailing.


Thus, the Union asserts that the

contractual waiver does not apply because the parties entered

negotiations for a new contract.


However, during those mid-

term negotiations, their existing contract -- including

Section 21.7 -- continued in effect.


The Union also contends

65

Id. at 1260.

66

Id. at 1262.

67

See Allison Corp., 330 NLRB at 1365.

68

See Reno Hilton, 326 NLRB 1421, 1430 (1998), enfd. 196 F.3d

1275 (D.C. Cir. 1999) (merely because the Respondent has

negotiated the unfettered right in a collective-bargaining

agreement to contract out work at any time, such right ...

does not unfetter and insulate the Respondent from the

sanctions of the Act prohibiting it from discriminating); RGC

th
(USA) Mineral Sands, Inc. v. NLRB, 281 F.3d 442, 450 (4
Cir.

2002) (enforcing Board decision finding Section 8(a)(3)

violation on grounds that, even if contract authorized

employer to unilaterally alter shift assignments, an employer

cannot exercise contractual rights to punish employees for

protected activity).

NLRB-FOIA-00010877

Case 19-CA-32431

- 28 -

that the waiver cannot extend to work transferred after the

contracts expiration in September 2012, but Boeing made its

final decision in 2009 and expects to open the second line in

South Carolina in mid 2011.69


The Unions estoppel argument

also lacks merit.


While Boeing took the position that the

notice and review provisions in Article 21.7 did not apply

because no employees will be laid off, Boeing is not thereby

estopped from asserting the waiver provision.

Moreover, Boeings request to negotiate mid-term changes

to the parties agreement did not subject it to the

traditional Section 8(a)(5) bargaining obligations.70


Absent

a contractual reopener provision, parties are under no

obligation to bargain over proposals for mid-term

modifications.71
For this reason, we do not reach the

question of whether Boeing engaged in surface bargaining in

the fall of 2009, bargained to a valid impasse, or unlawfully

failed to provide information relevant to those negotiations.

IV. The Appropriate Remedy

We conclude that special remedies must be fashioned in

the unusual circumstances of this case.

First, with respect to the Section 8(a)(1) violations,

which had a particularly chilling impact upon employees, the

Region should seek a notice reading by a high-level Boeing

official, to insure that employees learn about their statutory

69

Thus, if there is a duty to bargain over a relocation

decision, it arises when the decision is announced and not

when it is ultimately implemented.


See, e.g., Bell Atlantic

Corp., 336 NLRB 1076, 1086-89 (2001) (union waived right to

bargain over employers decision to close facility and

transfer work to nonunion facility where it received notice of

decision in August and did not request bargaining until

December, even though no unit work would be relocated before

the following April).

70

See St. Barnabas Medical Center, 341 NLRB 1325, 1325 (2004)

(union did not incur traditional bargaining obligations by

requesting that employer meet to discuss feasibility of wage

reopener, and employer violated Section 8(a)(5) by

unilaterally implementing wage increases after an impasse in

those negotiations).

71

See Boeing Co., 337 NLRB 758, 763 (2002) (employer did not

incur bargaining obligation by agreeing to unions request to

consider midterm modification); Connecticut Power Co., 271

NLRB 766, 766-67 (Section 8(d) does not require an employer

who suggests a midterm contract change to negotiate about it).

NLRB-FOIA-00010878

Case 19-CA-32431

- 29 -

rights and gain assurance that Boeing will respect those

rights.72
The notice reading is particularly effective if

read by an official who personally committed some of the

violations, or read by a Board agent in his presence, in order

to dispel the atmosphere of intimidation he created.73

Finally, to remedy the Section 8(a)(3) violation, the

Region should seek an order requiring Boeing to maintain the

second line in Washington.


At the time of the discriminatory

conduct, Boeing intended to use the second line to assemble

three 787 aircraft each month, while assembling seven 787

aircraft each month on the first line in Everett.


At present,

even the first line is not producing up to capacity because of

problems with suppliers and FAA certification.


Thus, the

Region should seek an order requiring that, as Boeing

production increases, the first ten aircraft assembled each

72

See, e.g., Homer D. Bronson Co., 349 NLRB 512, 515 (2007),

enfd. 273 F. Appx 32 (2d Cir. 2008) (notice reading is an

effective but moderate way to let in a warming wind of

information, and more important, reassurance); Federated

Logistics & Operations, 340 NLRB 255, 258 (2003), affd. 400

F.3d 920 (D.C. Cir. 2005) (employees will perceive that the

Respondent and its managers are bound by the requirements of

the Act).

73

Three Sisters Sportswear Co., 312 NLRB 853, 853 (1993),

enfd. mem. 55 F3d 684 (D.C. Cir. 1995), cert. denied 516 U.S.

1093 (1996).
See also, e.g., Homer D. Bronson Co., 349 NLRB

at 515 (reading by president of manufacturing, who personally

delivered speeches threatening plant closure or relocation);

Texas Super Foods, 303 NLRB 209, 209 (1991) notice reading by

owner and president who signed unlawful letters to unit

employees, drafted unlawful speech threatening job losses, and

personally gave the speech to at least two groups of

employees).

NLRB-FOIA-00010879

Case 19-CA-32431

- 30 -

month be assembled by the Puget Sound unit employees and that

the supply lines for these aircraft be maintained in the Puget

Sound and Portland facilities.74

B.J.K.

ROFs - 9

H:ADV.19-CA-32431.Response2.Boeing.dlw

74

At this time, we do not reach a decision on the Unions

request for preliminary injunctive relief.


The Region should

reassess whether Section 10(j) relief is warranted after the

case is tried before the Administrative Law Judge.


In the

meantime, the Region should put evidence in the record

regarding the chilling impact of Boeings violative statements

and conduct to support the notice-reading remedy.


This will

facilitate use of the administrative record to demonstrate in

a subsequent Section 10(j) proceeding that preliminary

injunctive relief is just and proper.

NLRB-FOIA-00010880

United States Government

National Labor Relations Board

OFFICE OF THE GENERAL COUNSEL

Advice Memorandum

DATE:

S. A. M.

Richard L. Ahearn, Regional Director


TO:

Region 19
FROM:

SUBJECT:

April 11, 2011

Barry J. Kearney, Associate General Counsel


Division of Advice

The Boeing Company


512-5006-5062
Case 19-CA-32431

512-5006-5067
512-5036-8387
512-5036-8389
524-0167-1033
524-5029-5037
524-0167-1033
524-506

524-8307-1600

524-8307-5300

530-6050-0825-3300

530-6067-4011-4200

530-6067-4011-4600

530-6067-4011-7700

530-8054-7000

775-8731

The Region submitted this case for advice on several

issues relating to the Employer s decision to place a second

assembly line at a nonunion facility rather than at the

facility where unit employees work on the original assembly

line. Specifically the Region requested advice as to whether:

( 1) the Employer violated Section 8( a) ( 1) by threatening to

place the second assembly line at a nonunion facility unless

the Union agreed to a long-term no-strike clause and by

repeatedly stating that its decision to place the second line

elsewhere was based on the unit s strike history; ( 2) the

Employer violated Section 8( a) ( 3) by deciding to place the

second assembly line at a nonunion facility because of the

unit s strike history, even though no unit employees have yet

to lose their j obs; and ( 3) the Employer violated Section

8( a) ( 5) by failing to bargain in good faith over its decision

about where to locate the second assembly line or whether the

Union waived its right to bargain under the parties

collective-bargaining agreement.

We conclude that the Region should issue a complaint

alleging: independent Section 8( a) ( 1) violations based on the

Employer s coercive and threatening statements; and a Section

8( a) ( 3) violation based on the Employer s decision to locate

the second line at a nonunion facility and to establish a

dual-sourcing supply program in retaliation for protected

activity. However, the Region should dismiss the Section

8( a) ( 5) allegations because under the contract, the Union

expressly waived its right to bargain about the Employer s

decision to offload unit work to a facility not covered by

the agreement. To remedy the chilling effect of Boeing s

Section 8( a) ( 1) statements, the Region should request, in

addition to the traditional remedies, a notice reading by a

high-level Boeing official. To remedy the Section 8( a) ( 3)

NLRB-FOIA-00010881

Case 19-CA-32431
- 2 -

violation, the Region should seek an order that would require

Boeing to maintain the surge line in the Puget Sound area.

Specifically, Boeing intended for the second line to assemble

three aircraft each month in South Carolina, while assembling

seven planes on the first line. Thus, the Region should seek

an order requiring Boeing to assemble in the Puget Sound area

the first ten 787 aircraft that it produces each month and to

maintain the supply lines for those aircraft where they

currently exist, in the Puget Sound and Portland facilities.

FACTS

The Boeing Company is an international corporation

engaged primarily in developing and producing military and

commercial aircraft. Boeing has a long-established collectivebargaining relationship with the International Association of

Machinists and Aerospace Workers ( IAM) and certain IAM

District and Local Lodges. The parties current collectivebargaining agreement is effective November 2, 2008 through

September 8, 2012 and covers three separate bargaining units

of production and maintenance employees in three geographical

areas, the Puget Sound area in Washington; Portland, Oregon;

and Wichita, Kansas.

Section 21. 7 of that agreement, entitled

Subcontracting, sets forth various notice periods and an

opportunity for the Union to review and recommend alternatives

to Boeing proposals to subcontract or offload unit work.

[ O] ffloading work is defined as moving work from one

Company facility to another Company facility not covered by

this Agreement[ . ] Less stringent notice requirements apply

to subcontracting and offloading decisions affecting less than

ten employees. In addition, the notice and review process

does not cover certain work transfers listed in subsections

( a) through ( d) , including [ d] ecisions to subcontract or

offload work due to lack of capability or capacity, or to

prevent production schedule slippage[ . ] Section 21. 7

concludes with the following language:

Anything in this Section 21. 7 to the contrary

notwithstanding, it is agreed that . . . the Company has

the right to subcontract and offload work, to make and

carry out decisions in ( a) through ( d) above, to enter

offsets and offset arrangements, and to designate the

work to be performed by the Company and the places where

it is to be performed, which rights shall not be subj ect

to arbitration. . . .

NLRB-FOIA-00010882

Case 19-CA-32431
- 3 -

Boeing Introduces the 787 Dreamliner

The Puget Sound unit is comprised of approximately 18, 000

employees working in Washington. Historically these employees

have performed the final assembly of all Boeing planes. In

late 2003, Boeing announced that it would place the assembly

line for its new 787 Dreamliner airplane in Everett,

Washington after the Washington State Legislature passed a tax

and subsidy incentive package totaling more than $3. 2 billion.

That line opened in May 2007, with the capacity for producing

seven planes each month.

With the 787, Boeing departed from its previous practice

of manufacturing most of the aircraft parts with its own

employees and instead outsourced parts production to other

suppliers in the southeast U. S. and abroad. For example,

Boeing contracted with Vought Aircraft Industries in North

Charleston, South Carolina for the manufacture of the aft

fuselage and with Mitsubishi Heavy Industries in Japan for the

manufacture of the wings. Boeing repeatedly has had to

postpone the delivery dates for the aircraft, due primarily to

problems with suppliers and software issues.

Starting in mid 2008, the media began reporting that

Boeing would need to add a second 787 assembly line because of

its growing order backlog. At about the same time, Boeing

entered negotiations with the Union for a successor

collective-bargaining agreement. During those negotiations,

Company officials noted the need for a second assembly line

but did not discuss the matter further.

The 2008 Strike and Its Aftermath

On September 6, 2008, the employees struck in support of

the Union s bargaining position. On October 6, 2008, Boeing s

stock dropped to a four-year low. That same day, CEO Jim

McNerney sent a long e-mail to Boeing employees about the

strike. McNerney stated that he understood and shared the

frustration so many of you feel when we don t have the whole

team together working to meet the commitments we ve made to

our customers and competing to win the new business that will

sustain and grow Boeing j obs[ . ] McNerney went on to state,

[ t] he issue of competitiveness as it relates to this strike

is a big deal[ . ] He also tied labor disputes to problems

with Boeing s customer relationships. After asserting that

the Union had recommended that its members rej ect contract

offers and go on strike four of the last five negotiations

going back to 1995, he wrote, we believe this track record of

repeated union work stoppages is earning us a reputation as an

NLRB-FOIA-00010883

Case 19-CA-32431
- 4 -

unreliable supplier to our customers who ultimately provide

j ob security by buying our airplanes. 1

The following day, Boeing s Vice President for Government

and Community Relations Fred Kiga spoke at an aerospace

conference in Everett. In a Seattle Times article, he was

quoted as stating, We can t afford to become known as the

strike zone[ . ] He reportedly also told the conference that

labor unrest could drive Boeing s decision on where to build

planes in the future. In an interview after his speech, Kiga

reportedly stated that his strike zone comments had been

cleared by Boeing Commercial Airplanes CEO Scott Carson. Kiga

noted that he and Carson grew up in and shared a love for the

Northwest; Kiga then said that they would hate to lose a

treasure like Boeing.

The strike lasted 57 days and ended on November 1, 2008,

when the parties signed the current contract. During the

negotiations, the Union had proposed to amend Section 21. 7 to,

among other things, eliminate the waiver language quoted

above. Boeing refused to agree to such an amendment, and the

language remained in the contract.

In early 2009, 2 the media again began publishing reports

that Boeing needed to establish a second 787 assembly line.

On February 9, the Seattle Times reported that Washington

Senator Patty Murray had met with Boeing s Senior Vice

President of Government Operations; he had informed her that

the CEO was sick and tired of the union s strikes and was

looking to put the second 787 line elsewhere.

On April 16, Boeing and IAM officials held their annual

summit in Chicago. Management officials attending included

CEO McNerney, Boeing Commercial Airplanes CEO Carson,

Integrated Defense Systems CEO Jim Albaugh, and for the first

time, Vice President and General Manager of Supply Chain

Management & Operations Ray Conner. IAM representatives

included International President Tom Buffenbarger, General

Vice President Rich Michalski, and the Directing Business

Representatives who represented Boeing employees, including

District 751 DBR Tom Wroblewski. This was the first

opportunity for the parties to meet since the strike had

ended. McNerney and Buffenbarger were the lead speakers.

McNerney stated that Boeing s customers were losing confidence

1 In his e-mail, CEO McNerney exaggerated the number of times

that the Union had struck. In actuality, prior strikes

occurred in 1948 ( 140 days) , 1965 ( 19 days) , 1977 ( 45 days) ,

1989 ( 48 days) , 1995 ( 69 days) , and 2005 ( 28 days) .

2 Dates are in 2009 unless otherwise noted.

NLRB-FOIA-00010884

Case 19-CA-32431
- 5 -

in the Company because of past strikes and the possibility of

future strikes. He said that the parties had to come up with

a way to stop having labor disputes. The general theme was

that management and labor should continue to meet to find ways

to avoid the problems of the past.

As a follow-up to this summit, Wroblewski and IAM

Aerospace Coordinator Mark Blondin met on June 23 in Seattle

with Conner and Boeing s Vice President of Human Resources

Doug Kight. The parties focused on how to build a better

relationship and improve communication. While Wroblewski had

an established relationship with Kight, Conner was new to

labor relations. Wroblewski thought that one of the purposes

of the meeting was to get to know Conner. At a subsequent

meeting on June 30 between Wroblewski and Conner, Conner

expressed Boeing s concern that its customers did not have

confidence it could make timely deliveries because it had

experienced two strikes in the last five years and had

supplier issues. For the first time, Conner raised the

prospect of a long-term collective-bargaining agreement as a

way to gain the customers confidence that they would get

their aircraft on time.

In early July, Boeing announced its intent to purchase

the Vought plant in North Charleston, South Carolina. IAM

Local Lodge 183 represented the Vought production,

maintenance, and quality employees. Boeing agreed to

recognize the Union but wanted to negotiate a new collectivebargaining agreement.

On July 8, the Seattle Times reported that Boeing s CEO

had informed Washington Congressmen Norm Dicks and Jay Inslee

that as a result of past strikes, the Company would place the

second line outside the Puget Sound area unless it could reach

a long-term contract with the Union. Boeing told the

Congressmen that South Carolina was the main competitor.

Wroblewski, Blondin, Kight, and Conner met again twice in

July, on July 7 and July 23. At each of these meetings,

Conner and Kight emphasized that strikes had to stop for

Boeing to be viable. They stated that Boeing needed a longterm agreement with no-strike language to satisfy their

customers. At this point, Boeing was two years behind

schedule and had approximately 850 787 planes on back order as

a result of supplier and software problems.

Then, on July 30, the same date that Boeing announced

that it had purchased Vought s plant, a South Carolina

employee filed a decertification petition. During August,

Boeing denied the Union access to the employees in the North

Charleston plant and wrote a memorandum to the employees

stating that it preferred to deal with employees directly

NLRB-FOIA-00010885

Case 19-CA-32431
- 6 -

without intermediaries. 3 Boeing also issued a FAQ document

to the employees stating that the mass layoffs that took place

at the Vought plant in late 2008 were due to the unique

situation created by the Everett strike. Meanwhile, the

South Carolina press was reporting that a decertification

decision could influence where Boeing located the second 787

assembly line. For example, The Post and the Courier reported

that South Carolina s low unionization rate is viewed as an

advantage in the 787 chase[ . ] An article in the Charleston

Business Journal asserted that Charleston might be a better

choice in the event of decertification because of its

potentially tamer work force instead of the Washington

workers with a history of walk[ ing] off the j ob.

On August 26, Boeing e-mailed its managers and human

resource professionals that it had notified South Carolina

that it intended to file permits for the construction of a

second 787 line but that it had not yet made a decision as to

where to locate the second line. The following day, Boeing

and Union officials met in Portland to discuss the prospect of

a long-term agreement. Carson informed the Union that the

only way Boeing would place the second line in Washington was

if the Union agreed to a twenty-year no-strike agreement.

Boeing suggested a series of three-year agreements with an

overarching twenty-year no-strike pledge until 2032 and

binding interest arbitration if no agreement was reached at

the end of each of the three-year contracts. The Union said

that this was not possible, but the Union would consider a

longer agreement than the current four-year contract in return

for some sort of neutrality agreement. At the end of the

meeting, the parties agreed to schedule negotiations for a

long-term agreement.

Meanwhile, the decertification election in South Carolina

was scheduled for September 10. In reporting on Boeing s

permit filings in South Carolina, the Puget Sound Business

Journal characterized this vote as [ a] wild card in Boeing s

decision about where to locate the second line. On September

2, Kight presented an hour-long video on Boeing s website

( later quoted in a September 29 article in the Seattle Times) .

In regard to the second line, he stated:

What do you do with the 787 second line so that we can

build up to rate and meet our commitment to customers?

. . . There s a lot of issues to look at, a lot being

studied, no decision has been made. But truthfully, it

is very clear that this triennial disruption, our

3 The Union filed a Section 8( a) ( 5) charge alleging that

Boeing unilaterally changed its access rules but withdrew the

charge following the election.

NLRB-FOIA-00010886

Case 19-CA-32431
- 7 -

customers can t live with it anymore. So we ve become an

unreliable supplier. . . . So we look at how do we become a

reliable supplier. How do we ensure production

continuity so that we can meet our commitments to our

customers in a timely way and that s what we re trying to

do.

The Union lost the election in South Carolina eight days later

and was decertified on September 18.

As a follow-up to the parties August 27 meeting in

Portland, CEO McNerney wrote to IAM International President

Buffenbarger on September 21 that Boeing planned to make a

decision on the second line s location by the end of October

and wanted the Union s input within the next three to four

weeks. He stated, I look forward to our respective teams

engaging in fruitful dialog. Two days later, Boeing filed an

application for a storm water permit with the City of North

Charleston and an overall site plan with the State of South

Carolina. On October 1, Boeing applied to North Charleston

for a site clearing permit.

The Parties Meet over a Long-Term Agreement

The parties opened negotiations for a long-term agreement

on October 1. At the start of negotiations, Boeing explained

that placement of the second line in Washington depended on a

long-term agreement to insure no further disruptions in

deliveries to customers. The Union responded that in exchange

for giving up the right to strike, the parties would need to

resolve economic issues for the long term rather than through

interest arbitration every three years.

The parties met again on October 7, 8, and 15. The Union

maintains that Boeing never submitted a written proposal or

counter-proposal, that it was in the dark as to what Boeing

wanted, and that in effect it was negotiating against itself.

For example, with respect to the length of the agreement, at

various points Boeing requested a contract ending in 2020 or

2022 but at other times, demanded a twenty-year agreement. In

terms of wages, Boeing wanted to reduce general wage increases

and move toward a profit-sharing incentive program. The Union

was not adverse to this concept but requested information to

insure that Boeing s measures of productivity were tied to

employee performance and not events beyond the employees

control. At one point, Boeing stated that the general wage

increase and COLA could not exceed 3. 5%. When a Union

negotiator asked what would happen if the cost of living

increased more than 3. 5%, Boeing responded that employees

would get more. On October 15, for the first time, Boeing

said that it wanted a lower wage structure for new hires and a

NLRB-FOIA-00010887

Case 19-CA-32431
- 8 -

defined contribution plan for them rather than the defined

benefit pension plan that the existing employees enj oyed.

The Union repeatedly raised the issues of j ob security

and Employer opposition to the Union elsewhere. The Union

argued that in return for giving up the right to strike during

the long-term, employees needed enhanced j ob security. Also,

if the parties relationship were to improve, the Union did

not want to face the type of anti-union conduct Boeing had

engaged in during the decertification campaign in South

Carolina.

At the October 15 session, Conner informed the Union that

the Board of Directors would be meeting on October 26 and he

wanted to give the Board a progress report on the

negotiations. The Union asserts that Boeing never described

the Board of Directors meeting as a deadline for resolving the

outstanding bargaining issues. Moreover, Boeing never

provided a concrete proposal that could be put to the unit

employees for a vote.

The parties met again on October 20 and 21. Conner

stated that Boeing was getting close to making its decision on

the location of the second line and it would be discussed at

the Board meeting on October 26. By the end of the parties

October 21 session, the Union orally had proposed the

following: an extension of the existing contract to 2020, 3%

annual wage increases plus a 1% COLA, ratification bonuses for

unit employees, an incentive pay program, health cost sharing

towards the end of the contract, annual increases in pension

benefits starting in 2013, and neutrality in connection with

Union organizing campaigns. In addition, the Union presented

Boeing with a two-page document entitled Rough Draft on

Concepts for a long-term agreement and a j oint partnership

committee. This Draft called for retention of current unit

work; location of the second line in the Puget Sound area; and

six-month advance notice and good-faith bargaining over any

decision to establish an assembly operation for any next

generation product. Boeing asserts that this rough draft

was the Union s last and final offer, but the Union

disagrees and also maintains that its negotiators had no idea

that this would be the parties final session. Indeed, the

Union negotiator involved in working out the details of the

incentive pay program sent an e-mail to Kight on October 27

requesting further information. Kight responded that he would

get back to him.

Meanwhile, on October 21, Boeing posted its quarterly

earnings conference call on its intranet site for employees.

With respect to locating the second line in South Carolina,

CEO McNerney stated:

NLRB-FOIA-00010888

Case 19-CA-32431
- 9 -

[ T] here would be some duplication. We would obviously

work to minimize that. But I think having said all of

that, diversifying our labor pool and our labor

relationship has some benefits. . . . And so some of the

modest inefficiencies, for example, associated with the

move to Charleston, are certainly more than overcome by

strikes happening every three or four years in Puget

Sound. And the very negative financial impact of [ sic]

the company, our balance sheet would be 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. . . .

And I don t blame this totally on the union. We j ust

haven t figured out a way - the mix doesn t - isn t

working well yet. So, we ve either got to satisfy

ourselves that the mix is different or we have to

diversify our labor base.

McNerney stated that a decision would be made in the next

couple of weeks.

Two days later, IAM General Vice President Michalski

called Conner to ask about the status of the negotiations.

Conner stated that the Union s economic terms and demand for

neutrality were unacceptable to Boeing. Michalski explained

that the Union was not asking for a traditional neutrality

agreement but rather, as explained during negotiations, a code

of conduct. Michalski stated that the Union was willing to

meet at any time for additional negotiations, but Conner did

not respond. On October 24, Michalski called Senior Vice

President of Operations Tim Keating to reiterate that the

Union was not seeking a true neutrality agreement. He wanted

to clear up any misunderstanding if that issue was blocking

the parties ability to reach an agreement. Keating did not

respond, and no further negotiations were ever scheduled.

Meanwhile, the governmental bodies in South Carolina were

moving quickly to facilitate the second line s placement in

their State. On October 23, North Charleston approved

Boeing s request for a storm water permit, and the State of

South Carolina approved Boeing s overall site plan. On

October 27, the South Carolina legislature, in a special

session, approved $170 million in taxpayer-backed bonds for

Boeing s startup costs and tax breaks totaling $450 million in

exchange for Boeing s agreement to create at least 3, 800 j obs

and invest more than $750 million in the State within the next

seven years. That same day, North Charleston approved

Boeing s site clearing permit.

Boeing contends that it entered these negotiations with a

good-faith intention to reach a long-term agreement that would

have resulted in placing the second line in Washington, but

NLRB-FOIA-00010889

Case 19-CA-32431
- 10 -

the Union s economic demands were too costly and its

insistence upon neutrality and j ob security were unacceptable.

The Union asserts, however, that Boeing s failure to submit

any proposals, its rej ection of the Union s serious efforts to

address Boeing s purported concerns, and then its precipitous

halting of negotiations as soon as the South Carolina

legislature awarded it a generous tax and subsidy package

demonstrate that the negotiations were in fact a sham.

Boeing Announces its Decisions to Locate the Second Line in

South Carolina and to Establish a Dual-Sourcing Program

On October 28, Boeing announced its decision to locate

the second 787 assembly line in South Carolina. In a press

release and internal e-mails, Boeing stated that the Board of

Directors had j ust approved the selection of North Charleston.

Boeing also announced that it intended to build a surge line

in Everett - a temporary second assembly line that would be

phased out once the South Carolina line was up and running.

Boeing issued a memo to its managers on October 28 that

provided answers to anticipated questions from employees and

talking points regarding its decision. The managers were

advised to inform employees, among other things, that the

decision to locate the second line in Charleston would

provide economic advantages by improving our competitiveness

and reducing vulnerability to delivery disruptions due to a

host of factors, from natural disasters to homeland security

issues and work stoppages. The memo further stated, In the

final analysis, this came down to ensuring our long-term

global competitiveness and diversifying the company to protect

against the risk of production disruption . . . from natural

disasters, to homeland security threats, to work stoppages.

On December 3, Boeing notified its fabrication managers

that it intended to create a dual-sourcing program and

contract separate suppliers for the South Carolina assembly

line. As a result, employees in the Puget Sound and Portland

units who produce parts for the 787 assembly line are likely

to suffer a loss of work. Articles that appeared in the

Seattle Times on December 7 and the Puget Sound Business

Journal on December 8 discussed this announcement. The

Seattle Times quoted Boeing spokesman Jim Proulx as stating,

Repeated labor disruptions have affected our performance in

our customers eyes. We have to show our customers we can be

a reliable supplier to them. [ The second production] line has

to be able to go on regardless of what s happening over here.

The Puget Sound Business Journal quoted Conner as follows:

Dual-sourcing and co-production will allow us to maintain

production stability and be a reliable supplier to our

customers.

NLRB-FOIA-00010890

Case 19-CA-32431
- 11 -

On March 2, 2010, a Seattle Times j ournalist conducted a

videotaped interview of Boeing s new Commercial Airplanes CEO,

Jim Albaugh. ( Albaugh had moved over from his position as

Integrated Defense Systems CEO to replace Carson. ) The

interviewer asked Albaugh some hard questions on behalf of

the Washington community about Boeing s decision to locate the

second 787 line in Charleston. In explaining Boeing s

decision, Albaugh repeatedly referenced the Union s strike

history. For example, he stated:

The issue last fall was really about, you know, how

we could ensure production stability and how we

could ensure that we were competitive over the long

haul. And we had some very productive discussions

with the union. And unfortunately, we j ust didn t

come to an agreement where we felt we could ensure

production stability. And read [ sic] that is [ sic]

getting away from the frequent strikes that we were

having and also could we stop the rate of escalation

of wages. And we j ust could not get to a place

where we both felt it was a win for both ourselves

and the union so we made the decision to go to

Charleston.

[ W] e ve had strikes three out of the last four times

we ve had a labor negotiation with the IAM. . . . And

we ve got to get to a position where we can ensure

our customers that every three years they re not

going to have a protracted shutdown.

It was about ensuring to our customers that when we

commit to deliver airplanes on certain dates that we

actually do deliver. And we have lost our

customers have lost confidence in our ability to do

that, because of the strikes.

When asked whether going to Charleston, in light of the

expense and risk, made business sense, he responded:

There s no question that whenever you go to a green field

site, there s risk involved. At the same time, with the

protracted labor stoppage that we had . . . the fall of

2008, I mean that cost the company billions of dollars.

And I think if you compare, you know, what it cost

because of the stoppages versus the cost and the risk of

starting a new line in Charleston, I think the investment

certainly is the right one for us to make. 4

4 Once again, a Boeing CEO grossly exaggerated the burden of

the Union s strike activity. Boeing had alleged elsewhere

that the 2008 strike reduced its earnings by $1. 8 million, far

NLRB-FOIA-00010891

Case 19-CA-32431
- 12 -

At one point, Albaugh summed up the basis of Boeing s

decision as follows:

[ t] he overriding factor was not the business climate.

And it was not the wages we re paying today. It was that

we cannot afford to have a work stoppage, you know, every

three years. We cannot afford to continue the rate of

escalation of wages. . . .

Albaugh also implicitly threatened the loss of additional work

because of Union strikes, stating, [ w] e ll do work here if we

can make sure that we have the stability of the production

lines and that we can be competitive over the long haul.

Production is now approximately three years behind

schedule. Approximately 2, 900 Puget Sound unit employees

currently work on the 787 assembly line. Approximately 1, 740

of them are working on out-of-sequence assembly work, away

from the main assembly line. Once supply issues are resolved

and assembly can be accomplished in sequence on the line, it

is anticipated that the number of employees will drop by

approximately 60%. Boeing asserts that the South Carolina

plant will be ready to begin assembly work in mid 2011.

Approximately 1, 000 mechanic and flight line j obs will be

added in South Carolina at that time.

ACTION

This case involves Boeing s transfer of work from an

experienced unionized workforce to a new, nonunion facility.

Boeing s decision was motivated by antiunion considerations.

From the time of the Union s strike in the fall of 2008,

Boeing made clear to its unionized workforce that it would not

countenance further strikes. Time and again, in e-mails to

employees, on its intranet site, in the media, and in talks

with the Union, Boeing tied its ability to compete to the

avoidance of future strike activity. Then, when Boeing

purchased the Vought facility in South Carolina, its officials

denied the Union access to employees at the facility. It also

let the employees know that it preferred to deal with them

directly rather than through their Union and their receipt of

the second line hinged on their vote in a decertification

election. Simultaneously, Boeing officials told the Puget

Sound unit employees that they could retain all of the 787

assembly work only by waiving their right to strike for twenty

years. Although the Union entered negotiations with Boeing

less than the billions of dollars that Albaugh claimed in

this interview.

NLRB-FOIA-00010892

Case 19-CA-32431
- 13 -

and made maj or concessions in an effort to address its stated

concerns, once the Union was decertified in South Carolina,

Boeing courted the South Carolina legislature and applied for

the necessary permits from the South Carolina regulatory

bodies - even as it continued the motions of negotiating with

the Union. As soon as South Carolina approved the financial

incentives for Boeing, Boeing called off negotiations and

announced its decision. Boeing s CEO admitted that the

overriding factor for moving work to South Carolina was the

employees strike activity. Moreover, to reinforce the

message to unit employees, he intimated that the continuation

of any work in Washington was contingent on the stability of

the production lines, a veiled threat designed to coerce

employees to abstain from future strikes. Nor could Boeing

credibly blame the 787 production delays on employees 2008

strike activity, which halted production for approximately two

months. Rather, the delay resulted primarily from its own

business decision to outsource the manufacture of the aircraft

components to various suppliers and from unexpected software

problems.

Further, the fact that it made little practical sense to

locate this second line in South Carolina, despite a two-anda-half-year delay in the production of its new 787 aircraft,

rather than its existing facilities in Washington, supports a

finding of unlawful motivation. While South Carolina would

not be ready for production for two years because of the need

for substantial capital improvements and the hiring and

training of a new workforce, Washington was already up and

running, with the space, the necessary equipment, and a

significant complement of trained employees.

On these facts, we conclude that the Region should issue

a complaint alleging: independent violations of Section

8( a) ( 1) based upon Boeing s coercive and threatening

statements to employees on the intranet and through the media;

and a violation of Section 8( a) ( 3) based upon Boeing s

decision to place the second line in South Carolina and to

establish a dual-sourcing supply program in order to retaliate

against the unit employees for engaging in protected Union

activity. We would also argue, in the alternative, that

Boeing s actions were inherently destructive of employee

rights. But the Region should dismiss the Section 8( a) ( 5)

allegations because the Union waived its right to bargain

about Boeing s decision to offload unit work to a facility not

covered by the parties agreement. Finally, to remedy the

Section 8( a) ( 1) and ( 3) violations, the Region should seek: a

notice reading by a high-level Boeing official in addition to

the traditional remedies; and an order requiring Boeing to

assemble in the Puget Sound area the first ten 787 aircraft

that it produces each month and to maintain the supply lines

for those aircraft in the Puget Sound and Portland facilities.

NLRB-FOIA-00010893

Case 19-CA-32431
- 14 -

I. The Employer Violated Section 8( a) ( 1)

The Supreme Court long ago delineated the line between

employer speech protected under Section 8( c) of the Act and

threats of reprisals violative of Section 8( a) ( 1) . 5 The Court

ruled in Gissel that an employer may make a prediction as to

the effects of unionization but that prediction must be

carefully phrased on the basis of obj ective fact to convey an

employer s belief as to demonstrably probable consequences

beyond his control[ . ] 6 On the other hand, threats of

economic reprisal to be taken solely on [ the employer s] own

volition violate Section 8( a) ( 1) . 7

In General Electric Company, the Board applied the Gissel

test to set aside an election because the employer threatened

a long-term loss of work based on the possibility of a strike

at some future time. 8 Faced with a union organizing drive,

the employer gave multiple speeches touting its two-source

supplier strategy. 9 The employer stated that it had

established its nonunion plant so that customers could get the

motors they needed during the seven strikes at its union

plant. The employer also made clear that the plant s nonunion

status was the reason it had experienced a rise in

employment. 10 And the employer conveyed the message that the

plant remaining nonunion was an important, if not a decisive,

factor in any company decision to choose that plant as a

second manufacturing facility for the new motor the employer

planned to introduce. 11 The Board concluded that although the

employer might want to insure itself against production

interruptions caused by employee concerted activity, no such

insurance is legally possible, for the simple reason that

employees have a federally protected right to engage in such

activity. 12 The Board expressly distinguished an employer s

right to take defensive action when threatened with an

5 See NLRB v.

Gissel Packing Co. , 395 U. S. 575, 618 ( 1969) .

6 Ibid.

7 Id.

at 619 ( citation omitted) .

8 See 215 NLRB 520, 522-23, fn.


9 See id.

6 ( 1974) .

at 520.

10 See id.

at 520-21.

11 See id.

at 521.

12 See id.

at 522.

NLRB-FOIA-00010894

Case 19-CA-32431
- 15 -

imminent strike from threats to transfer work merely because

of the possibility of a strike at some speculative future

date. 13

The Board repeatedly has held that an employer violates

Section 8( a) ( 1) by threatening to withhold work opportunities

because of the exercise of Section 7 rights. 14 Thus, telling

employees that they will lose their j obs if they j oin a strike

violates Section 8( a) ( 1) . 15 Similarly, in Kroger Co. , the

employer unlawfully threatened to put its plan to build a new

freezer facility for its distribution center on hold because

of intraunion unrest and labor disputes. 16

Further, where an employer unconditionally predicts a

loss of customers due to unionization or strike disruptions

without any factual basis, its predictions amount to

unlawful threats. 17 Rather, an employer s predictions of

customer disaffection must be based on obj ective facts. 18

Thus, in Curwood, Inc. , an employer lawfully related its

13 See id.

at 522, fn. 6.

14 See, e. g. , Kroger Co. , 311 NLRB 1187, 1200 ( 1993) , affd.

mem. 50 F. 3d 1037 ( 11th


Cir. 1995) ; General Electric Co. , 321

NLRB 662, fn. 5 ( 1996) , enf. denied 117 F. 3d 627 ( D. C. Cir.

1997) .

15 Aelco Corp. , 326 NLRB 1262, 1265 ( 1998) .

See also Dorsey

Trailers, Inc. , 327 NLRB 835, 851 ( 1999) , enfd. in pertinent

th
part 233 F. 3d 831 ( 4

Cir. 2000) ( threat to close the plant if

the employees went out on strike) .

16 311 NLRB at 1200.

See also General Electric Co. , 321 NLRB

at 662, fn. 5 ( employer conveyed to employees that

unionization could result in the withholding of further

investment in the plant or its closure) .

17 See, e. g. , Tawas Industries, 336 NLRB 318, 321 ( 2001) ( no

obj ective basis for prediction that customers, fearing

strikes, would not give their business to the employer if the

employees independent union affiliated with the UAW) ;

Tradewaste Incineration, 336 NLRB 902, 907-08 ( 2001)

( prediction that 90% of the customers would not deal with a

union facility because of fear of a work stoppage was not

based on obj ective facts) ; Debbie Reynolds Hotel, 332 NLRB

466, 466 ( 2000) ( no factual basis for statements about having

to move productions and equipment elsewhere because customers

would not be able to afford employer s facilities if employees

unionized) .

18 Curwood, Inc. , 339 NLRB 1137, 1137-38 ( 2003) .

NLRB-FOIA-00010895

Case 19-CA-32431
- 16 -

customers concerns about strikes, where the employer produced

written inquiries from customers seeking information about its

contingency plans in the event of a strike. 19 An employer may

also reference the possibility that unionization, including

strikes, might harm relationships with consumers, as opposed

to predicting unavoidable consequences. 20

Here, the Union has alleged that several statements by

Boeing officials violated Section 8( a) ( 1) . Some statements

were posted by Boeing on its website or intranet. Others were

reprinted in newspaper articles as direct quotes; although

such a quotation is hearsay, it would be admissible as an

admission ( an exception to the hearsay rule) , if the reporter

testifies. 21 By contrast, reporter summaries cannot form the

basis for a Section 8( a) ( 1) violation. And statements

recounted by political figures within newspaper articles are

in effect double hearsay and inherently unreliable.

Based on these principles, we find that the following

constitute unlawful threats under the Gissel standard:

( 1) Boeing posted its quarterly earnings conference call

on its intranet for employees on October 21. During the call,

CEO McNerney made an extended statement about diversifying

our labor pool and moving work to South Carolina because of

strikes happening every three or four years in Puget

Sound. 22 His comments were indistinguishable from the

comments regarding a two-source supplier strategy found

violative in General Electric. 23

( 2) Boeing s October 28 memo to managers advised them to

inform employees that it decided to locate the second line in

South Carolina in order to reduce vulnerability to delivery

disruptions caused by, among other things, strikes. The

thrust of Boeing s message to employees was that Boeing had

19 See id.

339 NLRB at 1137.

20 E. g. , Miller Industries Towing Equipment, Inc. , 342 NLRB

1074, 1075-76 ( 2004) ( employer did not predict unavoidable

consequences) .

21 Cf.

Sheet Metal Workers Local 15 ( Brandon Regional Medical

Center) , 346 NLRB 199, 201-02 ( 2006) , enf. denied on other

grounds 491 F. 3d 429 ( D. C. Cir. 2007) ( newspaper report of

party admission is inadmissible hearsay because the reporter

was not available for cross-examination) .

22 These same comments were quoted in the Seattle Times.

23 See 215 NLRB 520, 522-23 ( 1974) .

NLRB-FOIA-00010896

Case 19-CA-32431
- 17 -

removed j obs from Puget Sound because employees had struck and

that they would lose work if they struck again. 24

( 3) In articles that appeared in the Seattle Times and

the Puget Sound Business Journal on December 7 and 8

respectively, Boeing officials attributed the plan to use a

dual-sourcing system and contract separate suppliers for the

South Carolina line to past strikes and implicitly threatened

the loss of future work opportunities in the event of future

strikes. 25

( 4) In a video-taped interview on March 2, Boeing

Commercial Airplanes CEO Albaugh expressly attributed the

Employer s decision to locate the second line in South

Carolina to employee strikes and threatened the loss of future

work opportunities in retaliation for such protected

activity. 26

The above statements, disseminated through various

channels to unionized and nonunionized employees nationwide,

drove home the message: union activity could cost them their

j obs, while a decision to rej ect union representation could

bring those j obs to their communities.

II.

The Employer Violated Section 8( a) ( 3)

The Employer s decision to locate the second 787 line at

a nonunion facility and to establish a dual-sourcing program

to support that line violated Section 8( a) ( 3) because the

Employer acted in retaliation for the employees Union

activity and not for a legitimate business reason.

Initially, despite Boeing s assertions that its decision

to locate a second 787 assembly line in South Carolina will

not adversely impact any current unit employees, there is no

question that the decision will direct work away from Puget

Sound employees with consequent adverse effects. Instead of

24 The Region should insure that this message was communicated

to employees.

25 The authors of these articles will need to testify.

If

they resist testifying, and it becomes necessary to seek

subpoena enforcement, the Region should contact Advice.

26 Vice President Kight s video-taped comments that Boeing s

customers could not live with this triennial disruption and

that Boeing was looking to insure production continuity

cannot be alleged as an independent violation because they

were first posted on Boeing s website on September 2, outside

the Section 10( b) period.

NLRB-FOIA-00010897

Case 19-CA-32431
- 18 -

assembling all of the 787 planes in Washington as originally

planned, once the second line opens in South Carolina, a

significant portion of the remaining 787 orders will be filled

by planes produced in North Charlestown. Future work

opportunities will be lost for employees on the surge line,

as well as unit employees waiting to transfer into the more

desirable 787 j obs. There are likely to be transfers to

older, less desirable aircraft assembly lines, demotions, and

layoffs. Moreover, Boeing s adoption of its new dualsourcing program means that the Puget Sound and Portland unit

employees will produce parts only for planes assembled in

Washington and not for those planes assembled in South

Carolina, also causing the loss of employment opportunities

for unit employees and the likelihood of demotions and

layoffs. If no unit employees have been harmed yet, it is

merely because Boeing s retaliatory decision has not yet been

implemented.

Recently, in Pittsburg & Midway Coal Mining Co. , the

Board expressly reaffirmed that an actual financial loss is

not necessary to establish a Section 8( a) ( 3) violation. 27 In

that case, the employer revised its bonus policy in

retaliation for the employees use of contractual memorial

days to engage in work stoppages. Even though no employees

thereafter suffered a diminution of their bonuses, the Board

found a Section 8( a) ( 3) violation based upon the employer s

retaliatory motive. 28

Moreover, the Board specifically has held that an

employer may not, for unlawfully motivated reasons, divert

unit work to a nonunion plant even where there is no immediate

impact on unit employees. 29 In Adair Standish Corp. , the

employer refused to take delivery of a new press ordered for

its newly-organized Standish plant and installed it instead at

its nonunion plant. The Board noted that diversion of the

press from Standish could reasonably result in diversion of

new work from Standish and therefore violated Section 8( a) ( 3)

even though there was no immediate impact on the unit

employees. 30 Similarly, in Cold Heading Co. , the employer

unlawfully relocated equipment to a newly-purchased nonunion

facility and changed its plans to install new equipment in its

27 See 355 NLRB No.

197, slip op. at 5, fn. 8 ( 2010) .

28 Ibid.

29 See Adair Standish Corp. , 290 NLRB 317, 318-19 ( 1988) , enfd

in pertinent part 912 F. 2d 854 ( 6th


Cir. 1990) .

30 See id.

at 319.

NLRB-FOIA-00010898

Case 19-CA-32431
- 19 -

union facility after its employees independent union

representative sought to affiliate with the UAW. 31

Here, as in Adair Standish and Cold Heading, there is a

diversion of unit work that the unit employees otherwise would

have performed. And as in Pittsburg & Midway Coal Mining Co. ,

the fact that unit employees may not yet have experienced the

financial impact of Boeing s decision is no defense to a

Section 8( a) ( 3) violation.

Further, Boeing made this decision for unlawful reasons.

Boeing admits that the overriding factor in its decision to

place the second line in a nonunion facility was the

employees strike history. An employer s discouragement of

its employees participation in a legitimate strike

constitutes discouragement of union membership within the

meaning of Section 8( a) ( 3) . 32 This applies to employer

conduct designed to retaliate against employees for having

engaged in a strike in the past, 33 as well as employer conduct

designed to forestall employees from exercising their right to

strike in the future. 34 Indeed, the Board recently reaffirmed

that an employer violates the Act when it acts to prevent

future protected activity. 35 Comparing such conduct to the

31 See 332 NLRB 956, fn.

5, 975-76 ( 2000) . See also

Associated Constructors, 325 NLRB 998, 998-1000 ( 1998) , enfd.

sub nom. O Dovero v. NLRB, 193 F. 3d 532 ( D. C. Cir. 1999)

( double-breasted employer unlawfully diverted work from its

union entity to its nonunion entity in retaliation for the

union s efforts to organize the nonunion entity and to escape

the collective-bargaining agreement) .

32 Capehorn Industry, 336 NLRB 364, 365 ( 2001) .

33 See id.

at 365-67 ( employer violated Section 8( a) ( 3) by

failing to immediately reinstate strikers upon unconditional

offer to return to work where there was no legitimate business

j ustification for entering into a permanent subcontract) .

34 See Century Air Freight, 284 NLRB 730, 732 ( 1987) ( employer

violated Section 8( a) ( 3) by permanently subcontracting unit

work and discharging unit employees in order to forestall the

exercise of their right to strike) ; Westpac Electric, 321 NLRB

1322, 1374 ( 1996) ( employer violated Section 8( a) ( 3) by

isolating employee in retaliation for his previous striking

activities and also in anticipation that he would participate

in a strike in the future) .

35 See Parexel International, LLC, 356 NLRB No.

82, slip op.

at 4 and cases cited therein ( 2011) ( employer violated Section

NLRB-FOIA-00010899

Case 19-CA-32431
- 20 -

erection of a dam at the source of supply of potential,

protected activity, the Board reasoned that, the suppression

of future protected activity is exactly what lies at the heart

of most unlawful retaliation against past protected

activity. 36

Boeing concedes that it is removing work from the unit

employees based upon their past exercise of their right to

strike. However, Boeing relies upon the Supreme Court s

decision in NLRB v. Brown Food Store37 to argue that it is

privileged to move work outside the unit to avoid the

disruptive consequences of future strikes and that this is a

sufficient business j ustification to permit its actions.

In Brown Food Store, the Court held that an employer was

privileged to lock out its employees and use temporary

replacements to carry on its business in the face of a whipsaw

strike. 38 Specifically, the Court found that the use of a

lockout and the hiring of temporary replacements to bring

pressure to bear in support of its bargaining position after

an impasse in negotiations was not an unfair labor practice. 39

Rather than finding the use of this economic weapon

discriminatory, the Court concluded that it was a legitimate

defensive measure to preserve the multiemployer group in the

face of a whipsaw strike. 40

Boeing s attempt to extend the holding of Brown to

legitimatize any action that an employer takes to protect

itself against future, wholly speculative, strikes would

vitiate the Section 13 right to strike. And the Board has

made it clear that an employer cannot rely upon Brown to

j ustify discriminatory conduct based upon the exercise of the

right to strike. Thus, in National Fabricators, the Board

expressly rej ected the employer s attempt to use Brown and

other lockout cases to j ustify its decision to lay off those

employees who were likely to honor a union picket line in the

8( a) ( 1) by discharging an employee to prevent her from

discussing wages with other employees) .

36 Ibid.

( citation omitted) .

37 380 U. S.

278 ( 1965) .

38 See id.

at 283-85.

39 See id.

at 284.

40 See ibid.

NLRB-FOIA-00010900

Case 19-CA-32431
- 21 -

future. 41 Instead, the Board found that disfavoring employees

who were likely to engage in protected union activities was

proscribed by Section 8( a) ( 3) and the employer s business

j ustification - to avoid investing money in employees who

were going to cease work later -- was neither legitimate nor

substantial. 42

Boeing s concession that choosing South Carolina will

result in duplication and economic inefficiencies further

demonstrates that Boeing s actions were retaliatory and not a

legitimate business decision. In addition, Commercial

Airplanes CEO Albaugh conceded that going to South Carolina,

a green field site, involves significant risks. Boeing has

the capacity, equipment, and trained workforce to handle the

second assembly line in the Puget Sound area. The substantial

investment required to build and equip the South Carolina

facility therefore will be duplicative. In addition, Boeing

will have to recruit and train a new workforce in South

Carolina, while ultimately laying off experienced employees in

Washington. Exaggerating the disruptive effects of prior

strikes, Boeing maintains that the inefficiencies associated

with moving work to South Carolina will be counterbalanced by

the avoidance of strike disruptions in the future. However,

there are other nonretaliatory and less costly means of

dealing with the potential of relatively short disruptions

caused by employee strikes, such as concluding negotiations

with the Union for a long-term no-strike agreement. In

addition, Boeing s claim that it took this action to avoid

strike disruptions is belied by Boeing s rej ection of the

Union s efforts to negotiate a long-term no strike agreement.

Accordingly, the Region should proceed on the theory that

Boeing violated Section 8( a) ( 3) by retaliating against the

unit employees for engaging in the protected activity of

striking.

We also conclude that Boeing s conduct was inherently

destructive of employee interests. 43 Conduct is inherently

destructive when it carries with it unavoidable

consequences which the employer not only foresaw but which he

must have intended and thus bears its own indicia of

903 F. 2d 396 ( 5th


Cir.

1990) , cert. denied 498 U. S. 1024 ( 1991) .

41 See 295 NLRB 1095, 1095 ( 1989) , enfd.


42 See 295 NLRB at 1095-96.

43 See NLRB v.

Great Dane Trailers, Inc. , 388 U. S. 26, 33

( 1967) ( citation omitted) .

NLRB-FOIA-00010901

Case 19-CA-32431
- 22 -

intent. 44 In International Paper Co. , the Board set forth

four fundamental guiding principles for determining whether

employer conduct is inherently destructive of employee

rights. 45 First, the Board looks to the severity of the harm

to employees Section 7 rights. Second, the Board considers

the temporal impact of the employer s conduct, i. e. whether

the conduct merely influences the outcome of a particular

dispute or whether it has far reaching effects which would

hinder future bargaining. Third, the Board distinguishes

between conduct intended to support an employer s bargaining

position as opposed to conduct demonstrating hostility to the

process of collective bargaining. And finally, the Board

assesses whether the employee s conduct discourages collective

bargaining by making it seem a futile exercise in the eyes of

the employees. 46 Even if the employee s conduct is

inherently destructive, the Board weighs the employer s

asserted business j ustification against the invasion of

employee rights. 47

Boeing s actions were inherently destructive of employee

rights under the four principles articulated in International

Paper. First, the harm to employees Section 7 rights was

severe; employees got the distinct message that if they engage

in another strike, unit work will be moved to a nonunion

facility and unit j obs will be lost. Second, Boeing s

decision was designed to have far-reaching effects and not

j ust to influence the outcome of a particular dispute, namely,

to take away employee support for the Union s most effective

economic weapon, and for the Union itself, and thereby hinder

any future collective bargaining. Third, Boeing s conduct

demonstrated hostility to the very process of collective

bargaining and not j ust to support a specific bargaining

position. Finally, bargaining was made to seem a futile

44 Ibid. , quoting NLRB v. Erie Resistor Corp. , 373 U. S. 221,

228, 231 ( 1963) . See also Dorsey Trailers, Inc. , 327 NLRB

835,
863-64 ( 1999) , enf. denied in pertinent part 233 F. 3d 831

( 4 th Cir. 2000) .

45 See 319 LRB 1253, 1269 ( 1995) , enf.

denied 115 F. 3d 1045

( D. C. Cir. 1997) .

46 Id.

at 1269-70 ( citations omitted) .

47 Id.

at 1273 ( finding no j ustification for employer s

inherently destructive conduct of permanently subcontracting

bargaining unit work during a lawful lockout) . See also

Dorsey Trailers, 327 NLRB at 863-64 ( employer s closing of

facility during strike and relocation of unit work to newly

purchased facility outside the union s j urisdiction was

inherently destructive of employee rights) .

NLRB-FOIA-00010902

Case 19-CA-32431
- 23 -

exercise without the possibility of a strike to support the

Union s position at the bargaining table.

The unavoidable consequence of Boeing s decision to place

the second line in its newly-purchased, nonunion facility,

accompanied by official comments on the intranet and in the

media, was to severely chill its employees exercise of

Section 7 rights in the future - whether it be the Puget

Sound employees, the South Carolina employees, or Boeing

employees elsewhere. Employees will correctly fear that

engaging in such protected activity could cause them to lose

their j obs to nonunionized workers. Others may be encouraged

to file or support decertification petitions. And the many

unrepresented Boeing employees will be discouraged from

organizing or voting in support of union representation if

they believe that exercising their right to concerted activity

j ustifies moving commercial production elsewhere.

Moreover, even if the effect on employee rights was only

comparatively slight, Boeing had no legitimate business

j ustification. Its only j ustification was its desire to insure

against its employees exercise of their Section 7 rights, and

that is not a legitimate j ustification.

The Board recently held in Arc Bridges, Inc. that an

employer s conduct was inherently destructive where its stated

reason for withholding a regularly-scheduled wage increase

from represented employees was that it was in negotiations

with the union. 48 The Board found that the employer s stated

reason - that it wanted to enhance its bargaining position

with the union -- was an admission that it withheld the

increase because employees chose union representation. 49

Likewise, Boeing s stated reason for its decision - that it

wanted to avoid strike disruptions - was an admission that it

decided to locate the second line in South Carolina because

the Puget Sound employees chose union representation and the

South Carolina employees did not. Accordingly, Boeing s

decision coupled with its public pronouncements emphasizing

the motivation for its decision was inherently destructive of

its employees rights to engage in union activity and violated

Section 8( a) ( 3) .

III. The Union Waived its Right to Bargain

The Union s allegation that Boeing failed to bargain in

good faith over its decision as to where to locate the second

787 line raises two preliminary issues: ( 1) whether Boeing s

decision was a mandatory subj ect of bargaining; and ( 2) if so,

48 See 355 NLRB No.


49 See id. , slip op.

199, slip op. at 3-4 ( 2010) .

at 3.

NLRB-FOIA-00010903

Case 19-CA-32431
- 24 -

whether the Union waived its right to bargain over that

subj ect. Although we conclude that the decision was a

mandatory subj ect of bargaining and there is substantial

evidence that Boeing did not bargain in good faith to a valid

impasse, the Region should dismiss the Section 8( a) ( 5)

allegations on the ground that the Union waived it right to

bargain, applying Provena. 50

A.

Mandatory Subj ect of Bargaining

Under Dubuque Packing Co. , a decision to relocate unit

work that is not accompanied by a basic change in the

employer s operation is a mandatory subj ect of bargaining

unless the employer can establish that: the work performed at

the new location varies significantly from the work performed

at the prior location; the work performed at the former

location is discontinued entirely and not moved to the new

location; or the employer s decision involved a change in the

enterprise s scope and direction. 51 Alternatively, the

employer can defend by showing that: labor costs were not a

factor in the decision; or if labor costs were a factor, the

union could not have offered sufficient concessions to change

the employer s decision. 52 Applying the Dubuque test, the

Board repeatedly has found relocation decisions to constitute

a mandatory subj ect of bargaining. 53

In addition, the Board has held that a decision may be a

mandatory subj ect even though there is no immediate loss of

unit j obs. 54 For example, in Quickway Transportation, Inc. ,

50 Provena St.

Joseph Medical Center, 350 NLRB 808 ( 2007) .

51 303 NLRB 386, 391 ( 1991) , enfd.

sub nom. Food & Commercial

Workers Local 150-A v. NLRB, 1 F. 3d 24 ( D. C. Cir. 1993) .

52 Ibid.

53 See, e. g. , Titan Tire Corp. , 333 NLRB 1156, 1164-65 ( 2001)

( decision to permanently relocate equipment and j obs in

reaction to strike) ; Owens-Brockway Plastic Products, 311 NLRB

519, 521-23 ( 1993) ( decision to close plant and transfer work

to other facilities) .

54 See, e. g. , Overnite Transportation Co. , 330 NLRB 1275, 1276

( 2000) , revd. mem. 248 F. 3d 1131 ( 3d Cir. 2000) ( We think it

plain that the bargaining unit is adversely affected whenever

bargaining unit work is given away to nonunion employees,

regardless of whether the work would otherwise have been

performed by employees already in the unit or by new

employees) .

NLRB-FOIA-00010904

Case 19-CA-32431
- 25 -

the Board found that the employer s decision to contract with

independent owner-operators rather than expand the unit, as it

had originally planned, was mandatory because that decision

obviously constrained the work opportunities available to the

bargaining unit. 55 Likewise, in Spurlino Materials, LLC, the

Administrative Law Judge, in a decision adopted by the Board,

found that even though no unit employees suffered a loss of

work as a result of the employer s subcontracting, existing

employees might have otherwise been given overtime or the

employer might have hired additional unit employees, resulting

in benefits for the Union and current unit employees in having

an expanded unit. 56 And in Dorsey Trailers, Inc. , the Board

found that subcontracting work to reduce a backlog in orders

was a mandatory subj ect because the potential loss of

overtime or reasonably anticipated work opportunities poses a

detriment to unit employees even if no employees lost their

j obs. 57

Here, the decision to locate the second 787 assembly line

in South Carolina amounted to a relocation of unit work. Even

though no unit employees have yet to lose work, as in Dorsey

Trailers the assignment of unit work to nonunit employees in

order to reduce an order backlog presents a potential loss of

overtime or reasonably anticipated work opportunities and

therefore poses a detriment to unit employees. 58 The work

that will be performed in South Carolina is identical to that

performed on the first line and the surge line in Everett by

unit employees. The decision did not involve a basic change

in Boeing s operation or any change in the enterprise s scope

or direction; Boeing does not intend to change its production

methods or its products. 59 Boeing did not demonstrate that

labor costs were not a factor in the decision. In fact,

according to Boeing s CEO, the decision was motivated

primarily by a desire to avoid strikes and secondarily because

the Employer cannot afford the rate at which unit wages are

escalating. Boeing also did not demonstrate that the Union

could not have offered sufficient concessions to change its

140 ( 2010) , incorporating by reference the

rationale of 354 NLRB No. 80, slip op. at 2 ( 2009) .

55 See 355 NLRB No.


56 See 355 NLRB No.

77 ( 2010) , incorporating by reference the

rational of 353 NLRB 1198, 1219 ( 2009) .

57 See 321 NLRB 616, 617 ( 1996) , enf.

denied in relevant part

134 F. 3d 125 ( 3d Cir. 1998) . Accord Acme Die Casting, 315

NLRB 202, fn. 1, 209 ( 1994) .

58 See 321 NLRB at 617.

59 See Owens-Brockway Plastic Products, 311 NLRB at 522.

NLRB-FOIA-00010905

Case 19-CA-32431
- 26 -

decision; the Union


the strike and wage
2009. Accordingly,
where to locate the
bargaining.

B.

was willing to make concessions on both

issues during negotiations in the fall of

we conclude that Boeing s decision as to

second 787 line was a mandatory subj ect of

Waiver of the Right to Bargain

The Board applies a clear and unmistakable waiver

standard to determine whether a union has waived its right to

bargain about a mandatory subj ect of bargaining during the

term of a collective-bargaining agreement. 60 The Board will

find a waiver if the contract either expressly or by

necessary implication confers on management a right to

unilaterally take the action in question. 61 In interpreting

the parties agreement, the relevant factors include: ( 1) the

wording of pertinent contractual provisions; ( 2) the parties

bargaining history; and ( 3) the parties past practice. 62

The Board has found a waiver based on contract language

where there is an express reference to the specific type of

decision that the employer has implemented unilaterally. 63

Thus, in Ingham Regional Medical Center, the Board adopted an

Administrative Law Judge s decision that the union waived its

right to bargain about a subcontracting decision where the

contractual management-rights clause expressly reserved to

management the right to use outside assistance or engage

independent contractors to perform any of the Employer s

operations or phases thereof ( subcontracting) [ . ] 64 This

right was vested exclusively in the Employer and was not

60 See Provena St. Joseph Medical Center, 350 NLRB at 810-11.

61 See id.

at 812, fn. 19.

62 See Johnson-Bateman Co. , 295 NLRB 180, 184-89 ( 1989) ( no

waiver of right to bargain about drug/alcohol testing

requirement where the management rights clause was generally

worded, issue was not fully discussed and consciously

explored during negotiations, and past practice of union

acquiescence to other unilateral work rule changes did not

waive the right to bargain about such changes for all time) .

63 See, e. g. , Ingham Regional Medical Center, 342 NLRB 1259,

1261-62 ( 2004) ( under the management-rights clause, the

employer expressly reserved the right to subcontract) ; Allison

Corp. , 330 NLRB 1363, 1364-65 ( 2000) ( management-rights clause

specifically, precisely, and plainly granted the employer

the exclusive right . . . to subcontract) .

64 See 342 NLRB at 1260, 1261-62.

NLRB-FOIA-00010906

Case 19-CA-32431
- 27 -

subj ect to arbitration. 65 Although another contractual

provision required the employer to provide 60 days notice and

discuss with the union any subcontracting decision that

would cause unit employees to be laid off, the words discuss

and bargain were found not synonymous in the parties

contract. 66

In this case, Section 21. 7 of the parties agreement

specifically, precisely, and plainly 67 granted Boeing the

right to offload work to a facility not covered by the

agreement. As in Ingham Regional Medical Center, the other

provisions of Section 21. 7 that required Boeing to provide the

Union notice and an opportunity to review and recommend

alternatives did not require the Employer to bargain over an

offloading decision.

The Union does not dispute that Section 21. 7 contains a

waiver but asserts instead that the Employer may not take

advantage of the waiver. Specifically, the Union maintains

that a contractual waiver cannot be applied to a decision that

is unlawfully motivated. But there is no authority for the

proposition that an unlawful motive negates a contractual

waiver; rather, the cases on which the Region and Union rely

hold that a contractual waiver is no defense to a Section

8( a) ( 3) violation. 68

The Union s other arguments against application of the

waiver are also unavailing. Thus, the Union asserts that the

contractual waiver does not apply because the parties entered

negotiations for a new contract. However, during those midterm negotiations, their existing contract -- including

Section 21. 7 -- continued in effect. The Union also contends

65 Id.

at 1260.

66 Id.

at 1262.

67 See Allison Corp. , 330 NLRB at 1365.

68 See Reno Hilton, 326 NLRB 1421, 1430 ( 1998) , enfd.

196 F. 3d

1275 ( D. C. Cir. 1999) ( merely because the Respondent has

negotiated the unfettered right in a collective-bargaining

agreement to contract out work at any time, such right . . .

does not unfetter and insulate the Respondent from the

sanctions of the Act prohibiting it from discriminating)


; RGC

th
( USA) Mineral Sands, Inc. v. NLRB, 281 F. 3d 442, 450 ( 4 Cir.

2002) ( enforcing Board decision finding Section 8( a) ( 3)

violation on grounds that, even if contract authorized

employer to unilaterally alter shift assignments, an employer

cannot exercise contractual rights to punish employees for

protected activity) .

NLRB-FOIA-00010907

Case 19-CA-32431
- 28 -

that the waiver cannot extend to work transferred after the

contract s expiration in September 2012, but Boeing made its

final decision in 2009 and expects to open the second line in

South Carolina in mid 2011. 69 The Union s estoppel argument

also lacks merit. While Boeing took the position that the

notice and review provisions in Article 21. 7 did not apply

because no employees will be laid off, Boeing is not thereby

estopped from asserting the waiver provision.

Moreover, Boeing s request to negotiate mid-term changes

to the parties agreement did not subj ect it to the

traditional Section 8( a) ( 5) bargaining obligations. 70 Absent

a contractual reopener provision, parties are under no

obligation to bargain over proposals for mid-term

modifications. 71 For this reason, we do not reach the

question of whether Boeing engaged in surface bargaining in

the fall of 2009, bargained to a valid impasse, or unlawfully

failed to provide information relevant to those negotiations.

IV. The Appropriate Remedy

We conclude that special remedies must be fashioned in

the unusual circumstances of this case.

First, with respect to the Section 8( a) ( 1) violations,

which had a particularly chilling impact upon employees, the

Region should seek a notice reading by a high-level Boeing

official, to insure that employees learn about their statutory

69 Thus, if there is a duty to bargain over a relocation

decision, it arises when the decision is announced and not

when it is ultimately implemented. See, e. g. , Bell Atlantic

Corp. , 336 NLRB 1076, 1086-89 ( 2001) ( union waived right to

bargain over employer s decision to close facility and

transfer work to nonunion facility where it received notice of

decision in August and did not request bargaining until

December, even though no unit work would be relocated before

the following April) .

70 See St.

Barnabas Medical Center, 341 NLRB 1325, 1325 ( 2004)

( union did not incur traditional bargaining obligations by

requesting that employer meet to discuss feasibility of wage

reopener, and employer violated Section 8( a) ( 5) by

unilaterally implementing wage increases after an impasse in

those negotiations) .

71 See Boeing Co. , 337 NLRB 758, 763 ( 2002) ( employer did not

incur bargaining obligation by agreeing to union s request to

consider midterm modification) ; Connecticut Power Co. , 271

NLRB 766, 766-67 ( Section 8( d) does not require an employer

who suggests a midterm contract change to negotiate about it) .

NLRB-FOIA-00010908

Case 19-CA-32431
- 29 -

rights and gain assurance that Boeing will respect those

rights. 72 The notice reading is particularly effective if

read by an official who personally committed some of the

violations, or read by a Board agent in his presence, in order

to dispel the atmosphere of intimidation he created. 73

Finally, to remedy the Section 8( a) ( 3) violation, the

Region should seek an order requiring Boeing to maintain the

second line in Washington. At the time of the discriminatory

conduct, Boeing intended to use the second line to assemble

three 787 aircraft each month, while assembling seven 787

aircraft each month on the first line in Everett. At present,

even the first line is not producing up to capacity because of

problems with suppliers and FAA certification. Thus, the

Region should seek an order requiring that, as Boeing

production increases, the first ten aircraft assembled each

72 See, e. g. , Homer D.

Bronson Co. , 349 NLRB 512, 515 ( 2007) ,

enfd. 273 F. App x 32 ( 2d Cir. 2008) ( notice reading is an

effective but moderate way to let in a warming wind of

information, and more important, reassurance) ; Federated

Logistics & Operations, 340 NLRB 255, 258 ( 2003) , affd. 400

F. 3d 920 ( D. C. Cir. 2005) ( employees will perceive that the

Respondent and its managers are bound by the requirements of

the Act) .

73 Three Sisters Sportswear Co. , 312 NLRB 853, 853 ( 1993) ,

enfd. mem. 55 F3d 684 ( D. C. Cir. 1995) , cert. denied 516 U. S.

1093 ( 1996) . See also, e. g. , Homer D. Bronson Co. , 349 NLRB

at 515 ( reading by president of manufacturing, who personally

delivered speeches threatening plant closure or relocation) ;

Texas Super Foods, 303 NLRB 209, 209 ( 1991) notice reading by

owner and president who signed unlawful letters to unit

employees, drafted unlawful speech threatening j ob losses, and

personally gave the speech to at least two groups of

employees) .

NLRB-FOIA-00010909

Case 19-CA-32431
- 30 -

month be assembled by the Puget Sound unit employees and that

the supply lines for these aircraft be maintained in the Puget

Sound and Portland facilities. 74

B. J. K.

ROFs - 9

H: ADV. 19-CA-32431. Response2. Boeing. dlw

74 At this time, we do not reach a decision on the Union s

request for preliminary inj unctive relief. The Region should

reassess whether Section 10( j ) relief is warranted after the

case is tried before the Administrative Law Judge. In the

meantime, the Region should put evidence in the record

regarding the chilling impact of Boeing s violative statements

and conduct to support the notice-reading remedy. This will

facilitate use of the administrative record to demonstrate in

a subsequent Section 10( j ) proceeding that preliminary

inj unctive relief is j ust and proper.

NLRB-FOIA-00010910

.M E M

atcna C 1--,J1 q.

Cho -,(Ict

N W obs IN W autos I N M om es IN w source I Free C lassifieds Iseattletim es com

T he Seattle T im es C om pany

(Tj1)cScaffleirAtues

W i-rof E ightPulit-r Prim

Q uick links

T raffic I M ovies

B u sin ess

T ech n o lo g y

T oday's events

R estaurants

V ideo

P hotos

S earch

O urnetm rksites

Interactives I B logs I F orum s I S ubscriber S ervices

seattletim escom

I A dvanced

Y our account I L og in I C ontact us

TV W eekly m agazine D on't miss ouf on your FREE SAM PLES Sunday,June 12 & 19

-- 7 -

R ioting in V ancouver follow ing

tan ey P loss

er the V ancouver C a ucks' 4-0 loss

the Stanley C up

G of
am fans
e 7 of
Bs,
ostcrow
on inds
rioted In

Vfinal
ancouver,setting cars ablaze,

sm ashing w indow s and dancing & top

vehicles

O "num
111.1

-i" ed--'" "' '


Parents agonlze ; ; Ids'.eight

O L

9 na fy pul !,,,hd V )-d)


G Q C om m ents (150)

6 i:;V

0 E -r-lail article

14,g
5

Print

V a-,%

21".O, Zi!

Q S hare

tg

A lbaugh: B o ein g 's 'first p referen ce' is to build p lan es in


P u g et S o u n d region
w a-it i" oc' f- bw l-l rc
-- vl A ,j-, rcls (,E () J,T 1A lr, ),-- SO 0 VV,11h,1 1LO rstw e 5 w na-c
str, -,,s
l ,f , iew a g .) m n i,d s F.,c;
n x -).) V f! v-,k'IF "hinst";

T eem struggle

............oc
.
at'lght

Piloting barge. on tire C olum bia R iver

0S

B y the U ne

E"

B y D om inic G ates
S ea ttle T im es a ero sp a ce rep o rter
4 PR E V

Jim A lb au g h , ch ief ex ecu tiv e o f B o ein g C o m m ercial


A irp lan es, said M o n d ay th a t e v e n th o u g h th e

1 of 2

N EX T 1,

A vatar

?v ,T he

L , ditlllllk Exhibit!"

. . ......
. . . n s at E M P

ftyffom m w m anure

M orevideos

co m p an y is creatin g a n ew 7 8 7 D ream lin er a sse m b ly

lin e in S o u th C aro lin a, W ash in g to n sta te is his

p referred lo catio n fo r b u ild in g fu tu re a irp la n e s.

B u t h e a tta c h e d a co n d itio n : T h e P u g e t S o u n d reg io n

w ill b e fav o red o n ly if th e M ach in ists u n io n


m o d e ra te s its fu tu re w a g e d e m a n d s a n d a v o id s
strik es.
"T h is is w h e re o u r p eo p le w an t to live. T h is is w h ere
w e w an t to b e . W e'v e h ad a g re a t p a rtn e rsh ip w ith

ItM L

I 'A.

1
tD enlarge

K LN

th e p eo p le o f W ash in g to n , an d I h o p e it c o n tin u e s for

a lo n g , lo n g tim e," h e said . "I c a v e a t th a t b y sa y in g ,

it's g o in g to b e a m u ch m o re co m p etitiv e

en v iro n m en t o u t th e re in th e fu tu re. A n d w o rk

a n y p la c e is n o t a n en titlem en t."

In a n ex clu siv e in terv iew , A lb au g h a lso s a id th e

C o m p an y w ill o u tso u rc e le ss w o rk in th e fu tu re. H e

If y o u fan cy y o u rse lf a

stro n g ly h in ted th a t B o ein g w ill n e v e r a g a in


o u tso u rc e th e w in g s o f a n airp lan e, a s it d id th e 7 8 7

c o d e w arrio r, th in k a b o u t

w in g s to M itsu b ish i o f Ja p a n .

flex in g th o se n in ia co d in g

A lb au g h a lso said B o ein g n e e d s to re sto re th e

sk ills w ith A m azo n

c o rp o ra te cu ltu re th a t m a d e its "ico n ic e n g in e e rs" as

in flu en tial a s its b u sin e ss e x e c u tiv e s.

H e said th at if B o ein g w in s th e A ir F o rce ta n k e r

R elated

M ak e an Im p act, C h eck olut

C o n tract, E v erett w ill g e t a n e x p a n d e d ro le. A n d h e

E 33W atch the extended interview

w w w .a m a zon.ccm /ca

e x p e c ts B o ein g o n c e ag ain to o u tp ro d u c e arch riv al


A irb u s in a co u p le of y e a rs.

a S o keeping B oeing happy w ill be easy. right'? R ight? I

T alton

B o ein g 's n ex t n ew airp lan e a fte r th e D ream lin er w ill

c, A rchive I B oeing C om m ercial chief C arson replaced

by defense head A lbaugh

d eterm in e th e fu tu re o f a e ro sp a c e in th e P u g e t
S o u n d reg io n A lb au g h said th a t w h e n th e tim e

c o m e s to c h o o se a final a sse m b ly site fo r th a t p la n e ,

Jim A lbaugh

h e d o e sn 't w an t to h o ld a n o p e n C o m p etitio n a s th e
co m p an y did in 2 0 0 3 fo r th e 7 8 7 D ream lin er.

Education. B achelors degrees in m athem atics and phys" from W


illam ette

from C
olum bia

and
unw ersay,

a m asters degree in civil en gineering

U nN ersity

"if I'm in v o lv ed , I'm n o t g o in g to h a v e a co m p etitio n

re e rs .

C hief executive of B oeing C om m ercial A irplanes

B orn: m ay1950inR ichland

engineer on

as a project

1975-1996B egan hiscareer w ithR ocketilyne

NLRB-FOIA-00010911

like that," A lbaugh said. "T he com m itm ent I can


give
you is that the first preference is to put the w ork
here."
H e said B oeing didn't pick S outh C arolina for
expansion last year because of W ashington's tax
rates or regulatory system . N or w as ita q uestion of
chasing low w ages.

to

the board that itchoose C harleston over E verett for a


second 787 final-assem bly line.

part ofR ockw ell


1996: B oeing acquired R ockw ell's aerospace and defense businesses,

including R ocketdyne, for $3 billion


1098-2002: President, then C E O ,of Boeing's spa" and com m unications
group H e led a Push for grow th in com m ercial and m ilitary satellite and

rcicket-launch system B ut the satellite division ran into serious qualry,


issues,and the m arket for com m ercialsatellites collapsed after
the dot-com
bubble burst.in 2002 and 2003, B oeing took m ore than $4 billion in w rite-

dow ns on its satellite and launch businesses

"T he overriding factor w as not the business clim ate.


A nd itw as not the w ages w e an- paying today,"
A lbaugh said. "it w as thatw e can't afford to have a

w ork stoppage every three years A nd w e can't affO rd


to continue the rate of escalation of w ages
A lbaugh said itw as he w ho last fall recom m ended

presi
dentof
ofthe
operat
ions on
cleanup
Rear
o csiktee tc
H anford
nucl
lias
H eiwAas
Dneer
eltRa ocket
an and
rocket
engi
and ldyne,
s

atprogram
e, ""

by then

of
and the space shuttle H e r -e to becom e president

]:,,V a

t3 f :
-t,

L -, V le t: sit
0in, t . _ ?
5,

L F

11114

1 il 7 i 1114

V 4 -

E n tertain m en t I T o p V id eo I W orld I O ffb eat V id eo I S ci-

T ech

2002-2D D 9: CE O of B oeing's defense and space division H e shifted its

focus from building airplanes to designing com plex integrated defense

system Several m ajordefense projects failed or w ere severely out back.

m ost recently the A rm y's Future C om batSystem s program B ut profits from

other p rojects and from m ature delense program rem ained steady

A lbaugh w asn'theld personally responsible for tw o m ajor scandals that

w as barred from governm ent launhea

B oeiet
ngary
tenure
n hi
earlhs
y iaft
enupt
for
20ed
m ont
ers usi
ng p ropri
Lockheed! Martin data in bidding for

federalrocket-launch contracts, and itlostthe onginal2001 A irFor" tanker

contract aftera B oeing executive gave illegalfavors to a d efense.


procurem ent o fficial

S eptem ber 2009: C E O of B oeing C om m ercial A irplanes.S

shopping

his

appointm ent. A lbaughhas gathered around him an advison;gro., .1 form er


B oeing executives.shuffled his leadership team and h eld a m anagem entstrategy retreat L ast week.B oeing gave A llbaugh a special b onus of m ore
than $3 m illionin shares in recognition ofhis new role.on top ofhis regular

annual bonus ofm ore than $1 m illion inshares

11at G lassy b ab y glo"', "or

a
I t-le sceo rld s S a le oil

sa tu rd l., J jop 18

In the interview M onday, he conceded that the choice 5- 8-9

of C harleston, w here B oeing m ust build a new factory

and hire w orkers from an inexperienced labor pool, is

expensive and risky B ut he said the cost of the strike in fall 2008 outw eighed that.

O vkaeo bprnf;/ t% un,

H illf-),arl, 3." R., '4,n

A lthough m any union m em bers believe that the decision to go to C harleston w as m ade long before last

fall's final negotiations w ith the M achinists, A lbaugh insisted itw as not.

"Iw ent into this feeling that ifw e could get it done here, w e could save the com pany a lot of m oney,"

A lbaugh said. 'T here w ere tw o things w e needed, and w e couldn't get those things d one

H e repeatedly m ade clear that those tw o things - first, no strikes; second, low ered escalation ofw ages in
the future - rem ain d eal breakers for placing future w ork here W ithout that, he said, the com pany w on't
be com petitive not only against A irbus but also against loom ing threats from planem akers in C anada,

B razil, C hina and perhaps R ussia.

6,Lxm ,

S"A if?n"PPI g

C -d e,- furn- hw s

"T his is a great w orkforce here T hey are m agicians," A lbaugh said. "M y job is to m ake sure they have

jobs five years from now , 10 years from now , 20 years from now .

"ifw e don't have a com pany, nobody has jobs," he said. 'T h at's the w orst outcom e for P uget S ound."

A lbaugh said he w ill w ork w ith the M achinists union to achieve his goals "T here are m any things w e

agree on. I hope there are m ore things w e can agree on," he said.

C ertainly, w hen the M achinist contract talks next com e around in 2012, the union faces the h arsh real'ty

that B oeing has a ready alternative ifthey d o notagree.

B oeing's other union, the S ociety of P rofessional E ngineering E m ployees in A erospace (SPE E A ), w ill be

pleased that A lbaugh, w ho started as an engineer, proclaim ed an overarching respect for that discipline

and said he w ill elevate the engineering role at B oeing.

"W hen I grew up, the sheriff in tow n w as the chief engineer," he said.

,k0_U I N I A

O n the 787 program , he said, o utsourcing decisions w ere driven by the com pany's business decision

m akers rather than its engineers

"W e outsourced too m uch. ...W e didn't consider the extent of the risk w e'd take on by going outside,"
A lbaugh said "W e w ill m ake sure the voice of the engineers is m uch m ore involved in the decision m aking
as w e go forw ard."

I
2
3

W om en trust G PS, drive SUV into M ercer Slough

Ugly outbur, in B C after C anucks loss

W om an ch arg ed w ith b elo w -th e-b elt a ssa u lt I T he

T o protect its exclusive technical skills and intellectual property, he said B oeing w ill "build the w alls around

H as Ichiro fo u n d so m eth in g ? M arin ers su re h o p e

so I M arin ers B log

W ife to rm en ted for 8 y ears b efo re callin g 911

p ro secu to rs sa y

M arin ers call u p to p p ro sp ect D u stin A ckley after 3-

1 w in

M an ju m p s to d eath from d o w n to w n S eattle

h o tel I T h e B lo tter

H ow lo n g w ill y o u live? D ep en d s o n th e co u n ty

A P so u rce

th o s e v e ry h ig h ."
H e w e n t o n to list s o m e th in g s th a t B o e in g sh o u ld " n e v e r o u ts o u rc e ," in c lu d in g a irp la n e flig h t c o n tro ls, th e
w in g s a n d th e c o m p o site fu s e la g e .
th e c o m p o s ite fu s e la g e in Italy ,
A sk e d w h y B o e in g is h a v in g th e 7 8 7 w in g s m a d e in J a p a n a n d p a rts o f
A lb a u g h sa id p o in te d ly , "W e ll, w e 'll b u ild o th e r a irp la n e s ."

B lo tter

H o u se D erris to rrieet ab o u t W ein er

c a se

H is c o m m e n t stro n g ly s u g g e s te d th a t th o s e p a rts w o n 't b e o u ts o u rc e d

10

fo r fu tu re a irp la n e s .

O n th e c o m p a n y 's c o m p le x re la tio n sh ip w ith C h in a , A lb a u g h s a id C h in a w ill b e c o m e a c o m p e titiv e

C alifo rn ia d efen siv e tack le p ick s H u sk ies I L JW

fo o tb all

M o st v ie w e d im a g e s

a irp la n e m a k e r a n d y e t a ls o o ffe rs a m a s s iv e m a rk e t o p p o rtu n ity

W h e n th e U .S

re c e n tly so ld B o e in g m is sile s to T a iw a n , it d re w th re a ts o f b o y c o tt fro m

C h in a

A n d th e

p ro p o s e d C h in e s e C 9 1 9 s in g le -a isle je t c o u ld b e a th re a t to B o e in g 's 7 3 7 . A t th e s a m e tim e , C h in a w ill

b u y 2 0 0 a irp la n e s a y e a r fo r th e n e x t 2 0 y e a rs , a n d

B o e in g w a n ts to su p p ly a b ig p o rtio n o f th o s e .

"It's a b ig m a rk e t fo r u s," A lb a u g h sa id . T h e U .S . a n d C h in e s e " e c o n o m ie s a re d e p e n d e n t o n e a c h

o th e r

NLRB-FOIA-00010912

now and for the long haul. T here's a lot to be lost on b oth sides ifw e don't have a good relationship."

H e said to "stay tuned" for the appointm ent of a C hinese-A m erican executive to help prom ote sales in

C hina.

O n the A ir F orce tanker com petition, A lbaugh said the decision to cancel the 2008 contract aw ard to

N orthrop G rum m an w as "nothing to do w ith politicV but w as due to a "flaw ed" procurem ent selection

process.

A nd if B oeing w ins the new tanker com petition, he m ade clear it w ill m ean m ore w ork for E verett than

originally envisaged in the first tanker com petition in 2001.

T o m ake the B oeing bid m ore c ost-efficient, A lbaugh said, m any of the structural m odifications to the 767

w ill be done on the assem bly line in E verett, a lthough the very specific refueling equipm ent - hose,

drogue and fuel-tank bladder - w ill be installed in W ichita, K an.

In other good n ew s for B oeing's local w orkers, A lbaugh said the R enton 737 factory w ill definitely not slow

production this year, a nd that the rate m ight even go up

"It's a question of do w e keep itthe sam e or increase," he said.

R egarding the current com petition w ith A irbus, A lbaugh noted thatbeing second in a d uopoly m arket is

equivalent to being in last place. A irbus h as delivered m ore planes than B oeing every year since 2003.

"Idon't w ant to be in last place," A lbaugh said. "W hen w e start taking d elivery of the 7 87s in quantity,

starting in 2012, 2013, w e should take the num ber-one position."

D om inic G a tes.206-464-2963 o r dqa tes(D sea ttletim escom

53 E-m ailarticle

6 Print

a Share

M ore from our netw ork

M orB .frqm .9heW eb

'R idiculous': M an tossed off plane for dropping obscenity


From Seattle TimesN ation
& W orld

EasyJet to offer nights from Southend airport From Financial

Tim es

Juror and defendantguilty after Facebook chat From Seattle


Times Business& Technology
M icrosoft: a dangerfor Skype users? From SeattleTim es

Business& Technology
Tau's new line ofsexy Brazilian bikinis heats things up for

Boeing Scores Touchdow n in India From The MotleyFool

y
nd
sum m er From NW sourosD ailFi
Foreign dem and for w eapons keeps defense firm s healthy

From Seattle TimesBusiness& Technology

W here The Rich A re M oving FromcNBc

Q antas C uts $750 m illion in Spending; to Cancel O rders

From C N B C

BofA to give aw ay houses From BankRatecom

M ore B u sin ess & T ech n o lo g y

U PD EA
0946A M

E xxon M obil w ins ruling In A laska oil spill case

U PD A-09
T E
32A M

B ank stocks push indexes higher; oil prices dip

U PD A-T08:
E
04
A M

Ford C EO M ulally gets $56.5M in stock aw ard

U PD A.T07E54

AM

U nderw ater m ortgages rise as hom e prices fall

N E W-09

43 AM

W arner B ros. to offer m ovie rentals on F acebook

M ore B usiness & Technology headlines

C o m m en ts (150)

T here itw as, the first shot fired over the bow N ow its up to the U nion to decide if they w antto exist or

1 Jum ptom m m ent

expire. M y bet is they choose to...


T hat is good new s for the hard w orking E ngineers at B oeing w ho have not gone on strike once. I think

J-P i- -t

B oeing know s that the future ofthe com pany.

I really hope that B oeing once again to regain #1 position by its engineering resources. T here have

J.m o 1-nim -11

been so m any m istakes in the past and w e also.. F G !,drM ;!"- ;W c) in C .) PIA b,
R ead all com m ents I S hare y our thoughts

O urnetw orksites

r seattletim escom

The StiattlL Tinies C om pany


A bout the com pany

I Advanced

Services
Y our account /Log in

H om e
Local
N atiorifflorld
B usinessfrech
Entertainm ent
Living
Travel

Jobs
A utos
H om es
R entals
C lassifieds
Shopping

Personals

Subsr )er Services

Subscribe

e-Editon

Pay foryour subscription

Subscriber rew ards

Tem porary stops

O ther editions

NLRB-FOIA-00010913

Microsoft Outlook

From:
Sent:
To:
Subject:

Kearney, Barry J.

Tuesday, November 16, 2010 3:33 PM

Solomon, Lafe E.; Mattina, Celeste J.; Ahearn, Richard L.

FW : Boeing Co.

From: Willen, Debra L

Sent: Tuesday, November 16, 2010 12:09 PM

To: Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam; Omberg, Bob

Subject: Boeing Co.

In case youre interested --

http://www.charlestonbusiness.com/home/search?q=Boeing&url=

Boeing Executive says S.C. is cornerstone of Companys future

http://www.nytimes.com/2010/11/11/business/11boeing.html?src=busln

excellent summary of problems Dreamliner has faced in the last year, including recent fire, Rolls Royce engine problem,

and problems with Italian company producing the tails

NLRB-FOIA-00010914

Microsoft Outlook

From:

Kearney, Barry J.

Sent:

Monday, November 22, 2010 7:50 AM

To:

Solomon, Lafe E.; Mattina, Celeste J.

Subject:

FW: "Turbulence: Boeing and the State of American Workers and Managers"

-----Original Message----From: Szapiro, Miriam

Sent: Sunday, November 21, 2010 8:18 PM

To: Willen, Debra L; Farrell, Ellen; Sophir, Jayme; Kearney, Barry J.

Subject: Turbulence: Boeing and the State of American Workers and Managers

http://www.nytimes.com/2010/11/21/business/21shelf.html?_r=1&ref=books

NLRB-FOIA-00010915

Microsoft Outlook

From:

Kearney, Barry J.

Sent:

Tuesday, November 23, 2010 10:29 AM

To:

Solomon, Lafe E.; Mattina, Celeste J.

Subject:

FW: Boeing's South Carolina facility

Attachments:

1109001312.jpg

-----Original Message----From: Willen, Debra L

Sent: Tuesday, November 23, 2010 10:04 AM

To: Katz, Judy; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Omberg, Bob; Szapiro, Miriam

Subject: Boeing's South Carolina facility

Our on-the-scene investigator Judy Katz snapped this picture in Charleston last week.

NLRB-FOIA-00010916

NLRB-FOIA-00010917

Microsoft Outlook

From:

Kearney, Barry J.

Sent:

Friday, January 28, 2011 4:06 PM

To:

Solomon, Lafe E.; Mattina, Celeste J.

Subject:

FW: Boeing

Attachments:

ADV.19-CA-32431.Response2.Boeing.dlw.doc

Boeing memo for your approval. I hope to talk to Kilberg tomorrow. Ill keep you posted

From: Willen, Debra L

Sent: Friday, January 28, 2011 3:57 PM

To: Kearney, Barry J.

Cc: Szapiro, Miriam

Subject: Boeing

Ive made Jaymes changes and put the draft into final. Here it is

NLRB-FOIA-00010918

Exemption 5

NLRB-FOIA-00010919

Exemption 5

NLRB-FOIA-00010920

Exemption 5

NLRB-FOIA-00010921

Exemption 5

NLRB-FOIA-00010922

Exemption 5

NLRB-FOIA-00010923

Exemption 5

NLRB-FOIA-00010924

Exemption 5

NLRB-FOIA-00010925

Exemption 5

NLRB-FOIA-00010926

Exemption 5

NLRB-FOIA-00010927

Exemption 5

NLRB-FOIA-00010928

Exemption 5

NLRB-FOIA-00010929

Exemption 5

NLRB-FOIA-00010930

Exemption 5

NLRB-FOIA-00010931

Exemption 5

NLRB-FOIA-00010932

Exemption 5

NLRB-FOIA-00010933

Exemption 5

NLRB-FOIA-00010934

Exemption 5

NLRB-FOIA-00010935

Exemption 5

NLRB-FOIA-00010936

Exemption 5

NLRB-FOIA-00010937

Exemption 5

NLRB-FOIA-00010938

Exemption 5

NLRB-FOIA-00010939

Exemption 5

NLRB-FOIA-00010940

Exemption 5

NLRB-FOIA-00010941

Exemption 5

NLRB-FOIA-00010942

Exemption 5

NLRB-FOIA-00010943

Exemption 5

NLRB-FOIA-00010944

Exemption 5

NLRB-FOIA-00010945

Exemption 5

NLRB-FOIA-00010946

Exemption 5

NLRB-FOIA-00010947

Exemption 5

NLRB-FOIA-00010948

Exemption 5

NLRB-FOIA-00010949

Exemption 5

NLRB-FOIA-00010950

Exemption 5

NLRB-FOIA-00010951

Exemption 5

NLRB-FOIA-00010952

Microsoft Outlook

From:

David Campbell <campbell@workerlaw.com>

Sent:

Thursday, March 31, 2011 9:23 AM

To:

Kearney, Barry J.

Cc:

Corson Christopher; Jude Bryan; Carson Glickman-Flora; Solomon, Lafe E.

Barry, Thanks for calling me back yesterday. We are waiting for Boeings call. As I mentioned in our call,

while Boeing is talking good faith they are capitalizing on chilling union activity by expanding their

operations to create duplicate parts manufacturing in South Carolina (even though there is unused capacity in

the bargaining unit). Just last week Ray Connor was quoted in the following

Article: http://www.postandcourier.com/news/2011/mar/26/parts-plant-marks-boeings-ascent/

Boeing already employs more than 1,300 workers at a similar plant at its Everett, Wash., aircraft assembly

headquarters, but company executives said early last year that they wanted to duplicate their critical jet

manufacturing operations in Charleston in case of W est Coast labor strikes or other work stoppages. A walkout by

the International Association of Machinists and Aerospace W orkers in 2008 cost the company an estimated $1.8

billion.

A similar local union at the North Charleston site voted to disband in September 2009, setting the stage for

Boeing to announce six weeks later it would build its new aircraft assembly plant in the Lowcountry.

"All roads to the 787 lead through South Carolina," Ray Conner, vice president and general manager of supply

chain management and operations for Boeing Commercial Airplanes, said. "We expect to do big things here in

South Carolina."

We believe that Boeing continues to merely play for time, while it capitalizes on its unlawful conduct. We are

willing to meet if Boeing genuinely wants to resolve this matter. But we believe instead Boeing will wait to call

us late in the week, and then find some reason for further delay. Boeing has been less than honest in its claims

in this case, including three claimed facts (that we know about) which were plainly not the case. For at least

five months they have led your office to believe they have some interest in resolving this matter while

continuously reinforcing their undisputed and unambiguous chilling message to their workers and the

nation. Boeing is forcing the issue which we ask be resolved without delay: Can Boeing relocate jobs to a

newly decertified site because its union employees strike? If so, why cant any employer discriminate in favor

of non-union employees? Such a result would leave 8(a)(3) a dead letter, and effectively overrule by inaction

the Boards runaway shop cases as well as its recent decision in

Paraxel, 356 NLRB No. 82 (2011).

Boeing is winning this

point of law by delay and default. We hope to hear from Boeing and if possible promptly reach a settlement.

Absent this, we respectfully request that the General Counsel issue a complaint. Failure to do so will harm tens

of thousands of Boeings employees and create a union-busting roadmap that will be emulated across the

US. Surely, that is not to be the legacy of this General Counsel and Board.

Thanks, Dave

Sincerely, David Campbell

campbell@workerlaw.com

NLRB-FOIA-00010953

Schwerin Campbell Barnard Iglitzin & Lavitt

18 W Mercer Suite 400

Seattle, W ashington 98119-3971

Phone (206)285-2828: FAX (206)378-4132

This communication is protected by the attorney client and attorney work-product privileges. Please do not copy, forward

or append.

NLRB-FOIA-00010954

Microsoft Outlook

From:

Kearney, Barry J.

Sent:

Saturday, April 02, 2011 2:37 PM

To:

Solomon, Lafe E.

Cc:

Mattina, Celeste J.

Subject:

FW: Call from Boeing

When convenient let's talk Monday morning

-----Original Message----From: Corson Christopher [mailto:ccorson@iamaw.org]

Sent: Friday, April 01, 2011 7:29 PM

To: Kearney, Barry J.

Cc: David Campbell; Canter Robin

Subject: Call from Boeing

Barry,

Thank you for talking to Dave Campbell and me earlier today.

Boeing's lawyer, Brett Gerry, called me at 5:00 pm. He said he is the lead lawyer for Boeing's commercial division.

His proposal was as follows. Since Joe Albaugh and Tom Buffenbarger are currently scheduled to have dinner in May,

Albaugh thinks that would be a good time to talk about these issues. I asked if the company had a proposal at this time,

and he said that there isn't one -- at least nothing that he would tell me about.

I talked with Tom Buffenbarger after Gerry called. Tom's recollection is that the dinner is set for May 16th or 17th. As

you can imagine, the thought of putting off any attempt to have a serious discussion with us for another month and a

half -- and even then just over dinner -- is simply unacceptable. The company is not being serious.

Frankly, I hope you as offended by this suggestion as we are. You and Lafe have worked very hard to bring about

discussions that could lead to a more comprehensive and tailored solution than we are likely to get from Board

processes and remedies. We have shown ourselves time and again to be serious about meeting in good faith with the

company. But you and we can't do it without Boeing, and it is crystal clear that Boeing is only interested in stringing us

all along.

Boeing made a commitment to you on Monday to contact us and then to tell you by the end of the week whether they

thought there were fruitful discussions with us to be had. I don't think that a company lawyer calling me at 5:00 on

Friday to say that the company has no proposal at all except that Albaugh and Tom Buffenbarger could discuss things

over an already-scheduled dinner in a month and a half comes close to satisfying what they promised you to do.

By mid-May the company will be much farther along in South Carolina, and our members in Puget Sound will, by that

time, know for sure that protected activity has become meaningless for them. Boeing hammers its retaliatory message

every day, and every day shows that the company is getting away with it. The Act means something, or it really doesn't.

The IAM sincerely appreciates all that Lafe and you have been trying to do, and we know that this case will be big. But

given what Boeing's chief officers have signaled to companies all across the country about how to retaliate against

organized workers for what the statute says is protected activity, this case needs to be big. You would like Boeing to talk

to us in good faith, and so would we, but it is crystal clear that such discussions are a false choice. The last three and a

NLRB-FOIA-00010955

half months (since the company met with Lafe and you in mid-December) show that they have no intention of engaging

with us. They have had months to call us and didn't, and they will shamelessly tell you anything to just keep playing for

more time.

The IAM hopes that time is up.

Thank you for all that we hope the Board will do, Chris Corson

Sent from my iPad

Christopher Corson

General Counsel

International Association of Machinists & Aerospace Workers

9000 Machinists Place

Upper Marlboro, MD 20772

301-967-4510 (office)

301-967-4594 (fax)

202-368-6484 (cell)

_____________________________________________________________

Notice: This message is intended for the addressee only and may contain privileged and/or confidential information. Use

or dissemination by anyone other than the intended recipient is prohibited.

____________________________________________________________

NLRB-FOIA-00010956

Microsoft Outlook

From:

Solomon, Lafe E.

Sent:

Monday, April 04, 2011 8:41 AM

To:

Kearney, Barry J.

Subject:

RE: Call from Boeing

I'm here if you want to talk.

-----Original Message----From: Kearney, Barry J.

Sent: Saturday, April 02, 2011 2:37 PM

To: Solomon, Lafe E.

Cc: Mattina, Celeste J.

Subject: FW: Call from Boeing

When convenient let's talk Monday morning

-----Original Message----From: Corson Christopher [mailto:ccorson@iamaw.org]

Sent: Friday, April 01, 2011 7:29 PM

To: Kearney, Barry J.

Cc: David Campbell; Canter Robin

Subject: Call from Boeing

Barry,

Thank you for talking to Dave Campbell and me earlier today.

Boeing's lawyer, Brett Gerry, called me at 5:00 pm. He said he is the lead lawyer for Boeing's commercial division.

His proposal was as follows. Since Joe Albaugh and Tom Buffenbarger are currently scheduled to have dinner in May,

Albaugh thinks that would be a good time to talk about these issues. I asked if the company had a proposal at this time,

and he said that there isn't one -- at least nothing that he would tell me about.

I talked with Tom Buffenbarger after Gerry called. Tom's recollection is that the dinner is set for May 16th or 17th. As

you can imagine, the thought of putting off any attempt to have a serious discussion with us for another month and a

half -- and even then just over dinner -- is simply unacceptable. The company is not being serious.

Frankly, I hope you as offended by this suggestion as we are. You and Lafe have worked very hard to bring about

discussions that could lead to a more comprehensive and tailored solution than we are likely to get from Board

processes and remedies. We have shown ourselves time and again to be serious about meeting in good faith with the

company. But you and we can't do it without Boeing, and it is crystal clear that Boeing is only interested in stringing us

all along.

Boeing made a commitment to you on Monday to contact us and then to tell you by the end of the week whether they

thought there were fruitful discussions with us to be had. I don't think that a company lawyer calling me at 5:00 on

Friday to say that the company has no proposal at all except that Albaugh and Tom Buffenbarger could discuss things

over an already-scheduled dinner in a month and a half comes close to satisfying what they promised you to do.

NLRB-FOIA-00010957

By mid-May the company will be much farther along in South Carolina, and our members in Puget Sound will, by that

time, know for sure that protected activity has become meaningless for them. Boeing hammers its retaliatory message

every day, and every day shows that the company is getting away with it. The Act means something, or it really doesn't.

The IAM sincerely appreciates all that Lafe and you have been trying to do, and we know that this case will be big. But

given what Boeing's chief officers have signaled to companies all across the country about how to retaliate against

organized workers for what the statute says is protected activity, this case needs to be big. You would like Boeing to talk

to us in good faith, and so would we, but it is crystal clear that such discussions are a false choice. The last three and a

half months (since the company met with Lafe and you in mid-December) show that they have no intention of engaging

with us. They have had months to call us and didn't, and they will shamelessly tell you anything to just keep playing for

more time.

The IAM hopes that time is up.

Thank you for all that we hope the Board will do, Chris Corson

Sent from my iPad

Christopher Corson

General Counsel

International Association of Machinists & Aerospace Workers

9000 Machinists Place

Upper Marlboro, MD 20772

301-967-4510 (office)

301-967-4594 (fax)

202-368-6484 (cell)

_____________________________________________________________

Notice: This message is intended for the addressee only and may contain privileged and/or confidential information. Use

or dissemination by anyone other than the intended recipient is prohibited.

____________________________________________________________

NLRB-FOIA-00010958

Microsoft Outlook

Farrell, Ellen

Tuesday, April 12, 2011 3:28 PM

Cleeland, Nancy

Solomon, Lafe E.; Kearney, Barry J.

RE: Boeing

ADV.19-CA-32431.Response2.Boeing.dlw.doc; ADV.19-CA-32431.factsheet.Boeing.dlw.doc

From:
Sent:
To:
Cc:
Subject:
Attachments:

Nancy

Attached are the memo, which issued yesterday, and the fact sheet.

Ellen

Ellen Farrell

Deputy Associate General Counsel

Division of Advice, NLRB

202-273-3810

Ellen.Farrell@nlrb.gov

From: Solomon, Lafe E.

Sent: Tuesday, April 12, 2011 2:36 PM

To: Kearney, Barry J.; Farrell, Ellen; Cleeland, Nancy

Subject: Boeing

Ellen, W ould you please send electronically to Nancy the Boeing Advice memo and fact sheet?

Nancy, W e anticipate that Region 19 will issue complaint next week. We can talk about it,

Exemption 5

. Thanks, Lafe

NLRB-FOIA-00010959

Exemption 5

NLRB-FOIA-00010960

Exemption 5

NLRB-FOIA-00010961

Exemption 5

NLRB-FOIA-00010962

United States Government

National Labor Relations Board

OFFICE OF THE GENERAL COUNSEL

Advice Memorandum

DATE:

April 11, 2011

S.A.M.

TO:

Richard L. Ahearn, Regional Director

Region 19

FROM:

Barry J. Kearney, Associate General Counsel

Division of Advice

SUBJECT:

The Boeing Company


Case 19-CA-32431

512-5006-5062
512-5006-5067
512-5036-8387
512-5036-8389
524-0167-1033
524-5029-5037
524-0167-1033
524-506

524-8307-1600

524-8307-5300

530-6050-0825-3300

530-6067-4011-4200

530-6067-4011-4600

530-6067-4011-7700

530-8054-7000

775-8731

The Region submitted this case for advice on several

issues relating to the Employers decision to place a second

assembly line at a nonunion facility rather than at the

facility where unit employees work on the original assembly

line.
Specifically the Region requested advice as to whether:

(1) the Employer violated Section 8(a)(1) by threatening to

place the second assembly line at a nonunion facility unless

the Union agreed to a long-term no-strike clause and by

repeatedly stating that its decision to place the second line

elsewhere was based on the units strike history; (2) the

Employer violated Section 8(a)(3) by deciding to place the

second assembly line at a nonunion facility because of the

units strike history, even though no unit employees have yet

to lose their jobs; and (3) the Employer violated Section

8(a)(5) by failing to bargain in good faith over its decision

about where to locate the second assembly line or whether the

Union waived its right to bargain under the parties

collective-bargaining agreement.

We conclude that the Region should issue a complaint

alleging: independent Section 8(a)(1) violations based on the

Employers coercive and threatening statements; and a Section

8(a)(3) violation based on the Employers decision to locate

the second line at a nonunion facility and to establish a

dual-sourcing supply program in retaliation for protected

activity.
However, the Region should dismiss the Section

8(a)(5) allegations because under the contract, the Union

expressly waived its right to bargain about the Employers

decision to offload unit work to a facility not covered by

the agreement.
To remedy the chilling effect of Boeings

Section 8(a)(1) statements, the Region should request, in

addition to the traditional remedies,


a notice reading by a

NLRB-FOIA-00010963

Case 19-CA-32431

- 2 -

high-level Boeing official.


To remedy the Section 8(a)(3)

violation, the Region should seek an order that would require

Boeing to maintain the surge line in the Puget Sound area.

Specifically, Boeing intended for the second line to assemble

three aircraft each month in South Carolina, while assembling

seven planes on the first line.


Thus, the Region should seek

an order requiring Boeing to assemble in the Puget Sound area

the first ten 787 aircraft that it produces each month and to

maintain the supply lines for those aircraft where they

currently exist, in the Puget Sound and Portland facilities.

FACTS

The Boeing Company is an international corporation

engaged primarily in developing and producing military and

commercial aircraft. Boeing has a long-established collective-

bargaining relationship with the International Association of

Machinists and Aerospace Workers (IAM) and certain IAM

District and Local Lodges.


The parties current collective-

bargaining agreement is effective November 2, 2008 through

September 8, 2012 and covers three separate bargaining units

of production and maintenance employees in three geographical

areas, the Puget Sound area in Washington; Portland, Oregon;

and Wichita, Kansas.

Section 21.7 of that agreement, entitled

Subcontracting, sets forth various notice periods and an

opportunity for the Union to review and recommend alternatives

to Boeing proposals to subcontract or offload unit work.

[O]ffloading work is defined as moving work from one

Company facility to another Company facility not covered by

this Agreement[.]
Less stringent notice requirements apply

to subcontracting and offloading decisions affecting less than

ten employees.
In addition, the notice and review process

does not cover certain work transfers listed in subsections

(a) through (d), including [d]ecisions to subcontract or

offload work due to lack of capability or capacity, or to

prevent production schedule slippage[.]


Section 21.7

concludes with the following language:

Anything in this Section 21.7 to the contrary

notwithstanding, it is agreed that ... the Company has

the right to subcontract and offload work, to make and

carry out decisions in (a) through (d) above, to enter

offsets and offset arrangements, and to designate the

work to be performed by the Company and the places where

it is to be performed, which rights shall not be subject

to arbitration. ...

NLRB-FOIA-00010964

Case 19-CA-32431

- 3 -

Boeing Introduces the 787 Dreamliner

The Puget Sound unit is comprised of approximately 18,000

employees working in Washington.


Historically these employees

have performed the final assembly of all Boeing planes.


In

late 2003, Boeing announced that it would place the assembly

line for its new 787 Dreamliner airplane in Everett,

Washington after the Washington State Legislature passed a tax

and subsidy incentive package totaling more than $3.2 billion.

That line opened in May 2007, with the capacity for producing

seven planes each month.

With the 787, Boeing departed from its previous practice

of manufacturing most of the aircraft parts with its own

employees and instead outsourced parts production to other

suppliers in the southeast U.S. and abroad.


For example,

Boeing contracted with Vought Aircraft Industries in North

Charleston, South Carolina for the manufacture of the aft

fuselage and with Mitsubishi Heavy Industries in Japan for the

manufacture of the wings.


Boeing repeatedly has had to

postpone the delivery dates for the aircraft, due primarily to

problems with suppliers and software issues.

Starting in mid 2008, the media began reporting that

Boeing would need to add a second 787 assembly line because of

its growing order backlog.


At about the same time, Boeing

entered negotiations with the Union for a successor

collective-bargaining agreement.
During those negotiations,

Company officials noted the need for a second assembly line

but did not discuss the matter further.

The 2008 Strike and Its Aftermath

On September 6, 2008, the employees struck in support of

the Unions bargaining position.


On October 6, 2008, Boeings

stock dropped to a four-year low.


That same day, CEO Jim

McNerney sent a long e-mail to Boeing employees about the

strike.
McNerney stated that he understood and shared the

frustration so many of you feel when we dont have the whole

team together working to meet the commitments weve made to

our customers and competing to win the new business that will

sustain and grow Boeing jobs[.]


McNerney went on to state,

[t]he issue of competitiveness as it relates to this strike

is a big deal[.]
He also tied labor disputes to problems

with Boeings customer relationships.


After asserting that

the Union had recommended that its members reject contract

offers and go on strike four of the last five negotiations

going back to 1995, he wrote, we believe this track record of

repeated union work stoppages is earning us a reputation as an

NLRB-FOIA-00010965

Case 19-CA-32431

- 4 -

unreliable supplier to our customers who ultimately provide

job security by buying our airplanes.1

The following day, Boeings Vice President for Government

and Community Relations Fred Kiga spoke at an aerospace

conference in Everett.
In a Seattle Times article, he was

quoted as stating, We cant afford to become known as the

strike zone[.]
He reportedly also told the conference that

labor unrest could drive Boeings decision on where to build

planes in the future.


In an interview after his speech, Kiga

reportedly stated that his strike zone comments had been

cleared by Boeing Commercial Airplanes CEO Scott Carson.


Kiga

noted that he and Carson grew up in and shared a love for the

Northwest; Kiga then said that they would hate to lose a

treasure like Boeing.

The strike lasted 57 days and ended on November 1, 2008,

when the parties signed the current contract. During the

negotiations, the Union had proposed to amend Section 21.7 to,

among other things, eliminate the waiver language quoted

above.
Boeing refused to agree to such an amendment, and the

language remained in the contract.

In early 2009,2 the media again began publishing reports

that Boeing needed to establish a second 787 assembly line.

On February 9, the Seattle Times reported that Washington

Senator Patty Murray had met with Boeings Senior Vice

President of Government Operations; he had informed her that

the CEO was sick and tired of the unions strikes and was

looking to put the second 787 line elsewhere.

On April 16, Boeing and IAM officials held their annual

summit in Chicago.
Management officials attending included

CEO McNerney, Boeing Commercial Airplanes CEO Carson,

Integrated Defense Systems CEO Jim Albaugh, and for the first

time, Vice President and General Manager of Supply Chain

Management & Operations Ray Conner.


IAM representatives

included International President Tom Buffenbarger, General

Vice President Rich Michalski, and the Directing Business

Representatives who represented Boeing employees, including

District 751 DBR Tom Wroblewski.


This was the first

opportunity for the parties to meet since the strike had

ended.
McNerney and Buffenbarger were the lead speakers.

McNerney stated that Boeings customers were losing confidence

1 In his
that the
occurred
1989 (48
2

e-mail, CEO McNerney exaggerated the number of times

Union had struck.


In actuality, prior strikes

in 1948 (140 days), 1965 (19 days), 1977 (45 days),

days), 1995 (69 days), and 2005 (28 days).

Dates are in 2009 unless otherwise noted.

NLRB-FOIA-00010966

Case 19-CA-32431

- 5 -

in the Company because of past strikes and the possibility of

future strikes.
He said that the parties had to come up with

a way to stop having labor disputes.


The general theme was

that management and labor should continue to meet to find ways

to avoid the problems of the past.

As a follow-up to this summit, Wroblewski and IAM

Aerospace Coordinator Mark Blondin met on June 23 in Seattle

with Conner and Boeings Vice President of Human Resources

Doug Kight.
The parties focused on how to build a better

relationship and improve communication. While Wroblewski had

an established relationship with Kight, Conner was new to

labor relations.
Wroblewski thought that one of the purposes

of the meeting was to get to know Conner.


At a subsequent

meeting on June 30 between Wroblewski and Conner, Conner

expressed Boeings concern that its customers did not have

confidence it could make timely deliveries because it had

experienced two strikes in the last five years and had

supplier issues.
For the first time, Conner raised the

prospect of a long-term collective-bargaining agreement as a

way to gain the customers confidence that they would get

their aircraft on time.

In early July, Boeing announced its intent to purchase

the Vought plant in North Charleston, South Carolina.


IAM

Local Lodge 183 represented the Vought production,

maintenance, and quality employees.


Boeing agreed to

recognize the Union but wanted to negotiate a new collective-

bargaining agreement.

On July 8, the Seattle Times reported that Boeings CEO

had informed Washington Congressmen Norm Dicks and Jay Inslee

that as a result of past strikes, the Company would place the

second line outside the Puget Sound area unless it could reach

a long-term contract with the Union. Boeing told the

Congressmen that South Carolina was the main competitor.

Wroblewski, Blondin, Kight, and Conner met again twice in

July, on July 7 and July 23.


At each of these meetings,

Conner and Kight emphasized that strikes had to stop for

Boeing to be viable.
They stated that Boeing needed a long-

term agreement with no-strike language to satisfy their

customers.
At this point, Boeing was two years behind

schedule and had approximately 850 787 planes on back order as

a result of supplier and software problems.

Then, on July 30, the same date that Boeing announced

that it had purchased Voughts plant, a South Carolina

employee filed a decertification petition.


During August,

Boeing denied the Union access to the employees in the North

Charleston plant and wrote a memorandum to the employees

stating that it preferred to deal with employees directly

NLRB-FOIA-00010967

Case 19-CA-32431

- 6 -

without intermediaries.3
Boeing also issued a FAQ document

to the employees stating that the mass layoffs that took place

at the Vought plant in late 2008 were due to the unique

situation created by the Everett strike.


Meanwhile, the

South Carolina press was reporting that a decertification

decision could influence where Boeing located the second 787

assembly line.
For example, The Post and the Courier reported

that South Carolinas low unionization rate is viewed as an

advantage in the 787 chase[.]


An article in the Charleston

Business Journal asserted that Charleston might be a better

choice in the event of decertification because of its

potentially tamer work force instead of the Washington

workers with a history of walk[ing] off the job.

On August 26, Boeing e-mailed its managers and human

resource professionals that it had notified South Carolina

that it intended to file permits for the construction of a

second 787 line but that it had not yet made a decision as to

where to locate the second line.


The following day, Boeing

and Union officials met in Portland to discuss the prospect of

a long-term agreement.
Carson informed the Union that the

only way Boeing would place the second line in Washington was

if the Union agreed to a twenty-year no-strike agreement.

Boeing suggested a series of three-year agreements with an

overarching twenty-year no-strike pledge until 2032 and

binding interest arbitration if no agreement was reached at

the end of each of the three-year contracts.


The Union said

that this was not possible, but the Union would consider a

longer agreement than the current four-year contract in return

for some sort of neutrality agreement.


At the end of the

meeting, the parties agreed to schedule negotiations for a

long-term agreement.

Meanwhile, the decertification election in South Carolina

was scheduled for September 10.


In reporting on Boeings

permit filings in South Carolina, the Puget Sound Business

Journal characterized this vote as [a] wild card in Boeings

decision about where to locate the second line.


On September

2, Kight presented an hour-long video on Boeings website

(later quoted in a September 29 article in the Seattle Times).

In regard to the second line, he stated:

What do you do with the 787 second line so that we can

build up to rate and meet our commitment to customers?

... Theres a lot of issues to look at, a lot being

studied, no decision has been made.


But truthfully, it

is very clear that this triennial disruption, our

The Union filed a Section 8(a)(5) charge alleging that

Boeing unilaterally changed its access rules but withdrew the

charge following the election.

NLRB-FOIA-00010968

Case 19-CA-32431

- 7 -

customers cant live with it anymore.


So weve become an

unreliable supplier....
So we look at how do we become a

reliable supplier.
How do we ensure production

continuity so that we can meet our commitments to our

customers in a timely way and thats what were trying to

do.

The Union lost the election in South Carolina eight days later

and was decertified on September 18.

As a follow-up to the parties August 27 meeting in

Portland, CEO McNerney wrote to IAM International President

Buffenbarger on September 21 that Boeing planned to make a

decision on the second lines location by the end of October

and wanted the Unions input within the next three to four

weeks.
He stated, I look forward to our respective teams

engaging in fruitful dialog.


Two days later, Boeing filed an

application for a storm water permit with the City of North

Charleston and an overall site plan with the State of South

Carolina.
On October 1, Boeing applied to North Charleston

for a site clearing permit.

The Parties Meet over a Long-Term Agreement

The parties opened negotiations for a long-term agreement

on October 1.
At the start of negotiations, Boeing explained

that placement of the second line in Washington depended on a

long-term agreement to insure no further disruptions in

deliveries to customers.
The Union responded that in exchange

for giving up the right to strike, the parties would need to

resolve economic issues for the long term rather than through

interest arbitration every three years.

The parties met again on October 7, 8, and 15.


The Union

maintains that Boeing never submitted a written proposal or

counter-proposal, that it was in the dark as to what Boeing

wanted, and that in effect it was negotiating against itself.

For example, with respect to the length of the agreement, at

various points Boeing requested a contract ending in 2020 or

2022 but at other times, demanded a twenty-year agreement.


In

terms of wages, Boeing wanted to reduce general wage increases

and move toward a profit-sharing incentive program.


The Union

was not adverse to this concept but requested information to

insure that Boeings measures of productivity were tied to

employee performance and not events beyond the employees

control.
At one point, Boeing stated that the general wage

increase and COLA could not exceed 3.5%.


When a Union

negotiator asked what would happen if the cost of living

increased more than 3.5%, Boeing responded that employees

would get more.


On October 15, for the first time, Boeing

said that it wanted a lower wage structure for new hires and a

NLRB-FOIA-00010969

Case 19-CA-32431

- 8 -

defined contribution plan for them rather than the defined

benefit pension plan that the existing employees enjoyed.

The Union repeatedly raised the issues of job security

and Employer opposition to the Union elsewhere.


The Union

argued that in return for giving up the right to strike during

the long-term, employees needed enhanced job security.


Also,

if the parties relationship were to improve, the Union did

not want to face the type of anti-union conduct Boeing had

engaged in during the decertification campaign in South

Carolina.

At the October 15 session, Conner informed the Union that

the Board of Directors would be meeting on October 26 and he

wanted to give the Board a progress report on the

negotiations.
The Union asserts that Boeing never described

the Board of Directors meeting as a deadline for resolving the

outstanding bargaining issues.


Moreover, Boeing never

provided a concrete proposal that could be put to the unit

employees for a vote.

The parties met again on October 20 and 21.


Conner

stated that Boeing was getting close to making its decision on

the location of the second line and it would be discussed at

the Board meeting on October 26.


By the end of the parties

October 21 session, the Union orally had proposed the

following: an extension of the existing contract to 2020, 3%

annual wage increases plus a 1% COLA, ratification bonuses for

unit employees, an incentive pay program, health cost sharing

towards the end of the contract, annual increases in pension

benefits starting in 2013, and neutrality in connection with

Union organizing campaigns.


In addition, the Union presented

Boeing with a two-page document entitled Rough Draft on

Concepts for a long-term agreement and a joint partnership

committee.
This Draft called for retention of current unit

work; location of the second line in the Puget Sound area; and

six-month advance notice and good-faith bargaining over any

decision to establish an assembly operation for any next

generation product.
Boeing asserts that this rough draft

was the Unions last and final offer, but the Union

disagrees and also maintains that its negotiators had no idea

that this would be the parties final session.


Indeed, the

Union negotiator involved in working out the details of the

incentive pay program sent an e-mail to Kight on October 27

requesting further information.


Kight responded that he would

get back to him.

Meanwhile, on October 21, Boeing posted its quarterly

earnings conference call on its intranet site for employees.

With respect to locating the second line in South Carolina,

CEO McNerney stated:

NLRB-FOIA-00010970

Case 19-CA-32431

- 9 -

[T]here would be some duplication.


We would obviously

work to minimize that.


But I think having said all of

that, diversifying our labor pool and our labor

relationship has some benefits.


...
And so some of the

modest inefficiencies, for example, associated with the

move to Charleston, are certainly more than overcome by

strikes happening every three or four years in Puget

Sound.
And the very negative financial impact of [sic]

the company, our balance sheet would be 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....

And I dont blame this totally on the union. We just

havent figured out a way - the mix doesnt - isnt

working well yet. So, weve either got to satisfy

ourselves that the mix is different or we have to

diversify our labor base.

McNerney stated that a decision would be made in the next

couple of weeks.

Two days later, IAM General Vice President Michalski

called Conner to ask about the status of the negotiations.

Conner stated that the Unions economic terms and demand for

neutrality were unacceptable to Boeing.


Michalski explained

that the Union was not asking for a traditional neutrality

agreement but rather, as explained during negotiations, a code

of conduct.
Michalski stated that the Union was willing to

meet at any time for additional negotiations, but Conner did

not respond.
On October 24, Michalski called Senior Vice

President of Operations Tim Keating to reiterate that the

Union was not seeking a true neutrality agreement.


He wanted

to clear up any misunderstanding if that issue was blocking

the parties ability to reach an agreement.


Keating did not

respond, and no further negotiations were ever scheduled.

Meanwhile, the governmental bodies in South Carolina were

moving quickly to facilitate the second lines placement in

their State.
On October 23, North Charleston approved

Boeings request for a storm water permit, and the State of

South Carolina approved Boeings overall site plan.


On

October 27, the South Carolina legislature, in a special

session, approved $170 million in taxpayer-backed bonds for

Boeings startup costs and tax breaks totaling $450 million in

exchange for Boeings agreement to create at least 3,800 jobs

and invest more than $750 million in the State within the next

seven years.
That same day, North Charleston approved

Boeings site clearing permit.

Boeing contends that it entered these negotiations with a

good-faith intention to reach a long-term agreement that would

have resulted in placing the second line in Washington, but

NLRB-FOIA-00010971

Case 19-CA-32431

- 10 -

the Unions economic demands were too costly and its

insistence upon neutrality and job security were unacceptable.

The Union asserts, however, that Boeings failure to submit

any proposals, its rejection of the Unions serious efforts to

address Boeings purported concerns, and then its precipitous

halting of negotiations as soon as the South Carolina

legislature awarded it a generous tax and subsidy package

demonstrate that the negotiations were in fact a sham.

Boeing Announces its Decisions to Locate the Second Line in

South Carolina and to Establish a Dual-Sourcing Program

On October 28, Boeing announced its decision to locate

the second 787 assembly line in South Carolina.


In a press

release and internal e-mails, Boeing stated that the Board of

Directors had just approved the selection of North Charleston.

Boeing also announced that it intended to build a surge line

in Everett - a temporary second assembly line that would be

phased out once the South Carolina line was up and running.

Boeing issued a memo to its managers on October 28 that

provided answers to anticipated questions from employees and

talking points regarding its decision.


The managers were

advised to inform employees, among other things, that the

decision to locate the second line in Charleston would

provide economic advantages by improving our competitiveness

and reducing vulnerability to delivery disruptions due to a

host of factors, from natural disasters to homeland security

issues and work stoppages.


The memo further stated, In the

final analysis, this came down to ensuring our long-term

global competitiveness and diversifying the company to protect

against the risk of production disruption ... from natural

disasters, to homeland security threats, to work stoppages.

On December 3, Boeing notified its fabrication managers

that it intended to create a dual-sourcing program and

contract separate suppliers for the South Carolina assembly

line.
As a result, employees in the Puget Sound and Portland

units who produce parts for the 787 assembly line are likely

to suffer a loss of work.


Articles that appeared in the

Seattle Times on December 7 and the Puget Sound Business

Journal on December 8 discussed this announcement.


The

Seattle Times quoted Boeing spokesman Jim Proulx as stating,

Repeated labor disruptions have affected our performance in

our customers eyes.


We have to show our customers we can be

a reliable supplier to them.


[The second production] line has

to be able to go on regardless of whats happening over here.

The Puget Sound Business Journal quoted Conner as follows:

Dual-sourcing and co-production will allow us to maintain

production stability and be a reliable supplier to our

customers.

NLRB-FOIA-00010972

Case 19-CA-32431

- 11 -

On March 2, 2010, a Seattle Times journalist conducted a

videotaped interview of Boeings new Commercial Airplanes CEO,

Jim Albaugh.
(Albaugh had moved over from his position as

Integrated Defense Systems CEO to replace Carson.)


The

interviewer asked Albaugh some hard questions on behalf of

the Washington community about Boeings decision to locate the

second 787 line in Charleston.


In explaining Boeings

decision, Albaugh repeatedly referenced the Unions strike

history.
For example, he stated:

The issue last fall was really about, you know, how

we could ensure production stability and how we

could ensure that we were competitive over the long

haul.
And we had some very productive discussions

with the union.


And unfortunately, we just didnt

come to an agreement where we felt we could ensure

production stability.
And read [sic] that is [sic]

getting away from the frequent strikes that we were

having and also could we stop the rate of escalation

of wages.
And we just could not get to a place

where we both felt it was a win for both ourselves

and the union so we made the decision to go to

Charleston.

[W]eve had strikes three out of the last four times

weve had a labor negotiation with the IAM.


... And

weve got to get to a position where we can ensure

our customers that every three years theyre not

going to have a protracted shutdown.

It was about ensuring to our customers that when we

commit to deliver airplanes on certain dates that we

actually do deliver.
And we have lost our

customers have lost confidence in our ability to do

that, because of the strikes.

When asked whether going to Charleston, in light of the

expense and risk, made business sense, he responded:

Theres no question that whenever you go to a green field

site, theres risk involved.


At the same time, with the

protracted labor stoppage that we had ... the fall of

2008, I mean that cost the company billions of dollars.

And I think if you compare, you know, what it cost

because of the stoppages versus the cost and the risk of

starting a new line in Charleston, I think the investment

certainly is the right one for us to make.4

Once again, a Boeing CEO grossly exaggerated the burden of

the Unions strike activity.


Boeing had alleged elsewhere

that the 2008 strike reduced its earnings by $1.8 million, far

NLRB-FOIA-00010973

Case 19-CA-32431

- 12 -

At one point, Albaugh summed up the basis of Boeings

decision as follows:

[t]he overriding factor was not the business climate.

And it was not the wages were paying today.


It was that

we cannot afford to have a work stoppage, you know, every

three years.
We cannot afford to continue the rate of

escalation of wages....

Albaugh also implicitly threatened the loss of additional work

because of Union strikes, stating, [w]ell do work here if we

can make sure that we have the stability of the production

lines and that we can be competitive over the long haul.

Production is now approximately three years behind

schedule.
Approximately 2,900 Puget Sound unit employees

currently work on the 787 assembly line.


Approximately 1,740

of them are working on out-of-sequence assembly work, away

from the main assembly line. Once supply issues are resolved

and assembly can be accomplished in sequence on the line, it

is anticipated that the number of employees will drop by

approximately 60%.
Boeing asserts that the South Carolina

plant will be ready to begin assembly work in mid 2011.

Approximately 1,000 mechanic and flight line jobs will be

added in South Carolina at that time.

ACTION

This case involves Boeings transfer of work from an

experienced unionized workforce to a new, nonunion facility.

Boeings decision was motivated by antiunion considerations.

From the time of the Unions strike in the fall of 2008,

Boeing made clear to its unionized workforce that it would not

countenance further strikes.


Time and again, in e-mails to

employees, on its intranet site, in the media, and in talks

with the Union, Boeing tied its ability to compete to the

avoidance of future strike activity.


Then, when Boeing

purchased the Vought facility in South Carolina, its officials

denied the Union access to employees at the facility.


It also

let the employees know that it preferred to deal with them

directly rather than through their Union and their receipt of

the second line hinged on their vote in a decertification

election.
Simultaneously, Boeing officials told the Puget

Sound unit employees that they could retain all of the 787

assembly work only by waiving their right to strike for twenty

years.
Although the Union entered negotiations with Boeing

less than the billions of dollars that Albaugh claimed in

this interview.

NLRB-FOIA-00010974

Case 19-CA-32431

- 13 -

and made major concessions in an effort to address its stated

concerns, once the Union was decertified in South Carolina,

Boeing courted the South Carolina legislature and applied for

the necessary permits from the South Carolina regulatory

bodies - even as it continued the motions of negotiating with

the Union.
As soon as South Carolina approved the financial

incentives for Boeing, Boeing called off negotiations and

announced its decision.


Boeings CEO admitted that the

overriding factor for moving work to South Carolina was the

employees strike activity.


Moreover, to reinforce the

message to unit employees, he intimated that the continuation

of any work in Washington was contingent on the stability of

the production lines, a veiled threat designed to coerce

employees to abstain from future strikes.


Nor could Boeing

credibly blame the 787 production delays on employees 2008

strike activity, which halted production for approximately two

months.
Rather, the delay resulted primarily from its own

business decision to outsource the manufacture of the aircraft

components to various suppliers and from unexpected software

problems.

Further, the fact that it made little practical sense to

locate this second line in South Carolina, despite a two-and-

a-half-year delay in the production of its new 787 aircraft,

rather than its existing facilities in Washington, supports a

finding of unlawful motivation.


While South Carolina would

not be ready for production for two years because of the need

for substantial capital improvements and the hiring and

training of a new workforce, Washington was already up and

running, with the space, the necessary equipment, and a

significant complement of trained employees.

On these facts, we conclude that the Region should issue

a complaint alleging: independent violations of Section

8(a)(1) based upon Boeings coercive and threatening

statements to employees on the intranet and through the media;

and a violation of Section 8(a)(3) based upon Boeings

decision to place the second line in South Carolina and to

establish a dual-sourcing supply program in order to retaliate

against the unit employees for engaging in protected Union

activity.
We would also argue, in the alternative, that

Boeings actions were inherently destructive of employee

rights.
But the Region should dismiss the Section 8(a)(5)

allegations because the Union waived its right to bargain

about Boeings decision to offload unit work to a facility not

covered by the parties agreement.


Finally, to remedy the

Section 8(a)(1) and (3) violations, the Region should seek: a

notice reading by a high-level Boeing official in addition to

the traditional remedies; and an order requiring Boeing to

assemble in the Puget Sound area the first ten 787 aircraft

that it produces each month and to maintain the supply lines

for those aircraft in the Puget Sound and Portland facilities.

NLRB-FOIA-00010975

Case 19-CA-32431

- 14 -

I. The Employer Violated Section 8(a)(1)

The Supreme Court long ago delineated the line between

employer speech protected under Section 8(c) of the Act and

threats of reprisals violative of Section 8(a)(1).5


The Court

ruled in Gissel that an employer may make a prediction as to

the effects of unionization but that prediction must be

carefully phrased on the basis of objective fact to convey an

employers belief as to demonstrably probable consequences

beyond his control[.]6


On the other hand, threats of

economic reprisal to be taken solely on [the employers] own

volition violate Section 8(a)(1).7

In General Electric Company, the Board applied the Gissel

test to set aside an election because the employer threatened

a long-term loss of work based on the possibility of a strike

at some future time.8


Faced with a union organizing drive,

the employer gave multiple speeches touting its two-source

supplier strategy.9
The employer stated that it had

established its nonunion plant so that customers could get the

motors they needed during the seven strikes at its union

plant.
The employer also made clear that the plants nonunion

status was the reason it had experienced a rise in

employment.10
And the employer conveyed the message that the

plant remaining nonunion was an important, if not a decisive,

factor in any company decision to choose that plant as a

second manufacturing facility for the new motor the employer

planned to introduce.11
The Board concluded that although the

employer might want to insure itself against production

interruptions caused by employee concerted activity, no such

insurance is legally possible, for the simple reason that

employees have a federally protected right to engage in such

activity.12
The Board expressly distinguished an employers

right to take defensive action when threatened with an

See NLRB v. Gissel Packing Co., 395 U.S. 575, 618 (1969).

Ibid.

Id. at 619 (citation omitted).

See 215 NLRB 520, 522-23, fn. 6 (1974).

See id. at 520.

10

See id. at 520-21.

11

See id. at 521.

12

See id. at 522.

NLRB-FOIA-00010976

Case 19-CA-32431

- 15 -

imminent strike from threats to transfer work merely because

of the possibility of a strike at some speculative future

date.13

The Board repeatedly has held that an employer violates

Section 8(a)(1) by threatening to withhold work opportunities

because of the exercise of Section 7 rights.14


Thus, telling

employees that they will lose their jobs if they join a strike

violates Section 8(a)(1).15


Similarly, in Kroger Co., the

employer unlawfully threatened to put its plan to build a new

freezer facility for its distribution center on hold because

of intraunion unrest and labor disputes.16

Further, where an employer unconditionally predicts a

loss of customers due to unionization or strike disruptions

without any factual basis, its predictions amount to

unlawful threats.17
Rather, an employers predictions of

customer disaffection must be based on objective facts.18

Thus, in Curwood, Inc., an employer lawfully related its

13

See id. at 522, fn. 6.

14

See, e.g., Kroger Co., 311 NLRB 1187, 1200 (1993), affd.

th
mem. 50 F.3d 1037 (11
Cir. 1995); General Electric Co., 321

NLRB 662, fn. 5 (1996), enf. denied 117 F.3d 627 (D.C. Cir.

1997).

15

Aelco Corp., 326 NLRB 1262, 1265 (1998).


See also Dorsey

Trailers, Inc., 327 NLRB 835, 851 (1999), enfd. in pertinent

th
part 233 F.3d 831 (4
Cir. 2000) (threat to close the plant if

the employees went out on strike).

16

311 NLRB at 1200.


See also General Electric Co., 321 NLRB

at 662, fn. 5 (employer conveyed to employees that

unionization could result in the withholding of further

investment in the plant or its closure).

17

See, e.g., Tawas Industries, 336 NLRB 318, 321 (2001) (no

objective basis for prediction that customers, fearing

strikes, would not give their business to the employer if the

employees independent union affiliated with the UAW);

Tradewaste Incineration, 336 NLRB 902, 907-08 (2001)

(prediction that 90% of the customers would not deal with a

union facility because of fear of a work stoppage was not

based on objective facts); Debbie Reynolds Hotel, 332 NLRB

466, 466 (2000) (no factual basis for statements about having

to move productions and equipment elsewhere because customers

would not be able to afford employers facilities if employees

unionized).

18

Curwood, Inc., 339 NLRB 1137, 1137-38 (2003).

NLRB-FOIA-00010977

Case 19-CA-32431

- 16 -

customers concerns about strikes, where the employer produced

written inquiries from customers seeking information about its

contingency plans in the event of a strike.19


An employer may

also reference the possibility that unionization, including

strikes, might harm relationships with consumers, as opposed

to predicting
unavoidable consequences.20

Here, the Union has alleged that several statements by

Boeing officials violated Section 8(a)(1).


Some statements

were posted by Boeing on its website or intranet.


Others were

reprinted in newspaper articles as direct quotes; although

such a quotation is hearsay, it would be admissible as an

admission (an exception to the hearsay rule), if the reporter

testifies.21
By contrast, reporter summaries cannot form the

basis for a Section 8(a)(1) violation.


And statements

recounted by political figures within newspaper articles are

in effect double hearsay and inherently unreliable.

Based on these principles, we find that the following

constitute unlawful threats under the Gissel standard:

(1)
Boeing posted its quarterly earnings conference call

on its intranet for employees on October 21.


During the call,

CEO McNerney made an extended statement about diversifying

our labor pool and moving work to South Carolina because of

strikes happening every three or four years in Puget

Sound.22
His comments were indistinguishable from the

comments regarding a two-source supplier strategy found

violative in General Electric.23

(2)
Boeings October 28 memo to managers advised them to

inform employees that it decided to locate the second line in

South Carolina in order to reduce vulnerability to delivery

disruptions caused by, among other things, strikes.


The

thrust of Boeings message to employees was that Boeing had

19

See id. 339 NLRB at 1137.

20

E.g., Miller Industries Towing Equipment, Inc., 342 NLRB

1074, 1075-76 (2004) (employer did not predict unavoidable

consequences).

21

Cf. Sheet Metal Workers Local 15 (Brandon Regional Medical

Center), 346 NLRB 199, 201-02 (2006), enf. denied on other

grounds 491 F.3d 429 (D.C. Cir. 2007) (newspaper report of

party admission is inadmissible hearsay because the reporter

was not available for cross-examination).

22

These same comments were quoted in the Seattle Times.

23

See 215 NLRB 520, 522-23 (1974).

NLRB-FOIA-00010978

Case 19-CA-32431

- 17 -

removed jobs from Puget Sound because employees had struck and

that they would lose work if they struck again.24

(3)
In articles that appeared in the Seattle Times and

the Puget Sound Business Journal on December 7 and 8

respectively, Boeing officials attributed the plan to use a

dual-sourcing system and contract separate suppliers for the

South Carolina line to past strikes and implicitly threatened

the loss of future work opportunities in the event of future

strikes.25

(4)
In a video-taped interview on March 2, Boeing

Commercial Airplanes CEO Albaugh expressly attributed the

Employers decision to locate the second line in South

Carolina to employee strikes and threatened the loss of future

work opportunities in retaliation for such protected

activity.26

The above statements, disseminated through various

channels to unionized and nonunionized employees nationwide,

drove home the message: union activity could cost them their

jobs, while a decision to reject union representation could

bring those jobs to their communities.

II.

The Employer Violated Section 8(a)(3)

The Employers decision to locate the second 787 line at

a nonunion facility and to establish a dual-sourcing program

to support that line violated Section 8(a)(3) because the

Employer acted in retaliation for the employees Union

activity and not for a legitimate business reason.

Initially, despite Boeings assertions that its decision

to locate a second 787 assembly line in South Carolina will

not adversely impact any current unit employees, there is no

question that the decision will direct work away from Puget

Sound employees with consequent adverse effects.


Instead of

24

The Region should insure that this message was communicated

to employees.

25

The authors of these articles will need to testify.


If

they resist testifying, and it becomes necessary to seek

subpoena enforcement, the Region should contact Advice.

26

Vice President Kights video-taped comments that Boeings

customers could not live with this triennial disruption and

that Boeing was looking to insure production continuity

cannot be alleged as an independent violation because they

were first posted on Boeings website on September 2, outside

the Section 10(b) period.

NLRB-FOIA-00010979

Case 19-CA-32431

- 18 -

assembling all of the 787 planes in Washington as originally

planned, once the second line opens in South Carolina, a

significant portion of the remaining 787 orders will be filled

by planes produced in North Charlestown.


Future work

opportunities will be lost for employees on the surge line,

as well as unit employees waiting to transfer into the more

desirable 787 jobs.


There are likely to be transfers to

older, less desirable aircraft assembly lines, demotions, and

layoffs.
Moreover, Boeings adoption of its new dual-

sourcing program means that the Puget Sound and Portland unit

employees will produce parts only for planes assembled in

Washington and not for those planes assembled in South

Carolina, also causing the loss of employment opportunities

for unit employees and the likelihood of demotions and

layoffs.
If no unit employees have been harmed yet, it is

merely because Boeings retaliatory decision has not yet been

implemented.

Recently, in Pittsburg & Midway Coal Mining Co., the

Board expressly reaffirmed that an actual financial loss is

not necessary to establish a Section 8(a)(3) violation.27


In

that case, the employer revised its bonus policy in

retaliation for the employees use of contractual memorial

days to engage in work stoppages.


Even though no employees

thereafter suffered a diminution of their bonuses, the Board

found a Section 8(a)(3) violation based upon the employers

retaliatory motive.28

Moreover, the Board specifically has held that an

employer may not, for unlawfully motivated reasons, divert

unit work to a nonunion plant even where there is no immediate

impact on unit employees.29


In Adair Standish Corp., the

employer refused to take delivery of a new press ordered for

its newly-organized Standish plant and installed it instead at

its nonunion plant.


The Board noted that diversion of the

press from Standish could reasonably result in diversion of

new work from Standish and therefore violated Section 8(a)(3)

even though there was no immediate impact on the unit

employees.30
Similarly, in Cold Heading Co., the employer

unlawfully relocated equipment to a newly-purchased nonunion

facility and changed its plans to install new equipment in its

27

See 355 NLRB No. 197, slip op. at 5, fn. 8 (2010).

28

Ibid.

29

See Adair Standish Corp., 290 NLRB 317, 318-19 (1988), enfd

th
in pertinent part 912 F.2d 854 (6
Cir. 1990).

30

See id. at 319.

NLRB-FOIA-00010980

Case 19-CA-32431

- 19 -

union facility after its employees independent union

representative sought to affiliate with the UAW.31

Here, as in Adair Standish and Cold Heading, there is a

diversion of unit work that the unit employees otherwise would

have performed.
And as in Pittsburg & Midway Coal Mining Co.,

the fact that unit employees may not yet have experienced the

financial impact of Boeings decision is no defense to a

Section 8(a)(3) violation.

Further, Boeing made this decision for unlawful reasons.

Boeing admits that the overriding factor in its decision to

place the second line in a nonunion facility was the

employees strike history.


An employers discouragement of

its employees participation in a legitimate strike

constitutes discouragement of union membership within the

meaning of Section 8(a)(3).32


This applies to employer

conduct designed to retaliate against employees for having

engaged in a strike in the past,33 as well as employer conduct

designed to forestall employees from exercising their right to

strike in the future.34


Indeed, the Board recently reaffirmed

that an employer violates the Act when it acts to prevent

future protected activity.35


Comparing such conduct to the

31 See 332 NLRB 956, fn. 5, 975-76 (2000).


See also

Associated Constructors, 325 NLRB 998, 998-1000 (1998), enfd.

sub nom. ODovero v. NLRB, 193 F.3d 532 (D.C. Cir. 1999)

(double-breasted employer unlawfully diverted work from its

union entity to its nonunion entity in retaliation for the

unions efforts to organize the nonunion entity and to escape

the collective-bargaining agreement).

32

Capehorn Industry, 336 NLRB 364, 365 (2001).

33

See id. at 365-67 (employer violated Section 8(a)(3) by

failing to immediately reinstate strikers upon unconditional

offer to return to work where there was no legitimate business

justification for entering into a permanent subcontract).

34

See Century Air Freight, 284 NLRB 730, 732 (1987) (employer

violated Section 8(a)(3) by permanently subcontracting unit

work and discharging unit employees in order to forestall the

exercise of their right to strike); Westpac Electric, 321 NLRB

1322, 1374 (1996) (employer violated Section 8(a)(3) by

isolating employee in retaliation for his previous striking

activities and also in anticipation that he would participate

in a strike in the future).

35

See Parexel International, LLC, 356 NLRB No. 82, slip op.

at 4 and cases cited therein (2011) (employer violated Section

NLRB-FOIA-00010981

Case 19-CA-32431

- 20 -

erection of a dam at the source of supply of potential,

protected activity, the Board reasoned that, the suppression

of future protected activity is exactly what lies at the heart

of most unlawful retaliation against past protected

activity.36

Boeing concedes that it is removing work from the unit

employees based upon their past exercise of their right to

strike.
However, Boeing relies upon the Supreme Courts

decision in NLRB v. Brown Food Store37 to argue that it is

privileged to move work outside the unit to avoid the

disruptive consequences of future strikes and that this is a

sufficient business justification to permit its actions.

In Brown Food Store, the Court held that an employer was

privileged to lock out its employees and use temporary

replacements to carry on its business in the face of a whipsaw

strike.38
Specifically, the Court found that the use of a

lockout and the hiring of temporary replacements to bring

pressure to bear in support of its bargaining position after

an impasse in negotiations was not an unfair labor practice.39

Rather than finding the use of this economic weapon

discriminatory, the Court concluded that it was a legitimate

defensive measure to preserve the multiemployer group in the

face of a whipsaw strike.40

Boeings attempt to extend the holding of Brown to

legitimatize any action that an employer takes to protect

itself against future, wholly speculative, strikes would

vitiate the Section 13 right to strike.


And the Board has

made it clear that an employer cannot rely upon Brown to

justify discriminatory conduct based upon the exercise of the

right to strike.
Thus, in National Fabricators, the Board

expressly rejected the employers attempt to use Brown and

other lockout cases to justify its decision to lay off those

employees who were likely to honor a union picket line in the

8(a)(1) by discharging an employee to prevent her from

discussing wages with other employees).

36

Ibid. (citation omitted).

37

380 U.S. 278 (1965).

38

See id. at 283-85.

39

See id. at 284.

40

See ibid.

NLRB-FOIA-00010982

Case 19-CA-32431

- 21 -

future.41 Instead, the Board found that disfavoring employees

who were likely to engage in protected union activities was

proscribed by Section 8(a)(3) and the employers business

justification - to avoid investing money in employees who

were going to cease work later -- was neither legitimate nor

substantial.42

Boeings concession that choosing South Carolina will

result in duplication and economic inefficiencies further

demonstrates that Boeings actions were retaliatory and not a

legitimate business decision.


In addition, Commercial

Airplanes CEO Albaugh conceded that going to South Carolina,

a green field site, involves significant risks.


Boeing has

the capacity, equipment, and trained workforce to handle the

second assembly line in the Puget Sound area.


The substantial

investment required to build and equip the South Carolina

facility therefore will be duplicative.


In addition, Boeing

will have to recruit and train a new workforce in South

Carolina, while ultimately laying off experienced employees in

Washington.
Exaggerating the disruptive effects of prior

strikes, Boeing maintains that the inefficiencies associated

with moving work to South Carolina will be counterbalanced by

the avoidance of strike disruptions in the future. However,

there are other nonretaliatory and less costly means of

dealing with the potential of relatively short disruptions

caused by employee strikes, such as concluding negotiations

with the Union for a long-term no-strike agreement.


In

addition, Boeings claim that it took this action to avoid

strike disruptions is belied by Boeings rejection of the

Unions efforts to negotiate a long-term no strike agreement.

Accordingly, the Region should proceed on the theory that

Boeing violated Section 8(a)(3) by retaliating against the

unit employees for engaging in the protected activity of

striking.

We also conclude that Boeings conduct was inherently

destructive of employee interests.43


Conduct is inherently

destructive when it carries with it unavoidable

consequences which the employer not only foresaw but which he

must have intended and thus bears its own indicia of

th

41

See 295 NLRB 1095, 1095 (1989), enfd. 903 F.2d 396 (5

1990), cert. denied 498 U.S. 1024 (1991).

42

Cir.

See 295 NLRB at 1095-96.

43

See NLRB v. Great Dane Trailers, Inc., 388 U.S. 26, 33

(1967) (citation omitted).

NLRB-FOIA-00010983

Case 19-CA-32431

- 22 -

intent.44
In International Paper Co., the Board set forth

four fundamental guiding principles for determining whether

employer conduct is inherently destructive of employee

rights.45
First, the Board looks to the severity of the harm

to employees Section 7 rights.


Second, the Board considers

the temporal impact of the employers conduct, i.e. whether

the conduct merely influences the outcome of a particular

dispute or whether it has far reaching effects which would

hinder future bargaining.


Third, the Board distinguishes

between conduct intended to support an employers bargaining

position as opposed to conduct demonstrating hostility to the

process of collective bargaining.


And finally, the Board

assesses whether the employees conduct discourages collective

bargaining by making it seem a futile exercise in the eyes of

the employees.46
Even if the employees conduct is

inherently destructive, the Board weighs the employers

asserted business justification against the invasion of

employee rights.47

Boeings actions were inherently destructive of employee

rights under the four principles articulated in International

Paper.
First, the harm to employees Section 7 rights was

severe; employees got the distinct message that if they engage

in another strike, unit work will be moved to a nonunion

facility and unit jobs will be lost.


Second, Boeings

decision was designed to have far-reaching effects and not

just to influence the outcome of a particular dispute, namely,

to take away employee support for the Unions most effective

economic weapon, and for the Union itself, and thereby hinder

any future collective bargaining.


Third, Boeings conduct

demonstrated hostility to the very process of collective

bargaining and not just to support a specific bargaining

position.
Finally, bargaining was made to seem a futile

44

Ibid., quoting NLRB v. Erie Resistor Corp., 373 U.S. 221,

228, 231 (1963).


See also Dorsey Trailers, Inc., 327 NLRB

835, 863-64 (1999), enf. denied in pertinent part 233 F.3d 831

th
(4
Cir. 2000).

45

See 319 LRB 1253, 1269 (1995), enf. denied 115 F.3d 1045

(D.C. Cir. 1997).

46

Id. at 1269-70 (citations omitted).

47

Id. at 1273 (finding no justification for employers

inherently destructive conduct of permanently subcontracting

bargaining unit work during a lawful lockout).


See also

Dorsey Trailers, 327 NLRB at 863-64 (employers closing of

facility during strike and relocation of unit work to newly

purchased facility outside the unions jurisdiction was

inherently destructive of employee rights).

NLRB-FOIA-00010984

Case 19-CA-32431

- 23 -

exercise without the possibility of a strike to support the

Unions position at the bargaining table.

The unavoidable consequence of Boeings decision to place

the second line in its newly-purchased, nonunion facility,

accompanied by official comments on the intranet and in the

media, was to severely chill its employees exercise of

Section 7 rights in the future - whether it be the Puget

Sound employees, the South Carolina employees, or Boeing

employees elsewhere.
Employees will correctly fear that

engaging in such protected activity could cause them to lose

their jobs to nonunionized workers.


Others may be encouraged

to file or support decertification petitions.


And the many

unrepresented Boeing employees will be discouraged from

organizing or voting in support of union representation if

they believe that exercising their right to concerted activity

justifies moving commercial production elsewhere.

Moreover, even if the effect on employee rights was only

comparatively slight, Boeing had no legitimate business

justification. Its only justification was its desire to insure

against its employees exercise of their Section 7 rights, and

that is not a legitimate justification.

The Board recently held in Arc Bridges, Inc. that an

employers conduct was inherently destructive where its stated

reason for withholding a regularly-scheduled wage increase

from represented employees was that it was in negotiations

with the union.48


The Board found that the employers stated

reason - that it wanted to enhance its bargaining position

with the union -- was an admission that it withheld the

increase because employees chose union representation.49

Likewise, Boeings stated reason for its decision - that it

wanted to avoid strike disruptions - was an admission that it

decided to locate the second line in South Carolina because

the Puget Sound employees chose union representation and the

South Carolina employees did not.


Accordingly, Boeings

decision coupled with its public pronouncements emphasizing

the motivation for its decision was inherently destructive of

its employees rights to engage in union activity and violated

Section 8(a)(3).

III. The Union Waived its Right to Bargain

The Unions allegation that Boeing failed to bargain in

good faith over its decision as to where to locate the second

787 line raises two preliminary issues: (1) whether Boeings

decision was a mandatory subject of bargaining; and (2) if so,

48

See 355 NLRB No. 199, slip op. at 3-4 (2010).

49

See id., slip op. at 3.

NLRB-FOIA-00010985

Case 19-CA-32431

- 24 -

whether the Union waived its right to bargain over that

subject.
Although we conclude that the decision was a

mandatory subject of bargaining and there is substantial

evidence that Boeing did not bargain in good faith to a valid

impasse, the Region should dismiss the Section 8(a)(5)

allegations on the ground that the Union waived it right to

bargain, applying Provena.50

A.

Mandatory Subject of Bargaining

Under Dubuque Packing Co., a decision to relocate unit

work that is not accompanied by a basic change in the

employers operation is a mandatory subject of bargaining

unless the employer can establish that: the work performed at

the new location varies significantly from the work performed

at the prior location; the work performed at the former

location is discontinued entirely and not moved to the new

location; or the employers decision involved a change in the

enterprises scope and direction.51


Alternatively, the

employer can defend by showing that: labor costs were not a

factor in the decision; or if labor costs were a factor, the

union could not have offered sufficient concessions to change

the employers decision.52


Applying the Dubuque test, the

Board repeatedly has found relocation decisions to constitute

a mandatory subject of bargaining.53

In addition, the Board has held that a decision may be a

mandatory subject even though there is no immediate loss of

unit jobs.54
For example, in Quickway Transportation, Inc.,

50

Provena St. Joseph Medical Center, 350 NLRB 808 (2007).

51

303 NLRB 386, 391 (1991), enfd. sub nom. Food & Commercial

Workers Local 150-A v. NLRB, 1 F.3d 24 (D.C. Cir. 1993).

52

Ibid.

53

See, e.g., Titan Tire Corp., 333 NLRB 1156, 1164-65 (2001)

(decision to permanently relocate equipment and jobs in

reaction to strike); Owens-Brockway Plastic Products, 311 NLRB

519, 521-23 (1993) (decision to close plant and transfer work

to other facilities).

54

See, e.g., Overnite Transportation Co., 330 NLRB 1275, 1276

(2000), revd. mem. 248 F.3d 1131 (3d Cir. 2000) (We think it

plain that the bargaining unit is adversely affected whenever

bargaining unit work is given away to nonunion employees,

regardless of whether the work would otherwise have been

performed by employees already in the unit or by new

employees).

NLRB-FOIA-00010986

Case 19-CA-32431

- 25 -

the Board found that the employers decision to contract with

independent owner-operators rather than expand the unit, as it

had originally planned, was mandatory because that decision

obviously constrained the work opportunities available to the

bargaining unit.55
Likewise, in Spurlino Materials, LLC, the

Administrative Law Judge, in a decision adopted by the Board,

found that even though no unit employees suffered a loss of

work as a result of the employers subcontracting, existing

employees might have otherwise been given overtime or the

employer might have hired additional unit employees, resulting

in benefits for the Union and current unit employees in having

an expanded unit.56
And in Dorsey Trailers, Inc., the Board

found that subcontracting work to reduce a backlog in orders

was a mandatory subject because the potential loss of

overtime or reasonably anticipated work opportunities poses a

detriment to unit employees even if no employees lost their

jobs.57

Here, the decision to locate the second 787 assembly line

in South Carolina amounted to a relocation of unit work.


Even

though no unit employees have yet to lose work, as in Dorsey

Trailers the assignment of unit work to nonunit employees in

order to reduce an order backlog presents a potential loss of

overtime or reasonably anticipated work opportunities and

therefore poses a detriment to unit employees.58


The work

that will be performed in South Carolina is identical to that

performed on the first line and the surge line in Everett by

unit employees.
The decision did not involve a basic change

in Boeings operation or any change in the enterprises scope

or direction; Boeing does not intend to change its production

methods or its products.59


Boeing did not demonstrate that

labor costs were not a factor in the decision.


In fact,

according to Boeings CEO, the decision was motivated

primarily by a desire to avoid strikes and secondarily because

the Employer cannot afford the rate at which unit wages are

escalating.
Boeing also did not demonstrate that the Union

could not have offered sufficient concessions to change its

55

See 355 NLRB No. 140 (2010), incorporating by reference the

rationale of 354 NLRB No. 80, slip op. at 2 (2009).

56

See 355 NLRB No. 77 (2010), incorporating by reference the

rational of 353 NLRB 1198, 1219 (2009).

57

See 321 NLRB 616, 617 (1996), enf. denied in relevant part

134 F.3d 125 (3d Cir. 1998).


Accord Acme Die Casting, 315

NLRB 202, fn. 1, 209 (1994).

58

See 321 NLRB at 617.

59

See Owens-Brockway Plastic Products, 311 NLRB at 522.

NLRB-FOIA-00010987

Case 19-CA-32431

- 26 -

decision; the Union


the strike and wage
2009.
Accordingly,
where to locate the
bargaining.

B.

was willing to make concessions on both

issues during negotiations in the fall of

we conclude that Boeings decision as to

second 787 line was a mandatory subject of

Waiver of the Right to Bargain

The Board applies a clear and unmistakable waiver

standard to determine whether a union has waived its right to

bargain about a mandatory subject of bargaining during the

term of a collective-bargaining agreement.60


The Board will

find a waiver if the contract either expressly or by

necessary implication confers on management a right to

unilaterally take the action in question.61


In interpreting

the parties agreement, the relevant factors include: (1) the

wording of pertinent contractual provisions; (2) the parties

bargaining history; and (3) the parties past practice.62

The Board has found a waiver based on contract language

where there is an express reference to the specific type of

decision that the employer has implemented unilaterally.63

Thus, in Ingham Regional Medical Center, the Board adopted an

Administrative Law Judges decision that the union waived its

right to bargain about a subcontracting decision where the

contractual management-rights clause expressly reserved to

management the right to use outside assistance or engage

independent contractors to perform any of the Employers

operations or phases thereof (subcontracting)[.]64


This

right was vested exclusively in the Employer and was not

60

See Provena St. Joseph Medical Center, 350 NLRB at 810-11.

61

See id. at 812, fn. 19.

62

See Johnson-Bateman Co., 295 NLRB 180, 184-89 (1989) (no

waiver of right to bargain about drug/alcohol testing

requirement where the management rights clause was generally

worded, issue was not fully discussed and consciously

explored during negotiations, and past practice of union

acquiescence to other unilateral work rule changes did not

waive the right to bargain about such changes for all time).

63 See, e.g., Ingham Regional Medical Center, 342 NLRB 1259,

1261-62 (2004) (under the management-rights clause, the

employer expressly reserved the right to subcontract); Allison

Corp., 330 NLRB 1363, 1364-65 (2000) (management-rights clause

specifically, precisely, and plainly granted the employer

the exclusive right ... to subcontract).

64

See 342 NLRB at 1260, 1261-62.

NLRB-FOIA-00010988

Case 19-CA-32431

- 27 -

subject to arbitration.65
Although another contractual

provision required the employer to provide 60 days notice and

discuss with the union any subcontracting decision that

would cause unit employees to be laid off, the words discuss

and bargain were found not synonymous in the parties

contract.66

In this case, Section 21.7 of the parties agreement

specifically, precisely, and plainly67 granted Boeing the

right to offload work to a facility not covered by the

agreement.
As in Ingham Regional Medical Center, the other

provisions of Section 21.7 that required Boeing to provide the

Union notice and an opportunity to review and recommend

alternatives did not require the Employer to bargain over an

offloading decision.

The Union does not dispute that Section 21.7 contains a

waiver but asserts instead that the Employer may not take

advantage of the waiver.


Specifically, the Union maintains

that a contractual waiver cannot be applied to a decision that

is unlawfully motivated.
But there is no authority for the

proposition that an unlawful motive negates a contractual

waiver; rather, the cases on which the Region and Union rely

hold that a contractual waiver is no defense to a Section

8(a)(3) violation.68

The Unions other arguments against application of the

waiver are also unavailing.


Thus, the Union asserts that the

contractual waiver does not apply because the parties entered

negotiations for a new contract.


However, during those mid-

term negotiations, their existing contract -- including

Section 21.7 -- continued in effect.


The Union also contends

65

Id. at 1260.

66

Id. at 1262.

67

See Allison Corp., 330 NLRB at 1365.

68

See Reno Hilton, 326 NLRB 1421, 1430 (1998), enfd. 196 F.3d

1275 (D.C. Cir. 1999) (merely because the Respondent has

negotiated the unfettered right in a collective-bargaining

agreement to contract out work at any time, such right ...

does not unfetter and insulate the Respondent from the

sanctions of the Act prohibiting it from discriminating); RGC

th
(USA) Mineral Sands, Inc. v. NLRB, 281 F.3d 442, 450 (4
Cir.

2002) (enforcing Board decision finding Section 8(a)(3)

violation on grounds that, even if contract authorized

employer to unilaterally alter shift assignments, an employer

cannot exercise contractual rights to punish employees for

protected activity).

NLRB-FOIA-00010989

Case 19-CA-32431

- 28 -

that the waiver cannot extend to work transferred after the

contracts expiration in September 2012, but Boeing made its

final decision in 2009 and expects to open the second line in

South Carolina in mid 2011.69


The Unions estoppel argument

also lacks merit.


While Boeing took the position that the

notice and review provisions in Article 21.7 did not apply

because no employees will be laid off, Boeing is not thereby

estopped from asserting the waiver provision.

Moreover, Boeings request to negotiate mid-term changes

to the parties agreement did not subject it to the

traditional Section 8(a)(5) bargaining obligations.70


Absent

a contractual reopener provision, parties are under no

obligation to bargain over proposals for mid-term

modifications.71
For this reason, we do not reach the

question of whether Boeing engaged in surface bargaining in

the fall of 2009, bargained to a valid impasse, or unlawfully

failed to provide information relevant to those negotiations.

IV. The Appropriate Remedy

We conclude that special remedies must be fashioned in

the unusual circumstances of this case.

First, with respect to the Section 8(a)(1) violations,

which had a particularly chilling impact upon employees, the

Region should seek a notice reading by a high-level Boeing

official, to insure that employees learn about their statutory

69

Thus, if there is a duty to bargain over a relocation

decision, it arises when the decision is announced and not

when it is ultimately implemented.


See, e.g., Bell Atlantic

Corp., 336 NLRB 1076, 1086-89 (2001) (union waived right to

bargain over employers decision to close facility and

transfer work to nonunion facility where it received notice of

decision in August and did not request bargaining until

December, even though no unit work would be relocated before

the following April).

70

See St. Barnabas Medical Center, 341 NLRB 1325, 1325 (2004)

(union did not incur traditional bargaining obligations by

requesting that employer meet to discuss feasibility of wage

reopener, and employer violated Section 8(a)(5) by

unilaterally implementing wage increases after an impasse in

those negotiations).

71

See Boeing Co., 337 NLRB 758, 763 (2002) (employer did not

incur bargaining obligation by agreeing to unions request to

consider midterm modification); Connecticut Power Co., 271

NLRB 766, 766-67 (Section 8(d) does not require an employer

who suggests a midterm contract change to negotiate about it).

NLRB-FOIA-00010990

Case 19-CA-32431

- 29 -

rights and gain assurance that Boeing will respect those

rights.72
The notice reading is particularly effective if

read by an official who personally committed some of the

violations, or read by a Board agent in his presence, in order

to dispel the atmosphere of intimidation he created.73

Finally, to remedy the Section 8(a)(3) violation, the

Region should seek an order requiring Boeing to maintain the

second line in Washington.


At the time of the discriminatory

conduct, Boeing intended to use the second line to assemble

three 787 aircraft each month, while assembling seven 787

aircraft each month on the first line in Everett.


At present,

even the first line is not producing up to capacity because of

problems with suppliers and FAA certification.


Thus, the

Region should seek an order requiring that, as Boeing

production increases, the first ten aircraft assembled each

72

See, e.g., Homer D. Bronson Co., 349 NLRB 512, 515 (2007),

enfd. 273 F. Appx 32 (2d Cir. 2008) (notice reading is an

effective but moderate way to let in a warming wind of

information, and more important, reassurance); Federated

Logistics & Operations, 340 NLRB 255, 258 (2003), affd. 400

F.3d 920 (D.C. Cir. 2005) (employees will perceive that the

Respondent and its managers are bound by the requirements of

the Act).

73

Three Sisters Sportswear Co., 312 NLRB 853, 853 (1993),

enfd. mem. 55 F3d 684 (D.C. Cir. 1995), cert. denied 516 U.S.

1093 (1996).
See also, e.g., Homer D. Bronson Co., 349 NLRB

at 515 (reading by president of manufacturing, who personally

delivered speeches threatening plant closure or relocation);

Texas Super Foods, 303 NLRB 209, 209 (1991) notice reading by

owner and president who signed unlawful letters to unit

employees, drafted unlawful speech threatening job losses, and

personally gave the speech to at least two groups of

employees).

NLRB-FOIA-00010991

Case 19-CA-32431

- 30 -

month be assembled by the Puget Sound unit employees and that

the supply lines for these aircraft be maintained in the Puget

Sound and Portland facilities.74

B.J.K.

ROFs - 9

H:ADV.19-CA-32431.Response2.Boeing.dlw

74

At this time, we do not reach a decision on the Unions

request for preliminary injunctive relief.


The Region should

reassess whether Section 10(j) relief is warranted after the

case is tried before the Administrative Law Judge.


In the

meantime, the Region should put evidence in the record

regarding the chilling impact of Boeings violative statements

and conduct to support the notice-reading remedy.


This will

facilitate use of the administrative record to demonstrate in

a subsequent Section 10(j) proceeding that preliminary

injunctive relief is just and proper.

NLRB-FOIA-00010992

Microsoft Outlook

Kearney, Barry J.

Tuesday, April 12, 2011 5:01 PM

Farrell, Ellen; Solomon, Lafe E.

RE: Boeing

From:
Sent:
To:
Subject:

Exemption 5

From: Farrell, Ellen

Sent: Tuesday, April 12, 2011 4:17 PM

To: Solomon, Lafe E.; Kearney, Barry J.

Subject: FW: Boeing

Has someone had a conversation with Nancy about how we want to handle the inquiries regarding this?
Exemption 5

Ellen

Ellen Farrell

Deputy Associate General Counsel

Division of Advice, NLRB

202-273-3810

Ellen.Farrell@nlrb.gov

From: Cleeland, Nancy

Sent: Tuesday, April 12, 2011 4:14 PM

To: Farrell, Ellen

Subject: RE: Boeing

Fair enough.

Exemption 5

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

From: Farrell, Ellen

Sent: Tuesday, April 12, 2011 4:02 PM

To: Cleeland, Nancy

Subject: RE: Boeing

Exemption 5

NLRB-FOIA-00010993

Ellen

Ellen Farrell

Deputy Associate General Counsel

Division of Advice, NLRB

202-273-3810

Ellen.Farrell@nlrb.gov

From: Cleeland, Nancy

Sent: Tuesday, April 12, 2011 3:56 PM

To: Farrell, Ellen

Subject: RE: Boeing

What is the fact sheet going to be used for?

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

From: Farrell, Ellen

Sent: Tuesday, April 12, 2011 3:28 PM

To: Cleeland, Nancy

Cc: Solomon, Lafe E.; Kearney, Barry J.

Subject: RE: Boeing

Nancy

Attached are the memo, which issued yesterday, and the fact sheet.

Ellen

Ellen Farrell

Deputy Associate General Counsel

Division of Advice, NLRB

202-273-3810

Ellen.Farrell@nlrb.gov

From: Solomon, Lafe E.

Sent: Tuesday, April 12, 2011 2:36 PM

To: Kearney, Barry J.; Farrell, Ellen; Cleeland, Nancy

Subject: Boeing

Ellen, W ould you please send electronically to Nancy the Boeing Advice memo and fact sheet?

Nancy, W e anticipate that Region 19 will issue complaint next week. We can talk about it,

Exemption 5

Thanks, Lafe

NLRB-FOIA-00010994

Microsoft Outlook

From:
Sent:
To:
Subject:
Attachments:

Solomon, Lafe E.

Monday, April 18, 2011 4:05 PM

Garza, Jose

FW : new draft

Boeingrelease.doc

From: Cleeland, Nancy

Sent: Monday, April 18, 2011 3:44 PM

To: Solomon, Lafe E.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Abruzzo, Jennifer; Mattina, Celeste J.

Subject: new draft

Thanks for all your suggestions. Here is the latest draft of the release. Feel free to make suggestions, particularly
Exemption 5

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

NLRB-FOIA-00010995

Exemption 5

NLRB-FOIA-00010996

Microsoft Outlook

From:
Sent:
To:
Subject:

Solomon, Lafe E.

Tuesday, April 19, 2011 11:08 AM

Cleeland, Nancy

RE: new draft

How about the following

Exemption 5

Exemption 5

-----Original Message-----

From: Cleeland, Nancy

Sent: Tuesday, April 19, 2011 10:30 AM

To: Mattina, Celeste J.; Solomon, Lafe E.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme;

Abruzzo, Jennifer

Cc: Ahearn, Richard L.

Subject: RE: new draft

Hi all, It would be very helpful to see a draft of the complaint for purposes of writing the

fact sheet. Could someone forward to me? Thanks ________________________________________

From: Mattina, Celeste J.

Sent: Tuesday, April 19, 2011 10:20 AM

To: Cleeland, Nancy; Solomon, Lafe E.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme;

Abruzzo, Jennifer

Cc: Ahearn, Richard L.

Subject: RE: new draft

Sorry to jump in after the fact.

What do you think,

Exemption 5

-----Original Message-----

From: Cleeland, Nancy

Sent: Tuesday, April 19, 2011 9:46 AM

To: Mattina, Celeste J.; Solomon, Lafe E.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme;

Abruzzo, Jennifer

Subject: RE: new draft

Exemption 5

Exemption 5

________________________________________

From: Mattina, Celeste J.

Sent: Tuesday, April 19, 2011 9:14 AM

NLRB-FOIA-00010997

To: Cleeland, Nancy; Solomon, Lafe E.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme;

Abruzzo, Jennifer

Subject: RE: new draft

Should we add also,


Exemption 5

________________________________

From: Cleeland, Nancy

Sent: Monday, April 18, 2011 3:44 PM

To: Solomon, Lafe E.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Abruzzo, Jennifer;

Mattina, Celeste J.

Subject: new draft

Thanks for all your suggestions. Here is the latest draft of the release. Feel free to make

suggestions, particularly

Exemption 5

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

NLRB-FOIA-00010998

Microsoft Outlook

From:
Sent:
To:
Subject:

Cleeland, Nancy

Tuesday, April 19, 2011 11:09 AM

Solomon, Lafe E.

RE: new draft

Exemption 5

________________________________________

From: Solomon, Lafe E.

Sent: Tuesday, April 19, 2011 11:08 AM

To: Cleeland, Nancy

Subject: RE: new draft

How about the following

Exemption 5

Exemption 5

-----Original Message-----

From: Cleeland, Nancy

Sent: Tuesday, April 19, 2011 10:30 AM

To: Mattina, Celeste J.; Solomon, Lafe E.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme;

Abruzzo, Jennifer

Cc: Ahearn, Richard L.

Subject: RE: new draft

Hi all, It would be very helpful to see a draft of the complaint for purposes of writing the

fact sheet. Could someone forward to me? Thanks ________________________________________

From: Mattina, Celeste J.

Sent: Tuesday, April 19, 2011 10:20 AM

To: Cleeland, Nancy; Solomon, Lafe E.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme;

Abruzzo, Jennifer

Cc: Ahearn, Richard L.

Subject: RE: new draft

Sorry to jump in after the fact.

What do you think,

Exemption 5

-----Original Message-----

From: Cleeland, Nancy

Sent: Tuesday, April 19, 2011 9:46 AM

To: Mattina, Celeste J.; Solomon, Lafe E.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme;

Abruzzo, Jennifer

Subject: RE: new draft

Exemption 5

Exemption 5
1

NLRB-FOIA-00010999

Exemption 5

________________________________________

From: Mattina, Celeste J.

Sent: Tuesday, April 19, 2011 9:14 AM

To: Cleeland, Nancy; Solomon, Lafe E.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme;

Abruzzo, Jennifer

Subject: RE: new draft

Should we add also,


Exemption 5

________________________________

From: Cleeland, Nancy

Sent: Monday, April 18, 2011 3:44 PM

To: Solomon, Lafe E.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Abruzzo, Jennifer;

Mattina, Celeste J.

Subject: new draft

Thanks for all your suggestions. Here is the latest draft of the release. Feel free to make

suggestions, particularly

Exemption 5

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

NLRB-FOIA-00011000

Microsoft Outlook

From:
Sent:
To:
Subject:

Garza, Jose

Thursday, April 28, 2011 3:59 PM

Cleeland, Nancy; Solomon, Lafe E.; Kearney, Barry J.; W agner, Anthony R.

RE: any thoughts on a response?

That all sounds great to me.

Exemption 5

From: Cleeland, Nancy

Sent: Thursday, April 28, 2011 3:49 PM

To: Solomon, Lafe E.; Kearney, Barry J.; Garza, Jose; Wagner, Anthony R.

Subject: any thoughts on a response?

Hi Lafe, I fear you are in the air again. If not, please let me know if you have 5 minutes to talk. Weve been asked for

comment on this letter from 9 states asking us to withdraw the complaint.

Exemption 5

Any thoughts?

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

NLRB-FOIA-00011001

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:

Cleeland, Nancy

Friday, April 29, 2011 10:40 AM

Solomon, Lafe E.; Ahearn, Richard L.; Kearney, Barry J.

W agner, Anthony R.

boeing operations in s.c.

Interesting piece in the clips today about Boeings 787 production getting back on track. The story mentions other

operations Boeing maintains in North Charleston, which really undercuts the argument that were telling Boeing they cant

do business there:

http://www.postandcourier.com/news/2011/apr/28/good-boeing-news/

In North Charleston, two side-by-side Boeing factories produce major fuselage sections for the 787, which to date has

racked up 835 orders.

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

NLRB-FOIA-00011002

Microsoft Outlook

From:
Sent:
To:
Subject:

Solomon, Lafe E.

Saturday, April 30, 2011 12:12 PM

estlundc@exchange.law.nyu.edu

Boeing

Cindy, I doubt that you have missed all of the publicity and discussion surrounding my authorization of an 8(a)(1) and (3)

complaint against Boeing for deciding to move the 787 second line from Seattle to SC. I am on the road a lot in May and

June giving speeches, and I would like to refer to your 1993 Texas Law Review article in discussing and supporting the

rationale for the complaint. But I don't want to do so without your permission; pretty soon, if not already, my name will

be synonomous with Craig's. Hope all is well. Lafe

NLRB-FOIA-00011003

Microsoft Outlook

From:
Sent:
To:
Subject:

Estlund, Cynthia [estlundc@exchange.law.nyu.edu]

Saturday, April 30, 2011 1:17 PM

Solomon, Lafe E.

RE: Boeing

Oh, no, I haven't missed that! I'll admit that, upon first hearing of the Boeing complaint, I did think

immediately of that old article of mine (which I'm happy to have resurrected), only to find that others

at the Bd had also thought of it! John Colwell has already apparently pointed reporters in that

direction. This is by far the most notice the piece has ever gotten!

Will you be at the lunch thing on Wed. (re: China)?

Cindy

From: Solomon, Lafe E. [Lafe.Solomon@nlrb.gov]

Sent: Saturday, April 30, 2011 12:12 PM

To: Estlund, Cynthia

Subject: Boeing

Cindy, I doubt that you have missed all of the publicity and discussion surrounding my authorization of an 8(a)(1) and (3)

complaint against Boeing for deciding to move the 787 second line from Seattle to SC. I am on the road a lot in May and

June giving speeches, and I would like to refer to your 1993 Texas Law Review article in discussing and supporting the

rationale for the complaint. But I don't want to do so without your permission; pretty soon, if not already, my name will

be synonomous with Craig's. Hope all is well. Lafe

NLRB-FOIA-00011004

Microsoft Outlook

From:
Sent:
To:
Subject:

Solomon, Lafe E.

Saturday, April 30, 2011 1:29 PM

'estlundc@exchange.law.nyu.edu'

Re: Boeing

Yes I will see you on wed. Thanks, Lafe

--------------------------

Sent from my BlackBerry Wireless Handheld

From: Estlund, Cynthia <estlundc@exchange.law.nyu.edu>

To: Solomon, Lafe E.

Sent: Sat Apr 30 13:16:47 2011

Subject: RE: Boeing

Oh, no, I haven't missed that! I'll admit that, upon first hearing of the Boeing complaint, I did think

immediately of that old article of mine (which I'm happy to have resurrected), only to find that others

at the Bd had also thought of it! John Colwell has already apparently pointed reporters in that

direction. This is by far the most notice the piece has ever gotten!

Will you be at the lunch thing on Wed. (re: China)?

Cindy

From: Solomon, Lafe E. [Lafe.Solomon@nlrb.gov]

Sent: Saturday, April 30, 2011 12:12 PM

To: Estlund, Cynthia

Subject: Boeing

Cindy, I doubt that you have missed all of the publicity and discussion surrounding my authorization of an 8(a)(1) and (3)

complaint against Boeing for deciding to move the 787 second line from Seattle to SC. I am on the road a lot in May and

June giving speeches, and I would like to refer to your 1993 Texas Law Review article in discussing and supporting the

rationale for the complaint. But I don't want to do so without your permission; pretty soon, if not already, my name will

be synonomous with Craig's. Hope all is well. Lafe

NLRB-FOIA-00011005

Microsoft Outlook

From:
Sent:
To:
Subject:

Estlund, Cynthia [estlundc@exchange.law.nyu.edu]

Saturday, April 30, 2011 2:11 PM

Solomon, Lafe E.

RE: Boeing

Great -- looking forward to it!

From: Solomon, Lafe E. [Lafe.Solomon@nlrb.gov]

Sent: Saturday, April 30, 2011 1:29 PM

To: Estlund, Cynthia

Subject: Re: Boeing

Yes I will see you on wed. Thanks, Lafe

--------------------------

Sent from my BlackBerry Wireless Handheld

From: Estlund, Cynthia <estlundc@exchange.law.nyu.edu>

To: Solomon, Lafe E.

Sent: Sat Apr 30 13:16:47 2011

Subject: RE: Boeing

Oh, no, I haven't missed that! I'll admit that, upon first hearing of the Boeing complaint, I did think

immediately of that old article of mine (which I'm happy to have resurrected), only to find that others

at the Bd had also thought of it! John Colwell has already apparently pointed reporters in that

direction. This is by far the most notice the piece has ever gotten!

Will you be at the lunch thing on Wed. (re: China)?

Cindy

From: Solomon, Lafe E. [Lafe.Solomon@nlrb.gov]

Sent: Saturday, April 30, 2011 12:12 PM

To: Estlund, Cynthia

Subject: Boeing

Cindy, I doubt that you have missed all of the publicity and discussion surrounding my authorization of an 8(a)(1) and (3)

complaint against Boeing for deciding to move the 787 second line from Seattle to SC. I am on the road a lot in May and

June giving speeches, and I would like to refer to your 1993 Texas Law Review article in discussing and supporting the

rationale for the complaint. But I don't want to do so without your permission; pretty soon, if not already, my name will

be synonomous with Craig's. Hope all is well. Lafe

NLRB-FOIA-00011006

Microsoft Outlook

From:
Sent:
To:
Subject:
Attachments:

Kearney, Barry J.

W ednesday, May 04, 2011 2:28 PM

Solomon, Lafe E.; Mattina, Celeste J.

FW : Boeing -- revised draft response to state AGs

AGs letter.pdf; GC Response to State AG's.doc

Draft response from you to State AGs

From: Willen, Debra L

Sent: Wednesday, May 04, 2011 2:24 PM

To: Kearney, Barry J.; Sophir, Jayme; Farrell, Ellen; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: RE: Boeing -- revised draft response to state AGs

clean draft and AGs' letter attached

From: Kearney, Barry J.

Sent: Wednesday, May 04, 2011 2:10 PM

To: Sophir, Jayme; Farrell, Ellen; Willen, Debra L; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: RE: Boeing -- revised draft response to state AGs

I agree with all the revisions. Please send me a clean draft along with the AG letter to send on to Lafe

From: Sophir, Jayme

Sent: Wednesday, May 04, 2011 12:18 PM

To: Farrell, Ellen; Kearney, Barry J.; Willen, Debra L; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: RE: Boeing -- revised draft response to state AGs

Notwithstanding that this case is about retaliation for striking in other states, they seem

Exemption 5

But, regardless of what theyre saying, Ellens

modification is definitely better.

From: Farrell, Ellen

Sent: Wednesday, May 04, 2011 12:07 PM

To: Kearney, Barry J.; Willen, Debra L; Sophir, Jayme; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: FW: Boeing -- revised draft response to state AGs

See my modification

Exemption 5

Ellen

Ellen Farrell

Deputy Associate General Counsel

Division of Advice, NLRB

202-273-3810

NLRB-FOIA-00011007

Ellen.Farrell@nlrb.gov

From: Sophir, Jayme

Sent: Wednesday, May 04, 2011 11:33 AM

To: Kearney, Barry J.; Farrell, Ellen; Szapiro, Miriam; Willen, Debra L

Cc: Dodds, Amy L.

Subject: FW: Boeing -- revised draft response to state AGs

Exemption 5

From: Willen, Debra L

Sent: Wednesday, May 04, 2011 10:58 AM

To: Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: Boeing -- revised draft response to state AGs

As Barry requested, I've incorporated his changes and am attaching the new version along with the AG's letter.

Jayme -- I have not addressed your concern -- please discuss it with Barry and let me know if what you all want me to

do.

Thanks, Deb

NLRB-FOIA-00011008

Exemption 5

NLRB-FOIA-00011009

Exemption 5

NLRB-FOIA-00011010

Exemption 5

NLRB-FOIA-00011011

ALANWILSON

ATTORNEY GENERAL

April 28, 2011

Lafe E. Solomon, Esquire

Acting General Counsel

National Labor Relations Board

1099 14 th Street, NW, Suite 8600

Washington, DC 20570

Dear Mr. Solomon:

As Attorneys General of our respective states, we call upon you, as Acting General

Counsel of the National Labor Relations Board (NLRB), to withdraw immediately the

complaint numbered 19-CA-32431 against Boeing. This complaint represents an assault upon the

constitutional right of free speech, and the ability of our states to create jobs and recruit industry.

Your ill-conceived retaliatory action seeks to destroy our citizens right to work. It is South

Carolina and Boeing today, but will be any of our states, with our right to work guarantees,

tomorrow.

The right to work, uninhibited by compulsory unionism, is a precious right and is

constitutionally enforceable through our states right to work laws. See Retail Clerks Intl v.

Schermerhorn, 375 U.S. 96 (1963). Such laws are designed to eliminate union affiliation as a

criterion for employment. However, the NLRB, through this single proceeding, attempts to

sound the death knell of the right to work. Additionally, this tenuous complaint will reverberate

throughout union and non-union states alike, as international companies will question the

wisdom of locating in a country where the federal government interferes in industry without

cause or justification.

Furthermore, this complaint disrupts, and may well eliminate, the production of Boeing

787 Dreamliners in South Carolina. In fact, Boeing has expanded its operations to meet product

demand in South Carolina, while adding new jobs in Washington State. The complaint charges

Boeing with the commission of an unfair labor practice, but appears to do so without legal and

factual foundation. This unparalleled and overreaching action seeks to drive a stake through the

heart of the free enterprise system. The statements of Boeing officials cited in your complaint are

the innocent exercise of the companys right of free speech. The Supreme Court long ago made

it clear that the NLRA does not limit, and the First Amendment protects, the employer's right to

express views on labor policies or problems. N.L.R.B. v. Va. Electric and Power, 314 US 469,

NLRB-FOIA-00011012

Hon. Lafe E. Solomon

April 27, 2011

Page 2

477 (1941). As the Court recently reiterated in Citizens United v. FEC, 130 S. Ct. 876, 899-90

(2010), a corporation is not a second class citizen in terms of First Amendment protection.

Our states are struggling to emerge from one of the worst economic collapses since the

Depression. Your complaint further impairs an economic recovery. Intrusion by the federal

bureaucracy on behalf of unions will not create a single new job or put one unemployed person

back to work.

The only justification for the NLRBs unprecedented retaliatory action is to aid union

survival. Your action seriously undermines our citizens right to work as well as their ability to

compete globally. Therefore, as Attorneys General, we will protect our citizens from union

bullying and federal coercion. We thus call upon you to cease this attack on our right to work,

our states economies, and our jobs.

We look forward to your immediate response.

Sincerely,

Alan Wilson

Attorney General

[Signatures continue next page]

Cc: Respective Congressional Delegations

NLRB-FOIA-00011013

Hon. Lafe E. Solomon

April 27, 2011

Page 3

Ken Cuccinelli

Attorney General
Commonwealth of Virginia

Jon C. Bruning

Attorney General
State of Nebraska

Greg Abbott

Attorney General

State of Texas

Samuel S. Olens
Attorney General
State of Georgia

E. Scott Pruitt
Attorney General
State of Oklahoma

Pam Bondi
Attorney General
State of Florida

Tom Horne

Attorney General

State of Arizona

Luther Strange

Attorney General

State of Alabama

NLRB-FOIA-00011014

Microsoft Outlook

From:
Sent:
To:
Subject:
Attachments:

Solomon, Lafe E.

W ednesday, May 04, 2011 9:17 PM

Liebman, W ilma B.

RE: Misc.

TNR-Judis_5-26-11[1].pdf

Nonresponsive

NLRB-FOIA-00011015

symbolism is entirely to the point. e

symbolism of this present raid says: His-

toryis not on bin Ladens side. Historyis

on the side of democracy and freedom.

History will not be deterred. Yes, we

should ask ourselves: Does it make sense

to speak about abstractions like his-

tory? Does the relentlessness of a man-

hunt contain anydeeper meanings at all?

But there is an answer to these questions.

e abstractions express a meaning if we

choose to endow them with meaning.

Ten years of relentless man-hunting sug-

gest that we have chosen to do so.

Obamas speech on Sunday night was

magnificentalthough I wish he had

mentioned the Iraq war, which, once we

had overthrown Saddam, became a war

directed largelyagainst Al Qaeda, specif-

icallythe branch that was led bybin Lad-

ens man in Mesopotamia, Abu Musab

Al Zarqawi. e war against Zarqawi and

Labor Intensive

his movement became, for a while, a cen-

tral front in the larger war between Al

Qaedas version of Islamism and Ameri-

cas version of liberal democracy.

But I am quibbling about the past. e

president spoke eloquentlyenough about

Americas victoryover bin Laden himself.

e symbolism is unmistakable. e fan-

tasy caliphate is not going to be created.

e power of a democratic republic can-

not be denied. at was the message. We

are winning. Al Qaeda is losing. is is

not just a matter of circumstance or luck.

We have reason to bang our drums, and

people all over the world, and especially

in the Muslim world, have reason to re-

spond with a feeling of hope for them-

selves and for everyone else. Or rather, we

are right to believe this, and other people

are right to believe likewise, so long as

we continue to choose to be relentless.

P B

6 M  ,    

B claim that if Boeing

loses, no companywill be free to hire or

fire workers without second-guessing

from the . But theres another, un-

stated, reason why Republi-

cans and conservatives are so

worried about this case. Since

the passage of the Taft-Hartley

law in 1947, which allowed

states to pass right-to-work

laws making union organi-

zation more difficult, the

South and parts of the Rocky

Mountain and Prairie West have become

a haven for private rms attempting to

avoid unionization. at has had a pro-

found political impact.

The popularity of New Deal liberal-

ismfrom the to Social Security,

Anthony Russo

the Chamber of Commerce, the National

Association of Manufacturers, and Boe-

ing itself, which called it legally frivo-

lous. Nine Republican attorneys general

A , Lafe Solomon,
have demanded that the withdraw

the acting general counsel of


the complaint, while others on the right

the National Labor Relations


have suggested darkly that the agencys

Board (), issued a com-


real motives are political. is is nothing

plaint against Boeing. Two years ago, the


more than a political favor for the unions

companyhad announced it was transfer-


who are supporting President Obamas re-

ring the production of 2,000 airplanes


election campaign, charged South Caro-

from a unionized plant in Puget Sound,


lina Republican Senator Jim DeMint.

Washington, to a non-union plant out-


In fact, the President and the White

side Charleston, South Carolina. Accord-


House had nothing to do with the deci-

ing to Solomons complaint, what made


sion. As for Solomon, he is a 39-year civil

this decision illegal was the companys


servant with no historyof labor militancy.

motive. High-level Boeing ocials had


His complaint stems from a fairlyuncon-

stated publicly that the move was being


troversial reading of the 1935 National

made in response to strikesfour over


Labor Relations Act (), and its sub-

the previous two decadesled by the


sequent interpretation by the courts, ac-

machinists union at the Puget Sound


cording to Karl Klare of Northeastern

facility. If Boeing had said the move was


Universitys School of Law. Under the

dictated by costs or by the weather, the


, employers are guiltyof an unfair

labor practice if theyinterfere with, re-

would not have cried foul.

Forty or fifty years ago, these kinds


strain, or coerce employees in the ex-

of cases were common. Now, there are


ercise of their right to form,

fewer of thembut not because compa-


join or assist labor organiza-

nies are better-behaved. Ever since the


tions, to bargain collectively

Reagan administration, which crippled


. . . and to engage in other con-

the , companies have been free to


certed activities for the pur-

operate with impunity, moving plants or


pose of collective bargaining

simply threatening to do so in order to


or other mutual aid or pro-

quell organizing eorts. ats whySolo-


tection. at means its ille-

mons complaint, which might have gone


gal for a business to threaten

unnoticed a generation ago, may be the


or penalize workers for seeking to orga-

most radical thing the Obama adminis-


nize a union or going on strike.

According to Solomons complaint,

tration has done.

there is compelling evidence that Boe-

T has, predict-
ing did just that. Solomon cited ve pub-

ably, provoked howls of outrage from


lic statements by Boeing top executives

Te most radical thingthe Obama

administration hasdone.

saying that they were transferring the

jobs to South Carolina to avoid strikes.

For instance, on October 21, 2009, Boe-

ing CEO Jim McNerney posted a state-

ment on the companys intranet, which

is accessible to all employees, attrib-

uting the decision to strikes happen-

ing every three or four years in Puget

Sound. Such a comment can be seen as

an attempt to interfere with the right to

strike: It implies that if employees do so,

they will lose work to non-unionized

plants in other states.

Solomons complaint is not a ruling,

but is instead more akin to a criminal in-

dictment, in that it merely seeks to es-

tablish whether there are reasonable

grounds for believing an employer has

committed an unfair labor practice. By

that standard, the complaint is entirely

fair. It sets in motion a trial byan admin-

istrative law judge in Seattle on June 14.

e loser can appeal that decision to the

, whose decision can in turn be ap-

pealed before a federal court.

If the case goes that far, Boeing stands

a decent chance of prevailing. To win,

the would need to show that Boe-

ing executives intended their words to

have a chilling eect on the machinists

rightsbut sinister motives are notori-

ouslydicult to prove, even when state-

ments like those of McNerneyare in the

public record. Ultimately, the cases fate

may rest with the political inclinations

of the judges. In a 1982 case, Weather

Tamer v. NLRB, judges on the gener-

ally conservative eleventh circuit threw

out an ruling against an employer.

e court had been presented with a re-

cord of a supervisor stating that if work-

ers joined a union, the company would

close the plant but ruled that this state-

ment was not sucient to establish a

motive to chill unionism.

T N R

NLRB-FOIA-00011016

and the surrounding area have been

killed in attacks over the past decade,

and hundreds have been wounded. But

the rockets true threat is their ability to

terrorize. Much of Sderots middle class

has left. Thousands of residents have

been treated for trauma; a generation of

children suers from stuttering and bed-

wetting. Sderot, then, is Israels night-

marethe antiTel Aviv. Here there is

no pretending you can avoid the siege.

After the Gaza war of 2009, the assaults

became less frequent, but missiles still fall

intermittently. When that happens, the

Sderot Cinematheque moves screenings

to a smaller theater with thicker walls

and a steel roof. Invariably, attendance

declines, sometimes for days or even

weeks. Still, Benny Cohen, the Cinema-

theques director, insists on running the

theater as though it were in Tel Aviv. For

him, the Cinematheque is part of Sderots

battle for survival, and so he is constantly

devising new projects and inviting for-

eign directors to town, such as the Coen

brothers, who are coming to Israel for all

of one daythis month. His next big event

is a lm festival about peripheral areas

around the world. Its the onlyfree festi-

val in Israel, he says proudly. You must

comeit will be a real celebration.

S a history of

improbable cultural vitality. It looks

like a dump, but theres so much creativ-

ity here, says Laura Bialis, a documen-

Sderot lookslike a dump, but theresso much creativityhere.

tary lmmaker from Los Angeles who

moved to Sderot almost four years ago.

Every teenager I met seemed to want

the minimum wage, and progressive


Town and Country

to be a rock singer or an actor. She de-

taxationwas rooted in the unionized


Sderot and the f
cided to make a lm about Sderots rock

uture ofIsrael.

and primarilywhite working class of the

musicians, and fell in love with one of

North. at working class has been dec-

A, the southern Israeli town


them, Avi Vaknin, who proposed to her

imated bythe movement of private man-

of Sderot hosted its eighth annual


in an air raid shelter. There wasnt a

ufacturing rms to non-union states and

French film festival, which was an


Qassam attack, she explains. Avi was

overseas. It has been supplanted politi-

achievement more impressive than


just being dramatic.

callybya private sector non-union work-


it sounds. Sderot is a small town, and it

The guiding spirit of Sderots rock

ing class more attuned to divisions of


is also a poor one; it has only 20,000 res-
scene is Chaim Uliel, whose band, Sfa-

race and religion than of class. at, and


idents, many of them immigrants from
tayim (Lips), brought Moroccan music

the white Southern backlash to the civil


former Soviet Asian republics.

into the mainstream in the late 1980s and

rights movement, were major factors in

But Sderots biggest challenge may be


nurtured a generation of local musicians.

the growth of a new Republican conser-


the missiles. For the past ten years, not
ey went on to found bands like Tipex

vatismand in Americas tilt rightward


long after the beginning of the Second
(White Out) and Knesiyat Hasechel (Ca-

over the last thirtyyears.

Intifada in 2000, Hamas has launched


thedral of the Mind), which created a

The Boeing case, then, isnt just


thousands of Qassam missiles over the
fusion between Western rock and Sep-

about corporate prerogatives. Its also


border from Gaza, barely a mile away.
hardic ethnic music. Dont just mimic

about the future of American politics.


Qassams are typically homemade70
Western trends, Uliel urged his protgs,

With Solomons complaint, the


pounds of steel inserted with nails and
take the music you know from the syna-

has taken a small but definite step to-


bolts, as in the bombs used in suicide at-
gogue and the home.

ward restoring an earlier Americaone


tacks. When a strike is imminent, a calm

Two years ago, however, Uliel left

where politics wasnt dominated by the


female voice announces over loudspeak-
Sderot and moved to a town near Tel

Chamber of Commerce or demagogues


ers, Color Red, Color Red, giving res-
Aviv. e news was so shocking that the

like Jim DeMint, and workers had rights


idents 15 seconds to run to one of the
countrys largest newspaper, Yediot Aha-

that mattered.

ronot, devoted the cover of its weekend

manyshelters around town.

Some two-dozen residents of Sderot


magazine to an interview with Uliel, the

J B. J

L B

T N R M  ,    

NLRB-FOIA-00011017

Microsoft Outlook

Solomon, Lafe E.

W ednesday, May 04, 2011 9:48 PM

Ahearn Personal Email

Re: seattletimes.com: Boeing lawyer rejects NLRB charges in 787 case

From:
Sent:
To:
Subject:

Susan is my biggest fan and chuck will probably be pretty gentle. On the other hand, I am

speaking to the Chamber tomorrow. Wish me luck.

--------------------------

Sent from my BlackBerry Wireless Handheld

----- Original Message -----

From: rich ahearn <richahearn@gmail.com>

To: Solomon, Lafe E.

Sent: Wed May 04 21:41:24 2011

Subject: Re: seattletimes.com: Boeing lawyer rejects NLRB charges in 787 case

Lafe,

Thanks for the heads up;

Exemption 5

May 16 is the conference call with ALJ Lana Parke; might learn more then. Still

expect bunch of motions...we'll see.

I too am astonished at the level of vitriol...really underscores how powerful interests can

get politicians to do their bidding. At least Kilberg remains very professional, courteous in

our dealings.

I am speaking with Chuck Cohen and Susan Davis; will be curious about their observations.

I tip my hat to you for remaining calm and steadfast in the face of all this...pretty

impressive.

Cheers,

Rich

On May 4, 2011, at 5:15 PM, Solomon, Lafe E. wrote:

> Rich, before I forget, I wanted you to know that


Exemption 5

Even I

> underestimated the vitriol that the complaint generated but hopefully

> your attys are able to withstand the attacks to come. Hope the

> conference goes well. Lafe

> --------------------------

> Sent from my BlackBerry Wireless Handheld

>

>

> ----- Original Message -----

> From:
Ahearn Personal Email
> To: Solomon, Lafe E.

> Sent: Wed May 04 19:35:14 2011

> Subject: seattletimes.com: Boeing lawyer rejects NLRB charges in 787

> case

>

> This message was sent to you by

Ahearn Personal Email

as a service of The Seattle Times

http://www.seattletimes.com.

>

> ----------------------------------------------------------------------

>

NLRB-FOIA-00011018

> Boeing lawyer rejects NLRB charges in 787 case

>

> In a forceful letter to the National Labor Relations Board (NLRB), top Boeing lawyer

Michael Luttig rejected the labor agency's complaint against the company's opening of a South

Carolina 787 plant, writing that its charges "fundamentally misquote or mischaracterize

statements by Boeing executives."

>

>

> http://seattletimes.nwsource.com/html/businesstechnology/2014961873_bo

> eing05.html

>

>

> ======================================================================

>

> TO SUBSCRIBE TO THE SEATTLE TIMES PRINT EDITION

> Call (206) 464-2121 or 1-800-542-0820, or go to

> http://seattletimes.com/subscribe

>

> HOW TO ADVERTISE WITH THE SEATTLE TIMES COMPANY ONLINE For information

> on advertising in this e-mail newsletter, or other online marketing

> platforms with The Seattle Times Company, call (206) 464-3237 or

> e-mail websales@seattletimes.com

>

> TO ADVERTISE IN THE SEATTLE TIMES PRINT EDITION Please go to

> http://www.seattletimescompany.com/advertise

> for information.

>

> ======================================================================

>

>

Copyright (c) 2009 The Seattle Times Company

>

>

www.seattletimes.com

NLRB-FOIA-00011019

Microsoft Outlook

Ahearn Personal Email

From:
Sent:
To:
Subject:

W ednesday, May 04, 2011 10:28 PM

Solomon, Lafe E.

Re: seattletimes.com: Boeing lawyer rejects NLRB charges in 787 case

Yikes!! I have a much friendlier audience...over 300 registrants this year...a big uptick

from last year.

Good luck tomorrow!

On May 4, 2011, at 6:47 PM, Solomon, Lafe E. wrote:

> Susan is my biggest fan and chuck will probably be pretty gentle. On the other hand, I am

speaking to the Chamber tomorrow. Wish me luck.

> --------------------------

> Sent from my BlackBerry Wireless Handheld

>

>

> ----- Original Message -----

> From: rich ahearn <richahearn@gmail.com>

> To: Solomon, Lafe E.

> Sent: Wed May 04 21:41:24 2011

> Subject: Re: seattletimes.com: Boeing lawyer rejects NLRB charges in

> 787 case

>

> Lafe,

Thanks for the heads up;

Exemption 5

May 16 is the conference call with ALJ Lana Parke; might learn more then.

Still expect bunch of motions...we'll see.

> I too am astonished at the level of vitriol...really underscores how powerful interests can

get politicians to do their bidding. At least Kilberg remains very professional, courteous in

our dealings.

> I am speaking with Chuck Cohen and Susan Davis; will be curious about their observations.

> I tip my hat to you for remaining calm and steadfast in the face of all this...pretty

impressive.

> Cheers,

> Rich

>

> On May 4, 2011, at 5:15 PM, Solomon, Lafe E. wrote:

>

>> Rich, before I forget, I wanted you to know that


Exemption 5

Even I

>> underestimated the vitriol that the complaint generated but hopefully

>> your attys are able to withstand the attacks to come. Hope the

>> conference goes well. Lafe

>> --------------------------

>> Sent from my BlackBerry Wireless Handheld

>>

>>

>> ----- Original Message -----

>> From:

Ahearn Personal Email

>> To: Solomon, Lafe E.

>> Sent: Wed May 04 19:35:14 2011

>> Subject: seattletimes.com: Boeing lawyer rejects NLRB charges in 787

>> case

NLRB-FOIA-00011020

>>

>> This message was sent to you by

Ahearn Personal Email

as a service of The Seattle Times

http://www.seattletimes.com.

>>

>> ---------------------------------------------------------------------

>> -

>>

>> Boeing lawyer rejects NLRB charges in 787 case

>>

>> In a forceful letter to the National Labor Relations Board (NLRB), top Boeing lawyer

Michael Luttig rejected the labor agency's complaint against the company's opening of a South

Carolina 787 plant, writing that its charges "fundamentally misquote or mischaracterize

statements by Boeing executives."

>>

>>

>> http://seattletimes.nwsource.com/html/businesstechnology/2014961873_b

>> oeing05.html

>>

>>

>> =====================================================================

>> =

>>

>> TO SUBSCRIBE TO THE SEATTLE TIMES PRINT EDITION

>> Call (206) 464-2121 or 1-800-542-0820, or go to

>> http://seattletimes.com/subscribe

>>

>> HOW TO ADVERTISE WITH THE SEATTLE TIMES COMPANY ONLINE For

>> information on advertising in this e-mail newsletter, or other online

>> marketing platforms with The Seattle Times Company, call (206)

>> 464-3237 or e-mail websales@seattletimes.com

>>

>> TO ADVERTISE IN THE SEATTLE TIMES PRINT EDITION Please go to

>> http://www.seattletimescompany.com/advertise

>> for information.

>>

>> =====================================================================

>> =

>>

>>

Copyright (c) 2009 The Seattle Times Company

>>

>>

www.seattletimes.com

>

NLRB-FOIA-00011021

Microsoft Outlook

From:
Sent:
To:
Subject:

Cleeland, Nancy

Monday, May 16, 2011 11:50 AM

Solomon, Lafe E.

FW : my urgent question

I forwarded this to you on Saturday, but it looks like it bounced back. In case you didn't

see it. This reporter found notes from a conversation with Albaugh talking about building 15

dreamliners a month.

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

-----Original Message-----

From: SUSANNA RAY, BLOOMBERG/ NEWSROOM: [mailto:sray7@bloomberg.net]

Sent: Friday, May 13, 2011 8:36 PM

To: Cleeland, Nancy

Subject: my urgent question

Hi Nancy, I found my notes from February, and Boeing Commercial Airplanes President Jim

Albaugh did indeed say that they could in theory eventually take 787 production up to 15

planes a month, with the main Everett line, the Charleston line and the temporary "surge

line" that they're building in the old 767 bay in Everett. Boeing has never said how many

planes a month it plans to build on the surge line, which is intended to be ready for use

next year and then to be phased out once Charleston gets up to three a month (goal is the end

of 2013). But they have built more than three 767s a month in that space in the past (in

1998, for example, they delivered 47 767s, followed by 44 each year in 1999 and 2000, and

sort of trickling down from there to about one a month now).

So here's my urgent question, as I'm writing this story: my understanding from you is that

the NLRB's remedy in this complaint is for Boeing to build 10 a month in Washington state by

IAM members. And that Boeing could fulfill this remedy by, for example, keeping open the

surge line. And then it can still continue with its South Carolina plans as it so desires, as

long as it's building 10 a month in Washington. I.e., it's a very narrow complaint and remedy

that only applies to what was said about the reason for this specific 787 assembly line being

built, and so as long as Boeing gives a different reason for putting other work in South

Carolina, it's free to do so.

*Is this correct?* Because it's a key point in the whole hoopla over the complaint, and I

want to be 100 percent sure before I put it out there.

Can you possibly check with Mr. Solomon -- or if you already know the answer yourself -- and

get back to me on this?

I was supposed to turn this story in tonight, for editing over the weekend or Monday, but I'd

rather be late and right than on-time and wrong, so I'll wait until I hear back from you. My

mobile number is 312-607-0747. Thank you!

Kind regards,

Susanna Ray

------------------------------------------------------------

Susanna Ray | U.S. aerospace reporter | Bloomberg News

O: +1-206-913-4541 | M: +1-312-607-0747 | E: sray7@bloomberg.net

NLRB-FOIA-00011022

Microsoft Outlook

From:
Sent:
To:
Subject:

Solomon, Lafe E.

Monday, May 16, 2011 11:57 AM

Cleeland, Nancy

RE: my urgent question

Exemption 5

Are you or I supposed to respond?

-----Original Message-----

From: Cleeland, Nancy

Sent: Monday, May 16, 2011 11:50 AM

To: Solomon, Lafe E.

Subject: FW: my urgent question

I forwarded this to you on Saturday, but it looks like it bounced back. In case you didn't

see it. This reporter found notes from a conversation with Albaugh talking about building 15

dreamliners a month.

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

-----Original Message-----

From: SUSANNA RAY, BLOOMBERG/ NEWSROOM: [mailto:sray7@bloomberg.net]

Sent: Friday, May 13, 2011 8:36 PM

To: Cleeland, Nancy

Subject: my urgent question

Hi Nancy, I found my notes from February, and Boeing Commercial Airplanes President Jim

Albaugh did indeed say that they could in theory eventually take 787 production up to 15

planes a month, with the main Everett line, the Charleston line and the temporary "surge

line" that they're building in the old 767 bay in Everett. Boeing has never said how many

planes a month it plans to build on the surge line, which is intended to be ready for use

next year and then to be phased out once Charleston gets up to three a month (goal is the end

of 2013). But they have built more than three 767s a month in that space in the past (in

1998, for example, they delivered 47 767s, followed by 44 each year in 1999 and 2000, and

sort of trickling down from there to about one a month now).

So here's my urgent question, as I'm writing this story: my understanding from you is that

the NLRB's remedy in this complaint is for Boeing to build 10 a month in Washington state by

IAM members. And that Boeing could fulfill this remedy by, for example, keeping open the

surge line. And then it can still continue with its South Carolina plans as it so desires, as

long as it's building 10 a month in Washington. I.e., it's a very narrow complaint and remedy

that only applies to what was said about the reason for this specific 787 assembly line being

built, and so as long as Boeing gives a different reason for putting other work in South

Carolina, it's free to do so.

*Is this correct?* Because it's a key point in the whole hoopla over the complaint, and I

want to be 100 percent sure before I put it out there.

Can you possibly check with Mr. Solomon -- or if you already know the answer yourself -- and

get back to me on this?

NLRB-FOIA-00011023

I was supposed to turn this story in tonight, for editing over the weekend or Monday, but I'd

rather be late and right than on-time and wrong, so I'll wait until I hear back from you. My

mobile number is 312-607-0747. Thank you!

Kind regards,

Susanna Ray

------------------------------------------------------------

Susanna Ray | U.S. aerospace reporter | Bloomberg News

O: +1-206-913-4541 | M: +1-312-607-0747 | E: sray7@bloomberg.net

NLRB-FOIA-00011024

Microsoft Outlook

From:
Sent:
To:
Subject:

Cleeland, Nancy

Monday, May 16, 2011 11:59 AM

Solomon, Lafe E.

RE: my urgent question

No - just wanted you to be aware. I hope her editors let her run with this. It's supposed to

come out today.

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

-----Original Message-----

From: Solomon, Lafe E.

Sent: Monday, May 16, 2011 11:57 AM

To: Cleeland, Nancy

Subject: RE: my urgent question

Exemption 5

Are you or I supposed to respond?

-----Original Message-----

From: Cleeland, Nancy

Sent: Monday, May 16, 2011 11:50 AM

To: Solomon, Lafe E.

Subject: FW: my urgent question

I forwarded this to you on Saturday, but it looks like it bounced back. In case you didn't

see it. This reporter found notes from a conversation with Albaugh talking about building 15

dreamliners a month.

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

-----Original Message-----

From: SUSANNA RAY, BLOOMBERG/ NEWSROOM: [mailto:sray7@bloomberg.net]

Sent: Friday, May 13, 2011 8:36 PM

To: Cleeland, Nancy

Subject: my urgent question

Hi Nancy, I found my notes from February, and Boeing Commercial Airplanes President Jim

Albaugh did indeed say that they could in theory eventually take 787 production up to 15

planes a month, with the main Everett line, the Charleston line and the temporary "surge

line" that they're building in the old 767 bay in Everett. Boeing has never said how many

planes a month it plans to build on the surge line, which is intended to be ready for use

next year and then to be phased out once Charleston gets up to three a month (goal is the end

of 2013). But they have built more than three 767s a month in that space in the past (in

1998, for example, they delivered 47 767s, followed by 44 each year in 1999 and 2000, and

sort of trickling down from there to about one a month now).

NLRB-FOIA-00011025

So here's my urgent question, as I'm writing this story: my understanding from you is that

the NLRB's remedy in this complaint is for Boeing to build 10 a month in Washington state by

IAM members. And that Boeing could fulfill this remedy by, for example, keeping open the

surge line. And then it can still continue with its South Carolina plans as it so desires, as

long as it's building 10 a month in Washington. I.e., it's a very narrow complaint and remedy

that only applies to what was said about the reason for this specific 787 assembly line being

built, and so as long as Boeing gives a different reason for putting other work in South

Carolina, it's free to do so.

*Is this correct?* Because it's a key point in the whole hoopla over the complaint, and I

want to be 100 percent sure before I put it out there.

Can you possibly check with Mr. Solomon -- or if you already know the answer yourself -- and

get back to me on this?

I was supposed to turn this story in tonight, for editing over the weekend or Monday, but I'd

rather be late and right than on-time and wrong, so I'll wait until I hear back from you. My

mobile number is 312-607-0747. Thank you!

Kind regards,

Susanna Ray

------------------------------------------------------------

Susanna Ray | U.S. aerospace reporter | Bloomberg News

O: +1-206-913-4541 | M: +1-312-607-0747 | E: sray7@bloomberg.net

NLRB-FOIA-00011026

Microsoft Outlook

From:
Sent:
To:
Subject:

Cleeland, Nancy

Thursday, June 02, 2011 2:37 PM

Solomon, Lafe E.

more info on npr

Hi Lafe,

I spoke with Kathy Lohr, one of the NPR reporters, and realized I was mistaken about something. She is doing a separate

story on the South Carolina scene, while the other reporter will write about the hearing in Seattle later. Kathy Lohr has

talked to many people in SC who are angry at the NLRB and says our action was out of line, and shed like to balance it

out with something from us. Unfortunately she is wrapping up her piece tomorrow and would need to speak with you

tomorrow morning. It would be 10-15 minutes at 9 am at their studio on Massachusetts Ave NW. I could meet you there (I

really will be there).

What would work for the story is something along these lines:

Exemption 5

Please let me know what you think.

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

NLRB-FOIA-00011027

Microsoft Outlook

From:
Sent:
To:
Subject:
Attachments:

Mattina, Celeste J.

Friday, June 10, 2011 4:07 PM

Solomon, Lafe E.

FW : Contract Needs

SOW Legal Services Boeing 061011.doc; CCR Registration Instructions.doc

fyi

From: Graham, David

Sent: Friday, June 10, 2011 3:55 PM

To: 'lkiernan@zuckerman.com'

Cc: James, Kathleen; Mattina, Celeste J.; Abruzzo, Jennifer; St. Clair, Delfina

Subject: Contract Needs

Leslie,

Per our conversation today, the following are items we discussed and/or need to address in order to prepare the contract

for signature:

Tax ID number;

CCR Registration Contractors are required to be registered in the Central Contractor Register in order to work

for the Federal Government. Attached are instructions on how to do that. You only have to register one time, and

would need a DUNS number (Dunn & Bradstreet) which the attachment describes. Let me or Delfina know if you

have questions about this;

The Federal Government pays interest on all debts over 30 days from receiving a proper invoice at the published

Treasury rate. That rate is 2.625% per annum until June 30, 2011, and new rates will be published in the Federal

Register beyond that period. Also, the Government has an automated payment system, so you wont likely see

anything over 60 days late as your engagement addresses. The Government usually pays on time now, and is

required to pay interest if it does not. If there are any issues with payment or any other claims, the Disputes Act in

the contract protects contractors with rights and procedures for resolving disputes or issues;

The Federal Government also publishes mileage rates, the same as IRS mileage which I believe is $.51 per mile,

so that should not be an issue;

The Federal Government does not award open ended contracts, so we need specific rates for specific positions

and the estimated number of hours for each so we can come up with an estimated contract amount. This is in

lieu of attorneys range from $250 to $900 per hour, and the same for paralegals;

I will have to place a not-to-exceed amount in the contract. This is only to protect the Government from

contractors who take advantage of an open checkbook as you probably can understand. That amount, just like

The Federal Government may terminate a contract at any time with the Termination clauses in the contract, so

Delfina St. Clair will be the Contracting Officer. I have to stay out of that role so I can authorize matters that have

the estimate, can be changed by the Contracting Officer as determined necessary;

that is in place already;

to go above the Contracting Officer. She will do a good job. You are welcome to contact her at any time as well.

Her number is 202-273-4212 and email is delfina.st.clair@nlrb.gov

Attached is the Statement of Work for your advance review, which will be part of the contract that describes the services

under contract. I believe we have covered everything in your engagement letter, so we would like to use the contract in

lieu of the letter if thats OK. Once we get all of these issues behind us we should be able to get a contract to you for

signature. Please let me know if you have any questions or concerns.

David

David L. Graham, Chief

Acquisitions Management Branch

National Labor Relations Board

NLRB-FOIA-00011028

202-273-4047

NLRB-FOIA-00011029

NOTICE:

Contractors who have not registered with Central Contractor

Registration (CCR) should do so as soon as possible. Contractors bidding on

the new BPA must have a DUNS number and be registered with CCR to be

considered.

To obtain a Dun & Bradstreet (DUNS) number:

Call Duns and Bradstreet at 1-866-705-5711, and ask to be assigned a DUNS

number (the process takes about 5 minutes).

After receiving a DUNS number, you must wait 24 hours before registering

with CCR.

To register with the CCR

Log on to the CCR website (http://www.ccr.gov) and click on Start New

Registration located on the upper left hand side of the homepage. From there,

follow the prompts and fill in the information requested. The information that

will be requested in the required fields has been summarized on the attached

sheet.

NLRB-FOIA-00011030

Required information for CCR Registration

REQUIRED FIELDS are marked with an *. Unmarked fields are optional.

Legal Business Name: This is your name (unless you have a business)

Physical Street Address: Your home address (unless you have a business address)

Business Start Date: When you began (or expect to begin) the service you are

providing for the School of Language Studies (SLS).

Number of Employees: If only you, enter 1

Fiscal Year End: You may enter 12/31, for December 31, unless you have a

company that has a separate fiscal year

Annual Revenue: What you earn or expect to earn from this type of work (can be

an estimate)

Type of Organization: for most of you that will be Sole Proprietorship and your

name will be the Sole Proprietor.

Business Type: As an individual, you are a small business. Of course if you fit

one of the other categories, you may select that category.

Goods/Services: The sample page provided lists codes that refer to training.

For North American Industry Classification System the code related to

training (611630)

For Standard Industrial Classification, the training code is 8299.

Electronic Funds Transfer: This is your banking information

Automated Clearing House: At least one method of contact must be entered for

your financial institution.

ACH US Phone Number

ACH Non-US Phone Number THIS MAY BE LEFT BLANK

ACH FAX

ACH E-mail ________________________________

Remittance Information

This is your mailing address

Accounts Receivable Point of contact

This is your information.

NLRB-FOIA-00011031

STATEMENT OF WORK

LEGAL SERVICES

BACKGROUND

The National Labor Relations Board (NLRB) is an independent Federal Agency created by

Congress in 1935 to administer the National Labor Relations Act, the primary law governing

relations between and among unions, employees, and employers in the private sector. The

statute guarantees the right of employees to organize and to bargain collectively with their

employers or to refrain from all such activity. Generally applying to all employers involved in

interstate commerce other than airlines, railroads, agriculture, and government the Act

implements the national labor policy of assuring free choice and encouraging collective

bargaining as a means of maintaining industrial peace. Through the years, Congress has

amended the Act and the Board and courts have developed a body of law drawn from the statute.

In its statutory assignment, the NLRB has two principal functions: (1) to determine, through

secret-ballot elections, the free democratic choice by employees whether they wish to be

represented by a union in dealing with their employers and if so, by which union; and (2) to

prevent and remedy unlawful acts, called unfair labor practices, by either employers or unions.

The NLRB does not act on its own motion in either function. It processes only those charges of

unfair labor practices and petitions for employee elections that are filed with the NLRB in one of

its fifty-two Regional, Sub-regional, or Resident Offices.

PURPOSE

The NLRB is in need of independent counsel (contractor) to advise and represent the General

Counsel and the NLRB on any and all matters in relation to activities regarding Congressional

inquiries and testimony. Contractor shall provide legal services, as needed, to support and

protect the interests of the General Counsel and the NLRB. Contractor must have specialized

experience in all related matters of law.

Legal services may include, but are not limited to, the

following subject areas and similar related work:

(1) Legal advice about Congressional inquiries and about testifying before a Congressional

Committee and/or Subcommittee;

(2) Assistance in drafting documents in response to Congressional inquiries, including

talking points for oral presentation;

(3) Representation as legal counsel during any Congressional testimony or questioning, and

advance preparation for such matters as needed to represent the interests of the General

Counsel and the NLRB;

(4) Any area of legal expertise or support that may arise due to the nature of this contract for

legal services.

SOW: NxGen Advisory Services

11/21/2011

NLRB-FOIA-00011032

COMMUNICATIONS:

Contractor shall be accessible by telephone at all times or as necessary under the terms of this

contract. Contractor shall have capacity to submit and receive documents to and from the NLRB

in Microsoft Word 2003 format and/or pdf. file format as required. All communications shall be

secure from disclosure to any outside sources. All secure communications shall be protected

under attorney-client privilege and shall be marked as such when necessary to protect the

interests of the NLRB.

EXPENSES:

The NLRB agrees to reimburse contractor for reasonable expenses allocable to and necessary for

legal services within the scope of this contract, and allowable under the Federal Acquisition

Regulation (48 CFR Part 31). Expenses may include, but are not limited to photocopying, long

distance telephone charges, travel, computerized legal research, messenger services and mailing

expenses, investigators, secretarial overtime as necessary for timeliness matters.

All travel, including transportation, lodging, meals and incidental expenses shall be in

accordance with the Federal Travel Regulation, and may be based on actual expenses, Federal

per diem rates including IRS reimbursement rates, or any combination thereof, provided the

method used results in a reasonable charge.

Costs incurred for transportation may be based on

mileage rates, actual costs incurred, or a combination provided the method used results in a

reasonable charge. Air travel shall be at the lowest available rates at the time of travel. Any

charges in question may be brought to the attention of the Contracting Officer for advisement

and approval.

PERIOD OF PERFORMANCE

The period of performance shall be from date of award up to one calendar year from date of

award.

POINTS OF CONTACT

Jennifer Abruzzo, Deputy Assistant General Counsel shall be the point of contact for all

technical information and questions. In this capacity, she will monitor the performance of the

contract on behalf of the Government. The POC is located at National Labor Relations Board,

1099 14

th

Street, NW, Washington, D.C. 20570, Suite 10102. The telephone number is 202-273-

3704.

Delfina St. Clair, Contracting Officer, shall be the Contracting Officer for award and

administration of this contract. The Contacting Officer or designee is the sole authority for

authorizing changes to this contract. The Contracting Officer is located at National Labor

th

Relations Board, 1099 14


Street, NW, Washington, D.C. 20570, Suite 7750. The telephone

number is 202-273-4210.

INVOICES AND PAYMENT

SOW: NxGen Advisory Services

11/21/2011

NLRB-FOIA-00011033

In compliance with the Prompt Payment Act, invoices shall be paid within 30 days of receiving a

proper invoice, and pays interest at established Treasury rates on all late payments.

SOW: NxGen Advisory Services

11/21/2011

NLRB-FOIA-00011034

Microsoft Outlook

From:
Sent:
To:
Subject:

Cleeland, Nancy

Tuesday, June 14, 2011 3:28 PM

Solomon, Lafe E.

FW : NPR story on Boeing case

Apparently you made it into the 2

nd

NPR piece, although I havent had a chance to listen yet.

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

From:

Exemption 6

Sent: Tuesday, June 14, 2011 2:28 PM

To: Wagner, Anthony R.; Cleeland, Nancy

Subject: NPR story on Boeing case

You might want to put on Surfboard a link to NPRs story about the Boeing case. Its a pretty

good account of the issue, and Lafe is one of the people quoted. You can hear him speak on the

audio version. The story is at :

http://www.npr.org/2011/06/14/137141619/labor-agency-challenges-boeing-factory-location

NLRB-FOIA-00011035

Microsoft Outlook

From:
Sent:
To:
Subject:

Solomon, Lafe E.

Tuesday, June 14, 2011 3:35 PM

Cleeland, Nancy

RE: NPR story on Boeing case

I heard it. I thought it was a good sound bite from my interview.

From: Cleeland, Nancy

Sent: Tuesday, June 14, 2011 3:28 PM

To: Solomon, Lafe E.

Subject: FW: NPR story on Boeing case

Apparently you made it into the 2

nd

NPR piece, although I havent had a chance to listen yet.

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

From:

Exemption 6

Sent: Tuesday, June 14, 2011 2:28 PM

To: Wagner, Anthony R.; Cleeland, Nancy

Subject: NPR story on Boeing case

You might want to put on Surfboard a link to NPRs story about the Boeing case. Its a pretty

good account of the issue, and Lafe is one of the people quoted. You can hear him speak on the

audio version. The story is at :

http://www.npr.org/2011/06/14/137141619/labor-agency-challenges-boeing-factory-location

NLRB-FOIA-00011036

Microsoft Outlook

From:
Sent:
To:
Subject:
Attachments:

Kearney, Barry J.

W ednesday, September 01, 2010 11:12 AM

Sophir, Jayme

FW : Boeing Company, 19-CA-32431, Submission

ADV.19-CA-32431.Boeing.Request for Advice and Auth to Seek 10(j) Inj Relief.pdf

I got a call from Ahearn telling me this a big deal case and to put our best and our brightest on it. In looking at the memo

Boeing decision to have the work done outside of W ashington got a lot of press when it was announced. This is a GC

case. Thanks

Barry

From: Albertsen, Mary

Sent: Tuesday, August 31, 2010 7:21 PM

To: Advice; Injunction Litigation Branch; Kearney, Barry J.; Katz, Judy

Cc: Baniszewski, Joseph; Ahearn, Richard L.; Pomerantz, Anne

Subject: Boeing Company, 19-CA-32431, Submission

Attached please find a Request for Advice and Authorization to Seek Section 10(j) Injunctive Relief in the above case.

Mary Albertsen, AOM

Region 19 - Seattle, W A

(206) 220-6318

NLRB-FOIA-00011037

Exemption 5

NLRB-FOIA-00011038

Exemption 5

NLRB-FOIA-00011039

Exemption 5

NLRB-FOIA-00011040

Exemption 5

NLRB-FOIA-00011041

Exemption 5

NLRB-FOIA-00011042

Exemption 5

NLRB-FOIA-00011043

Exemption 5

NLRB-FOIA-00011044

Exemption 5

NLRB-FOIA-00011045

Exemption 5

NLRB-FOIA-00011046

Exemption 5

NLRB-FOIA-00011047

Exemption 5

NLRB-FOIA-00011048

Exemption 5

NLRB-FOIA-00011049

Exemption 5

NLRB-FOIA-00011050

Exemption 5

NLRB-FOIA-00011051

Exemption 5

NLRB-FOIA-00011052

Exemption 5

NLRB-FOIA-00011053

Exemption 5

NLRB-FOIA-00011054

Exemption 5

NLRB-FOIA-00011055

Exemption 5

NLRB-FOIA-00011056

Exemption 5

NLRB-FOIA-00011057

Exemption 5

NLRB-FOIA-00011058

Exemption 5

NLRB-FOIA-00011059

Exemption 5

NLRB-FOIA-00011060

Exemption 5

NLRB-FOIA-00011061

Exemption 5

NLRB-FOIA-00011062

Exemption 5

NLRB-FOIA-00011063

Exemption 5

NLRB-FOIA-00011064

Exemption 5

NLRB-FOIA-00011065

Exemption 5

NLRB-FOIA-00011066

Exemption 5

NLRB-FOIA-00011067

Exemption 5

NLRB-FOIA-00011068

Exemption 5

NLRB-FOIA-00011069

Exemption 5

NLRB-FOIA-00011070

Exemption 5

NLRB-FOIA-00011071

Exemption 5

NLRB-FOIA-00011072

Exemption 5

NLRB-FOIA-00011073

Exemption 5

NLRB-FOIA-00011074

Exemption 5

NLRB-FOIA-00011075

Exemption 5

NLRB-FOIA-00011076

Exemption 5

NLRB-FOIA-00011077

Exemption 5

NLRB-FOIA-00011078

Exemption 5

NLRB-FOIA-00011079

Exemption 5

NLRB-FOIA-00011080

Exemption 5

NLRB-FOIA-00011081

Exemption 5

NLRB-FOIA-00011082

Exemption 5

NLRB-FOIA-00011083

Exemption 5

NLRB-FOIA-00011084

Exemption 5

NLRB-FOIA-00011085

Exemption 5

NLRB-FOIA-00011086

Exemption 5

NLRB-FOIA-00011087

Exemption 5

NLRB-FOIA-00011088

Exemption 5

NLRB-FOIA-00011089

Exemption 5

NLRB-FOIA-00011090

Exemption 5

NLRB-FOIA-00011091

Exemption 5

NLRB-FOIA-00011092

Exemption 5

NLRB-FOIA-00011093

Exemption 5

NLRB-FOIA-00011094

Exemption 5

NLRB-FOIA-00011095

Exemption 5

NLRB-FOIA-00011096

Exemption 5

NLRB-FOIA-00011097

Exemption 5

NLRB-FOIA-00011098

Exemption 5

NLRB-FOIA-00011099

Exemption 5

NLRB-FOIA-00011100

Exemption 5

NLRB-FOIA-00011101

Exemption 5

NLRB-FOIA-00011102

Exemption 5

NLRB-FOIA-00011103

Exemption 5

NLRB-FOIA-00011104

Exemption 5

NLRB-FOIA-00011105

Exemption 5

NLRB-FOIA-00011106

Exemption 5

NLRB-FOIA-00011107

Exemption 5

NLRB-FOIA-00011108

Exemption 5

NLRB-FOIA-00011109

Exemption 5

NLRB-FOIA-00011110

Exemption 5

NLRB-FOIA-00011111

Microsoft Outlook

From:
Sent:
To:
Subject:

Sophir, Jayme

W ednesday, September 01, 2010 11:31 AM

Karsh, Aaron

RE: Boeing Company, 19-CA-32431, Submission

Nonresponsive

From: Karsh, Aaron

Sent: Wednesday, September 01, 2010 11:23 AM

To: Sophir, Jayme

Subject: RE: Boeing Company, 19-CA-32431, Submission

I have not read it yet (just got back from a Hiring Plan mtg). Only concern would be whether she could do this and get a

brief as well, even considering the elongated timeframe for filing. The submission itself is 72 pages. When would she need

to start on the brief, if Advice is doing it?

From: Sophir, Jayme

Sent: Wednesday, September 01, 2010 11:21 AM

To: Karsh, Aaron

Subject: FW: Boeing Company, 19-CA-32431, Submission

Good case for Deb?

From: Kearney, Barry J.

Sent: Wednesday, September 01, 2010 11:12 AM

To: Sophir, Jayme

Subject: FW: Boeing Company, 19-CA-32431, Submission

I got a call from Ahearn telling me this a big deal case and to put our best and our brightest on it. In looking at the memo

Boeing decision to have the work done outside of W ashington got a lot of press when it was announced. This is a GC

case. Thanks

Barry

From: Albertsen, Mary

Sent: Tuesday, August 31, 2010 7:21 PM

To: Advice; Injunction Litigation Branch; Kearney, Barry J.; Katz, Judy

Cc: Baniszewski, Joseph; Ahearn, Richard L.; Pomerantz, Anne

Subject: Boeing Company, 19-CA-32431, Submission

Attached please find a Request for Advice and Authorization to Seek Section 10(j) Injunctive Relief in the above case.

Mary Albertsen, AOM

Region 19 - Seattle, W A

(206) 220-6318

Tracking:

NLRB-FOIA-00011112

Recipient

Delivery

Karsh, Aaron

Delivered: 9/1/2010 11:31 AM

NLRB-FOIA-00011113

Microsoft Outlook

From:
Sent:
To:
Subject:

Sophir, Jayme

W ednesday, September 01, 2010 1:48 PM

Karsh, Aaron

RE: Boeing Company, 19-CA-32431, Submission

I was thinking youd do it. I have a meeting starting at 2:15. You can call her and offer her Boeing and a couple of the

other (preferably older) things. But try to impress on her that Boeing is the exciting, interesting, high profile one, and Im

sure shell choose that.

From: Karsh, Aaron

Sent: Wednesday, September 01, 2010 1:41 PM

To: Sophir, Jayme

Subject: RE: Boeing Company, 19-CA-32431, Submission

Have you called her? Let me know when you'd like to talk --

From: Sophir, Jayme

Sent: Wednesday, September 01, 2010 11:21 AM

To: Karsh, Aaron

Subject: FW: Boeing Company, 19-CA-32431, Submission

Good case for Deb?

From: Kearney, Barry J.

Sent: Wednesday, September 01, 2010 11:12 AM

To: Sophir, Jayme

Subject: FW: Boeing Company, 19-CA-32431, Submission

I got a call from Ahearn telling me this a big deal case and to put our best and our brightest on it. In looking at the memo

Boeing decision to have the work done outside of W ashington got a lot of press when it was announced. This is a GC

case. Thanks

Barry

From: Albertsen, Mary

Sent: Tuesday, August 31, 2010 7:21 PM

To: Advice; Injunction Litigation Branch; Kearney, Barry J.; Katz, Judy

Cc: Baniszewski, Joseph; Ahearn, Richard L.; Pomerantz, Anne

Subject: Boeing Company, 19-CA-32431, Submission

Attached please find a Request for Advice and Authorization to Seek Section 10(j) Injunctive Relief in the above case.

Mary Albertsen, AOM

Region 19 - Seattle, W A

(206) 220-6318

Tracking:

NLRB-FOIA-00011114

Recipient

Delivery

Karsh, Aaron

Delivered: 9/1/2010 1:48 PM

NLRB-FOIA-00011115

Microsoft Outlook

From:
Sent:
To:
Subject:

Sophir, Jayme

Monday, October 04, 2010 8:39 AM

Szapiro, Miriam

RE: in late

Ok, see you then.

-----Original Message-----

From: Szapiro, Miriam

Sent: Monday, October 04, 2010 8:31 AM

To: Sophir, Jayme

Subject: in late

Ex. 6 personal privacy

and luckily have Boeing with me because that was my first order of business for today. I

expect to be in a little later this am.

Tracking:

NLRB-FOIA-00011116

Recipient

Delivery

Szapiro, Miriam

Delivered: 10/4/2010 8:39 AM

NLRB-FOIA-00011117

Microsoft Outlook

From:
Sent:
To:
Subject:

Sophir, Jayme

Monday, October 04, 2010 9:31 AM

Szapiro, Miriam; W illen, Debra L

Boeing

I just mentioned this case to Barry, and he said if you have something for him to read today, hell be able to have an

agenda tomorrow. Or you can wait if youre not ready. I just wanted to let you know that hell make room to do it if you

want to move forward. I think hell be able to read your draft more easily than reading the Regions submission (although

obviously hell want to read the submission at some point). I explained that the draft is for purposes of a GC agenda and

might not be as polished as an advice memo ordinarily would be.

Jayme Sophir

Assistant General Counsel

Chief, Regional Advice Branch

National Labor Relations Board

202-273-3837

Tracking:

NLRB-FOIA-00011118

Recipient

Delivery

Szapiro, Miriam

Delivered: 10/4/2010 9:31 AM

Willen, Debra L

Delivered: 10/4/2010 9:31 AM

NLRB-FOIA-00011119

Microsoft Outlook

From:
Sent:
To:
Subject:

Sophir, Jayme

Monday, October 04, 2010 11:13 AM

Szapiro, Miriam

boeing

Dont promise Deb a Thursday agenda yet. If it turns out that Wed works better for Barry, shes just going to have to give

up her telework day. I dont think we should be deciding when to do agendas (especially in big cases like this) by

planning around t/w days

Jayme Sophir

Assistant General Counsel

Chief, Regional Advice Branch

National Labor Relations Board

202-273-3837

Tracking:

NLRB-FOIA-00011120

Recipient

Delivery

Szapiro, Miriam

Delivered: 10/4/2010 11:13 AM

NLRB-FOIA-00011121

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:

Sophir, Jayme

Monday, November 22, 2010 11:40 AM

Szapiro, Miriam

W illen, Debra L

RE: "Turbulence: Boeing and the State of American W orkers and Managers"

Why don't you just ask our librarian whether he can order a copy for us.

-----Original Message-----

From: Szapiro, Miriam

Sent: Monday, November 22, 2010 9:51 AM

To: Sophir, Jayme

Cc: Willen, Debra L

Subject: RE: "Turbulence: Boeing and the State of American Workers and Managers"

Is there any chance we can get Advice to pay for this book? Deb is about to order it, and I

think it could provide very helpful information regarding the case.

Tracking:

NLRB-FOIA-00011122

Recipient

Delivery

Szapiro, Miriam

Delivered: 11/22/2010 11:40 AM

Willen, Debra L

Delivered: 11/22/2010 11:40 AM

NLRB-FOIA-00011123

Microsoft Outlook

From:
Sent:
To:
Subject:

Sophir, Jayme

W ednesday, December 01, 2010 4:40 PM

W illen, Debra L; Szapiro, Miriam

boeing

Boeing now wants to postpone our meeting another day (12/15), and when I expressed dismay, Barry said its just one

day. If you remember or have the info easily available, can you give me a brief timeline of when we/Lafe originally said

Boeing would have to come in by (wasnt it like months ago?), and each of the postponements and the reasons they gave

why they needed more time? This is what we always said would happen they would delay and delay litigation (in small

increments so it never seems like much delay in and of itself) while events on the ground proceeded apace...

Jayme Sophir

Assistant General Counsel

Chief, Regional Advice Branch

National Labor Relations Board

202-273-3837

Tracking:

NLRB-FOIA-00011124

Recipient

Delivery

Willen, Debra L

Delivered: 12/1/2010 4:40 PM

Szapiro, Miriam

Delivered: 12/1/2010 4:40 PM

NLRB-FOIA-00011125

Microsoft Outlook

Nonresponsive

From: Kearney, Barry J.

Sent: Thursday, December 02, 2010 8:10 AM

To: Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam; Willen, Debra L

Subject: I know I told you so

Conner, the lead negotiator for Boeing, is having a dinner meeting with the IAM in Chicago Monday night. In order to

avoid a red eye into W ashington for the Tuesday meeting the meeting is being moved to Wednesday at 10. We will

receive their position paper mid day Tuesday. Look for it. Email to me, Ahearn, Lafe and Celeste. W e will discuss on the

13th

Tracking:

NLRB-FOIA-00011126

Recipient

Delivery

Farrell, Ellen

Delivered: 12/2/2010 9:11 AM

NLRB-FOIA-00011127

Microsoft Outlook

Nonresponsive

From: Kearney, Barry J.

Sent: Thursday, December 02, 2010 8:10 AM

To: Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam; Willen, Debra L

Subject: I know I told you so

Conner, the lead negotiator for Boeing, is having a dinner meeting with the IAM in Chicago Monday night. In order to

avoid a red eye into W ashington for the Tuesday meeting the meeting is being moved to Wednesday at 10. We will

receive their position paper mid day Tuesday. Look for it. Email to me, Ahearn, Lafe and Celeste. W e will discuss on the

13th

NLRB-FOIA-00011128

Microsoft Outlook

From:

Sophir, Jayme

Sent:

Monday, December 13, 2010 10:59 AM

To:

Kearney, Barry J.; Farrell, Ellen

Subject:

Boeing

Tracking:
Tracking

Recipient

Delivery

Kearney, Barry J.

Delivered: 12/13/2010 10:59 AM

Farrell, Ellen

Delivered: 12/13/2010 10:59 AM

FYI Deb tells me that the Union is preparing another paper, which they hope to have to us before the Wednesday

meeting, that will include an inherently destructive argument and a summary of the bargaining.

Jayme Sophir

Assistant General Counsel

Chief, Regional Advice Branch

National Labor Relations Board

202-273-3837

NLRB-FOIA-00011129

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:
Attachments:

W illen, Debra L

Monday, March 14, 2011 2:59 PM

Solomon, Lafe E.

Mattina, Celeste J.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Katz, Judy; Szapiro,

Miriam; Omberg, Bob; Baniszewski, Joseph

Boeing Co. - fact sheet and memo

ADV.19-CA-32431.factsheet.Boeing.dlw.doc; ADV.19-CA-32431.Response2.Boeing.dlw.doc

I am attaching our Fact Sheet and the latest version of our Advice Memorandum

Exemption 5

Please let me know if there is anything else you need.

Thanks,

Deb Willen

NLRB-FOIA-00011130

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00011131

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00011132

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00011133

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00011134

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00011135

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00011136

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00011137

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00011138

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00011139

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00011140

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00011141

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00011142

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00011143

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00011144

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00011145

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00011146

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00011147

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00011148

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00011149

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00011150

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00011151

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00011152

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00011153

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00011154

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00011155

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00011156

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00011157

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00011158

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00011159

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00011160

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00011161

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00011162

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00011163

Ex. 5, deliberative. A draft, not final.

NLRB-FOIA-00011164

Exemption 5

NLRB-FOIA-00011165

Exemption 5

NLRB-FOIA-00011166

Exemption 5

NLRB-FOIA-00011167

Microsoft Outlook

From:

Kearney, Barry J.

Sent:

Thursday, March 31, 2011 11:06 AM

To:

Solomon, Lafe E.

Cc:

Farrell, Ellen; Sophir, Jayme; Ahearn, Richard L.

Subject:

FW: Boeing

From: David Campbell [mailto:campbell@workerlaw.com]

Sent: Thursday, March 31, 2011 9:23 AM

To: Kearney, Barry J.

Cc: Corson Christopher; Jude Bryan; Carson Glickman-Flora; Solomon, Lafe E.

Subject:

Barry, Thanks for calling me back yesterday. We are waiting for Boeings call. As I mentioned in our call,

while Boeing is talking good faith they are capitalizing on chilling union activity by expanding their

operations to create duplicate parts manufacturing in South Carolina (even though there is unused capacity in

the bargaining unit). Just last week Ray Connor was quoted in the following

Article: http://www.postandcourier.com/news/2011/mar/26/parts-plant-marks-boeings-ascent/

Boeing already employs more than 1,300 workers at a similar plant at its Everett, Wash., aircraft assembly

headquarters, but company executives said early last year that they wanted to duplicate their critical jet

manufacturing operations in Charleston in case of W est Coast labor strikes or other work stoppages. A walkout by

the International Association of Machinists and Aerospace W orkers in 2008 cost the company an estimated $1.8

billion.

A similar local union at the North Charleston site voted to disband in September 2009, setting the stage for

Boeing to announce six weeks later it would build its new aircraft assembly plant in the Lowcountry.

"All roads to the 787 lead through South Carolina," Ray Conner, vice president and general manager of supply

chain management and operations for Boeing Commercial Airplanes, said. "We expect to do big things here in

South Carolina."

We believe that Boeing continues to merely play for time, while it capitalizes on its unlawful conduct. We are

willing to meet if Boeing genuinely wants to resolve this matter. But we believe instead Boeing will wait to call

us late in the week, and then find some reason for further delay. Boeing has been less than honest in its claims

in this case, including three claimed facts (that we know about) which were plainly not the case. For at least

five months they have led your office to believe they have some interest in resolving this matter while

continuously reinforcing their undisputed and unambiguous chilling message to their workers and the

nation. Boeing is forcing the issue which we ask be resolved without delay: Can Boeing relocate jobs to a

newly decertified site because its union employees strike? If so, why cant any employer discriminate in favor

of non-union employees? Such a result would leave 8(a)(3) a dead letter, and effectively overrule by inaction

the Boards runaway shop cases as well as its recent decision in

Paraxel, 356 NLRB No. 82 (2011).

Boeing is winning this

point of law by delay and default. We hope to hear from Boeing and if possible promptly reach a settlement.

Absent this, we respectfully request that the General Counsel issue a complaint. Failure to do so will harm tens

of thousands of Boeings employees and create a union-busting roadmap that will be emulated across the

US. Surely, that is not to be the legacy of this General Counsel and Board.

NLRB-FOIA-00011168

Thanks, Dave

Sincerely, David Campbell

campbell@workerlaw.com

Schwerin Campbell Barnard Iglitzin & Lavitt

18 W Mercer Suite 400

Seattle, W ashington 98119-3971

Phone (206)285-2828: FAX (206)378-4132

This communication is protected by the attorney client and attorney work-product privileges. Please do not copy, forward

or append.

NLRB-FOIA-00011169

Microsoft Outlook

From:

Kearney, Barry J.

Sent:

Monday, April 04, 2011 9:55 AM

To:

Solomon, Lafe E.; Mattina, Celeste J.; Farrell, Ellen; Sophir, Jayme; Ahearn, Richard L.

Subject:

FW: Boeing call

fyi

-----Original Message----From: Kearney, Barry J.

Sent: Monday, April 04, 2011 9:38 AM

To: 'Corson Christopher'

Cc: David Campbell; Canter Robin

Subject: RE: Call from Boeing

Chris

Boing's response is very disappointing and you are undoubtedly correct that they are looking for delay. However I

believe we can't assume that and the loop needs to be closed. I would ask that you get back to Gerry and tell him a

previously scheduled meeting 6 weeks from now is unacceptable and if Boeing is serious they will meet this week with a

proposal. Boeing response is predictable but I think they need to say it. Thanks for your patience Barry

-----Original Message----From: Corson Christopher [mailto:ccorson@iamaw.org]

Sent: Friday, April 01, 2011 7:29 PM

To: Kearney, Barry J.

Cc: David Campbell; Canter Robin

Subject: Call from Boeing

Barry,

Thank you for talking to Dave Campbell and me earlier today.

Boeing's lawyer, Brett Gerry, called me at 5:00 pm. He said he is the lead lawyer for Boeing's commercial division.

His proposal was as follows. Since Joe Albaugh and Tom Buffenbarger are currently scheduled to have dinner in May,

Albaugh thinks that would be a good time to talk about these issues. I asked if the company had a proposal at this time,

and he said that there isn't one -- at least nothing that he would tell me about.

I talked with Tom Buffenbarger after Gerry called. Tom's recollection is that the dinner is set for May 16th or 17th. As

you can imagine, the thought of putting off any attempt to have a serious discussion with us for another month and a

half -- and even then just over dinner -- is simply unacceptable. The company is not being serious.

Frankly, I hope you as offended by this suggestion as we are. You and Lafe have worked very hard to bring about

discussions that could lead to a more comprehensive and tailored solution than we are likely to get from Board

processes and remedies. We have shown ourselves time and again to be serious about meeting in good faith with the

company. But you and we can't do it without Boeing, and it is crystal clear that Boeing is only interested in stringing us

all along.

NLRB-FOIA-00011170

Boeing made a commitment to you on Monday to contact us and then to tell you by the end of the week whether they

thought there were fruitful discussions with us to be had. I don't think that a company lawyer calling me at 5:00 on

Friday to say that the company has no proposal at all except that Albaugh and Tom Buffenbarger could discuss things

over an already-scheduled dinner in a month and a half comes close to satisfying what they promised you to do.

By mid-May the company will be much farther along in South Carolina, and our members in Puget Sound will, by that

time, know for sure that protected activity has become meaningless for them. Boeing hammers its retaliatory message

every day, and every day shows that the company is getting away with it. The Act means something, or it really doesn't.

The IAM sincerely appreciates all that Lafe and you have been trying to do, and we know that this case will be big. But

given what Boeing's chief officers have signaled to companies all across the country about how to retaliate against

organized workers for what the statute says is protected activity, this case needs to be big. You would like Boeing to talk

to us in good faith, and so would we, but it is crystal clear that such discussions are a false choice. The last three and a

half months (since the company met with Lafe and you in mid-December) show that they have no intention of engaging

with us. They have had months to call us and didn't, and they will shamelessly tell you anything to just keep playing for

more time.

The IAM hopes that time is up.

Thank you for all that we hope the Board will do, Chris Corson

Sent from my iPad

Christopher Corson

General Counsel

International Association of Machinists & Aerospace Workers

9000 Machinists Place

Upper Marlboro, MD 20772

301-967-4510 (office)

301-967-4594 (fax)

202-368-6484 (cell)

_____________________________________________________________

Notice: This message is intended for the addressee only and may contain privileged and/or confidential information. Use

or dissemination by anyone other than the intended recipient is prohibited.

____________________________________________________________

NLRB-FOIA-00011171

Microsoft Outlook

From:
Sent:
To:
Subject:
Attachments:

Sophir, Jayme

W ednesday, April 13, 2011 12:17 PM

Kearney, Barry J.; Farrell, Ellen

draft press release in Boeing

Boeingpressrelease.jls.doc

Heres something we could use as a response when the fireworks erupt.

Jayme Sophir

Assistant General Counsel

Chief, Regional Advice Branch

National Labor Relations Board

202-273-3837

Tracking:

NLRB-FOIA-00011172

Recipient

Delivery

Kearney, Barry J.

Delivered: 4/13/2011 12:17 PM

Farrell, Ellen

Delivered: 4/13/2011 12:17 PM

NLRB-FOIA-00011173

Ex. 5 Deliberative

NLRB-FOIA-00011174

Ex. 5 Deliberative

NLRB-FOIA-00011175

Microsoft Outlook

From:
Sent:
To:
Subject:
Attachments:

Ahearn, Richard L.

W ednesday, April 13, 2011 2:31 PM

Solomon, Lafe E.; Mattina, Celeste J.; Cleeland, Nancy; Kearney, Barry J.; Farrell, Ellen;

Sophir, Jayme

Boeing draft press release

Boeingpressrelease.jls.doc

Looks good; my few suggestions are in italics.

Rich

From: Kearney, Barry J.

Sent: Wednesday, April 13, 2011 10:55 AM

To: Solomon, Lafe E.; Mattina, Celeste J.; Cleeland, Nancy; Ahearn, Richard L.

Cc: Farrell, Ellen; Sophir, Jayme

Subject: FW: draft press release in Boeing

Ex. 5 Deliberative

From: Sophir, Jayme

Sent: Wednesday, April 13, 2011 12:17 PM

To: Kearney, Barry J.; Farrell, Ellen

Subject: draft press release in Boeing

Heres something we could use as a response when the fireworks erupt.

Jayme Sophir

Assistant General Counsel

Chief, Regional Advice Branch

National Labor Relations Board

202-273-3837

NLRB-FOIA-00011176

Exemption 5

NLRB-FOIA-00011177

Exemption 5

NLRB-FOIA-00011178

Microsoft Outlook

Cc:
Subject:
Attachments:

Ahearn, Richard L.

Tuesday, April 19, 2011 11:38 AM

Mattina, Celeste J.; Abruzzo, Jennifer; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme;

Szapiro, Miriam; W illen, Debra L; Cleeland, Nancy; Solomon, Lafe E.

Pomerantz, Anne; Anzalone, Mara-Louise

FW : Boeing Draft for submission to Advice

CPT.19-CA-32431.Boeing 4-18-11 at 4-14pm.doc

Importance:

High

From:
Sent:
To:

Greetings all, Please review my latest revision, which attempts to incorporate comments from Celeste, Jennifer and

Barry. Please see suggested revisions

Exemption 5

Rich

NLRB-FOIA-00011179

Ex. 5 - Deliberative

NLRB-FOIA-00011180

Ex. 5 - Deliberative

NLRB-FOIA-00011181

Ex. 5 - Deliberative

NLRB-FOIA-00011182

Ex. 5 - Deliberative

NLRB-FOIA-00011183

Ex. 5 - Deliberative

NLRB-FOIA-00011184

Ex. 5 - Deliberative

NLRB-FOIA-00011185

Ex. 5 - Deliberative

NLRB-FOIA-00011186

Ex. 5 - Deliberative

NLRB-FOIA-00011187

Ex. 5 - Deliberative

NLRB-FOIA-00011188

Ex. 5 - Deliberative

NLRB-FOIA-00011189

Microsoft Outlook

From:
Sent:
To:
Subject:

Kearney, Barry J.

Thursday, April 28, 2011 4:32 PM

Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam; W illen, Debra L

FW : Boeing - any thoughts on a response?

fyi

From: Kearney, Barry J.

Sent: Thursday, April 28, 2011 4:30 PM

To: Garza, Jose; Cleeland, Nancy; Solomon, Lafe E.; Wagner, Anthony R.; Ahearn, Richard L.

Subject: RE: any thoughts on a response?

Exemption 5

From: Garza, Jose

Sent: Thursday, April 28, 2011 3:59 PM

To: Cleeland, Nancy; Solomon, Lafe E.; Kearney, Barry J.; Wagner, Anthony R.

Subject: RE: any thoughts on a response?

Exemption 5

From: Cleeland, Nancy

Sent: Thursday, April 28, 2011 3:49 PM

To: Solomon, Lafe E.; Kearney, Barry J.; Garza, Jose; Wagner, Anthony R.

Subject: any thoughts on a response?

Hi Lafe, I fear you are in the air again. If not, please let me know if you have 5 minutes to talk. Weve been asked for

comment on this letter from 9 states asking us to withdraw the complaint.

Exemption 5

Any thoughts?

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

NLRB-FOIA-00011190

Microsoft Outlook

Kearney, Barry J.

Thursday, April 28, 2011 6:09 PM

Sophir, Jayme

Fw: Boeing - time to decide

From:
Sent:
To:
Subject:

--------------------------

Sent from my BlackBerry Wireless Handheld

From: Farrell, Ellen

To: Kearney, Barry J.; Cleeland, Nancy; Solomon, Lafe E.; Garza, Jose; Ahearn, Richard L.

Sent: Thu Apr 28 18:07:13 2011

Subject: RE: time to decide

Exemption 5

is fine with me too.

Ellen

Ellen Farrell

Deputy Associate General Counsel

Division of Advice, NLRB

202-273-3810

Ellen.Farrell@nlrb.gov

From: Kearney, Barry J.

Sent: Thursday, April 28, 2011 6:05 PM

To: Cleeland, Nancy; Solomon, Lafe E.; Garza, Jose; Ahearn, Richard L.; Farrell, Ellen

Subject: Re: time to decide

I would go with

Exemption 5

--------------------------

Sent from my BlackBerry Wireless Handheld

From: Cleeland, Nancy

To: Solomon, Lafe E.; Kearney, Barry J.; Garza, Jose; Ahearn, Richard L.; Farrell, Ellen

Sent: Thu Apr 28 17:59:18 2011

Subject: time to decide

Still no word from Lafe, the story goes to bed in 4 minutes. I need a judgment call. Should we
Exemption 5

Exemption 5

NLRB-FOIA-00011191

Exemption 5

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

NLRB-FOIA-00011192

Microsoft Outlook

From:

Willen, Debra L

Sent:

Wednesday, May 04, 2011 10:58 AM

To:

Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam

Cc:

Dodds, Amy L.

Subject:

Boeing -- revised draft response to state AGs

Attachments:

GC Response to State AGs.doc; AGs letter.pdf

As Barry requested, I've incorporated his changes and am attaching the new version along with the AG's letter.

Jayme -- I have not addressed your concern -- please discuss it with Barry and let me know if what you all want me to

do.

Thanks, Deb

NLRB-FOIA-00011193

ALANWILSON

ATTORNEY GENERAL

April 28, 2011

Lafe E. Solomon, Esquire

Acting General Counsel

National Labor Relations Board

1099 14 th Street, NW, Suite 8600

Washington, DC 20570

Dear Mr. Solomon:

As Attorneys General of our respective states, we call upon you, as Acting General

Counsel of the National Labor Relations Board (NLRB), to withdraw immediately the

complaint numbered 19-CA-32431 against Boeing. This complaint represents an assault upon the

constitutional right of free speech, and the ability of our states to create jobs and recruit industry.

Your ill-conceived retaliatory action seeks to destroy our citizens right to work. It is South

Carolina and Boeing today, but will be any of our states, with our right to work guarantees,

tomorrow.

The right to work, uninhibited by compulsory unionism, is a precious right and is

constitutionally enforceable through our states right to work laws. See Retail Clerks Intl v.

Schermerhorn, 375 U.S. 96 (1963). Such laws are designed to eliminate union affiliation as a

criterion for employment. However, the NLRB, through this single proceeding, attempts to

sound the death knell of the right to work. Additionally, this tenuous complaint will reverberate

throughout union and non-union states alike, as international companies will question the

wisdom of locating in a country where the federal government interferes in industry without

cause or justification.

Furthermore, this complaint disrupts, and may well eliminate, the production of Boeing

787 Dreamliners in South Carolina. In fact, Boeing has expanded its operations to meet product

demand in South Carolina, while adding new jobs in Washington State. The complaint charges

Boeing with the commission of an unfair labor practice, but appears to do so without legal and

factual foundation. This unparalleled and overreaching action seeks to drive a stake through the

heart of the free enterprise system. The statements of Boeing officials cited in your complaint are

the innocent exercise of the companys right of free speech. The Supreme Court long ago made

it clear that the NLRA does not limit, and the First Amendment protects, the employer's right to

express views on labor policies or problems. N.L.R.B. v. Va. Electric and Power, 314 US 469,

NLRB-FOIA-00011194

Hon. Lafe E. Solomon

April 27, 2011

Page 2

477 (1941). As the Court recently reiterated in Citizens United v. FEC, 130 S. Ct. 876, 899-90

(2010), a corporation is not a second class citizen in terms of First Amendment protection.

Our states are struggling to emerge from one of the worst economic collapses since the

Depression. Your complaint further impairs an economic recovery. Intrusion by the federal

bureaucracy on behalf of unions will not create a single new job or put one unemployed person

back to work.

The only justification for the NLRBs unprecedented retaliatory action is to aid union

survival. Your action seriously undermines our citizens right to work as well as their ability to

compete globally. Therefore, as Attorneys General, we will protect our citizens from union

bullying and federal coercion. We thus call upon you to cease this attack on our right to work,

our states economies, and our jobs.

We look forward to your immediate response.

Sincerely,

Alan Wilson

Attorney General

[Signatures continue next page]

Cc: Respective Congressional Delegations

NLRB-FOIA-00011195

Hon. Lafe E. Solomon

April 27, 2011

Page 3

Ken Cuccinelli

Attorney General
Commonwealth of Virginia

Jon C. Bruning

Attorney General
State of Nebraska

Greg Abbott

Attorney General

State of Texas

Samuel S. Olens
Attorney General
State of Georgia

E. Scott Pruitt
Attorney General
State of Oklahoma

Pam Bondi
Attorney General
State of Florida

Tom Horne

Attorney General

State of Arizona

Luther Strange

Attorney General

State of Alabama

NLRB-FOIA-00011196

Exemption 5

NLRB-FOIA-00011197

Exemption 5

NLRB-FOIA-00011198

Exemption 5

NLRB-FOIA-00011199

Microsoft Outlook

From:
Sent:
To:
Subject:
Attachments:

Sophir, Jayme

Tuesday, June 07, 2011 4:33 PM

W illen, Debra L

FW : Boeing -- revised draft response to state AGs

AGs letter.pdf; GC Response to State AG's.doc

I think youre right. This is the last thing I have in my efiles. Lafe must have decided not to respond after all.

From: Kearney, Barry J.

Sent: Thursday, May 05, 2011 1:25 PM

To: Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam; Willen, Debra L

Subject: FW: Boeing -- revised draft response to state AGs

From: Mattina, Celeste J.

Sent: Thursday, May 05, 2011 12:07 PM

To: Schiff, Robert; Garza, Jose; Cleeland, Nancy; Abruzzo, Jennifer; Solomon, Lafe E.

Cc: Kearney, Barry J.

Subject: FW: Boeing -- revised draft response to state AGs

Barry and his people drafted a very good response. I made some minor edits; I

Exemption 5

From: Kearney, Barry J.

Sent: Wednesday, May 04, 2011 2:28 PM

To: Solomon, Lafe E.; Mattina, Celeste J.

Subject: FW: Boeing -- revised draft response to state AGs

Draft response from you to State AGs

From: Willen, Debra L

Sent: Wednesday, May 04, 2011 2:24 PM

To: Kearney, Barry J.; Sophir, Jayme; Farrell, Ellen; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: RE: Boeing -- revised draft response to state AGs

clean draft and AGs' letter attached

From: Kearney, Barry J.

Sent: Wednesday, May 04, 2011 2:10 PM

To: Sophir, Jayme; Farrell, Ellen; Willen, Debra L; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: RE: Boeing -- revised draft response to state AGs

I agree with all the revisions. Please send me a clean draft along with the AG letter to send on to Lafe

NLRB-FOIA-00011200

From: Sophir, Jayme

Sent: Wednesday, May 04, 2011 12:18 PM

To: Farrell, Ellen; Kearney, Barry J.; Willen, Debra L; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: RE: Boeing -- revised draft response to state AGs

Notwithstanding that this case is about retaliation for striking in other states, they seem

Exemption 5

But, regardless of what theyre saying, Ellens

modification is definitely better.

From: Farrell, Ellen

Sent: Wednesday, May 04, 2011 12:07 PM

To: Kearney, Barry J.; Willen, Debra L; Sophir, Jayme; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: FW: Boeing -- revised draft response to state AGs

See my modification

Exemption 5

Ellen

Ellen Farrell

Deputy Associate General Counsel

Division of Advice, NLRB

202-273-3810

Ellen.Farrell@nlrb.gov

From: Sophir, Jayme

Sent: Wednesday, May 04, 2011 11:33 AM

To: Kearney, Barry J.; Farrell, Ellen; Szapiro, Miriam; Willen, Debra L

Cc: Dodds, Amy L.

Subject: FW: Boeing -- revised draft response to state AGs

Exemption 5

From: Willen, Debra L

Sent: Wednesday, May 04, 2011 10:58 AM

To: Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: Boeing -- revised draft response to state AGs

As Barry requested, I've incorporated his changes and am attaching the new version along with the AG's letter.

Jayme -- I have not addressed your concern -- please discuss it with Barry and let me know if what you all want me to

do.

Thanks, Deb

Tracking:

NLRB-FOIA-00011201

Recipient

Delivery

Willen, Debra L

Delivered: 6/7/2011 4:33 PM

NLRB-FOIA-00011202

Exemption 5

NLRB-FOIA-00011203

Exemption 5

NLRB-FOIA-00011204

Exemption 5

NLRB-FOIA-00011205

ALANWILSON

ATTORNEY GENERAL

April 28, 2011

Lafe E. Solomon, Esquire

Acting General Counsel

National Labor Relations Board

1099 14 th Street, NW, Suite 8600

Washington, DC 20570

Dear Mr. Solomon:

As Attorneys General of our respective states, we call upon you, as Acting General

Counsel of the National Labor Relations Board (NLRB), to withdraw immediately the

complaint numbered 19-CA-32431 against Boeing. This complaint represents an assault upon the

constitutional right of free speech, and the ability of our states to create jobs and recruit industry.

Your ill-conceived retaliatory action seeks to destroy our citizens right to work. It is South

Carolina and Boeing today, but will be any of our states, with our right to work guarantees,

tomorrow.

The right to work, uninhibited by compulsory unionism, is a precious right and is

constitutionally enforceable through our states right to work laws. See Retail Clerks Intl v.

Schermerhorn, 375 U.S. 96 (1963). Such laws are designed to eliminate union affiliation as a

criterion for employment. However, the NLRB, through this single proceeding, attempts to

sound the death knell of the right to work. Additionally, this tenuous complaint will reverberate

throughout union and non-union states alike, as international companies will question the

wisdom of locating in a country where the federal government interferes in industry without

cause or justification.

Furthermore, this complaint disrupts, and may well eliminate, the production of Boeing

787 Dreamliners in South Carolina. In fact, Boeing has expanded its operations to meet product

demand in South Carolina, while adding new jobs in Washington State. The complaint charges

Boeing with the commission of an unfair labor practice, but appears to do so without legal and

factual foundation. This unparalleled and overreaching action seeks to drive a stake through the

heart of the free enterprise system. The statements of Boeing officials cited in your complaint are

the innocent exercise of the companys right of free speech. The Supreme Court long ago made

it clear that the NLRA does not limit, and the First Amendment protects, the employer's right to

express views on labor policies or problems. N.L.R.B. v. Va. Electric and Power, 314 US 469,

NLRB-FOIA-00011206

Hon. Lafe E. Solomon

April 27, 2011

Page 2

477 (1941). As the Court recently reiterated in Citizens United v. FEC, 130 S. Ct. 876, 899-90

(2010), a corporation is not a second class citizen in terms of First Amendment protection.

Our states are struggling to emerge from one of the worst economic collapses since the

Depression. Your complaint further impairs an economic recovery. Intrusion by the federal

bureaucracy on behalf of unions will not create a single new job or put one unemployed person

back to work.

The only justification for the NLRBs unprecedented retaliatory action is to aid union

survival. Your action seriously undermines our citizens right to work as well as their ability to

compete globally. Therefore, as Attorneys General, we will protect our citizens from union

bullying and federal coercion. We thus call upon you to cease this attack on our right to work,

our states economies, and our jobs.

We look forward to your immediate response.

Sincerely,

Alan Wilson

Attorney General

[Signatures continue next page]

Cc: Respective Congressional Delegations

NLRB-FOIA-00011207

Hon. Lafe E. Solomon

April 27, 2011

Page 3

Ken Cuccinelli

Attorney General
Commonwealth of Virginia

Jon C. Bruning

Attorney General
State of Nebraska

Greg Abbott

Attorney General

State of Texas

Samuel S. Olens
Attorney General
State of Georgia

E. Scott Pruitt
Attorney General
State of Oklahoma

Pam Bondi
Attorney General
State of Florida

Tom Horne

Attorney General

State of Arizona

Luther Strange

Attorney General

State of Alabama

NLRB-FOIA-00011208

Microsoft Outlook

From:
Sent:
To:
Subject:

Szapiro, Miriam

W ednesday, June 02, 2010 9:18 AM

Karsh, Aaron

RE: Boeing Co., 19-CA-32431

sure

From: Karsh, Aaron

Sent: Wednesday, June 02, 2010 9:18 AM

To: Szapiro, Miriam

Subject: RE: Boeing Co., 19-CA-32431

Could you also check up within a day to see that the case has closed? Thanks.

From: Szapiro, Miriam

Sent: Wednesday, June 02, 2010 9:13 AM

To: Allen, Constance

Cc: Sophir, Jayme; Kearney, Barry J.; Karsh, Aaron

Subject: FW: Boeing Co., 19-CA-32431

Constance, please close Boeing Co. in Advice, effective May 28, at which date Special Litigation informed us that it had

assumed responsibility for the case.

From: Kearney, Barry J.

Sent: Friday, May 28, 2010 2:18 PM

To: Sophir, Jayme

Subject: RE: Boeing Co.

No Close it out after consultation with special lit

From: Sophir, Jayme

Sent: Friday, May 28, 2010 2:13 PM

To: Kearney, Barry J.

Subject: FW: Boeing Co.

Should we continue to have this logged in as an Advice case?

From: Szapiro, Miriam

Sent: Friday, May 28, 2010 1:22 PM

To: Szapiro, Miriam; Karsh, Aaron; Sophir, Jayme

Subject: RE: Boeing Co.

Its on deferral.

From: Szapiro, Miriam

Sent: Friday, May 28, 2010 1:10 PM

NLRB-FOIA-00011209

To: Karsh, Aaron; Sophir, Jayme

Subject: Boeing Co.

I just spoke with Eric Moskowitz and Special Lit is taking the lead on this case.

Exemption 5
He will keep us updated.

Tracking:

NLRB-FOIA-00011210

Recipient

Read

Karsh, Aaron

Read: 6/2/2010 9:19 AM

NLRB-FOIA-00011211

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:
Attachments:

Karsh, Aaron

W ednesday, September 01, 2010 2:23 PM

W illen, Debra L; Szapiro, Miriam

Sophir, Jayme

FW : Boeing Company, 19-CA-32431, Submission

ADV.19-CA-32431.Boeing.Request for Advice and Auth to Seek 10(j) Inj Relief.pdf

Here's your new case --

Aaron

From: Albertsen, Mary

Sent: Tuesday, August 31, 2010 7:21 PM

To: Advice; Injunction Litigation Branch; Kearney, Barry J.; Katz, Judy

Cc: Baniszewski, Joseph; Ahearn, Richard L.; Pomerantz, Anne

Subject: Boeing Company, 19-CA-32431, Submission

Attached please find a Request for Advice and Authorization to Seek Section 10(j) Injunctive Relief in the above case.

Mary Albertsen, AOM

Region 19 - Seattle, W A

(206) 220-6318

NLRB-FOIA-00011212

Exemption 5

NLRB-FOIA-00011213

Exemption 5

NLRB-FOIA-00011214

Exemption 5

NLRB-FOIA-00011215

Exemption 5

NLRB-FOIA-00011216

Exemption 5

NLRB-FOIA-00011217

Exemption 5

NLRB-FOIA-00011218

Exemption 5

NLRB-FOIA-00011219

Exemption 5

NLRB-FOIA-00011220

Exemption 5

NLRB-FOIA-00011221

Exemption 5

NLRB-FOIA-00011222

Exemption 5

NLRB-FOIA-00011223

Exemption 5

NLRB-FOIA-00011224

Exemption 5

NLRB-FOIA-00011225

Exemption 5

NLRB-FOIA-00011226

Exemption 5

NLRB-FOIA-00011227

Exemption 5

NLRB-FOIA-00011228

Exemption 5

NLRB-FOIA-00011229

Exemption 5

NLRB-FOIA-00011230

Exemption 5

NLRB-FOIA-00011231

Exemption 5

NLRB-FOIA-00011232

Exemption 5

NLRB-FOIA-00011233

Exemption 5

NLRB-FOIA-00011234

Exemption 5

NLRB-FOIA-00011235

Exemption 5

NLRB-FOIA-00011236

Exemption 5

NLRB-FOIA-00011237

Exemption 5

NLRB-FOIA-00011238

Exemption 5

NLRB-FOIA-00011239

Exemption 5

NLRB-FOIA-00011240

Exemption 5

NLRB-FOIA-00011241

Exemption 5

NLRB-FOIA-00011242

Exemption 5

NLRB-FOIA-00011243

Exemption 5

NLRB-FOIA-00011244

Exemption 5

NLRB-FOIA-00011245

Exemption 5

NLRB-FOIA-00011246

Exemption 5

NLRB-FOIA-00011247

Exemption 5

NLRB-FOIA-00011248

Exemption 5

NLRB-FOIA-00011249

Exemption 5

NLRB-FOIA-00011250

Exemption 5

NLRB-FOIA-00011251

Exemption 5

NLRB-FOIA-00011252

Exemption 5

NLRB-FOIA-00011253

Exemption 5

NLRB-FOIA-00011254

Exemption 5

NLRB-FOIA-00011255

Exemption 5

NLRB-FOIA-00011256

Exemption 5

NLRB-FOIA-00011257

Exemption 5

NLRB-FOIA-00011258

Exemption 5

NLRB-FOIA-00011259

Exemption 5

NLRB-FOIA-00011260

Exemption 5

NLRB-FOIA-00011261

Exemption 5

NLRB-FOIA-00011262

Exemption 5

NLRB-FOIA-00011263

Exemption 5

NLRB-FOIA-00011264

Exemption 5

NLRB-FOIA-00011265

Exemption 5

NLRB-FOIA-00011266

Exemption 5

NLRB-FOIA-00011267

Exemption 5

NLRB-FOIA-00011268

Exemption 5

NLRB-FOIA-00011269

Exemption 5

NLRB-FOIA-00011270

Exemption 5

NLRB-FOIA-00011271

Exemption 5

NLRB-FOIA-00011272

Exemption 5

NLRB-FOIA-00011273

Exemption 5

NLRB-FOIA-00011274

Exemption 5

NLRB-FOIA-00011275

Exemption 5

NLRB-FOIA-00011276

Exemption 5

NLRB-FOIA-00011277

Exemption 5

NLRB-FOIA-00011278

Exemption 5

NLRB-FOIA-00011279

Exemption 5

NLRB-FOIA-00011280

Exemption 5

NLRB-FOIA-00011281

Exemption 5

NLRB-FOIA-00011282

Exemption 5

NLRB-FOIA-00011283

Exemption 5

NLRB-FOIA-00011284

Exemption 5

NLRB-FOIA-00011285

Exemption 5

NLRB-FOIA-00011286

Microsoft Outlook

From:
Sent:
To:
Subject:
Attachments:

Karsh, Aaron

Thursday, September 02, 2010 5:01 PM

W illen, Debra L; Szapiro, Miriam

FW : Boeing Company, 19-CA-32431, Submission

ADV.19-CA-32431.Boeing Memo to Advice and Special Lit re decision and 10j.doc

Submission in Word --

From: Pomerantz, Anne

Sent: Wednesday, September 01, 2010 5:05 PM

To: Advice; Karsh, Aaron

Cc: Albertsen, Mary

Subject: RE: Boeing Company, 19-CA-32431, Submission

Aaron,

Mary forwarded your e-mail to me for response. The files in this case are quite voluminous, as you may have already

gathered from the submission. We anticipate having all the materials to you next week. Meanwhile, I have attached a

copy of the submission in Word, which Mary informed me you had asked for, and below is the link to the electronic case

file on Region 19s H drive: R19COM\R19COM\REGION 19 C CASES\19-CA-32431 Boeing.

Please feel free to contact me should you require anything else.

Anne

From: Albertsen, Mary

Sent: Wednesday, September 01, 2010 1:55 PM

To: Pomerantz, Anne

Subject: FW: Boeing Company, 19-CA-32431, Submission

Mary Albertsen, AOM

Region 19 - Seattle, W A

(206) 220-6318

From: Advice

Sent: Wednesday, September 01, 2010 8:42 AM

To: Albertsen, Mary

Subject: FW: Boeing Company, 19-CA-32431, Submission

Thanks for the submission. Please let us know on what date and in what form you will be sending us the Regional Office

Files. And, to help us with the assignment process, could you also let me know how voluminous the ROFs are and how

many there are?

Thanks -

Aaron Karsh

DAGC, Advice

NLRB-FOIA-00011287

From: Albertsen, Mary

Sent: Tuesday, August 31, 2010 7:21 PM

To: Advice; Injunction Litigation Branch; Kearney, Barry J.; Katz, Judy

Cc: Baniszewski, Joseph; Ahearn, Richard L.; Pomerantz, Anne

Subject: Boeing Company, 19-CA-32431, Submission

Attached please find a Request for Advice and Authorization to Seek Section 10(j) Injunctive Relief in the above case.

Mary Albertsen, AOM

Region 19 - Seattle, W A

(206) 220-6318

NLRB-FOIA-00011288

Exemption 5

NLRB-FOIA-00011289

Exemption 5

NLRB-FOIA-00011290

Exemption 5

NLRB-FOIA-00011291

Exemption 5

NLRB-FOIA-00011292

Exemption 5

NLRB-FOIA-00011293

Exemption 5

NLRB-FOIA-00011294

Exemption 5

NLRB-FOIA-00011295

Exemption 5

NLRB-FOIA-00011296

Exemption 5

NLRB-FOIA-00011297

Exemption 5

NLRB-FOIA-00011298

Exemption 5

NLRB-FOIA-00011299

Exemption 5

NLRB-FOIA-00011300

Exemption 5

NLRB-FOIA-00011301

Exemption 5

NLRB-FOIA-00011302

Exemption 5

NLRB-FOIA-00011303

Exemption 5

NLRB-FOIA-00011304

Exemption 5

NLRB-FOIA-00011305

Exemption 5

NLRB-FOIA-00011306

Exemption 5

NLRB-FOIA-00011307

Exemption 5

NLRB-FOIA-00011308

Exemption 5

NLRB-FOIA-00011309

Exemption 5

NLRB-FOIA-00011310

Exemption 5

NLRB-FOIA-00011311

Exemption 5

NLRB-FOIA-00011312

Exemption 5

NLRB-FOIA-00011313

Exemption 5

NLRB-FOIA-00011314

Exemption 5

NLRB-FOIA-00011315

Exemption 5

NLRB-FOIA-00011316

Exemption 5

NLRB-FOIA-00011317

Exemption 5

NLRB-FOIA-00011318

Exemption 5

NLRB-FOIA-00011319

Exemption 5

NLRB-FOIA-00011320

Exemption 5

NLRB-FOIA-00011321

Exemption 5

NLRB-FOIA-00011322

Exemption 5

NLRB-FOIA-00011323

Exemption 5

NLRB-FOIA-00011324

Exemption 5

NLRB-FOIA-00011325

Exemption 5

NLRB-FOIA-00011326

Exemption 5

NLRB-FOIA-00011327

Exemption 5

NLRB-FOIA-00011328

Exemption 5

NLRB-FOIA-00011329

Exemption 5

NLRB-FOIA-00011330

Exemption 5

NLRB-FOIA-00011331

Exemption 5

NLRB-FOIA-00011332

Exemption 5

NLRB-FOIA-00011333

Exemption 5

NLRB-FOIA-00011334

Exemption 5

NLRB-FOIA-00011335

Exemption 5

NLRB-FOIA-00011336

Exemption 5

NLRB-FOIA-00011337

Exemption 5

NLRB-FOIA-00011338

Exemption 5

NLRB-FOIA-00011339

Exemption 5

NLRB-FOIA-00011340

Exemption 5

NLRB-FOIA-00011341

Exemption 5

NLRB-FOIA-00011342

Exemption 5

NLRB-FOIA-00011343

Exemption 5

NLRB-FOIA-00011344

Exemption 5

NLRB-FOIA-00011345

Exemption 5

NLRB-FOIA-00011346

Exemption 5

NLRB-FOIA-00011347

Exemption 5

NLRB-FOIA-00011348

Exemption 5

NLRB-FOIA-00011349

Exemption 5

NLRB-FOIA-00011350

Exemption 5

NLRB-FOIA-00011351

Exemption 5

NLRB-FOIA-00011352

Exemption 5

NLRB-FOIA-00011353

Exemption 5

NLRB-FOIA-00011354

Exemption 5

NLRB-FOIA-00011355

Exemption 5

NLRB-FOIA-00011356

Exemption 5

NLRB-FOIA-00011357

Exemption 5

NLRB-FOIA-00011358

Exemption 5

NLRB-FOIA-00011359

Exemption 5

NLRB-FOIA-00011360

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:

Pomerantz, Anne

Thursday, September 02, 2010 5:02 PM

Karsh, Aaron

Lundgren, Cynthia A; W illen, Debra L; Szapiro, Miriam

RE: Boeing Company, 19-CA-32431, Submission

Will do. Thanks.

From: Karsh, Aaron

Sent: Thursday, September 02, 2010 1:58 PM

To: Pomerantz, Anne

Cc: Lundgren, Cynthia A; Willen, Debra L; Szapiro, Miriam

Subject: RE: Boeing Company, 19-CA-32431, Submission

That should be ok, Anne -- but rather than me, please send them to Debra Willen - she, with Miriam Szapiro

supervising, has been assigned to the case.

Aaron

From: Pomerantz, Anne

Sent: Thursday, September 02, 2010 4:47 PM

To: Advice; Karsh, Aaron

Cc: Lundgren, Cynthia A

Subject: RE: Boeing Company, 19-CA-32431, Submission

Aaron,

Cynthia Lundgren in our office has been assembling the documents for submission as per the below. In an effort to

conserve resources and expedite your receipt, she will begin sending you the press releases/news articles and position

statements electronically. She will send them both to you and to the Advice mailbox. Please let Cynthia and/or me know

if there is any problem with receipt or access to that sent. Thanks.

Anne

From: Pomerantz, Anne

Sent: Wednesday, September 01, 2010 2:05 PM

To: Advice; Karsh, Aaron

Cc: Albertsen, Mary

Subject: RE: Boeing Company, 19-CA-32431, Submission

Aaron,

Mary forwarded your e-mail to me for response. The files in this case are quite voluminous, as you may have already

gathered from the submission. We anticipate having all the materials to you next week. Meanwhile, I have attached a

copy of the submission in Word, which Mary informed me you had asked for, and below is the link to the electronic case

file on Region 19s H drive: R19COM\R19COM\REGION 19 C CASES\19-CA-32431 Boeing.

Please feel free to contact me should you require anything else.

Anne

NLRB-FOIA-00011361

From: Albertsen, Mary

Sent: Wednesday, September 01, 2010 1:55 PM

To: Pomerantz, Anne

Subject: FW: Boeing Company, 19-CA-32431, Submission

Mary Albertsen, AOM

Region 19 - Seattle, W A

(206) 220-6318

From: Advice

Sent: Wednesday, September 01, 2010 8:42 AM

To: Albertsen, Mary

Subject: FW: Boeing Company, 19-CA-32431, Submission

Thanks for the submission. Please let us know on what date and in what form you will be sending us the Regional Office

Files. And, to help us with the assignment process, could you also let me know how voluminous the ROFs are and how

many there are?

Thanks -

Aaron Karsh

DAGC, Advice

From: Albertsen, Mary

Sent: Tuesday, August 31, 2010 7:21 PM

To: Advice; Injunction Litigation Branch; Kearney, Barry J.; Katz, Judy

Cc: Baniszewski, Joseph; Ahearn, Richard L.; Pomerantz, Anne

Subject: Boeing Company, 19-CA-32431, Submission

Attached please find a Request for Advice and Authorization to Seek Section 10(j) Injunctive Relief in the above case.

Mary Albertsen, AOM

Region 19 - Seattle, W A

(206) 220-6318

NLRB-FOIA-00011362

Microsoft Outlook

W illen, Debra L

Thursday, September 23, 2010 10:10 AM

Sophir, Jayme

Szapiro, Miriam

FW : Boeing Company, 19-CA-32431, Submission

ADV.19-CA-32431.Boeing.Request for Advice and Auth to Seek 10(j) Inj Relief.pdf

From:
Sent:
To:
Cc:
Subject:
Attachments:

Jayme

Heres the Request for Advice in Boeing. I recommend that you


Exemption 5

. Thanks, Deb

From: Karsh, Aaron

Sent: Wednesday, September 01, 2010 2:23 PM

To: Willen, Debra L; Szapiro, Miriam

Cc: Sophir, Jayme

Subject: FW: Boeing Company, 19-CA-32431, Submission

Here's your new case --

Aaron

From: Albertsen, Mary

Sent: Tuesday, August 31, 2010 7:21 PM

To: Advice; Injunction Litigation Branch; Kearney, Barry J.; Katz, Judy

Cc: Baniszewski, Joseph; Ahearn, Richard L.; Pomerantz, Anne

Subject: Boeing Company, 19-CA-32431, Submission

Attached please find a Request for Advice and Authorization to Seek Section 10(j) Injunctive Relief in the above case.

Mary Albertsen, AOM

Region 19 - Seattle, W A

(206) 220-6318

NLRB-FOIA-00011363

Exemption 5

NLRB-FOIA-00011364

Exemption 5

NLRB-FOIA-00011365

Exemption 5

NLRB-FOIA-00011366

Exemption 5

NLRB-FOIA-00011367

Exemption 5

NLRB-FOIA-00011368

Exemption 5

NLRB-FOIA-00011369

Exemption 5

NLRB-FOIA-00011370

Exemption 5

NLRB-FOIA-00011371

Exemption 5

NLRB-FOIA-00011372

Exemption 5

NLRB-FOIA-00011373

Exemption 5

NLRB-FOIA-00011374

Exemption 5

NLRB-FOIA-00011375

Exemption 5

NLRB-FOIA-00011376

Exemption 5

NLRB-FOIA-00011377

Exemption 5

NLRB-FOIA-00011378

Exemption 5

NLRB-FOIA-00011379

Exemption 5

NLRB-FOIA-00011380

Exemption 5

NLRB-FOIA-00011381

Exemption 5

NLRB-FOIA-00011382

Exemption 5

NLRB-FOIA-00011383

Exemption 5

NLRB-FOIA-00011384

Exemption 5

NLRB-FOIA-00011385

Exemption 5

NLRB-FOIA-00011386

Exemption 5

NLRB-FOIA-00011387

Exemption 5

NLRB-FOIA-00011388

Exemption 5

NLRB-FOIA-00011389

Exemption 5

NLRB-FOIA-00011390

Exemption 5

NLRB-FOIA-00011391

Exemption 5

NLRB-FOIA-00011392

Exemption 5

NLRB-FOIA-00011393

Exemption 5

NLRB-FOIA-00011394

Exemption 5

NLRB-FOIA-00011395

Exemption 5

NLRB-FOIA-00011396

Exemption 5

NLRB-FOIA-00011397

Exemption 5

NLRB-FOIA-00011398

Exemption 5

NLRB-FOIA-00011399

Exemption 5

NLRB-FOIA-00011400

Exemption 5

NLRB-FOIA-00011401

Exemption 5

NLRB-FOIA-00011402

Exemption 5

NLRB-FOIA-00011403

Exemption 5

NLRB-FOIA-00011404

Exemption 5

NLRB-FOIA-00011405

Exemption 5

NLRB-FOIA-00011406

Exemption 5

NLRB-FOIA-00011407

Exemption 5

NLRB-FOIA-00011408

Exemption 5

NLRB-FOIA-00011409

Exemption 5

NLRB-FOIA-00011410

Exemption 5

NLRB-FOIA-00011411

Exemption 5

NLRB-FOIA-00011412

Exemption 5

NLRB-FOIA-00011413

Exemption 5

NLRB-FOIA-00011414

Exemption 5

NLRB-FOIA-00011415

Exemption 5

NLRB-FOIA-00011416

Exemption 5

NLRB-FOIA-00011417

Exemption 5

NLRB-FOIA-00011418

Exemption 5

NLRB-FOIA-00011419

Exemption 5

NLRB-FOIA-00011420

Exemption 5

NLRB-FOIA-00011421

Exemption 5

NLRB-FOIA-00011422

Exemption 5

NLRB-FOIA-00011423

Exemption 5

NLRB-FOIA-00011424

Exemption 5

NLRB-FOIA-00011425

Exemption 5

NLRB-FOIA-00011426

Exemption 5

NLRB-FOIA-00011427

Exemption 5

NLRB-FOIA-00011428

Exemption 5

NLRB-FOIA-00011429

Exemption 5

NLRB-FOIA-00011430

Exemption 5

NLRB-FOIA-00011431

Exemption 5

NLRB-FOIA-00011432

Exemption 5

NLRB-FOIA-00011433

Exemption 5

NLRB-FOIA-00011434

Exemption 5

NLRB-FOIA-00011435

Exemption 5

NLRB-FOIA-00011436

Exemption 5

NLRB-FOIA-00011437

Microsoft Outlook

From:
Sent:
To:
Subject:

Szapiro, Miriam

Monday, October 04, 2010 8:31 AM

Sophir, Jayme

in late

E.6 Privacy

and luckily have Boeing with me because that was my first order of business for today. I

expect to be in a little later this am.

NLRB-FOIA-00011438

Microsoft Outlook

Szapiro, Miriam

Monday, October 04, 2010 9:55 AM

Sophir, Jayme

RE: Boeing

From:
Sent:
To:
Subject:

Well,

Exemption 6

, so it may have to wait..

Miriam Szapiro

Supervisory attorney

NLRB Division of Advice

202-273-0998

Miriam.Szapiro@nlrb.gov

From: Sophir, Jayme

Sent: Monday, October 04, 2010 9:31 AM

To: Szapiro, Miriam; Willen, Debra L

Subject: Boeing

I just mentioned this case to Barry, and he said if you have something for him to read today, hell be able to have an

agenda tomorrow. Or you can wait if youre not ready. I just wanted to let you know that hell make room to do it if you

want to move forward. I think hell be able to read your draft more easily than reading the Regions submission (although

obviously hell want to read the submission at some point). I explained that the draft is for purposes of a GC agenda and

might not be as polished as an advice memo ordinarily would be.

Jayme Sophir

Assistant General Counsel

Chief, Regional Advice Branch

National Labor Relations Board

202-273-3837

Tracking:

NLRB-FOIA-00011439

Recipient

Read

Sophir, Jayme

Deleted: 10/28/2010 9:02 AM

NLRB-FOIA-00011440

Microsoft Outlook

Szapiro, Miriam

Monday, October 04, 2010 10:39 AM

W illen, Debra L

RE: Ex. 6 personal privacy

From:
Sent:
To:
Subject:

Ex. 6 personal privacy

but if you get this email at some point

today, could you let me know if you're comfortable doing an agenda in Boeing w/ Barry some

time tomorrow? I'd give him a draft of your memo today for him to look at, along w/ the

submission.

Miriam Szapiro

Supervisory attorney

NLRB Division of Advice

202-273-0998

Miriam.Szapiro@nlrb.gov

-----Original Message-----

From: Willen, Debra L

Sent: Monday, October 04, 2010 6:31 AM

To: Person, Robyn; Szapiro, Miriam

Subject: Ex. 6 personal privacy

Ex. 6 personal privacy

NLRB-FOIA-00011441

Microsoft Outlook

Szapiro, Miriam

Monday, October 04, 2010 10:56 AM

W illen, Debra L

RE: Ex. 6 personal privacy

From:
Sent:
To:
Subject:

If you feel like it'll be too much pressure, we can just hold off.

Miriam Szapiro

Supervisory attorney

NLRB Division of Advice

202-273-0998

Miriam.Szapiro@nlrb.gov

-----Original Message-----

From: Willen, Debra L

Sent: Monday, October 04, 2010 10:54 AM

To: Szapiro, Miriam

Subject: RE:

Ex. 6 personal privacy

Yes -- that's fine.

Ex. 6 personal privacy

________________________________________

From: Szapiro, Miriam

Sent: Monday, October 04, 2010 10:38 AM

To: Willen, Debra L

Subject: RE:

Ex. 6 personal privacy


Ex. 6 personal privacy

but if you get this email at some point

today, could you let me know if you're comfortable doing an agenda in Boeing w/ Barry some

time tomorrow? I'd give him a draft of your memo today for him to look at, along w/ the

submission.

Miriam Szapiro

Supervisory attorney

NLRB Division of Advice

202-273-0998

Miriam.Szapiro@nlrb.gov

-----Original Message-----

From: Willen, Debra L

Sent: Monday, October 04, 2010 6:31 AM

To: Person, Robyn; Szapiro, Miriam

Subject:

Ex. 6 personal privacy

Ex. 6 personal privacy

NLRB-FOIA-00011442

Microsoft Outlook

Szapiro, Miriam

Monday, October 04, 2010 11:02 AM

W illen, Debra L

RE: Ex. 6 personal privacy

From:
Sent:
To:
Subject:

No, not at all.

-----Original Message-----

From: Willen, Debra L

Sent: Monday, October 04, 2010 10:57 AM

To: Szapiro, Miriam

Subject: RE:

Ex. 6 personal privacy

No let's go ahead and schedule it.

Are there any significant problems with the draft?

________________________________________

From: Szapiro, Miriam

Sent: Monday, October 04, 2010 10:55 AM

To: Willen, Debra L

Subject: RE:

Ex. 6 personal privacy

If you feel like it'll be too much pressure, we can just hold off.

Miriam Szapiro

Supervisory attorney

NLRB Division of Advice

202-273-0998

Miriam.Szapiro@nlrb.gov

-----Original Message-----

From: Willen, Debra L

Sent: Monday, October 04, 2010 10:54 AM

To: Szapiro, Miriam

Subject: RE:

Ex. 6 personal privacy

Yes -- that's fine.

Ex. 6 personal privacy

________________________________________

From: Szapiro, Miriam

Sent: Monday, October 04, 2010 10:38 AM

To: Willen, Debra L

Subject: RE:

Ex. 6 personal privacy

but if you get this email at some point

Ex. 6 personal privacy

today, could you let me know if you're comfortable doing an agenda in Boeing w/ Barry some

time tomorrow? I'd give him a draft of your memo today for him to look at, along w/ the

submission.

Miriam Szapiro

Supervisory attorney

NLRB Division of Advice

202-273-0998

Miriam.Szapiro@nlrb.gov

NLRB-FOIA-00011443

-----Original Message-----

From: Willen, Debra L

Sent: Monday, October 04, 2010 6:31 AM

To: Person, Robyn; Szapiro, Miriam

Subject:

Ex. 6 personal privacy

Ex. 6 personal privacy

NLRB-FOIA-00011444

Microsoft Outlook

Szapiro, Miriam

Monday, October 04, 2010 11:10 AM

W illen, Debra L

RE Ex. 6 personal privacy

From:
Sent:
To:
Subject:

Well, after all that, Jayme now thinks we should just wait; she initially suggested Tuesday

because she thought Barry would want to move it quickly. But now it seems that having just

returned, he's got a ton of stuff on his desk and might have difficulty being ready for an

agenda tomorrow anyway. Sorry for all the confusion.

-----Original Message-----

From: Willen, Debra L

Sent: Monday, October 04, 2010 10:57 AM

To: Szapiro, Miriam

Subject: RE:

Ex. 6 personal privacy

No let's go ahead and schedule it.

Are there any significant problems with the draft?

________________________________________

From: Szapiro, Miriam

Sent: Monday, October 04, 2010 10:55 AM

To: Willen, Debra L

Subject: RE:

Ex. 6 personal privacy

If you feel like it'll be too much pressure, we can just hold off.

Miriam Szapiro

Supervisory attorney

NLRB Division of Advice

202-273-0998

Miriam.Szapiro@nlrb.gov

-----Original Message-----

From: Willen, Debra L

Sent: Monday, October 04, 2010 10:54 AM

To: Szapiro, Miriam

Subject: RE:

Ex. 6 personal privacy

Yes -- that's fine.

Ex. 6 personal privacy

________________________________________

From: Szapiro, Miriam

Sent: Monday, October 04, 2010 10:38 AM

To: Willen, Debra L

Subject: RE:

Ex. 6 personal privacy

but if you get this email at some point

Ex. 6 personal privacy

today, could you let me know if you're comfortable doing an agenda in Boeing w/ Barry some

time tomorrow? I'd give him a draft of your memo today for him to look at, along w/ the

submission.

Miriam Szapiro

Supervisory attorney

NLRB-FOIA-00011445

NLRB Division of Advice

202-273-0998

Miriam.Szapiro@nlrb.gov

-----Original Message-----

From: Willen, Debra L

Sent: Monday, October 04, 2010 6:31 AM

To: Person, Robyn; Szapiro, Miriam

Subject:

Ex. 6 personal privacy

Ex. 6 personal privacy

NLRB-FOIA-00011446

Microsoft Outlook

From:
Sent:
To:
Subject:

Szapiro, Miriam

Monday, October 04, 2010 11:35 AM

Sophir, Jayme

RE: boeing

Thats fine; I didnt promise her anything, just told her tomorrow was off.

Miriam Szapiro

Supervisory attorney

NLRB Division of Advice

202-273-0998

Miriam.Szapiro@nlrb.gov

From: Sophir, Jayme

Sent: Monday, October 04, 2010 11:13 AM

To: Szapiro, Miriam

Subject: boeing

Dont promise Deb a Thursday agenda yet. If it turns out that Wed works better for Barry, shes just going to have to give

up her telework day. I dont think we should be deciding when to do agendas (especially in big cases like this) by

planning around t/w days

Jayme Sophir

Assistant General Counsel

Chief, Regional Advice Branch

National Labor Relations Board

202-273-3837

Tracking:

NLRB-FOIA-00011447

Recipient

Read

Sophir, Jayme

Deleted: 10/28/2010 9:02 AM

NLRB-FOIA-00011448

Microsoft Outlook

From:

Szapiro, Miriam

Sent:

Tuesday, October 12, 2010 4:24 PM

To:

Szapiro, Miriam

Attachments:

ADV.19-CA-32431.GCAgenda.Boeing.dlw.doc

Tracking:
Tracking

Recipient

Read

Szapiro, Miriam

Read: 10/12/2010 4:33 PM

Miriam Szapiro

Supervisory attorney

NLRB Division of Advice

202-273-0998

Miriam.Szapiro@nlrb.gov

NLRB-FOIA-00011449

Exemption 5

NLRB-FOIA-00011450

Exemption 5

NLRB-FOIA-00011451

Exemption 5

NLRB-FOIA-00011452

Exemption 5

NLRB-FOIA-00011453

Exemption 5

NLRB-FOIA-00011454

Exemption 5

NLRB-FOIA-00011455

Exemption 5

NLRB-FOIA-00011456

Exemption 5

NLRB-FOIA-00011457

Exemption 5

NLRB-FOIA-00011458

Exemption 5

NLRB-FOIA-00011459

Exemption 5

NLRB-FOIA-00011460

Exemption 5

NLRB-FOIA-00011461

Exemption 5

NLRB-FOIA-00011462

Exemption 5

NLRB-FOIA-00011463

Exemption 5

NLRB-FOIA-00011464

Exemption 5

NLRB-FOIA-00011465

Exemption 5

NLRB-FOIA-00011466

Exemption 5

NLRB-FOIA-00011467

Exemption 5

NLRB-FOIA-00011468

Exemption 5

NLRB-FOIA-00011469

Exemption 5

NLRB-FOIA-00011470

Exemption 5

NLRB-FOIA-00011471

Exemption 5

NLRB-FOIA-00011472

Exemption 5

NLRB-FOIA-00011473

Exemption 5

NLRB-FOIA-00011474

Exemption 5

NLRB-FOIA-00011475

Exemption 5

NLRB-FOIA-00011476

Exemption 5

NLRB-FOIA-00011477

Exemption 5

NLRB-FOIA-00011478

Exemption 5

NLRB-FOIA-00011479

Exemption 5

NLRB-FOIA-00011480

Exemption 5

NLRB-FOIA-00011481

Exemption 5

NLRB-FOIA-00011482

Exemption 5

NLRB-FOIA-00011483

Exemption 5

NLRB-FOIA-00011484

Exemption 5

NLRB-FOIA-00011485

Exemption 5

NLRB-FOIA-00011486

Exemption 5

NLRB-FOIA-00011487

Exemption 5

NLRB-FOIA-00011488

Exemption 5

NLRB-FOIA-00011489

Exemption 5

NLRB-FOIA-00011490

Exemption 5

NLRB-FOIA-00011491

Exemption 5

NLRB-FOIA-00011492

Exemption 5

NLRB-FOIA-00011493

Exemption 5

NLRB-FOIA-00011494

Exemption 5

NLRB-FOIA-00011495

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:

Kearney, Barry J.

W ednesday, October 13, 2010 8:08 AM

W illen, Debra L; Szapiro, Miriam

Farrell, Ellen; Sophir, Jayme

Boeing

If so what do we

Arguably Ex. 4
know about that?

NLRB-FOIA-00011496

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:

W illen, Debra L

W ednesday, October 13, 2010 8:09 AM

Kearney, Barry J.; Szapiro, Miriam

Farrell, Ellen; Sophir, Jayme

RE: Boeing

I don't have copies of the contracts.

What I know is that at some point,

Arguably Ex. 4

________________________________________

From: Kearney, Barry J.

Sent: Wednesday, October 13, 2010 8:08 AM

To: Willen, Debra L; Szapiro, Miriam

Cc: Farrell, Ellen; Sophir, Jayme

Subject: Boeing

Arguably Ex. 4
If so what do we know about that?

NLRB-FOIA-00011497

Microsoft Outlook

Kearney, Barry J.

W ednesday, October 13, 2010 8:30 AM

W illen, Debra L; Szapiro, Miriam

Farrell, Ellen; Sophir, Jayme

RE: Boeing

From:
Sent:
To:
Cc:
Subject:

Are the only planes manufactured by this unit the dream liner ?

-----Original Message-----

From: Willen, Debra L

Sent: Wednesday, October 13, 2010 8:09 AM

To: Kearney, Barry J.; Szapiro, Miriam

Cc: Farrell, Ellen; Sophir, Jayme

Subject: RE: Boeing

I don't have copies of the contracts.

What I know is that at some point,

Arguably Ex. 4

________________________________________

From: Kearney, Barry J.

Sent: Wednesday, October 13, 2010 8:08 AM

To: Willen, Debra L; Szapiro, Miriam

Cc: Farrell, Ellen; Sophir, Jayme

Subject: Boeing

Arguably Ex. 4
If so what do we know about that?

NLRB-FOIA-00011498

Microsoft Outlook

W illen, Debra L

W ednesday, October 13, 2010 8:32 AM

Kearney, Barry J.; Szapiro, Miriam

Farrell, Ellen; Sophir, Jayme

RE: Boeing

From:
Sent:
To:
Cc:
Subject:

No -- there are 18,000 employees in this unit and they work on several different airplanes

and parts.

________________________________________

From: Kearney, Barry J.

Sent: Wednesday, October 13, 2010 8:29 AM

To: Willen, Debra L; Szapiro, Miriam

Cc: Farrell, Ellen; Sophir, Jayme

Subject: RE: Boeing

Are the only planes manufactured by this unit the dream liner ?

-----Original Message-----

From: Willen, Debra L

Sent: Wednesday, October 13, 2010 8:09 AM

To: Kearney, Barry J.; Szapiro, Miriam

Cc: Farrell, Ellen; Sophir, Jayme

Subject: RE: Boeing

I don't have copies of the contracts.

What I know is that at some point,

Arguably Ex. 4

________________________________________

From: Kearney, Barry J.

Sent: Wednesday, October 13, 2010 8:08 AM

To: Willen, Debra L; Szapiro, Miriam

Cc: Farrell, Ellen; Sophir, Jayme

Subject: Boeing

Arguably Ex. 4

If so what do we know about that?

NLRB-FOIA-00011499

Microsoft Outlook

Kearney, Barry J.

W ednesday, October 13, 2010 8:35 AM

W illen, Debra L; Szapiro, Miriam

Farrell, Ellen; Sophir, Jayme

RE: Boeing

From:
Sent:
To:
Cc:
Subject:

We say in memo that there were two stikes in the last 5 years. Do we know the strike history?

-----Original Message-----

From: Willen, Debra L

Sent: Wednesday, October 13, 2010 8:32 AM

To: Kearney, Barry J.; Szapiro, Miriam

Cc: Farrell, Ellen; Sophir, Jayme

Subject: RE: Boeing

No -- there are 18,000 employees in this unit and they work on several different airplanes

and parts.

________________________________________

From: Kearney, Barry J.

Sent: Wednesday, October 13, 2010 8:29 AM

To: Willen, Debra L; Szapiro, Miriam

Cc: Farrell, Ellen; Sophir, Jayme

Subject: RE: Boeing

Are the only planes manufactured by this unit the dream liner ?

-----Original Message-----

From: Willen, Debra L

Sent: Wednesday, October 13, 2010 8:09 AM

To: Kearney, Barry J.; Szapiro, Miriam

Cc: Farrell, Ellen; Sophir, Jayme

Subject: RE: Boeing

I don't have copies of the contracts.

What I know is that at some point,

Arguably Ex. 4

________________________________________

From: Kearney, Barry J.

Sent: Wednesday, October 13, 2010 8:08 AM

To: Willen, Debra L; Szapiro, Miriam

Cc: Farrell, Ellen; Sophir, Jayme

Subject: Boeing

Did you tell me that

Arguably Ex. 4

If so what do we know about that?

NLRB-FOIA-00011500

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:

W illen, Debra L

W ednesday, October 13, 2010 8:36 AM

Kearney, Barry J.; Szapiro, Miriam

Farrell, Ellen; Sophir, Jayme

RE: Boeing

See footnote 1 --

1989: 48 days

1995: 69 days

2005: 28 days

2008: 57 days

There were strikes before 1989, that I didn't put in the footnote.

if you give me another minute, I can send you those.

________________________________________

From: Kearney, Barry J.

Sent: Wednesday, October 13, 2010 8:35 AM

To: Willen, Debra L; Szapiro, Miriam

Cc: Farrell, Ellen; Sophir, Jayme

Subject: RE: Boeing

We say in memo that there were two stikes in the last 5 years. Do we know the strike history?

-----Original Message-----

From: Willen, Debra L

Sent: Wednesday, October 13, 2010 8:32 AM

To: Kearney, Barry J.; Szapiro, Miriam

Cc: Farrell, Ellen; Sophir, Jayme

Subject: RE: Boeing

No -- there are 18,000 employees in this unit and they work on several different airplanes

and parts.

________________________________________

From: Kearney, Barry J.

Sent: Wednesday, October 13, 2010 8:29 AM

To: Willen, Debra L; Szapiro, Miriam

Cc: Farrell, Ellen; Sophir, Jayme

Subject: RE: Boeing

Are the only planes manufactured by this unit the dream liner ?

-----Original Message-----

From: Willen, Debra L

Sent: Wednesday, October 13, 2010 8:09 AM

To: Kearney, Barry J.; Szapiro, Miriam

Cc: Farrell, Ellen; Sophir, Jayme

Subject: RE: Boeing

I don't have copies of the contracts.

What I know is that at some point,

Arguably Ex. 4

________________________________________

From: Kearney, Barry J.

Sent: Wednesday, October 13, 2010 8:08 AM

To: Willen, Debra L; Szapiro, Miriam

NLRB-FOIA-00011501

Cc: Farrell, Ellen; Sophir, Jayme

Subject: Boeing

Did you tell me that

Arguably Ex. 4
If so what do we know about that?

NLRB-FOIA-00011502

Microsoft Outlook

From:

Willen, Debra L

Sent:

Wednesday, October 13, 2010 8:39 AM

To:

Kearney, Barry J.; Szapiro, Miriam

Cc:

Farrell, Ellen; Sophir, Jayme

Subject:

RE: Boeing

Earlier strikes:

1948 for 140 days, in 1965 for 19 days, in 1977 for 45 days ________________________________________

From: Kearney, Barry J.

Sent: Wednesday, October 13, 2010 8:35 AM

To: Willen, Debra L; Szapiro, Miriam

Cc: Farrell, Ellen; Sophir, Jayme

Subject: RE: Boeing

We say in memo that there were two stikes in the last 5 years. Do we know the strike history?

-----Original Message----From: Willen, Debra L

Sent: Wednesday, October 13, 2010 8:32 AM

To: Kearney, Barry J.; Szapiro, Miriam

Cc: Farrell, Ellen; Sophir, Jayme

Subject: RE: Boeing

No -- there are 18,000 employees in this unit and they work on several different airplanes and parts.

________________________________________

From: Kearney, Barry J.

Sent: Wednesday, October 13, 2010 8:29 AM

To: Willen, Debra L; Szapiro, Miriam

Cc: Farrell, Ellen; Sophir, Jayme

Subject: RE: Boeing

Are the only planes manufactured by this unit the dream liner ?

-----Original Message----From: Willen, Debra L

Sent: Wednesday, October 13, 2010 8:09 AM

To: Kearney, Barry J.; Szapiro, Miriam

Cc: Farrell, Ellen; Sophir, Jayme

Subject: RE: Boeing

I don't have copies of the contracts. What I know is that at some point,

Exemption 5

________________________________________

From: Kearney, Barry J.

Sent: Wednesday, October 13, 2010 8:08 AM

To: Willen, Debra L; Szapiro, Miriam

Cc: Farrell, Ellen; Sophir, Jayme

NLRB-FOIA-00011503

Subject: Boeing

Exemption 5

If so what do

we know about that?

NLRB-FOIA-00011504

Microsoft Outlook

From:
Sent:
To:
Subject:

W illen, Debra L

W ednesday, October 13, 2010 1:23 PM

Szapiro, Miriam

Boeing

Hi Miriam -- I'm going to try to turn around Boeing this afternoon.

I know you

Exemption 6

and are leaving early.

Please remind me when you will

be gone.

thanks, Deb

NLRB-FOIA-00011505

Microsoft Outlook

From:
Sent:
To:
Subject:

Szapiro, Miriam

W ednesday, October 13, 2010 2:06 PM

W illen, Debra L

RE: Boeing

Hi Deb, I'll be leaving about 2:45. Do you need to talk before then?

________________________________________

From: Willen, Debra L

Sent: Wednesday, October 13, 2010 1:22 PM

To: Szapiro, Miriam

Subject: Boeing

Hi Miriam -- I'm going to try to turn around Boeing this afternoon.

I know you

Exemption 6

and are leaving early.

Please remind me when you will

be gone.

thanks, Deb

NLRB-FOIA-00011506

Microsoft Outlook

From:
Sent:
To:
Subject:

W illen, Debra L

W ednesday, October 13, 2010 2:29 PM

Szapiro, Miriam

RE: Boeing

Uh oh, I just got this.

Have been busy making Barry's changes.

I'm going to finish in the next hour.

Do you want to see it first or should I send it back

to eveyone at once?

________________________________________

From: Szapiro, Miriam

Sent: Wednesday, October 13, 2010 2:05 PM

To: Willen, Debra L

Subject: RE: Boeing

Hi Deb, I'll be leaving about 2:45. Do you need to talk before then?

________________________________________

From: Willen, Debra L

Sent: Wednesday, October 13, 2010 1:22 PM

To: Szapiro, Miriam

Subject: Boeing

Hi Miriam -- I'm going to try to turn around Boeing this afternoon.

I know you

Please remind me when you will

Exemption 6

be gone.

thanks, Deb

E...

NLRB-FOIA-00011507

Microsoft Outlook

From:

Willen, Debra L

Sent:

Thursday, October 14, 2010 2:07 PM

To:

Mattina, Celeste

Cc:

Kearney, Barry J.; Szapiro, Miriam

Subject:

The Boeing Company, Case 19-CA32431, GC Agenda

Attachments:

ADV.19-CA-32431.GCAgenda.Boeing.dlw.doc

The above-referenced Advice case is scheduled for a GC Agenda on Monday, October 18, at 2:00 p.m.

At Barry Kearneys request, I am forwarding you a copy of our memo to the General Counsel in this case.

Looking forward to seeing you on Monday

Debra Willen

NLRB-FOIA-00011508

Exemption 5

NLRB-FOIA-00011509

Exemption 5

NLRB-FOIA-00011510

Exemption 5

NLRB-FOIA-00011511

Exemption 5

NLRB-FOIA-00011512

Exemption 5

NLRB-FOIA-00011513

Exemption 5

NLRB-FOIA-00011514

Exemption 5

NLRB-FOIA-00011515

Exemption 5

NLRB-FOIA-00011516

Exemption 5

NLRB-FOIA-00011517

Exemption 5

NLRB-FOIA-00011518

Exemption 5

NLRB-FOIA-00011519

Exemption 5

NLRB-FOIA-00011520

Exemption 5

NLRB-FOIA-00011521

Exemption 5

NLRB-FOIA-00011522

Exemption 5

NLRB-FOIA-00011523

Exemption 5

NLRB-FOIA-00011524

Exemption 5

NLRB-FOIA-00011525

Exemption 5

NLRB-FOIA-00011526

Exemption 5

NLRB-FOIA-00011527

Exemption 5

NLRB-FOIA-00011528

Exemption 5

NLRB-FOIA-00011529

Exemption 5

NLRB-FOIA-00011530

Exemption 5

NLRB-FOIA-00011531

Exemption 5

NLRB-FOIA-00011532

Exemption 5

NLRB-FOIA-00011533

Microsoft Outlook

From:

Szapiro, Miriam

Sent:

Tuesday, October 19, 2010 8:03 AM

To:

Sophir, Jayme; Willen, Debra L

Subject:

RE: Boeing

Tracking:
Tracking

Recipient

Read

Sophir, Jayme

Read: 10/19/2010 8:25 AM

Willen, Debra L

Read: 10/19/2010 9:08 AM

Yes, we figured we would need to meet first thing, do decide what needed to be done. Have you already spoken with

Barry and Ellen, ie, do you know what they want to do, or are we doing this first?

From: Sophir, Jayme

Sent: Monday, October 18, 2010 5:22 PM

To: Willen, Debra L; Szapiro, Miriam

Subject: Boeing

Can you guys come see me first thing tomorrow morning about changes to the memo, etc.? (my first thing might be

later than your first thing but you know what I mean).

Jayme Sophir

Assistant General Counsel

Chief, Regional Advice Branch

National Labor Relations Board

202-273-3837

NLRB-FOIA-00011534

Microsoft Outlook

From:
Sent:
To:
Subject:

Kearney, Barry J.

Thursday, October 28, 2010 6:46 AM

Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam; W illen, Debra L

FW : Link to SC Boeing articles

From: Ferguson, John H.

Sent: Wednesday, October 27, 2010 3:40 PM

To: Kearney, Barry J.

Subject: Link to SC Boeing articles

Your team is probably well beyond needing this, being more cognizant than I am of web resources, but just in case

Andrew Martins FYI legal news of today had an article from a South Carolina papers website, which has a whole section

devoted to news articles about Boeings move to South Carolina. The link is

http://www.postandcourier.com/stories/2009/oct/29/boeing-co-lands-lowcountry/

One of the articles says Boeing has lost more orders than it has booked because of customer cancellations. Another said

its profits dropped 21% and that layoffs are likely.

NLRB-FOIA-00011535

Microsoft Outlook

From:
Sent:
To:
Subject:
Attachments:

W illen, Debra L

W ednesday, November 10, 2010 8:58 AM

Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam

Boeing Company, 19-CA-32431

ADV.19-CA-32431.Boeing.Request for Advice and Auth to Seek 10(j) Inj Relief.pdf

I thought Id bring to your attention pp. 13-21 of the Regions Request for Advice (attached), which describes

Exemption 5

NLRB-FOIA-00011536

Exemption 5

NLRB-FOIA-00011537

Exemption 5

NLRB-FOIA-00011538

Exemption 5

NLRB-FOIA-00011539

Exemption 5

NLRB-FOIA-00011540

Exemption 5

NLRB-FOIA-00011541

Exemption 5

NLRB-FOIA-00011542

Exemption 5

NLRB-FOIA-00011543

Exemption 5

NLRB-FOIA-00011544

Exemption 5

NLRB-FOIA-00011545

Exemption 5

NLRB-FOIA-00011546

Exemption 5

NLRB-FOIA-00011547

Exemption 5

NLRB-FOIA-00011548

Exemption 5

NLRB-FOIA-00011549

Exemption 5

NLRB-FOIA-00011550

Exemption 5

NLRB-FOIA-00011551

Exemption 5

NLRB-FOIA-00011552

Exemption 5

NLRB-FOIA-00011553

Exemption 5

NLRB-FOIA-00011554

Exemption 5

NLRB-FOIA-00011555

Exemption 5

NLRB-FOIA-00011556

Exemption 5

NLRB-FOIA-00011557

Exemption 5

NLRB-FOIA-00011558

Exemption 5

NLRB-FOIA-00011559

Exemption 5

NLRB-FOIA-00011560

Exemption 5

NLRB-FOIA-00011561

Exemption 5

NLRB-FOIA-00011562

Exemption 5

NLRB-FOIA-00011563

Exemption 5

NLRB-FOIA-00011564

Exemption 5

NLRB-FOIA-00011565

Exemption 5

NLRB-FOIA-00011566

Exemption 5

NLRB-FOIA-00011567

Exemption 5

NLRB-FOIA-00011568

Exemption 5

NLRB-FOIA-00011569

Exemption 5

NLRB-FOIA-00011570

Exemption 5

NLRB-FOIA-00011571

Exemption 5

NLRB-FOIA-00011572

Exemption 5

NLRB-FOIA-00011573

Exemption 5

NLRB-FOIA-00011574

Exemption 5

NLRB-FOIA-00011575

Exemption 5

NLRB-FOIA-00011576

Exemption 5

NLRB-FOIA-00011577

Exemption 5

NLRB-FOIA-00011578

Exemption 5

NLRB-FOIA-00011579

Exemption 5

NLRB-FOIA-00011580

Exemption 5

NLRB-FOIA-00011581

Exemption 5

NLRB-FOIA-00011582

Exemption 5

NLRB-FOIA-00011583

Exemption 5

NLRB-FOIA-00011584

Exemption 5

NLRB-FOIA-00011585

Exemption 5

NLRB-FOIA-00011586

Exemption 5

NLRB-FOIA-00011587

Exemption 5

NLRB-FOIA-00011588

Exemption 5

NLRB-FOIA-00011589

Exemption 5

NLRB-FOIA-00011590

Exemption 5

NLRB-FOIA-00011591

Exemption 5

NLRB-FOIA-00011592

Exemption 5

NLRB-FOIA-00011593

Exemption 5

NLRB-FOIA-00011594

Exemption 5

NLRB-FOIA-00011595

Exemption 5

NLRB-FOIA-00011596

Exemption 5

NLRB-FOIA-00011597

Exemption 5

NLRB-FOIA-00011598

Exemption 5

NLRB-FOIA-00011599

Exemption 5

NLRB-FOIA-00011600

Exemption 5

NLRB-FOIA-00011601

Exemption 5

NLRB-FOIA-00011602

Exemption 5

NLRB-FOIA-00011603

Exemption 5

NLRB-FOIA-00011604

Exemption 5

NLRB-FOIA-00011605

Exemption 5

NLRB-FOIA-00011606

Exemption 5

NLRB-FOIA-00011607

Exemption 5

NLRB-FOIA-00011608

Exemption 5

NLRB-FOIA-00011609

Exemption 5

NLRB-FOIA-00011610

Microsoft Outlook

From:
Sent:
To:
Subject:
Attachments:

W illen, Debra L

W ednesday, November 10, 2010 11:59 AM

Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam

Boeing Co.

DOC001.PDF

I've been reviewing the Employer's position statements and exhibits.

Thought you would be interested in the attached e-mail -Exemption 5

NLRB-FOIA-00011611

NLRB-FOIA-00011612

Arguably Ex. 4
Arguably Ex. 4
Arguably Ex. 4
Arguably Ex. 4

Arguably Ex. 4

Arguably Ex. 4
Arguably Ex. 4

Arguably Ex. 4

NLRB-FOIA-00011613

Microsoft Outlook

From:
Sent:
To:
Subject:

W illen, Debra L

Friday, November 12, 2010 8:23 AM

Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam

Boeing

FYI the cite to Brown is 380 U.S. 278.

I have a message from Carson Glickman-Flora, IAM Counsel, who said that she will call back today.

She was aware that Boeing counsel were meeting with us and will want a report.

Id like some guidance I can be as vague or specific as you like.

Thanks, Deb

NLRB-FOIA-00011614

Microsoft Outlook

From:
Sent:
To:
Subject:

W illen, Debra L

Tuesday, November 16, 2010 12:09 PM

Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam; Omberg, Bob

Boeing Co.

In case youre interested --

http://www.charlestonbusiness.com/home/search?q=Boeing&url=

Boeing Executive says S.C. is cornerstone of Companys future

http://www.nytimes.com/2010/11/11/business/11boeing.html?src=busln

excellent summary of problems Dreamliner has faced in the last year, including recent fire, Rolls Royce engine problem,

and problems with Italian company producing the tails

NLRB-FOIA-00011615

Microsoft Outlook

From:

Szapiro, Miriam

Sent:

Sunday, November 21, 2010 8:18 PM

To:

Willen, Debra L; Farrell, Ellen; Sophir, Jayme; Kearney, Barry J.

Subject:

Turbulence: Boeing and the State of American Workers and Managers

http://www.nytimes.com/2010/11/21/business/21shelf.html?_r=1&ref=books

NLRB-FOIA-00011616

Microsoft Outlook

From:

Willen, Debra L

Sent:

Monday, November 22, 2010 8:35 AM

To:

Szapiro, Miriam

Subject:

RE: "Turbulence: Boeing and the State of American Workers and Managers"

Very interesting ...

-----Original Message----From: Szapiro, Miriam

Sent: Sunday, November 21, 2010 8:18 PM

To: Willen, Debra L; Farrell, Ellen; Sophir, Jayme; Kearney, Barry J.

Subject: Turbulence: Boeing and the State of American Workers and Managers

http://www.nytimes.com/2010/11/21/business/21shelf.html?_r=1&ref=books

NLRB-FOIA-00011617

Microsoft Outlook

From:

Szapiro, Miriam

Sent:

Monday, November 22, 2010 9:51 AM

To:

Sophir, Jayme

Cc:

Willen, Debra L

Subject:

RE: "Turbulence: Boeing and the State of American Workers and Managers"

Tracking:
Tracking

Recipient

Read

Sophir, Jayme

Read: 11/22/2010 11:39 AM

Willen, Debra L

Read: 11/22/2010 10:01 AM

Is there any chance we can get Advice to pay for this book? Deb is about to order it, and I think it could provide very

helpful information regarding the case.

NLRB-FOIA-00011618

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:

Szapiro, Miriam

Monday, November 22, 2010 11:40 AM

Sophir, Jayme

W illen, Debra L

RE: "Turbulence: Boeing and the State of American W orkers and Managers"

Okay, I'll try that.

-----Original Message-----

From: Sophir, Jayme

Sent: Monday, November 22, 2010 11:40 AM

To: Szapiro, Miriam

Cc: Willen, Debra L

Subject: RE: "Turbulence: Boeing and the State of American Workers and Managers"

Why don't you just ask our librarian whether he can order a copy for us.

-----Original Message-----

From: Szapiro, Miriam

Sent: Monday, November 22, 2010 9:51 AM

To: Sophir, Jayme

Cc: Willen, Debra L

Subject: RE: "Turbulence: Boeing and the State of American Workers and Managers"

Is there any chance we can get Advice to pay for this book? Deb is about to order it, and I

think it could provide very helpful information regarding the case.

Tracking:

NLRB-FOIA-00011619

Recipient

Read

Sophir, Jayme

Deleted: 12/7/2010 1:53 PM

Willen, Debra L

Deleted: 11/30/2010 10:36 AM

NLRB-FOIA-00011620

Microsoft Outlook

From:

Szapiro, Miriam

Sent:

Monday, November 22, 2010 11:49 AM

To:

Martin, Andrew

Subject:

book order request

Tracking:
Tracking

Recipient

Read

Martin, Andrew

Read: 11/22/2010 11:59 AM

Hi Andrew, Advice needs the following book in relation to a current case. Can the library

order it for us?

Turbulence: Boeing and the State of American Workers and Managers

http://www.amazon.com/Turbulence-Boeing-American-Workers-Managers/dp/0300154615

Thanks,

Miriam Szapiro

Miriam Szapiro

Supervisory attorney

NLRB Division of Advice

202-273-0998

Miriam.Szapiro@nlrb.gov

NLRB-FOIA-00011621

Microsoft Outlook

From:

Szapiro, Miriam

Sent:

Monday, November 22, 2010 11:51 AM

To:

Sophir, Jayme

Cc:

Willen, Debra L

Subject:

RE: "Turbulence: Boeing and the State of American Workers and Managers"

Tracking:
Tracking

Recipient

Read

Sophir, Jayme

Deleted: 12/7/2010 1:53 PM

Willen, Debra L

Deleted: 11/30/2010 10:36 AM

I emailed him a request, so we'll see what he says.

NLRB-FOIA-00011622

Microsoft Outlook

From:
Sent:
To:
Subject:

Martin, Andrew

Monday, November 22, 2010 12:00 PM

Szapiro, Miriam

RE: book order request

Ive passed this on to the Powers That Be. Im sure youll be shocked to learn that there are some bureaucratic hoops to

jump through, but hopefully well be able to get this for you soon.

From: Szapiro, Miriam

Sent: Monday, November 22, 2010 11:49 AM

To: Martin, Andrew

Subject: book order request

Hi Andrew, Advice needs the following book in relation to a current case. Can the library

order it for us?

Turbulence: Boeing and the State of American Workers and Managers

http://www.amazon.com/Turbulence-Boeing-American-Workers-Managers/dp/0300154615

Thanks,

Miriam Szapiro

Miriam Szapiro

Supervisory attorney

NLRB Division of Advice

202-273-0998

Miriam.Szapiro@nlrb.gov

NLRB-FOIA-00011623

Microsoft Outlook

From:
Sent:
To:
Subject:

Szapiro, Miriam

Monday, November 22, 2010 12:08 PM

Martin, Andrew

RE: book order request

Thanks! Just let me know.

Miriam Szapiro

Supervisory attorney

NLRB Division of Advice

202-273-0998

Miriam.Szapiro@nlrb.gov

From: Martin, Andrew

Sent: Monday, November 22, 2010 12:00 PM

To: Szapiro, Miriam

Subject: RE: book order request

Ive passed this on to the Powers That Be. Im sure youll be shocked to learn that there are some bureaucratic hoops to

jump through, but hopefully well be able to get this for you soon.

From: Szapiro, Miriam

Sent: Monday, November 22, 2010 11:49 AM

To: Martin, Andrew

Subject: book order request

Hi Andrew, Advice needs the following book in relation to a current case. Can the library

order it for us?

Turbulence: Boeing and the State of American Workers and Managers

http://www.amazon.com/Turbulence-Boeing-American-Workers-Managers/dp/0300154615

Thanks,

Miriam Szapiro

Miriam Szapiro

Supervisory attorney

NLRB Division of Advice

202-273-0998

Miriam.Szapiro@nlrb.gov

Tracking:

NLRB-FOIA-00011624

Recipient

Read

Martin, Andrew

Read: 11/22/2010 12:11 PM

NLRB-FOIA-00011625

Microsoft Outlook

From:
Sent:
To:
Subject:

Szapiro, Miriam

Monday, November 22, 2010 12:08 PM

Sophir, Jayme; W illen, Debra L

FW : book order request

From: Martin, Andrew

Sent: Monday, November 22, 2010 12:00 PM

To: Szapiro, Miriam

Subject: RE: book order request

Ive passed this on to the Powers That Be. Im sure youll be shocked to learn that there are some bureaucratic hoops to

jump through, but hopefully well be able to get this for you soon.

From: Szapiro, Miriam

Sent: Monday, November 22, 2010 11:49 AM

To: Martin, Andrew

Subject: book order request

Hi Andrew, Advice needs the following book in relation to a current case. Can the library

order it for us?

Turbulence: Boeing and the State of American Workers and Managers

http://www.amazon.com/Turbulence-Boeing-American-Workers-Managers/dp/0300154615

Thanks,

Miriam Szapiro

Miriam Szapiro

Supervisory attorney

NLRB Division of Advice

202-273-0998

Miriam.Szapiro@nlrb.gov

Tracking:

NLRB-FOIA-00011626

Recipient

Read

Sophir, Jayme

Deleted: 12/7/2010 1:53 PM

Willen, Debra L

Read: 11/22/2010 12:33 PM

NLRB-FOIA-00011627

Microsoft Outlook

From:
Sent:
To:
Subject:

Martin, Andrew

Monday, November 22, 2010 12:45 PM

Szapiro, Miriam

RE: book order request

Weve gotten it approved. Itll be here as soon as Amazon makes it available

From: Szapiro, Miriam

Sent: Monday, November 22, 2010 12:08 PM

To: Martin, Andrew

Subject: RE: book order request

Thanks! Just let me know.

Miriam Szapiro

Supervisory attorney

NLRB Division of Advice

202-273-0998

Miriam.Szapiro@nlrb.gov

From: Martin, Andrew

Sent: Monday, November 22, 2010 12:00 PM

To: Szapiro, Miriam

Subject: RE: book order request

Ive passed this on to the Powers That Be. Im sure youll be shocked to learn that there are some bureaucratic hoops to

jump through, but hopefully well be able to get this for you soon.

From: Szapiro, Miriam

Sent: Monday, November 22, 2010 11:49 AM

To: Martin, Andrew

Subject: book order request

Hi Andrew, Advice needs the following book in relation to a current case. Can the library

order it for us?

Turbulence: Boeing and the State of American Workers and Managers

http://www.amazon.com/Turbulence-Boeing-American-Workers-Managers/dp/0300154615

Thanks,

Miriam Szapiro

Miriam Szapiro

Supervisory attorney

NLRB Division of Advice

202-273-0998

Miriam.Szapiro@nlrb.gov

NLRB-FOIA-00011628

Microsoft Outlook

From:
Sent:
To:
Subject:

Szapiro, Miriam

Monday, November 22, 2010 12:49 PM

Martin, Andrew

RE: book order request

Great! Thanks much.

Miriam

Miriam Szapiro

Supervisory attorney

NLRB Division of Advice

202-273-0998

Miriam.Szapiro@nlrb.gov

From: Martin, Andrew

Sent: Monday, November 22, 2010 12:45 PM

To: Szapiro, Miriam

Subject: RE: book order request

Weve gotten it approved. Itll be here as soon as Amazon makes it available

From: Szapiro, Miriam

Sent: Monday, November 22, 2010 12:08 PM

To: Martin, Andrew

Subject: RE: book order request

Thanks! Just let me know.

Miriam Szapiro

Supervisory attorney

NLRB Division of Advice

202-273-0998

Miriam.Szapiro@nlrb.gov

From: Martin, Andrew

Sent: Monday, November 22, 2010 12:00 PM

To: Szapiro, Miriam

Subject: RE: book order request

Ive passed this on to the Powers That Be. Im sure youll be shocked to learn that there are some bureaucratic hoops to

jump through, but hopefully well be able to get this for you soon.

From: Szapiro, Miriam

Sent: Monday, November 22, 2010 11:49 AM

To: Martin, Andrew

Subject: book order request

Hi Andrew, Advice needs the following book in relation to a current case. Can the library

order it for us?

Turbulence: Boeing and the State of American Workers and Managers

http://www.amazon.com/Turbulence-Boeing-American-Workers-Managers/dp/0300154615

NLRB-FOIA-00011629

Thanks,

Miriam Szapiro

Miriam Szapiro

Supervisory attorney

NLRB Division of Advice

202-273-0998

Miriam.Szapiro@nlrb.gov

Tracking:

NLRB-FOIA-00011630

Recipient

Read

Martin, Andrew

Read: 11/22/2010 1:49 PM

NLRB-FOIA-00011631

Microsoft Outlook

From:
Sent:
To:
Subject:

Szapiro, Miriam

Monday, November 22, 2010 12:49 PM

W illen, Debra L; Sophir, Jayme

FW : book order request

yay

From: Martin, Andrew

Sent: Monday, November 22, 2010 12:45 PM

To: Szapiro, Miriam

Subject: RE: book order request

Weve gotten it approved. Itll be here as soon as Amazon makes it available

From: Szapiro, Miriam

Sent: Monday, November 22, 2010 12:08 PM

To: Martin, Andrew

Subject: RE: book order request

Thanks! Just let me know.

Miriam Szapiro

Supervisory attorney

NLRB Division of Advice

202-273-0998

Miriam.Szapiro@nlrb.gov

From: Martin, Andrew

Sent: Monday, November 22, 2010 12:00 PM

To: Szapiro, Miriam

Subject: RE: book order request

Ive passed this on to the Powers That Be. Im sure youll be shocked to learn that there are some bureaucratic hoops to

jump through, but hopefully well be able to get this for you soon.

From: Szapiro, Miriam

Sent: Monday, November 22, 2010 11:49 AM

To: Martin, Andrew

Subject: book order request

Hi Andrew, Advice needs the following book in relation to a current case. Can the library

order it for us?

Turbulence: Boeing and the State of American Workers and Managers

http://www.amazon.com/Turbulence-Boeing-American-Workers-Managers/dp/0300154615

Thanks,

Miriam Szapiro

Miriam Szapiro

NLRB-FOIA-00011632

Supervisory attorney

NLRB Division of Advice

202-273-0998

Miriam.Szapiro@nlrb.gov

Tracking:

NLRB-FOIA-00011633

Recipient

Read

Willen, Debra L

Read: 11/22/2010 2:25 PM

Sophir, Jayme

Deleted: 12/7/2010 1:53 PM

NLRB-FOIA-00011634

Microsoft Outlook

From:

Szapiro, Miriam

Sent:

Tuesday, November 23, 2010 11:43 AM

To:

Karsh, Aaron

Subject:

FW: Turbulence: Boeing and the State of American Workers and Managers

Tracking:
Tracking

Recipient

Read

Karsh, Aaron

Read: 11/23/2010 11:44 AM

You've probably already read the review, but here is the link just in case -----Original Message----From: Szapiro, Miriam

Sent: Sunday, November 21, 2010 8:18 PM

To: Willen, Debra L; Farrell, Ellen; Sophir, Jayme; Kearney, Barry J.

Subject: Turbulence: Boeing and the State of American Workers and Managers

http://www.nytimes.com/2010/11/21/business/21shelf.html?_r=1&ref=books

NLRB-FOIA-00011635

Microsoft Outlook

From:

Karsh, Aaron

Sent:

Tuesday, November 23, 2010 11:45 AM

To:

Szapiro, Miriam

Subject:

RE: "Turbulence: Boeing and the State of American Workers and Managers"

I did read it -- looked interesting.

-----Original Message----From: Szapiro, Miriam

Sent: Tuesday, November 23, 2010 11:43 AM

To: Karsh, Aaron

Subject: FW: "Turbulence: Boeing and the State of American Workers and Managers"

You've probably already read the review, but here is the link just in case -----Original Message----From: Szapiro, Miriam

Sent: Sunday, November 21, 2010 8:18 PM

To: Willen, Debra L; Farrell, Ellen; Sophir, Jayme; Kearney, Barry J.

Subject: Turbulence: Boeing and the State of American Workers and Managers

http://www.nytimes.com/2010/11/21/business/21shelf.html?_r=1&ref=books

NLRB-FOIA-00011636

Microsoft Outlook

From:
Sent:
To:
Subject:

Szapiro, Miriam

Tuesday, November 30, 2010 4:25 PM

Stewart, Audrey R.

RE: book order request - Turbulence: Boeing and the State of American W orkers

Great; is it too late to come down now?

From: Stewart, Audrey R.

Sent: Tuesday, November 30, 2010 4:00 PM

To: Szapiro, Miriam

Cc: Nixon-Jackson, Thetis A.; Richardson, Ronald C.

Subject: FW: book order request - Turbulence: Boeing and the State of American Workers

Importance: High

Miriam,

Book has been received and processed. You can come down to the Library and check it out.

Audrey R. Stewart

Acquisitions Librarian

NLRB Library, Rm 8000

Washington, DC 20005

202-273-3725

From: Szapiro, Miriam

Sent: Monday, November 22, 2010 11:49 AM

To: Martin, Andrew

Subject: book order request

Hi Andrew, Advice needs the following book in relation to a current case. Can the library

order it for us?

Turbulence: Boeing and the State of American Workers and Managers

http://www.amazon.com/Turbulence-Boeing-American-Workers-Managers/dp/0300154615

Thanks,

Miriam Szapiro

Miriam Szapiro

Supervisory attorney

NLRB Division of Advice

202-273-0998

Miriam.Szapiro@nlrb.gov

Tracking:

NLRB-FOIA-00011637

Recipient

Read

Stewart, Audrey R.

Read: 11/30/2010 4:31 PM

NLRB-FOIA-00011638

Microsoft Outlook

From:
Sent:
To:
Subject:

Stewart, Audrey R.

Tuesday, November 30, 2010 4:31 PM

Szapiro, Miriam

RE: book order request - Turbulence: Boeing and the State of American W orkers

Come on down.

From: Szapiro, Miriam

Sent: Tuesday, November 30, 2010 4:25 PM

To: Stewart, Audrey R.

Subject: RE: book order request - Turbulence: Boeing and the State of American Workers

Great; is it too late to come down now?

From: Stewart, Audrey R.

Sent: Tuesday, November 30, 2010 4:00 PM

To: Szapiro, Miriam

Cc: Nixon-Jackson, Thetis A.; Richardson, Ronald C.

Subject: FW: book order request - Turbulence: Boeing and the State of American Workers

Importance: High

Miriam,

Book has been received and processed. You can come down to the Library and check it out.

Audrey R. Stewart

Acquisitions Librarian

NLRB Library, Rm 8000

Washington, DC 20005

202-273-3725

From: Szapiro, Miriam

Sent: Monday, November 22, 2010 11:49 AM

To: Martin, Andrew

Subject: book order request

Hi Andrew, Advice needs the following book in relation to a current case. Can the library

order it for us?

Turbulence: Boeing and the State of American Workers and Managers

http://www.amazon.com/Turbulence-Boeing-American-Workers-Managers/dp/0300154615

Thanks,

Miriam Szapiro

Miriam Szapiro

Supervisory attorney

NLRB-FOIA-00011639

NLRB Division of Advice

202-273-0998

Miriam.Szapiro@nlrb.gov

NLRB-FOIA-00011640

Microsoft Outlook

From:

Szapiro, Miriam

Sent:

Wednesday, December 01, 2010 11:43 PM

To:

Sophir, Jayme; Willen, Debra L

Subject:

RE: boeing

Yeah, by the time we get to a 10j, they will be up and running in S. Carolina.... and have a litigation team/pr strategy

well in place.

________________________________________

From: Sophir, Jayme

Sent: Wednesday, December 01, 2010 4:39 PM

To: Willen, Debra L; Szapiro, Miriam

Subject: boeing

Boeing now wants to postpone our meeting another day (12/15), and when I expressed dismay, Barry said its just one

day. If you remember or have the info easily available, can you give me a brief timeline of when we/Lafe originally said

Boeing would have to come in by (wasnt it like months ago?), and each of the postponements and the reasons they

gave why they needed more time? This is what we always said would happen they would delay and delay litigation (in

small increments so it never seems like much delay in and of itself) while events on the ground proceeded apace...

Jayme Sophir

Assistant General Counsel

Chief, Regional Advice Branch

National Labor Relations Board

202-273-3837

NLRB-FOIA-00011641

Microsoft Outlook

From:

Kearney, Barry J.

Sent:

Thursday, December 02, 2010 8:10 AM

To:

Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam; Willen, Debra L

Subject:

I know I told you so

Conner, the lead negotiator for Boeing, is having a dinner meeting with the IAM in Chicago Monday night. In order to

avoid a red eye into W ashington for the Tuesday meeting the meeting is being moved to Wednesday at 10. We will

receive their position paper mid day Tuesday. Look for it. Email to me, Ahearn, Lafe and Celeste. W e will discuss on the

13th

NLRB-FOIA-00011642

Microsoft Outlook

From:
Sent:
To:
Subject:

W illen, Debra L

Thursday, December 02, 2010 8:12 AM

Sophir, Jayme; Szapiro, Miriam

RE: boeing

The GC Agenda was OCTOBER 18. The decision to invite them in was made the following day. I thought that originally

we were going to give them 2 weeks.

We are now going on two months. Im convinced that they are prepping witnesses and amassing documents to defend

against the 10(j).

From: Sophir, Jayme

Sent: Wednesday, December 01, 2010 4:40 PM

To: Willen, Debra L; Szapiro, Miriam

Subject: boeing

Boeing now wants to postpone our meeting another day (12/15), and when I expressed dismay, Barry said its just one

day. If you remember or have the info easily available, can you give me a brief timeline of when we/Lafe originally said

Boeing would have to come in by (wasnt it like months ago?), and each of the postponements and the reasons they gave

why they needed more time? This is what we always said would happen they would delay and delay litigation (in small

increments so it never seems like much delay in and of itself) while events on the ground proceeded apace...

Jayme Sophir

Assistant General Counsel

Chief, Regional Advice Branch

National Labor Relations Board

202-273-3837

NLRB-FOIA-00011643

Microsoft Outlook

From:

Willen, Debra L

Sent:

Tuesday, December 14, 2010 9:37 AM

To:

Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme

Cc:

Szapiro, Miriam

Subject:

Boeing

If you have time, you might want to check out a new case cited by the Union Pittsburg & Midway Coal Mining Co., 355

NLRB No.197 but I can brief you about it.

NLRB-FOIA-00011644

Microsoft Outlook

From:
Sent:
To:
Subject:

W illen, Debra L

W ednesday, January 12, 2011 4:12 PM

Szapiro, Miriam

Boeing

I forgot to ask you -- since everyone now has Connor's declaration, do you think I should send around Exemption 6, 7(C...
Ex. 6, 7(C), 7(D)

From: Ahearn, Richard L.

Sent: Tuesday, January 11, 2011 1:32 PM

To: Willen, Debra L

Subject: RE: IAM meeting with AGC, Jan. 19

Debra, Thx.

BTW, as you undoubtedly know,

Exemption 6, 7(C) and 7(D)

Rich

From: Willen, Debra L

Sent: Tuesday, January 11, 2011 10:23 AM

To: Contee, Ernestine R.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam; Katz, Judy; Omberg, Bob;

Ahearn, Richard L.

Subject: FW: IAM meeting with AGC, Jan. 19

From: Jude Bryan [mailto:bryan@workerlaw.com]

Sent: Tuesday, January 11, 2011 11:54 AM

To: Willen, Debra L

Cc: David Campbell

Subject: IAM meeting with AGC

Ms. W illen,

In response to your email to Dave Campbell, the following people will be attending the meeting with AGC Lafe Solomon

next week.

Richard P. Michalski, General Vice President, IAMAW

Christopher Corson, General Counsel, IAMAW

Neil Gladstein, Director Strategic Resources, IAMAW

Mark Blondin, IAM Aerospace Coordinator

Tom Wroblewski, President, IAM District Lodge 751

David Campbell, Attorney

Carson Glickman-Flora, Attorney

Jude Bryan, Paralegal

Please let us know if there is any more information you need.

Sincerely,

Jude Bryan, Paralegal

Schwerin Campbell Barnard Iglitzin & Lavitt LLP

NLRB-FOIA-00011645

18 West Mercer Street, Ste. 400

Seattle, W A 98119

206-285-2828

NLRB-FOIA-00011646

Microsoft Outlook

Szapiro, Miriam

W ednesday, January 12, 2011 4:16 PM

W illen, Debra L

RE: Boeing

From:
Sent:
To:
Subject:

I think that's a good idea, so people can see it before the mtg.

________________________________________

From: Willen, Debra L

Sent: Wednesday, January 12, 2011 4:11 PM

To: Szapiro, Miriam

Subject: Boeing

I forgot to ask you -- since everyone now has Connor's declaration, do you think I should

send around Exemption 6, 7(C) and 7(D) affidavit?

Ex. 6, 7(C), 7(D)

________________________________

From: Ahearn, Richard L.

Sent: Tuesday, January 11, 2011 1:32 PM

To: Willen, Debra L

Subject: RE: IAM meeting with AGC, Jan. 19

Debra,

Thx.

BTW, as you undoubtedly know,

Exemption 6, 7(C) and 7(D)

Rich

________________________________

From: Willen, Debra L

Sent: Tuesday, January 11, 2011 10:23 AM

To: Contee, Ernestine R.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam;

Katz, Judy; Omberg, Bob; Ahearn, Richard L.

Subject: FW: IAM meeting with AGC, Jan. 19

________________________________

From: Jude Bryan [mailto:bryan@workerlaw.com]

Sent: Tuesday, January 11, 2011 11:54 AM

To: Willen, Debra L

Cc: David Campbell

Subject: IAM meeting with AGC

Ms. Willen,

In response to your email to Dave Campbell, the following people will be attending the

meeting with AGC Lafe Solomon next week.

Richard P. Michalski, General Vice President, IAMAW Christopher Corson, General Counsel,

IAMAW Neil Gladstein, Director Strategic Resources, IAMAW Mark Blondin, IAM Aerospace

Coordinator Tom Wroblewski, President, IAM District Lodge 751 David Campbell, Attorney Carson

Glickman-Flora, Attorney Jude Bryan, Paralegal

Please let us know if there is any more information you need.

Sincerely,

NLRB-FOIA-00011647

Jude Bryan, Paralegal

Schwerin Campbell Barnard Iglitzin & Lavitt LLP

18 West Mercer Street, Ste. 400

Seattle, WA 98119

206-285-2828

NLRB-FOIA-00011648

Microsoft Outlook

W illen, Debra L

W ednesday, January 12, 2011 4:21 PM

Szapiro, Miriam

RE: Boeing

From:
Sent:
To:
Subject:

Should I send it to all the people who got the Connor declaration -- including Lafe?

________________________________________

From: Szapiro, Miriam

Sent: Wednesday, January 12, 2011 4:15 PM

To: Willen, Debra L

Subject: RE: Boeing

I think that's a good idea, so people can see it before the mtg.

________________________________________

From: Willen, Debra L

Sent: Wednesday, January 12, 2011 4:11 PM

To: Szapiro, Miriam

Subject: Boeing

I forgot to ask you -- since everyone now has Connor's declaration, do you think I should

send around Exemption 6, 7(C) and 7(D) affidavit?

Ex. 6, 7(C), 7(D)

________________________________

From: Ahearn, Richard L.

Sent: Tuesday, January 11, 2011 1:32 PM

To: Willen, Debra L

Subject: RE: IAM meeting with AGC, Jan. 19

Debra,

Thx.

BTW, as you undoubtedly know,

Exemption 6, 7(C) and 7(D)

Rich

________________________________

From: Willen, Debra L

Sent: Tuesday, January 11, 2011 10:23 AM

To: Contee, Ernestine R.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam;

Katz, Judy; Omberg, Bob; Ahearn, Richard L.

Subject: FW: IAM meeting with AGC, Jan. 19

________________________________

From: Jude Bryan [mailto:bryan@workerlaw.com]

Sent: Tuesday, January 11, 2011 11:54 AM

To: Willen, Debra L

Cc: David Campbell

Subject: IAM meeting with AGC

Ms. Willen,

In response to your email to Dave Campbell, the following people will be attending the

meeting with AGC Lafe Solomon next week.

NLRB-FOIA-00011649

Richard P. Michalski, General Vice President, IAMAW Christopher Corson, General Counsel,

IAMAW Neil Gladstein, Director Strategic Resources, IAMAW Mark Blondin, IAM Aerospace

Coordinator Tom Wroblewski, President, IAM District Lodge 751 David Campbell, Attorney Carson

Glickman-Flora, Attorney Jude Bryan, Paralegal

Please let us know if there is any more information you need.

Sincerely,

Jude Bryan, Paralegal

Schwerin Campbell Barnard Iglitzin & Lavitt LLP

18 West Mercer Street, Ste. 400

Seattle, WA 98119

206-285-2828

NLRB-FOIA-00011650

Microsoft Outlook

Szapiro, Miriam

W ednesday, January 12, 2011 4:27 PM

W illen, Debra L

RE: Boeing

From:
Sent:
To:
Subject:

Hmm, I think so. You could poke your head in to BJK and tell him what you're doing first, if

you want to (rather than ask him....) ________________________________________

From: Willen, Debra L

Sent: Wednesday, January 12, 2011 4:21 PM

To: Szapiro, Miriam

Subject: RE: Boeing

Should I send it to all the people who got the Connor declaration -- including Lafe?

________________________________________

From: Szapiro, Miriam

Sent: Wednesday, January 12, 2011 4:15 PM

To: Willen, Debra L

Subject: RE: Boeing

I think that's a good idea, so people can see it before the mtg.

________________________________________

From: Willen, Debra L

Sent: Wednesday, January 12, 2011 4:11 PM

To: Szapiro, Miriam

Subject: Boeing

I forgot to ask you -- since everyone now has Connor's declaration, do you think I should

send around Exemption 6, 7(C) and 7(D) affidavit?

Exemption 6, 7(C), 7(D)

.)

________________________________

From: Ahearn, Richard L.

Sent: Tuesday, January 11, 2011 1:32 PM

To: Willen, Debra L

Subject: RE: IAM meeting with AGC, Jan. 19

Debra,

Thx.

BTW, as you undoubtedly know,

Exemption 6, 7(C) and 7(D)

Rich

________________________________

From: Willen, Debra L

Sent: Tuesday, January 11, 2011 10:23 AM

To: Contee, Ernestine R.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam;

Katz, Judy; Omberg, Bob; Ahearn, Richard L.

Subject: FW: IAM meeting with AGC, Jan. 19

________________________________

From: Jude Bryan [mailto:bryan@workerlaw.com]

Sent: Tuesday, January 11, 2011 11:54 AM

To: Willen, Debra L

NLRB-FOIA-00011651

Cc: David Campbell

Subject: IAM meeting with AGC

Ms. Willen,

In response to your email to Dave Campbell, the following people will be attending the

meeting with AGC Lafe Solomon next week.

Richard P. Michalski, General Vice President, IAMAW Christopher Corson, General Counsel,

IAMAW Neil Gladstein, Director Strategic Resources, IAMAW Mark Blondin, IAM Aerospace

Coordinator Tom Wroblewski, President, IAM District Lodge 751 David Campbell, Attorney Carson

Glickman-Flora, Attorney Jude Bryan, Paralegal

Please let us know if there is any more information you need.

Sincerely,

Jude Bryan, Paralegal

Schwerin Campbell Barnard Iglitzin & Lavitt LLP

18 West Mercer Street, Ste. 400

Seattle, WA 98119

206-285-2828

NLRB-FOIA-00011652

Microsoft Outlook

W illen, Debra L

W ednesday, January 12, 2011 4:30 PM

Szapiro, Miriam

RE: Boeing

From:
Sent:
To:
Subject:

Sounds like a good idea -- I'll do it tomorrow.

________________________________________

From: Szapiro, Miriam

Sent: Wednesday, January 12, 2011 4:26 PM

To: Willen, Debra L

Subject: RE: Boeing

Hmm, I think so. You could poke your head in to BJK and tell him what you're doing first, if

you want to (rather than ask him....) ________________________________________

From: Willen, Debra L

Sent: Wednesday, January 12, 2011 4:21 PM

To: Szapiro, Miriam

Subject: RE: Boeing

Should I send it to all the people who got the Connor declaration -- including Lafe?

________________________________________

From: Szapiro, Miriam

Sent: Wednesday, January 12, 2011 4:15 PM

To: Willen, Debra L

Subject: RE: Boeing

I think that's a good idea, so people can see it before the mtg.

________________________________________

From: Willen, Debra L

Sent: Wednesday, January 12, 2011 4:11 PM

To: Szapiro, Miriam

Subject: Boeing

I forgot to ask you -- since everyone now has Connor's declaration, do you think I should

send around

Exemption 6, 7(C), 7(...

affidavit?

Exemption 6, 7C), 7(D)

________________________________

From: Ahearn, Richard L.

Sent: Tuesday, January 11, 2011 1:32 PM

To: Willen, Debra L

Subject: RE: IAM meeting with AGC, Jan. 19

Debra,

Thx.

BTW, as you undoubtedly know,

Exemption 6, 7(C), 7(D)

Rich

________________________________

From: Willen, Debra L

Sent: Tuesday, January 11, 2011 10:23 AM

To: Contee, Ernestine R.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam;

Katz, Judy; Omberg, Bob; Ahearn, Richard L.

NLRB-FOIA-00011653

Subject: FW: IAM meeting with AGC, Jan. 19

________________________________

From: Jude Bryan [mailto:bryan@workerlaw.com]

Sent: Tuesday, January 11, 2011 11:54 AM

To: Willen, Debra L

Cc: David Campbell

Subject: IAM meeting with AGC

Ms. Willen,

In response to your email to Dave Campbell, the following people will be attending the

meeting with AGC Lafe Solomon next week.

Richard P. Michalski, General Vice President, IAMAW Christopher Corson, General Counsel,

IAMAW Neil Gladstein, Director Strategic Resources, IAMAW Mark Blondin, IAM Aerospace

Coordinator Tom Wroblewski, President, IAM District Lodge 751 David Campbell, Attorney Carson

Glickman-Flora, Attorney Jude Bryan, Paralegal

Please let us know if there is any more information you need.

Sincerely,

Jude Bryan, Paralegal

Schwerin Campbell Barnard Iglitzin & Lavitt LLP

18 West Mercer Street, Ste. 400

Seattle, WA 98119

206-285-2828

NLRB-FOIA-00011654

Microsoft Outlook

From:

Willen, Debra L

Sent:

Friday, January 21, 2011 11:41 AM

To:

Szapiro, Miriam

Subject:

Boeing

Youre not going to believe the latest come down when you get a chance.

NLRB-FOIA-00011655

Microsoft Outlook

From:

Willen, Debra L

Sent:

Tuesday, January 25, 2011 4:08 PM

To:

Szapiro, Miriam

Subject:

Boeing draft

Attachments:

ADV.19-CA-32431.Response2.Boeing.dlw.doc

Attached. Enjoy your day at home!

NLRB-FOIA-00011656

Exemption 5

NLRB-FOIA-00011657

Exemption 5

NLRB-FOIA-00011658

Exemption 5

NLRB-FOIA-00011659

Exemption 5

NLRB-FOIA-00011660

Exemption 5

NLRB-FOIA-00011661

Exemption 5

NLRB-FOIA-00011662

Exemption 5

NLRB-FOIA-00011663

Exemption 5

NLRB-FOIA-00011664

Exemption 5

NLRB-FOIA-00011665

Exemption 5

NLRB-FOIA-00011666

Exemption 5

NLRB-FOIA-00011667

Exemption 5

NLRB-FOIA-00011668

Exemption 5

NLRB-FOIA-00011669

Exemption 5

NLRB-FOIA-00011670

Exemption 5

NLRB-FOIA-00011671

Exemption 5

NLRB-FOIA-00011672

Exemption 5

NLRB-FOIA-00011673

Exemption 5

NLRB-FOIA-00011674

Exemption 5

NLRB-FOIA-00011675

Exemption 5

NLRB-FOIA-00011676

Exemption 5

NLRB-FOIA-00011677

Exemption 5

NLRB-FOIA-00011678

Exemption 5

NLRB-FOIA-00011679

Exemption 5

NLRB-FOIA-00011680

Exemption 5

NLRB-FOIA-00011681

Exemption 5

NLRB-FOIA-00011682

Exemption 5

NLRB-FOIA-00011683

Exemption 5

NLRB-FOIA-00011684

Exemption 5

NLRB-FOIA-00011685

Exemption 5

NLRB-FOIA-00011686

Exemption 5

NLRB-FOIA-00011687

Exemption 5

NLRB-FOIA-00011688

Exemption 5

NLRB-FOIA-00011689

Exemption 5

NLRB-FOIA-00011690

Exemption 5

NLRB-FOIA-00011691

Exemption 5

NLRB-FOIA-00011692

Exemption 5

NLRB-FOIA-00011693

Exemption 5

NLRB-FOIA-00011694

Exemption 5

NLRB-FOIA-00011695

Exemption 5

NLRB-FOIA-00011696

Exemption 5

NLRB-FOIA-00011697

Exemption 5

NLRB-FOIA-00011698

Exemption 5

NLRB-FOIA-00011699

Exemption 5

NLRB-FOIA-00011700

Exemption 5

NLRB-FOIA-00011701

Exemption 5

NLRB-FOIA-00011702

Exemption 5

NLRB-FOIA-00011703

Exemption 5

NLRB-FOIA-00011704

Exemption 5

NLRB-FOIA-00011705

Exemption 5

NLRB-FOIA-00011706

Exemption 5

NLRB-FOIA-00011707

Exemption 5

NLRB-FOIA-00011708

Exemption 5

NLRB-FOIA-00011709

Exemption 5

NLRB-FOIA-00011710

Exemption 5

NLRB-FOIA-00011711

Exemption 5

NLRB-FOIA-00011712

Microsoft Outlook

From:

Szapiro, Miriam

Sent:

Tuesday, January 25, 2011 4:08 PM

To:

Willen, Debra L

Subject:

RE: Boeing draft

Thanks Id like to say enjoy your day at the office but it doesnt have the same ring to it.

From: Willen, Debra L

Sent: Tuesday, January 25, 2011 4:08 PM

To: Szapiro, Miriam

Subject: Boeing draft

Attached. Enjoy your day at home!

NLRB-FOIA-00011713

Microsoft Outlook

From:

Szapiro, Miriam

Sent:

Thursday, January 27, 2011 10:31 AM

To:

Szapiro, Miriam; Miriam - Szapiro

Attachments:

ADV 19-CA-32431 Response2 Boeing dlw.doc

Miriam Szapiro

Supervisory attorney

NLRB Division of Advice

202-273-0998

Miriam.Szapiro@nlrb.gov

NLRB-FOIA-00011714

Exemption 5

NLRB-FOIA-00011715

Exemption 5

NLRB-FOIA-00011716

Exemption 5

NLRB-FOIA-00011717

Exemption 5

NLRB-FOIA-00011718

Exemption 5

NLRB-FOIA-00011719

Exemption 5

NLRB-FOIA-00011720

Exemption 5

NLRB-FOIA-00011721

Exemption 5

NLRB-FOIA-00011722

Exemption 5

NLRB-FOIA-00011723

Exemption 5

NLRB-FOIA-00011724

Exemption 5

NLRB-FOIA-00011725

Exemption 5

NLRB-FOIA-00011726

Exemption 5

NLRB-FOIA-00011727

Exemption 5

NLRB-FOIA-00011728

Exemption 5

NLRB-FOIA-00011729

Exemption 5

NLRB-FOIA-00011730

Exemption 5

NLRB-FOIA-00011731

Exemption 5

NLRB-FOIA-00011732

Exemption 5

NLRB-FOIA-00011733

Exemption 5

NLRB-FOIA-00011734

Exemption 5

NLRB-FOIA-00011735

Exemption 5

NLRB-FOIA-00011736

Exemption 5

NLRB-FOIA-00011737

Exemption 5

NLRB-FOIA-00011738

Exemption 5

NLRB-FOIA-00011739

Exemption 5

NLRB-FOIA-00011740

Exemption 5

NLRB-FOIA-00011741

Exemption 5

NLRB-FOIA-00011742

Exemption 5

NLRB-FOIA-00011743

Exemption 5

NLRB-FOIA-00011744

Exemption 5

NLRB-FOIA-00011745

Exemption 5

NLRB-FOIA-00011746

Exemption 5

NLRB-FOIA-00011747

Exemption 5

NLRB-FOIA-00011748

Exemption 5

NLRB-FOIA-00011749

Exemption 5

NLRB-FOIA-00011750

Exemption 5

NLRB-FOIA-00011751

Exemption 5

NLRB-FOIA-00011752

Exemption 5

NLRB-FOIA-00011753

Exemption 5

NLRB-FOIA-00011754

Exemption 5

NLRB-FOIA-00011755

Exemption 5

NLRB-FOIA-00011756

Exemption 5

NLRB-FOIA-00011757

Exemption 5

NLRB-FOIA-00011758

Exemption 5

NLRB-FOIA-00011759

Exemption 5

NLRB-FOIA-00011760

Exemption 5

NLRB-FOIA-00011761

Exemption 5

NLRB-FOIA-00011762

Exemption 5

NLRB-FOIA-00011763

Exemption 5

NLRB-FOIA-00011764

Exemption 5

NLRB-FOIA-00011765

Exemption 5

NLRB-FOIA-00011766

Exemption 5

NLRB-FOIA-00011767

Exemption 5

NLRB-FOIA-00011768

Exemption 5

NLRB-FOIA-00011769

Exemption 5

NLRB-FOIA-00011770

Exemption 5

NLRB-FOIA-00011771

Exemption 5

NLRB-FOIA-00011772

Microsoft Outlook

From:

Szapiro, Miriam

Sent:

Thursday, January 27, 2011 10:31 AM

To:

Szapiro, Miriam; Miriam - Szapiro

Attachments:

ADV 19-CA-32431 Response2 Boeing dlw.doc

Tracking:
Tracking

Recipient

Read

Szapiro, Miriam

Read: 1/27/2011 10:48 AM

Miriam - Szapiro

Miriam Szapiro

Supervisory attorney

NLRB Division of Advice

202-273-0998

Miriam.Szapiro@nlrb.gov

NLRB-FOIA-00011773

Exemption 5

NLRB-FOIA-00011774

Exemption 5

NLRB-FOIA-00011775

Exemption 5

NLRB-FOIA-00011776

Exemption 5

NLRB-FOIA-00011777

Exemption 5

NLRB-FOIA-00011778

Exemption 5

NLRB-FOIA-00011779

Exemption 5

NLRB-FOIA-00011780

Exemption 5

NLRB-FOIA-00011781

Exemption 5

NLRB-FOIA-00011782

Exemption 5

NLRB-FOIA-00011783

Exemption 5

NLRB-FOIA-00011784

Exemption 5

NLRB-FOIA-00011785

Exemption 5

NLRB-FOIA-00011786

Exemption 5

NLRB-FOIA-00011787

Exemption 5

NLRB-FOIA-00011788

Exemption 5

NLRB-FOIA-00011789

Exemption 5

NLRB-FOIA-00011790

Exemption 5

NLRB-FOIA-00011791

Exemption 5

NLRB-FOIA-00011792

Exemption 5

NLRB-FOIA-00011793

Exemption 5

NLRB-FOIA-00011794

Exemption 5

NLRB-FOIA-00011795

Exemption 5

NLRB-FOIA-00011796

Exemption 5

NLRB-FOIA-00011797

Exemption 5

NLRB-FOIA-00011798

Exemption 5

NLRB-FOIA-00011799

Exemption 5

NLRB-FOIA-00011800

Exemption 5

NLRB-FOIA-00011801

Exemption 5

NLRB-FOIA-00011802

Exemption 5

NLRB-FOIA-00011803

Exemption 5

NLRB-FOIA-00011804

Exemption 5

NLRB-FOIA-00011805

Exemption 5

NLRB-FOIA-00011806

Exemption 5

NLRB-FOIA-00011807

Exemption 5

NLRB-FOIA-00011808

Exemption 5

NLRB-FOIA-00011809

Exemption 5

NLRB-FOIA-00011810

Exemption 5

NLRB-FOIA-00011811

Exemption 5

NLRB-FOIA-00011812

Exemption 5

NLRB-FOIA-00011813

Exemption 5

NLRB-FOIA-00011814

Exemption 5

NLRB-FOIA-00011815

Exemption 5

NLRB-FOIA-00011816

Exemption 5

NLRB-FOIA-00011817

Exemption 5

NLRB-FOIA-00011818

Exemption 5

NLRB-FOIA-00011819

Exemption 5

NLRB-FOIA-00011820

Exemption 5

NLRB-FOIA-00011821

Exemption 5

NLRB-FOIA-00011822

Exemption 5

NLRB-FOIA-00011823

Exemption 5

NLRB-FOIA-00011824

Exemption 5

NLRB-FOIA-00011825

Exemption 5

NLRB-FOIA-00011826

Exemption 5

NLRB-FOIA-00011827

Exemption 5

NLRB-FOIA-00011828

Exemption 5

NLRB-FOIA-00011829

Exemption 5

NLRB-FOIA-00011830

Exemption 5

NLRB-FOIA-00011831

Microsoft Outlook

From:
Sent:
To:
Subject:
Attachments:

Szapiro, Miriam

Thursday, January 27, 2011 12:04 PM

W illen, Debra L

boeing draft

ADV 19-CA-32431 Response2 Boeing dlw.doc

This is good; I made some edits here and there, but mainly in the narrative in the beginning of the action section; I moved

the arguments around to try and make then more clearly defined. But please look critically at the suggested changes and

decide if you think it works better or not. Im around; I may walk down the block for lunch in about a hour. I also have a

couple questions, in comments, where I made a suggested change but wanted to make sure it was a fair way to put it.

Me

Ps

Non-Responsive

Tracking:

NLRB-FOIA-00011832

Recipient

Read

Willen, Debra L

Read: 1/27/2011 12:11 PM

NLRB-FOIA-00011833

Exemption 5

NLRB-FOIA-00011834

Exemption 5

NLRB-FOIA-00011835

Exemption 5

NLRB-FOIA-00011836

Exemption 5

NLRB-FOIA-00011837

Exemption 5

NLRB-FOIA-00011838

Exemption 5

NLRB-FOIA-00011839

Exemption 5

NLRB-FOIA-00011840

Exemption 5

NLRB-FOIA-00011841

Exemption 5

NLRB-FOIA-00011842

Exemption 5

NLRB-FOIA-00011843

Exemption 5

NLRB-FOIA-00011844

Exemption 5

NLRB-FOIA-00011845

Exemption 5

NLRB-FOIA-00011846

Exemption 5

NLRB-FOIA-00011847

Exemption 5

NLRB-FOIA-00011848

Exemption 5

NLRB-FOIA-00011849

Exemption 5

NLRB-FOIA-00011850

Exemption 5

NLRB-FOIA-00011851

Exemption 5

NLRB-FOIA-00011852

Exemption 5

NLRB-FOIA-00011853

Exemption 5

NLRB-FOIA-00011854

Exemption 5

NLRB-FOIA-00011855

Exemption 5

NLRB-FOIA-00011856

Exemption 5

NLRB-FOIA-00011857

Exemption 5

NLRB-FOIA-00011858

Exemption 5

NLRB-FOIA-00011859

Exemption 5

NLRB-FOIA-00011860

Exemption 5

NLRB-FOIA-00011861

Exemption 5

NLRB-FOIA-00011862

Exemption 5

NLRB-FOIA-00011863

Exemption 5

NLRB-FOIA-00011864

Exemption 5

NLRB-FOIA-00011865

Exemption 5

NLRB-FOIA-00011866

Exemption 5

NLRB-FOIA-00011867

Exemption 5

NLRB-FOIA-00011868

Exemption 5

NLRB-FOIA-00011869

Exemption 5

NLRB-FOIA-00011870

Exemption 5

NLRB-FOIA-00011871

Exemption 5

NLRB-FOIA-00011872

Exemption 5

NLRB-FOIA-00011873

Exemption 5

NLRB-FOIA-00011874

Exemption 5

NLRB-FOIA-00011875

Exemption 5

NLRB-FOIA-00011876

Exemption 5

NLRB-FOIA-00011877

Exemption 5

NLRB-FOIA-00011878

Exemption 5

NLRB-FOIA-00011879

Exemption 5

NLRB-FOIA-00011880

Exemption 5

NLRB-FOIA-00011881

Exemption 5

NLRB-FOIA-00011882

Exemption 5

NLRB-FOIA-00011883

Exemption 5

NLRB-FOIA-00011884

Exemption 5

NLRB-FOIA-00011885

Exemption 5

NLRB-FOIA-00011886

Exemption 5

NLRB-FOIA-00011887

Exemption 5

NLRB-FOIA-00011888

Exemption 5

NLRB-FOIA-00011889

Exemption 5

NLRB-FOIA-00011890

Exemption 5

NLRB-FOIA-00011891

Exemption 5

NLRB-FOIA-00011892

Microsoft Outlook

From:
Sent:
To:

Szapiro, Miriam

Thursday, January 27, 2011 12:15 PM

W illen, Debra L

I just skimmed through it again and realized

Exemption 5
If you think its worth it, add

something. If not, just get rid of the highlight.

Tracking:

NLRB-FOIA-00011893

Recipient

Read

Willen, Debra L

Read: 1/27/2011 12:16 PM

NLRB-FOIA-00011894

Microsoft Outlook

From:
Sent:
To:
Subject:

W illen, Debra L

Thursday, January 27, 2011 12:16 PM

Szapiro, Miriam

RE:

Okay I was just about to look at it.

From: Szapiro, Miriam

Sent: Thursday, January 27, 2011 12:15 PM

To: Willen, Debra L

Subject:

I just skimmed through it again and realized

Exemption 5
If you think its worth it, add

something. If not, just get rid of the highlight.

NLRB-FOIA-00011895

Microsoft Outlook

From:
Sent:
To:
Subject:

Szapiro, Miriam

Thursday, January 27, 2011 1:22 PM

W illen, Debra L

RE:

Cool, Ill take a look at it

Miriam Szapiro

Supervisory attorney

NLRB Division of Advice

202-273-0998

Miriam.Szapiro@nlrb.gov

From: Willen, Debra L

Sent: Thursday, January 27, 2011 1:14 PM

To: Szapiro, Miriam

Subject: RE:

Okay heres the new version.

I accepted 97% of your changes

Exemption 5

Ive responded to the comments where you were posing questions.

Exemption 5
Thanks.

From: Szapiro, Miriam

Sent: Thursday, January 27, 2011 12:15 PM

To: Willen, Debra L

Subject:

I just skimmed through it again and realized

Exemption 5
If you think its worth it, add

something. If not, just get rid of the highlight.

Tracking:

NLRB-FOIA-00011896

Recipient

Read

Willen, Debra L

Read: 1/27/2011 1:26 PM

NLRB-FOIA-00011897

Microsoft Outlook

From:

Szapiro, Miriam

Sent:

Thursday, January 27, 2011 2:12 PM

To:

Willen, Debra L

Subject:

draft

Attachments:

ADV 19-CA-32431 Response2 Boeing dlw2.doc

Tracking:
Tracking

Recipient

Read

Willen, Debra L

Read: 1/27/2011 2:32 PM

Hi, I accepted almost everything there was to accept, mad a couple more possible changes, so check and make sure they

work. (2 were at comment areas).

NLRB-FOIA-00011898

Exemption 5

NLRB-FOIA-00011899

Exemption 5

NLRB-FOIA-00011900

Exemption 5

NLRB-FOIA-00011901

Exemption 5

NLRB-FOIA-00011902

Exemption 5

NLRB-FOIA-00011903

Exemption 5

NLRB-FOIA-00011904

Exemption 5

NLRB-FOIA-00011905

Exemption 5

NLRB-FOIA-00011906

Exemption 5

NLRB-FOIA-00011907

Exemption 5

NLRB-FOIA-00011908

Exemption 5

NLRB-FOIA-00011909

Exemption 5

NLRB-FOIA-00011910

Exemption 5

NLRB-FOIA-00011911

Exemption 5

NLRB-FOIA-00011912

Exemption 5

NLRB-FOIA-00011913

Exemption 5

NLRB-FOIA-00011914

Exemption 5

NLRB-FOIA-00011915

Exemption 5

NLRB-FOIA-00011916

Exemption 5

NLRB-FOIA-00011917

Exemption 5

NLRB-FOIA-00011918

Exemption 5

NLRB-FOIA-00011919

Exemption 5

NLRB-FOIA-00011920

Exemption 5

NLRB-FOIA-00011921

Exemption 5

NLRB-FOIA-00011922

Exemption 5

NLRB-FOIA-00011923

Exemption 5

NLRB-FOIA-00011924

Exemption 5

NLRB-FOIA-00011925

Exemption 5

NLRB-FOIA-00011926

Exemption 5

NLRB-FOIA-00011927

Exemption 5

NLRB-FOIA-00011928

Exemption 5

NLRB-FOIA-00011929

Exemption 5

NLRB-FOIA-00011930

Exemption 5

NLRB-FOIA-00011931

Exemption 5

NLRB-FOIA-00011932

Exemption 5

NLRB-FOIA-00011933

Exemption 5

NLRB-FOIA-00011934

Exemption 5

NLRB-FOIA-00011935

Exemption 5

NLRB-FOIA-00011936

Exemption 5

NLRB-FOIA-00011937

Exemption 5

NLRB-FOIA-00011938

Exemption 5

NLRB-FOIA-00011939

Exemption 5

NLRB-FOIA-00011940

Exemption 5

NLRB-FOIA-00011941

Exemption 5

NLRB-FOIA-00011942

Exemption 5

NLRB-FOIA-00011943

Exemption 5

NLRB-FOIA-00011944

Exemption 5

NLRB-FOIA-00011945

Exemption 5

NLRB-FOIA-00011946

Exemption 5

NLRB-FOIA-00011947

Exemption 5

NLRB-FOIA-00011948

Exemption 5

NLRB-FOIA-00011949

Exemption 5

NLRB-FOIA-00011950

Exemption 5

NLRB-FOIA-00011951

Exemption 5

NLRB-FOIA-00011952

Exemption 5

NLRB-FOIA-00011953

Exemption 5

NLRB-FOIA-00011954

Exemption 5

NLRB-FOIA-00011955

Exemption 5

NLRB-FOIA-00011956

Microsoft Outlook

From:
Sent:
To:
Subject:
Attachments:

W illen, Debra L

Thursday, January 27, 2011 2:35 PM

Szapiro, Miriam

RE: draft

ADV.19-CA-32431.Response2.Boeing.dlw.doc

Okay Ive accepted everything, deleted comments,


Exemption 5

Shall I print out for Barry and/or e-mail it to him since he is telecommuting today?

From: Szapiro, Miriam

Sent: Thursday, January 27, 2011 2:12 PM

To: Willen, Debra L

Subject: draft

Hi, I accepted almost everything there was to accept, mad a couple more possible changes, so check and make sure they

work. (2 were at comment areas).

NLRB-FOIA-00011957

Exemption 5

NLRB-FOIA-00011958

Exemption 5

NLRB-FOIA-00011959

Exemption 5

NLRB-FOIA-00011960

Exemption 5

NLRB-FOIA-00011961

Exemption 5

NLRB-FOIA-00011962

Exemption 5

NLRB-FOIA-00011963

Exemption 5

NLRB-FOIA-00011964

Exemption 5

NLRB-FOIA-00011965

Exemption 5

NLRB-FOIA-00011966

Exemption 5

NLRB-FOIA-00011967

Exemption 5

NLRB-FOIA-00011968

Exemption 5

NLRB-FOIA-00011969

Exemption 5

NLRB-FOIA-00011970

Exemption 5

NLRB-FOIA-00011971

Exemption 5

NLRB-FOIA-00011972

Exemption 5

NLRB-FOIA-00011973

Exemption 5

NLRB-FOIA-00011974

Exemption 5

NLRB-FOIA-00011975

Exemption 5

NLRB-FOIA-00011976

Exemption 5

NLRB-FOIA-00011977

Exemption 5

NLRB-FOIA-00011978

Exemption 5

NLRB-FOIA-00011979

Exemption 5

NLRB-FOIA-00011980

Exemption 5

NLRB-FOIA-00011981

Exemption 5

NLRB-FOIA-00011982

Exemption 5

NLRB-FOIA-00011983

Exemption 5

NLRB-FOIA-00011984

Exemption 5

NLRB-FOIA-00011985

Exemption 5

NLRB-FOIA-00011986

Exemption 5

NLRB-FOIA-00011987

Exemption 5

NLRB-FOIA-00011988

Exemption 5

NLRB-FOIA-00011989

Exemption 5

NLRB-FOIA-00011990

Exemption 5

NLRB-FOIA-00011991

Exemption 5

NLRB-FOIA-00011992

Exemption 5

NLRB-FOIA-00011993

Exemption 5

NLRB-FOIA-00011994

Exemption 5

NLRB-FOIA-00011995

Exemption 5

NLRB-FOIA-00011996

Exemption 5

NLRB-FOIA-00011997

Exemption 5

NLRB-FOIA-00011998

Exemption 5

NLRB-FOIA-00011999

Exemption 5

NLRB-FOIA-00012000

Exemption 5

NLRB-FOIA-00012001

Exemption 5

NLRB-FOIA-00012002

Exemption 5

NLRB-FOIA-00012003

Exemption 5

NLRB-FOIA-00012004

Exemption 5

NLRB-FOIA-00012005

Exemption 5

NLRB-FOIA-00012006

Exemption 5

NLRB-FOIA-00012007

Exemption 5

NLRB-FOIA-00012008

Exemption 5

NLRB-FOIA-00012009

Exemption 5

NLRB-FOIA-00012010

Exemption 5

NLRB-FOIA-00012011

Exemption 5

NLRB-FOIA-00012012

Exemption 5

NLRB-FOIA-00012013

Exemption 5

NLRB-FOIA-00012014

Exemption 5

NLRB-FOIA-00012015

Microsoft Outlook

From:

Willen, Debra L

Sent:

Thursday, January 27, 2011 2:58 PM

To:

Kearney, Barry J.

Cc:

Szapiro, Miriam

Subject:

Boeing Co.

Barry Im attaching the revised Boeing draft and also leaving a hard copy in your in-box.

Incidentally, I just talked to David Campbell and apparently Boeing is reporting in the media again that the surge line is

temporary and will come down when South Carolina is up and running. He will send us the transcript of conference calls

and/or media articles. Isnt this inconsistent with what Conner said?

NLRB-FOIA-00012016

Microsoft Outlook

From:

Willen, Debra L

Sent:

Thursday, January 27, 2011 3:22 PM

To:

Solomon, Lafe E.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam; Katz,

Cc:

Ahearn, Richard L.; Willen, Debra L; 'Jude Bryan'

Subject:

FW: IAM 751 v. Boeing, Case No. 19-CA-32431

Judy; Omberg, Bob; Baniszewski, Joseph

From: Jude Bryan [mailto:bryan@workerlaw.com]

Sent: Thursday, January 27, 2011 3:13 PM

To: Willen, Debra L; Ahearn, Richard L.

Cc: ccorson@iamaw.org; rmichalski@iamaw.org; Blondin Mark; tomw@iam751.org; David Campbell; Kathy Barnard;

Carson Glickman-Flora

Subject: IAM 751 v. Boeing, Case No. 19-CA-32431

Dear General Counsel Solomon and Regional Director Ahearn:

The following exchange occurred during Boeings Fourth Quarter Conference Call with Boeing CEO

McNerney yesterday. As you can see, he affirms that the Surge Line is still called the Surge line and is

temporary. He confirms that the 787 assembly work is being moved to South Carolina. He confirms they are

still in the hiring/training phase in South Carolina.

The conference call is available in full at

http://seekingalpha.com/article/248873-boein-ceo-discusses-q4-2010-earnings-call-transcript.

Operator

(Next question is) from the line of Mike Mecham with Aviation Week.

Michael Mecham

One thing you haven't talked about in quite some detail is just how productivity is there, how your development

for your production lines is going. You're working on Charleston, you're a slowly developing a backup line for

787 there in Everett, and of course, 767 lines coming on. Can you just go through how Charleston's coming

along and your whole outlook on your production lines?

W. McNerney

Well, Charleston is going along well. The final assembly capability we're building there for the 787 is actually

ahead of schedule. We're feeling good about its construction and the hiring of the people that we are currently

training to work in that facility. You're right, we have a surge line in Everett, which is a temporary line to give

us the flexibility to make sure we move the work properly to Charleston that we're going to move. So that's all

working well. The 767 line is, I guess, that really depends on tanker, yes or no. I think in either case, we have a

plan for that line to either morphed into a tanker line, and as you can imagine, spent a fair amount of time

planning on how we would do that and feel very confident of that move. And if we do not end up winning the

tanker competition, we think there's commercial demand that can keep that line open for a somewhat longer.

NLRB-FOIA-00012017

But I think everything's sort of in front of us. I think the bigger question is implementing all these rate increases

that really are a tremendous economic opportunity for the Boeing Co. over the next two or three years. And we

feel equally confident there. So production plan, you're on an important issue, production planning and

execution. We're spending a lot of time on it and we feel great about the opportunity in front of us.

Sincerely, David Campbell

campbell@workerlaw.com

Schwerin Campbell Barnard Iglitzin & Lavitt

18 W Mercer Suite 400

Seattle, W ashington 98119-3971

Phone (206)285-2828: FAX (206)378-4132

This communication is protected by the attorney client and attorney work-product privileges. Please do not copy, forward

or append.

cc:

Barry Kearney, Associate General Counsel

Ellen Farrell, Deputy Associate General Counsel

Jayme Sophir, Assistant General Counsel, Advice Branch

Miriam Szapiro, Supervisory Attorney, Advice Branch

Debra Willen, Senior Attorney, Advice Branch

Judy Katz, Assistant General Counsel, Injunction Litigation Branch

Robert Omberg, Deputy Assistant General Counsel, Injunction Litigation Branch

Joseph Baniszewski, Deputy Assistant General Counsel, Division of Operations-Management

Christopher Corson, General Counsel, IAMAW

Richard P. Michalski, General Vice President, IAMAW

Tom Wroblewski, President, IAMAW District 751

Mark Blondin, Aerospace Coordinator, IAMAW

Jude Bryan, Paralegal | Schwerin Campbell Barnard Iglitzin & Lavitt LLP | 18 West Mercer Street, Ste. 400, Seattle, WA 98119-3971; Phone:

206.285.2828 Ext. 21; Fax: 206-378-4132 | www.workerlaw.com

This communication is intended for a specific recipient and may be protected by the attorney client and work-product privilege.

If you receive this message in error, please permanently delete it and notify the sender.

NLRB-FOIA-00012018

Microsoft Outlook

From:
Sent:
To:
Subject:
Attachments:

W illen, Debra L

Friday, January 28, 2011 2:51 PM

Szapiro, Miriam

Boeing

ADV.19-CA-32431.Response2.Boeing.dlw.doc

Hi Miriam

Just to get you up to speed on the Boeing draft. Barry requested minor changes in our draft

Exemption 5

He wanted me to clear up McNerneys and Albaughs titles. It seems McNearney is and remains CEO. Albaugh used to

be CEO of the military division and became CEO of the commercial planes division.

I made the changes and gave it back to him, and he then okayed it. New version of draft is attached.

Hope you are having a good weekend and not checking your e-mail.

--Deb

NLRB-FOIA-00012019

Exemption 5

NLRB-FOIA-00012020

Exemption 5

NLRB-FOIA-00012021

Exemption 5

NLRB-FOIA-00012022

Exemption 5

NLRB-FOIA-00012023

Exemption 5

NLRB-FOIA-00012024

Exemption 5

NLRB-FOIA-00012025

Exemption 5

NLRB-FOIA-00012026

Exemption 5

NLRB-FOIA-00012027

Exemption 5

NLRB-FOIA-00012028

Exemption 5

NLRB-FOIA-00012029

Exemption 5

NLRB-FOIA-00012030

Exemption 5

NLRB-FOIA-00012031

Exemption 5

NLRB-FOIA-00012032

Exemption 5

NLRB-FOIA-00012033

Exemption 5

NLRB-FOIA-00012034

Exemption 5

NLRB-FOIA-00012035

Exemption 5

NLRB-FOIA-00012036

Exemption 5

NLRB-FOIA-00012037

Exemption 5

NLRB-FOIA-00012038

Exemption 5

NLRB-FOIA-00012039

Exemption 5

NLRB-FOIA-00012040

Exemption 5

NLRB-FOIA-00012041

Exemption 5

NLRB-FOIA-00012042

Exemption 5

NLRB-FOIA-00012043

Exemption 5

NLRB-FOIA-00012044

Exemption 5

NLRB-FOIA-00012045

Exemption 5

NLRB-FOIA-00012046

Exemption 5

NLRB-FOIA-00012047

Exemption 5

NLRB-FOIA-00012048

Exemption 5

NLRB-FOIA-00012049

Exemption 5

NLRB-FOIA-00012050

Exemption 5

NLRB-FOIA-00012051

Exemption 5

NLRB-FOIA-00012052

Exemption 5

NLRB-FOIA-00012053

Exemption 5

NLRB-FOIA-00012054

Exemption 5

NLRB-FOIA-00012055

Exemption 5

NLRB-FOIA-00012056

Exemption 5

NLRB-FOIA-00012057

Exemption 5

NLRB-FOIA-00012058

Exemption 5

NLRB-FOIA-00012059

Exemption 5

NLRB-FOIA-00012060

Exemption 5

NLRB-FOIA-00012061

Exemption 5

NLRB-FOIA-00012062

Exemption 5

NLRB-FOIA-00012063

Exemption 5

NLRB-FOIA-00012064

Exemption 5

NLRB-FOIA-00012065

Exemption 5

NLRB-FOIA-00012066

Exemption 5

NLRB-FOIA-00012067

Exemption 5

NLRB-FOIA-00012068

Exemption 5

NLRB-FOIA-00012069

Exemption 5

NLRB-FOIA-00012070

Exemption 5

NLRB-FOIA-00012071

Exemption 5

NLRB-FOIA-00012072

Exemption 5

NLRB-FOIA-00012073

Exemption 5

NLRB-FOIA-00012074

Exemption 5

NLRB-FOIA-00012075

Exemption 5

NLRB-FOIA-00012076

Exemption 5

NLRB-FOIA-00012077

Exemption 5

NLRB-FOIA-00012078

Microsoft Outlook

From:

Willen, Debra L

Sent:

Friday, January 28, 2011 2:57 PM

To:

Szapiro, Miriam

Subject:

Boeing -- P.S.

Im leaving the hard copy of the revised draft and the version with Barrys edits/comments in your in-box.

NLRB-FOIA-00012079

Microsoft Outlook

From:

Willen, Debra L

Sent:

Friday, January 28, 2011 3:57 PM

To:

Kearney, Barry J.

Cc:

Szapiro, Miriam

Subject:

Boeing

Attachments:

ADV.19-CA-32431.Response2.Boeing.dlw.doc

Ive made Jaymes changes and put the draft into final. Here it is

NLRB-FOIA-00012080

Exemption 5

NLRB-FOIA-00012081

Exemption 5

NLRB-FOIA-00012082

Exemption 5

NLRB-FOIA-00012083

Exemption 5

NLRB-FOIA-00012084

Exemption 5

NLRB-FOIA-00012085

Exemption 5

NLRB-FOIA-00012086

Exemption 5

NLRB-FOIA-00012087

Exemption 5

NLRB-FOIA-00012088

Exemption 5

NLRB-FOIA-00012089

Exemption 5

NLRB-FOIA-00012090

Exemption 5

NLRB-FOIA-00012091

Exemption 5

NLRB-FOIA-00012092

Exemption 5

NLRB-FOIA-00012093

Exemption 5

NLRB-FOIA-00012094

Exemption 5

NLRB-FOIA-00012095

Exemption 5

NLRB-FOIA-00012096

Exemption 5

NLRB-FOIA-00012097

Exemption 5

NLRB-FOIA-00012098

Exemption 5

NLRB-FOIA-00012099

Exemption 5

NLRB-FOIA-00012100

Exemption 5

NLRB-FOIA-00012101

Exemption 5

NLRB-FOIA-00012102

Exemption 5

NLRB-FOIA-00012103

Exemption 5

NLRB-FOIA-00012104

Exemption 5

NLRB-FOIA-00012105

Exemption 5

NLRB-FOIA-00012106

Exemption 5

NLRB-FOIA-00012107

Exemption 5

NLRB-FOIA-00012108

Exemption 5

NLRB-FOIA-00012109

Exemption 5

NLRB-FOIA-00012110

Exemption 5

NLRB-FOIA-00012111

Exemption 5

NLRB-FOIA-00012112

Exemption 5

NLRB-FOIA-00012113

Exemption 5

NLRB-FOIA-00012114

Microsoft Outlook

From:
Sent:
To:
Subject:

Kearney, Barry J.

Friday, February 04, 2011 9:54 AM

W illen, Debra L; Szapiro, Miriam

RE: Boeing

By all means

From: Willen, Debra L

Sent: Friday, February 04, 2011 9:53 AM

To: Szapiro, Miriam; Kearney, Barry J.

Subject: Boeing

Exemption 5

NLRB-FOIA-00012115

Microsoft Outlook

From:
Sent:
To:
Subject:
Attachments:

W illen, Debra L

Friday, February 04, 2011 4:04 PM

Szapiro, Miriam

FW : Boeing

ADV.19-CA-32431.Response2.Boeing.dlw.doc

Sorry Miriam I meant to address this to you as well.

From: Willen, Debra L

Sent: Friday, February 04, 2011 11:21 AM

To: Kearney, Barry J.

Subject: RE: Boeing

New version attached. See p. 22 for the change.

From: Kearney, Barry J.

Sent: Friday, February 04, 2011 9:54 AM

To: Willen, Debra L; Szapiro, Miriam

Subject: RE: Boeing

By all means

From: Willen, Debra L

Sent: Friday, February 04, 2011 9:53 AM

To: Szapiro, Miriam; Kearney, Barry J.

Subject: Boeing

),

Exemption 5

NLRB-FOIA-00012116

Exemption 5

NLRB-FOIA-00012117

Exemption 5

NLRB-FOIA-00012118

Exemption 5

NLRB-FOIA-00012119

Exemption 5

NLRB-FOIA-00012120

Exemption 5

NLRB-FOIA-00012121

Exemption 5

NLRB-FOIA-00012122

Exemption 5

NLRB-FOIA-00012123

Exemption 5

NLRB-FOIA-00012124

Exemption 5

NLRB-FOIA-00012125

Exemption 5

NLRB-FOIA-00012126

Exemption 5

NLRB-FOIA-00012127

Exemption 5

NLRB-FOIA-00012128

Exemption 5

NLRB-FOIA-00012129

Exemption 5

NLRB-FOIA-00012130

Exemption 5

NLRB-FOIA-00012131

Exemption 5

NLRB-FOIA-00012132

Exemption 5

NLRB-FOIA-00012133

Exemption 5

NLRB-FOIA-00012134

Exemption 5

NLRB-FOIA-00012135

Exemption 5

NLRB-FOIA-00012136

Exemption 5

NLRB-FOIA-00012137

Exemption 5

NLRB-FOIA-00012138

Exemption 5

NLRB-FOIA-00012139

Exemption 5

NLRB-FOIA-00012140

Exemption 5

NLRB-FOIA-00012141

Exemption 5

NLRB-FOIA-00012142

Exemption 5

NLRB-FOIA-00012143

Exemption 5

NLRB-FOIA-00012144

Exemption 5

NLRB-FOIA-00012145

Exemption 5

NLRB-FOIA-00012146

Exemption 5

NLRB-FOIA-00012147

Exemption 5

NLRB-FOIA-00012148

Exemption 5

NLRB-FOIA-00012149

Exemption 5

NLRB-FOIA-0001215

NLRB-FOIA-00012150

Microsoft Outlook

From:
Sent:
To:
Subject:

Szapiro, Miriam

Friday, February 04, 2011 4:05 PM

W illen, Debra L

RE: Boeing

Hmph! (I forgive you)

From: Willen, Debra L

Sent: Friday, February 04, 2011 4:04 PM

To: Szapiro, Miriam

Subject: FW: Boeing

Sorry Miriam I meant to address this to you as well.

From: Willen, Debra L

Sent: Friday, February 04, 2011 11:21 AM

To: Kearney, Barry J.

Subject: RE: Boeing

New version attached. See p. 22 for the change.

From: Kearney, Barry J.

Sent: Friday, February 04, 2011 9:54 AM

To: Willen, Debra L; Szapiro, Miriam

Subject: RE: Boeing

By all means

From: Willen, Debra L

Sent: Friday, February 04, 2011 9:53 AM

To: Szapiro, Miriam; Kearney, Barry J.

Subject: Boeing

Exemption 5

Tracking:

NLRB-FOIA-00012151

Recipient

Read

Willen, Debra L

Deleted: 2/7/2011 8:15 AM

NLRB-FOIA-00012152

Microsoft Outlook

From:

Kearney, Barry J.

Sent:

Thursday, February 17, 2011 11:55 AM

To:

Solomon, Lafe E.; Mattina, Celeste J.

Cc:

Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam; Willen, Debra L

Subject:

FW: Boeing

fyi

From: Kilberg P.C., William [mailto:WKilberg@gibsondunn.com]

Sent: Thursday, February 17, 2011 11:26 AM

To: Kearney, Barry J.

Cc: Blankenstein, Paul; McGill, Matthew D.

Subject: Boeing

Barry: I will give you a call tomorrow to follow up on our discussions regarding the ULP charge against

Boeing. In the meantime, I have looked at the five cases you cited to me that you believe provide legal support

for a potential complaint. I have given these cases a very careful review and do not believe that they support the

issuance of a complaint against Boeing. I ask that you share this with Lafe.

In my December 7 letter, I explained several independent reasons why the law does not support a

Section 8(a)(3) complaint in this case. First among those reasons was the absence of any adverse employment

action: no current employees at the Puget Sound plant have been harmed by Boeings decision, because there

will be no layoffs, work transfers, or any other change in their employment because of Boeings decision to

expand production at a new facility in Charleston.

You have suggested that the following cases could support a conclusion that Boeings employees have

suffered an adverse employment action: (1) Pittsburg & Midway Coal Mining Co. and United Mine Workers

of Am., 355 N.L.R.B. No. 197, 2010 WL 3813246 (Sept. 29, 2010); (2) Cold Heading Co. and International

Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW), AFL-CIO, 332

N.L.R.B. 956 (2000); and (3) Peter ODovero d/b/a Associated Constructors and ODovero Construction, Inc.

and International Union of Operating Engineers, Local 324, 325 N.L.R.B. 998 (1998), enfd, ODovero v.

NLRB, 193 F.3d 532 (D.C. Cir. 1999). But these cases do not support an adverse employment action finding

in Boeings case.

The Pittsburg & Midway case involved the employers modification of an existing bonus plan in retaliation

against employees use of memorial (non-work) days to exert economic pressure, as they were contractually

allowed to do. Modifying an existing compensation plan to the employees detriment was plainly an adverse

employment action in that case. But in Boeings case, there was no plan that Boeing changed in response to

employee activity. Boeings selection of Charleston was an initial decision and did not violate or modify any

pre-existing plan. The Pittsburg & Midway case is also of dubious weight because it was issued after Boeings

Charleston decision (raising retroactivity problems), and also because the Boards decision is currently on

petition for review before the D.C. Circuit and has at least a reasonable chance of being reversed or modified.

The Cold Heading case is not on point. It was a straightforward runaway shop case where the employer rerouted and transferred equipment from a union worksite to a non-union worksite, because of union

activity. Those transfers were likely to result in layoffs at the union shop. In contrast, Boeing has not

NLRB-FOIA-00012153

transferred any work or equipment, and has no plans to do so. There will be no layoffs and no reduction in 787

production in Puget Sound now or in the future.

The ODovero case is another straightforward work transfer case, and is also not on point. The single employer

transferred work covered by the scope of the collective bargaining agreement away from union employees and

assigned it to non-union employees, because of union activity, leading to less union employment. Here, Boeing

is not transferring any work from the IAM. 787 production at the first final assembly line in Puget Sound will

not go down as a result of Boeings decision; indeed, the number of IAM employees will increase because of

Boeings surge line plans. No layoffs will occur either in the near term or long term.

You suggested that a fourth case, the Fifth Circuits decision in National Fabricators, Inc. v. NLRB, 903

F.3d 396 (5th Cir. 1990) (enforcing National Fabricators, Inc. and United Association of Journeymen and

Apprentices of the Plumbing and Pipefitting Industry of the United States and Canada, AFL-CIO, Local 198,

295 N.L.R.B. 1095 (1989)) somehow limits the Supreme Courts statements in NLRB v. Brown Food Store, 380

U.S. 278 (1965) that recognized a broad scope of permissible employer actions and motivations to blunt the

economic impact of a potential future strike. The employer in National Fabricators committed an adverse

employment actionlaying off employeesin a plainly discriminatory way, by selecting only union

employees for the layoffs, violating its usual seniority rules. The employers discrimination against union

activity was so apparent that the Fifth Circuit and Board agreed it fit into the rarely-seen category of inherently

destructive conduct. National Fabricators was a simple application of the non-discrimination principle; it says

nothing about the ability of an employer to blunt the effectiveness of possible future strikes through nondiscriminatory capital investment decisionsa right recognized by the Supreme Court in Brown and again in

Charles D. Bonanno Linen Service, Inc. v. NLRB, 454 U.S. 404, 416 n.9 (1982). Indeed, the Fifth Circuit's

decision does not even mention Brown.

Finally, you suggested that a fifth case, Dorsey Trailers, Inc. Northumberland, PA Plant and United

Auto Workers International Union and its Local 1868, International Union, AFL-CIO, CLC, 327 N.L.R.B. 835

(1999), supports a broad view of the Boards remedial powers should a Section 8(a)(3) violation be found. This

case, you indicated, would support the remedy sought here: ordering Boeing to permanently expand 787

production in Puget Sound to ten airplanes per month. Although you mentioned only the Board decision in

Dorsey Trailers, that decision was later reversed, in the parts most relevant to Boeings case, by the Fourth

Circuit. The Fourth Circuit held that the employers relocation decision was justified by valid economic

considerations (including labor costs), and that ordering the closed plant re-opened was therefore beyond the

scope of the Boards power. The Fourth Circuits reversal on the relocation point and the re-opening order

gives the Boards decision below no effective precedential weight. In any event, unlike the employer in Dorsey

Trailers, Boeing is not reducing work in Puget Sound or planning any work transfers or layoffs, much less

shutting down the Puget Sound assembly line. The Boards decision Dorsey Trailers does not support the

proposed remedy here.

Best, Bill

William J. Kilberg

GIBSON DUNN

Gibson, Dunn & Crutcher LLP

1050 Connecticut Avenue, N.W., Washington, DC 20036-5306

Tel +1 202.955.8573 Fax +1 202.530.9559

WKilberg@gibsondunn.com www.gibsondunn.com

NLRB-FOIA-00012154

Microsoft Outlook

From:

Willen, Debra L

Sent:

Thursday, February 17, 2011 4:04 PM

To:

Szapiro, Miriam

Subject:

FW: Boeing

Is he trying to aggravate me???

Doesn't sound like we've moved Boeing from its position of last October.

How much longer are we going to wait?

________________________________________

From: Kearney, Barry J.

Sent: Thursday, February 17, 2011 11:55 AM

To: Solomon, Lafe E.; Mattina, Celeste J.

Cc: Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam; Willen, Debra L

Subject: FW: Boeing

fyi

________________________________

From: Kilberg P.C., William [mailto:WKilberg@gibsondunn.com]

Sent: Thursday, February 17, 2011 11:26 AM

To: Kearney, Barry J.

Cc: Blankenstein, Paul; McGill, Matthew D.

Subject: Boeing

Barry: I will give you a call tomorrow to follow up on our discussions regarding the ULP charge against Boeing. In the

meantime, I have looked at the five cases you cited to me that you believe provide legal support for a potential

complaint. I have given these cases a very careful review and do not believe that they support the issuance of a

complaint against Boeing. I ask that you share this with Lafe.

In my December 7 letter, I explained several independent reasons why the law does not support a Section 8(a)(3)

complaint in this case. First among those reasons was the absence of any adverse employment action: no current

employees at the Puget Sound plant have been harmed by Boeings decision, because there will be no layoffs, work

transfers, or any other change in their employment because of Boeings decision to expand production at a new facility

in Charleston.

You have suggested that the following cases could support a conclusion that Boeings employees have suffered an

adverse employment action: (1) Pittsburg & Midway Coal Mining Co. and United Mine Workers of Am., 355 N.L.R.B. No.

197, 2010 WL 3813246 (Sept. 29, 2010); (2) Cold Heading Co. and International Union, United Automobile, Aerospace

and Agricultural Implement Workers of America (UAW), AFL-CIO, 332 N.L.R.B. 956 (2000); and (3) Peter ODovero d/b/a

Associated Constructors and ODovero Construction, Inc. and International Union of Operating Engineers, Local 324, 325

N.L.R.B. 998 (1998), enfd, ODovero v. NLRB, 193 F.3d 532 (D.C. Cir. 1999). But these cases do not support an adverse

employment action finding in Boeings case.

The Pittsburg & Midway case involved the employers modification of an existing bonus plan in

retaliation against employees use of memorial (non-work) days to exert economic pressure, as they were contractually

allowed to do. Modifying an existing compensation plan to the employees detriment was plainly an adverse

employment action in that case. But in Boeings case, there was no plan that Boeing changed in response to employee

activity. Boeings selection of Charleston was an initial decision and did not violate or modify any pre-existing plan. The

Pittsburg & Midway case is also of dubious weight because it was issued after Boeings Charleston decision (raising

NLRB-FOIA-00012155

retroactivity problems), and also because the Boards decision is currently on petition for review before the D.C. Circuit

and has at least a reasonable chance of being reversed or modified.

The Cold Heading case is not on point. It was a straightforward runaway shop case where the

employer re-routed and transferred equipment from a union worksite to a non-union worksite, because of union

activity. Those transfers were likely to result in layoffs at the union shop. In contrast, Boeing has not transferred any

work or equipment, and has no plans to do so. There will be no layoffs and no reduction in 787 production in Puget

Sound now or in the future.

The ODovero case is another straightforward work transfer case, and is also not on point. The single

employer transferred work covered by the scope of the collective bargaining agreement away from union employees

and assigned it to non-union employees, because of union activity, leading to less union employment. Here, Boeing is

not transferring any work from the IAM. 787 production at the first final assembly line in Puget Sound will not go down

as a result of Boeings decision; indeed, the number of IAM employees will increase because of Boeings surge line

plans. No layoffs will occur either in the near term or long term.

You suggested that a fourth case, the Fifth Circuits decision in National Fabricators, Inc. v. NLRB, 903 F.3d 396 (5th Cir.

1990) (enforcing National Fabricators, Inc. and United Association of Journeymen and Apprentices of the Plumbing and

Pipefitting Industry of the United States and Canada, AFL-CIO, Local 198, 295 N.L.R.B. 1095 (1989)) somehow limits the

Supreme Courts statements in NLRB v. Brown Food Store, 380 U.S. 278 (1965) that recognized a broad scope of

permissible employer actions and motivations to blunt the economic impact of a potential future strike. The employer

in National Fabricators committed an adverse employment actionlaying off employeesin a plainly discriminatory

way, by selecting only union employees for the layoffs, violating its usual seniority rules. The employers discrimination

against union activity was so apparent that the Fifth Circuit and Board agreed it fit into the rarely-seen category of

inherently destructive conduct. National Fabricators was a simple application of the non-discrimination principle; it

says nothing about the ability of an employer to blunt the effectiveness of possible future strikes through nondiscriminatory capital investment decisionsa right recognized by the Supreme Court in Brown and again in Charles D.

Bonanno Linen Service, Inc. v. Nlrb, 454 U.S. 404, 416 n.9 (1982). Indeed, the Fifth Circuit's decision does not even

mention Brown.

Finally, you suggested that a fifth case, Dorsey Trailers, Inc. Northumberland, PA Plant and United Auto Workers

International Union and its Local 1868, International Union, AFL-CIO, CLC, 327 N.L.R.B. 835 (1999), supports a broad view

of the Boards remedial powers should a Section 8(a)(3) violation be found. This case, you indicated, would support the

remedy sought here: ordering Boeing to permanently expand 787 production in Puget Sound to ten airplanes per

month. Although you mentioned only the Board decision in Dorsey Trailers, that decision was later reversed, in the

parts most relevant to Boeings case, by the Fourth Circuit. The Fourth Circuit held that the employers relocation

decision was justified by valid economic considerations (including labor costs), and that ordering the closed plant reopened was therefore beyond the scope of the Boards power. The Fourth Circuits reversal on the relocation point and

the re-opening order gives the Boards decision below no effective precedential weight. In any event, unlike the

employer in Dorsey Trailers, Boeing is not reducing work in Puget Sound or planning any work transfers or layoffs, much

less shutting down the Puget Sound assembly line. The Boards decision Dorsey Trailers does not support the proposed

remedy here.

Best, Bill

William J. Kilberg

GIBSON DUNN

Gibson, Dunn & Crutcher LLP

1050 Connecticut Avenue, N.W., Washington, DC 20036-5306 Tel +1 202.955.8573 Fax +1 202.530.9559

WKilberg@gibsondunn.com www.gibsondunn.com<http://www.gibsondunn.com>

NLRB-FOIA-00012156

Microsoft Outlook

From:

Szapiro, Miriam

Sent:

Thursday, February 17, 2011 4:10 PM

To:

Willen, Debra L

Subject:

RE: Boeing

Rest up!

-----Original Message----From: Willen, Debra L

Sent: Thursday, February 17, 2011 4:04 PM

To: Szapiro, Miriam

Subject: FW: Boeing

Is he trying to aggravate me???

Doesn't sound like we've moved Boeing from its position of last October.

How much longer are we going to wait?

________________________________________

From: Kearney, Barry J.

Sent: Thursday, February 17, 2011 11:55 AM

To: Solomon, Lafe E.; Mattina, Celeste J.

Cc: Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam; Willen, Debra L

Subject: FW: Boeing

fyi

________________________________

From: Kilberg P.C., William [mailto:WKilberg@gibsondunn.com]

Sent: Thursday, February 17, 2011 11:26 AM

To: Kearney, Barry J.

Cc: Blankenstein, Paul; McGill, Matthew D.

Subject: Boeing

Barry: I will give you a call tomorrow to follow up on our discussions regarding the ULP charge against Boeing. In the

meantime, I have looked at the five cases you cited to me that you believe provide legal support for a potential

complaint. I have given these cases a very careful review and do not believe that they support the issuance of a

complaint against Boeing. I ask that you share this with Lafe.

In my December 7 letter, I explained several independent reasons why the law does not support a Section 8(a)(3)

complaint in this case. First among those reasons was the absence of any adverse employment action: no current

employees at the Puget Sound plant have been harmed by Boeings decision, because there will be no layoffs, work

transfers, or any other change in their employment because of Boeings decision to expand production at a new facility

in Charleston.

You have suggested that the following cases could support a conclusion that Boeings employees have suffered an

adverse employment action: (1) Pittsburg & Midway Coal Mining Co. and United Mine Workers of Am., 355 N.L.R.B. No.

197, 2010 WL 3813246 (Sept. 29, 2010); (2) Cold Heading Co. and International Union, United Automobile, Aerospace

and Agricultural Implement Workers of America (UAW), AFL-CIO, 332 N.L.R.B. 956 (2000); and (3) Peter ODovero d/b/a

NLRB-FOIA-00012157

Associated Constructors and ODovero Construction, Inc. and International Union of Operating Engineers, Local 324, 325

N.L.R.B. 998 (1998), enfd, ODovero v. NLRB, 193 F.3d 532 (D.C. Cir. 1999). But these cases do not support an adverse

employment action finding in Boeings case.

The Pittsburg & Midway case involved the employers modification of an existing bonus plan in

retaliation against employees use of memorial (non-work) days to exert economic pressure, as they were contractually

allowed to do. Modifying an existing compensation plan to the employees detriment was plainly an adverse

employment action in that case. But in Boeings case, there was no plan that Boeing changed in response to employee

activity. Boeings selection of Charleston was an initial decision and did not violate or modify any pre-existing plan. The

Pittsburg & Midway case is also of dubious weight because it was issued after Boeings Charleston decision (raising

retroactivity problems), and also because the Boards decision is currently on petition for review before the D.C. Circuit

and has at least a reasonable chance of being reversed or modified.

The Cold Heading case is not on point. It was a straightforward runaway shop case where the

employer re-routed and transferred equipment from a union worksite to a non-union worksite, because of union

activity. Those transfers were likely to result in layoffs at the union shop. In contrast, Boeing has not transferred any

work or equipment, and has no plans to do so. There will be no layoffs and no reduction in 787 production in Puget

Sound now or in the future.

The ODovero case is another straightforward work transfer case, and is also not on point. The single

employer transferred work covered by the scope of the collective bargaining agreement away from union employees

and assigned it to non-union employees, because of union activity, leading to less union employment. Here, Boeing is

not transferring any work from the IAM. 787 production at the first final assembly line in Puget Sound will not go down

as a result of Boeings decision; indeed, the number of IAM employees will increase because of Boeings surge line

plans. No layoffs will occur either in the near term or long term.

You suggested that a fourth case, the Fifth Circuits decision in National Fabricators, Inc. v. NLRB, 903 F.3d 396 (5th Cir.

1990) (enforcing National Fabricators, Inc. and United Association of Journeymen and Apprentices of the Plumbing and

Pipefitting Industry of the United States and Canada, AFL-CIO, Local 198, 295 N.L.R.B. 1095 (1989)) somehow limits the

Supreme Courts statements in NLRB v. Brown Food Store, 380 U.S. 278 (1965) that recognized a broad scope of

permissible employer actions and motivations to blunt the economic impact of a potential future strike. The employer

in National Fabricators committed an adverse employment actionlaying off employeesin a plainly discriminatory

way, by selecting only union employees for the layoffs, violating its usual seniority rules. The employers discrimination

against union activity was so apparent that the Fifth Circuit and Board agreed it fit into the rarely-seen category of

inherently destructive conduct. National Fabricators was a simple application of the non-discrimination principle; it

says nothing about the ability of an employer to blunt the effectiveness of possible future strikes through nondiscriminatory capital investment decisionsa right recognized by the Supreme Court in Brown and again in Charles D.

Bonanno Linen Service, Inc. v. Nlrb, 454 U.S. 404, 416 n.9 (1982). Indeed, the Fifth Circuit's decision does not even

mention Brown.

Finally, you suggested that a fifth case, Dorsey Trailers, Inc. Northumberland, PA Plant and United Auto Workers

International Union and its Local 1868, International Union, AFL-CIO, CLC, 327 N.L.R.B. 835 (1999), supports a broad view

of the Boards remedial powers should a Section 8(a)(3) violation be found. This case, you indicated, would support the

remedy sought here: ordering Boeing to permanently expand 787 production in Puget Sound to ten airplanes per

month. Although you mentioned only the Board decision in Dorsey Trailers, that decision was later reversed, in the

parts most relevant to Boeings case, by the Fourth Circuit. The Fourth Circuit held that the employers relocation

decision was justified by valid economic considerations (including labor costs), and that ordering the closed plant reopened was therefore beyond the scope of the Boards power. The Fourth Circuits reversal on the relocation point and

the re-opening order gives the Boards decision below no effective precedential weight. In any event, unlike the

employer in Dorsey Trailers, Boeing is not reducing work in Puget Sound or planning any work transfers or layoffs, much

less shutting down the Puget Sound assembly line. The Boards decision Dorsey Trailers does not support the proposed

remedy here.

Best, Bill

William J. Kilberg

NLRB-FOIA-00012158

GIBSON DUNN

Gibson, Dunn & Crutcher LLP

1050 Connecticut Avenue, N.W., Washington, DC 20036-5306

Tel +1 202.955.8573 Fax +1 202.530.9559

WKilberg@gibsondunn.com www.gibsondunn.com<http://www.gibsondunn.com>

NLRB-FOIA-00012159

Microsoft Outlook

From:

Willen, Debra L

Sent:

Thursday, March 31, 2011 11:38 AM

To:

Sophir, Jayme; Szapiro, Miriam

Subject:

RE:

Exemption 5

From: Sophir, Jayme

Sent: Thursday, March 31, 2011 11:29 AM

To: Willen, Debra L; Szapiro, Miriam

Subject: FW:

From: Kearney, Barry J.

Sent: Thursday, March 31, 2011 11:06 AM

To: Solomon, Lafe E.

Cc: Farrell, Ellen; Sophir, Jayme; Ahearn, Richard L.

Subject: FW:

From: David Campbell [mailto:campbell@workerlaw.com]

Sent: Thursday, March 31, 2011 9:23 AM

To: Kearney, Barry J.

Cc: Corson Christopher; Jude Bryan; Carson Glickman-Flora; Solomon, Lafe E.

Subject:

Barry, Thanks for calling me back yesterday. We are waiting for Boeings call. As I mentioned in our call,

while Boeing is talking good faith they are capitalizing on chilling union activity by expanding their

operations to create duplicate parts manufacturing in South Carolina (even though there is unused capacity in

the bargaining unit). Just last week Ray Connor was quoted in the following

Article: http://www.postandcourier.com/news/2011/mar/26/parts-plant-marks-boeings-ascent/

Boeing already employs more than 1,300 workers at a similar plant at its Everett, Wash., aircraft assembly

headquarters, but company executives said early last year that they wanted to duplicate their critical jet

manufacturing operations in Charleston in case of W est Coast labor strikes or other work stoppages. A walkout by

the International Association of Machinists and Aerospace W orkers in 2008 cost the company an estimated $1.8

billion.

A similar local union at the North Charleston site voted to disband in September 2009, setting the stage for

Boeing to announce six weeks later it would build its new aircraft assembly plant in the Lowcountry.

"All roads to the 787 lead through South Carolina," Ray Conner, vice president and general manager of supply

chain management and operations for Boeing Commercial Airplanes, said. "We expect to do big things here in

South Carolina."

NLRB-FOIA-00012160

We believe that Boeing continues to merely play for time, while it capitalizes on its unlawful conduct. We are

willing to meet if Boeing genuinely wants to resolve this matter. But we believe instead Boeing will wait to call

us late in the week, and then find some reason for further delay. Boeing has been less than honest in its claims

in this case, including three claimed facts (that we know about) which were plainly not the case. For at least

five months they have led your office to believe they have some interest in resolving this matter while

continuously reinforcing their undisputed and unambiguous chilling message to their workers and the

nation. Boeing is forcing the issue which we ask be resolved without delay: Can Boeing relocate jobs to a

newly decertified site because its union employees strike? If so, why cant any employer discriminate in favor

of non-union employees? Such a result would leave 8(a)(3) a dead letter, and effectively overrule by inaction

the Boards runaway shop cases as well as its recent decision in

Paraxel, 356 NLRB No. 82 (2011).

Boeing is winning this

point of law by delay and default. We hope to hear from Boeing and if possible promptly reach a settlement.

Absent this, we respectfully request that the General Counsel issue a complaint. Failure to do so will harm tens

of thousands of Boeings employees and create a union-busting roadmap that will be emulated across the

US. Surely, that is not to be the legacy of this General Counsel and Board.

Thanks, Dave

Sincerely, David Campbell

campbell@workerlaw.com

Schwerin Campbell Barnard Iglitzin & Lavitt

18 W Mercer Suite 400

Seattle, W ashington 98119-3971

Phone (206)285-2828: FAX (206)378-4132

This communication is protected by the attorney client and attorney work-product privileges. Please do not copy, forward

or append.

NLRB-FOIA-00012161

Microsoft Outlook

From:

Szapiro, Miriam

Sent:

Thursday, March 31, 2011 11:49 AM

To:

Willen, Debra L

Subject:

RE:

Tracking:
Tracking

Recipient

Read

Willen, Debra L

Deleted: 4/8/2011 9:42 AM

Exemption 5

From: Willen, Debra L

Sent: Thursday, March 31, 2011 11:38 AM

To: Sophir, Jayme; Szapiro, Miriam

Subject: RE:

Exemption 5

From: Sophir, Jayme

Sent: Thursday, March 31, 2011 11:29 AM

To: Willen, Debra L; Szapiro, Miriam

Subject: FW:

From: Kearney, Barry J.

Sent: Thursday, March 31, 2011 11:06 AM

To: Solomon, Lafe E.

Cc: Farrell, Ellen; Sophir, Jayme; Ahearn, Richard L.

Subject: FW:

From: David Campbell [mailto:campbell@workerlaw.com]

Sent: Thursday, March 31, 2011 9:23 AM

To: Kearney, Barry J.

Cc: Corson Christopher; Jude Bryan; Carson Glickman-Flora; Solomon, Lafe E.

Subject:

Barry, Thanks for calling me back yesterday. We are waiting for Boeings call. As I mentioned in our call,

while Boeing is talking good faith they are capitalizing on chilling union activity by expanding their

operations to create duplicate parts manufacturing in South Carolina (even though there is unused capacity in

the bargaining unit). Just last week Ray Connor was quoted in the following

Article: http://www.postandcourier.com/news/2011/mar/26/parts-plant-marks-boeings-ascent/

Boeing already employs more than 1,300 workers at a similar plant at its Everett, Wash., aircraft assembly

headquarters, but company executives said early last year that they wanted to duplicate their critical jet

NLRB-FOIA-00012162

manufacturing operations in Charleston in case of W est Coast labor strikes or other work stoppages. A walkout by

the International Association of Machinists and Aerospace W orkers in 2008 cost the company an estimated $1.8

billion.

A similar local union at the North Charleston site voted to disband in September 2009, setting the stage for

Boeing to announce six weeks later it would build its new aircraft assembly plant in the Lowcountry.

"All roads to the 787 lead through South Carolina," Ray Conner, vice president and general manager of supply

chain management and operations for Boeing Commercial Airplanes, said. "We expect to do big things here in

South Carolina."

We believe that Boeing continues to merely play for time, while it capitalizes on its unlawful conduct. We are

willing to meet if Boeing genuinely wants to resolve this matter. But we believe instead Boeing will wait to call

us late in the week, and then find some reason for further delay. Boeing has been less than honest in its claims

in this case, including three claimed facts (that we know about) which were plainly not the case. For at least

five months they have led your office to believe they have some interest in resolving this matter while

continuously reinforcing their undisputed and unambiguous chilling message to their workers and the

nation. Boeing is forcing the issue which we ask be resolved without delay: Can Boeing relocate jobs to a

newly decertified site because its union employees strike? If so, why cant any employer discriminate in favor

of non-union employees? Such a result would leave 8(a)(3) a dead letter, and effectively overrule by inaction

the Boards runaway shop cases as well as its recent decision in

Paraxel, 356 NLRB No. 82 (2011).

Boeing is winning this

point of law by delay and default. We hope to hear from Boeing and if possible promptly reach a settlement.

Absent this, we respectfully request that the General Counsel issue a complaint. Failure to do so will harm tens

of thousands of Boeings employees and create a union-busting roadmap that will be emulated across the

US. Surely, that is not to be the legacy of this General Counsel and Board.

Thanks, Dave

Sincerely, David Campbell

campbell@workerlaw.com

Schwerin Campbell Barnard Iglitzin & Lavitt

18 W Mercer Suite 400

Seattle, W ashington 98119-3971

Phone (206)285-2828: FAX (206)378-4132

This communication is protected by the attorney client and attorney work-product privileges. Please do not copy, forward

or append.

NLRB-FOIA-00012163

Microsoft Outlook

From:

Willen, Debra L

Sent:

Monday, April 11, 2011 6:36 PM

To:

Szapiro, Miriam

Subject:

FW: Advice Memorandum - Case 19-CA-32431

Attachments:

ADV.19-CA-32431.Response2.Boeing.dlw.doc; image001.gif; image002.gif

OMG! Do tell -- what's the latest?

____________________________________

From: Bush, Lynn

Sent: Monday, April 11, 2011 4:46 PM

To: Region 19, Seattle; Ahearn, Richard L.

Subject: Advice Memorandum - Case 19-CA-32431

[cid:image002.gif@01CBF867.F563A7E0]

Please see the attached closed Advice memorandum.

Lynn

NLRB-FOIA-00012164

NLRB-FOIA-00012165

NLRB-FOIA-00012166

United States Government

National Labor Relations Board

OFFICE OF THE GENERAL COUNSEL

Advice Memorandum

DATE:

April 11, 2011

S.A.M.

TO:

Richard L. Ahearn, Regional Director

Region 19

FROM:

Barry J. Kearney, Associate General Counsel

Division of Advice

SUBJECT:

The Boeing Company


Case 19-CA-32431

512-5006-5062
512-5006-5067
512-5036-8387
512-5036-8389
524-0167-1033
524-5029-5037
524-0167-1033
524-506

524-8307-1600

524-8307-5300

530-6050-0825-3300

530-6067-4011-4200

530-6067-4011-4600

530-6067-4011-7700

530-8054-7000

775-8731

The Region submitted this case for advice on several

issues relating to the Employers decision to place a second

assembly line at a nonunion facility rather than at the

facility where unit employees work on the original assembly

line.
Specifically the Region requested advice as to whether:

(1) the Employer violated Section 8(a)(1) by threatening to

place the second assembly line at a nonunion facility unless

the Union agreed to a long-term no-strike clause and by

repeatedly stating that its decision to place the second line

elsewhere was based on the units strike history; (2) the

Employer violated Section 8(a)(3) by deciding to place the

second assembly line at a nonunion facility because of the

units strike history, even though no unit employees have yet

to lose their jobs; and (3) the Employer violated Section

8(a)(5) by failing to bargain in good faith over its decision

about where to locate the second assembly line or whether the

Union waived its right to bargain under the parties

collective-bargaining agreement.

We conclude that the Region should issue a complaint

alleging: independent Section 8(a)(1) violations based on the

Employers coercive and threatening statements; and a Section

8(a)(3) violation based on the Employers decision to locate

the second line at a nonunion facility and to establish a

dual-sourcing supply program in retaliation for protected

activity.
However, the Region should dismiss the Section

8(a)(5) allegations because under the contract, the Union

expressly waived its right to bargain about the Employers

decision to offload unit work to a facility not covered by

the agreement.
To remedy the chilling effect of Boeings

Section 8(a)(1) statements, the Region should request, in

addition to the traditional remedies,


a notice reading by a

NLRB-FOIA-00012167

Case 19-CA-32431

- 2 -

high-level Boeing official.


To remedy the Section 8(a)(3)

violation, the Region should seek an order that would require

Boeing to maintain the surge line in the Puget Sound area.

Specifically, Boeing intended for the second line to assemble

three aircraft each month in South Carolina, while assembling

seven planes on the first line.


Thus, the Region should seek

an order requiring Boeing to assemble in the Puget Sound area

the first ten 787 aircraft that it produces each month and to

maintain the supply lines for those aircraft where they

currently exist, in the Puget Sound and Portland facilities.

FACTS

The Boeing Company is an international corporation

engaged primarily in developing and producing military and

commercial aircraft. Boeing has a long-established collective-

bargaining relationship with the International Association of

Machinists and Aerospace Workers (IAM) and certain IAM

District and Local Lodges.


The parties current collective-

bargaining agreement is effective November 2, 2008 through

September 8, 2012 and covers three separate bargaining units

of production and maintenance employees in three geographical

areas, the Puget Sound area in Washington; Portland, Oregon;

and Wichita, Kansas.

Section 21.7 of that agreement, entitled

Subcontracting, sets forth various notice periods and an

opportunity for the Union to review and recommend alternatives

to Boeing proposals to subcontract or offload unit work.

[O]ffloading work is defined as moving work from one

Company facility to another Company facility not covered by

this Agreement[.]
Less stringent notice requirements apply

to subcontracting and offloading decisions affecting less than

ten employees.
In addition, the notice and review process

does not cover certain work transfers listed in subsections

(a) through (d), including [d]ecisions to subcontract or

offload work due to lack of capability or capacity, or to

prevent production schedule slippage[.]


Section 21.7

concludes with the following language:

Anything in this Section 21.7 to the contrary

notwithstanding, it is agreed that ... the Company has

the right to subcontract and offload work, to make and

carry out decisions in (a) through (d) above, to enter

offsets and offset arrangements, and to designate the

work to be performed by the Company and the places where

it is to be performed, which rights shall not be subject

to arbitration. ...

NLRB-FOIA-00012168

Case 19-CA-32431

- 3 -

Boeing Introduces the 787 Dreamliner

The Puget Sound unit is comprised of approximately 18,000

employees working in Washington.


Historically these employees

have performed the final assembly of all Boeing planes.


In

late 2003, Boeing announced that it would place the assembly

line for its new 787 Dreamliner airplane in Everett,

Washington after the Washington State Legislature passed a tax

and subsidy incentive package totaling more than $3.2 billion.

That line opened in May 2007, with the capacity for producing

seven planes each month.

With the 787, Boeing departed from its previous practice

of manufacturing most of the aircraft parts with its own

employees and instead outsourced parts production to other

suppliers in the southeast U.S. and abroad.


For example,

Boeing contracted with Vought Aircraft Industries in North

Charleston, South Carolina for the manufacture of the aft

fuselage and with Mitsubishi Heavy Industries in Japan for the

manufacture of the wings.


Boeing repeatedly has had to

postpone the delivery dates for the aircraft, due primarily to

problems with suppliers and software issues.

Starting in mid 2008, the media began reporting that

Boeing would need to add a second 787 assembly line because of

its growing order backlog.


At about the same time, Boeing

entered negotiations with the Union for a successor

collective-bargaining agreement.
During those negotiations,

Company officials noted the need for a second assembly line

but did not discuss the matter further.

The 2008 Strike and Its Aftermath

On September 6, 2008, the employees struck in support of

the Unions bargaining position.


On October 6, 2008, Boeings

stock dropped to a four-year low.


That same day, CEO Jim

McNerney sent a long e-mail to Boeing employees about the

strike.
McNerney stated that he understood and shared the

frustration so many of you feel when we dont have the whole

team together working to meet the commitments weve made to

our customers and competing to win the new business that will

sustain and grow Boeing jobs[.]


McNerney went on to state,

[t]he issue of competitiveness as it relates to this strike

is a big deal[.]
He also tied labor disputes to problems

with Boeings customer relationships.


After asserting that

the Union had recommended that its members reject contract

offers and go on strike four of the last five negotiations

going back to 1995, he wrote, we believe this track record of

repeated union work stoppages is earning us a reputation as an

NLRB-FOIA-00012169

Case 19-CA-32431

- 4 -

unreliable supplier to our customers who ultimately provide

job security by buying our airplanes.1

The following day, Boeings Vice President for Government

and Community Relations Fred Kiga spoke at an aerospace

conference in Everett.
In a Seattle Times article, he was

quoted as stating, We cant afford to become known as the

strike zone[.]
He reportedly also told the conference that

labor unrest could drive Boeings decision on where to build

planes in the future.


In an interview after his speech, Kiga

reportedly stated that his strike zone comments had been

cleared by Boeing Commercial Airplanes CEO Scott Carson.


Kiga

noted that he and Carson grew up in and shared a love for the

Northwest; Kiga then said that they would hate to lose a

treasure like Boeing.

The strike lasted 57 days and ended on November 1, 2008,

when the parties signed the current contract. During the

negotiations, the Union had proposed to amend Section 21.7 to,

among other things, eliminate the waiver language quoted

above.
Boeing refused to agree to such an amendment, and the

language remained in the contract.

In early 2009,2 the media again began publishing reports

that Boeing needed to establish a second 787 assembly line.

On February 9, the Seattle Times reported that Washington

Senator Patty Murray had met with Boeings Senior Vice

President of Government Operations; he had informed her that

the CEO was sick and tired of the unions strikes and was

looking to put the second 787 line elsewhere.

On April 16, Boeing and IAM officials held their annual

summit in Chicago.
Management officials attending included

CEO McNerney, Boeing Commercial Airplanes CEO Carson,

Integrated Defense Systems CEO Jim Albaugh, and for the first

time, Vice President and General Manager of Supply Chain

Management & Operations Ray Conner.


IAM representatives

included International President Tom Buffenbarger, General

Vice President Rich Michalski, and the Directing Business

Representatives who represented Boeing employees, including

District 751 DBR Tom Wroblewski.


This was the first

opportunity for the parties to meet since the strike had

ended.
McNerney and Buffenbarger were the lead speakers.

McNerney stated that Boeings customers were losing confidence

1 In his
that the
occurred
1989 (48
2

e-mail, CEO McNerney exaggerated the number of times

Union had struck.


In actuality, prior strikes

in 1948 (140 days), 1965 (19 days), 1977 (45 days),

days), 1995 (69 days), and 2005 (28 days).

Dates are in 2009 unless otherwise noted.

NLRB-FOIA-00012170

Case 19-CA-32431

- 5 -

in the Company because of past strikes and the possibility of

future strikes.
He said that the parties had to come up with

a way to stop having labor disputes.


The general theme was

that management and labor should continue to meet to find ways

to avoid the problems of the past.

As a follow-up to this summit, Wroblewski and IAM

Aerospace Coordinator Mark Blondin met on June 23 in Seattle

with Conner and Boeings Vice President of Human Resources

Doug Kight.
The parties focused on how to build a better

relationship and improve communication. While Wroblewski had

an established relationship with Kight, Conner was new to

labor relations.
Wroblewski thought that one of the purposes

of the meeting was to get to know Conner.


At a subsequent

meeting on June 30 between Wroblewski and Conner, Conner

expressed Boeings concern that its customers did not have

confidence it could make timely deliveries because it had

experienced two strikes in the last five years and had

supplier issues.
For the first time, Conner raised the

prospect of a long-term collective-bargaining agreement as a

way to gain the customers confidence that they would get

their aircraft on time.

In early July, Boeing announced its intent to purchase

the Vought plant in North Charleston, South Carolina.


IAM

Local Lodge 183 represented the Vought production,

maintenance, and quality employees.


Boeing agreed to

recognize the Union but wanted to negotiate a new collective-

bargaining agreement.

On July 8, the Seattle Times reported that Boeings CEO

had informed Washington Congressmen Norm Dicks and Jay Inslee

that as a result of past strikes, the Company would place the

second line outside the Puget Sound area unless it could reach

a long-term contract with the Union. Boeing told the

Congressmen that South Carolina was the main competitor.

Wroblewski, Blondin, Kight, and Conner met again twice in

July, on July 7 and July 23.


At each of these meetings,

Conner and Kight emphasized that strikes had to stop for

Boeing to be viable.
They stated that Boeing needed a long-

term agreement with no-strike language to satisfy their

customers.
At this point, Boeing was two years behind

schedule and had approximately 850 787 planes on back order as

a result of supplier and software problems.

Then, on July 30, the same date that Boeing announced

that it had purchased Voughts plant, a South Carolina

employee filed a decertification petition.


During August,

Boeing denied the Union access to the employees in the North

Charleston plant and wrote a memorandum to the employees

stating that it preferred to deal with employees directly

NLRB-FOIA-00012171

Case 19-CA-32431

- 6 -

without intermediaries.3
Boeing also issued a FAQ document

to the employees stating that the mass layoffs that took place

at the Vought plant in late 2008 were due to the unique

situation created by the Everett strike.


Meanwhile, the

South Carolina press was reporting that a decertification

decision could influence where Boeing located the second 787

assembly line.
For example, The Post and the Courier reported

that South Carolinas low unionization rate is viewed as an

advantage in the 787 chase[.]


An article in the Charleston

Business Journal asserted that Charleston might be a better

choice in the event of decertification because of its

potentially tamer work force instead of the Washington

workers with a history of walk[ing] off the job.

On August 26, Boeing e-mailed its managers and human

resource professionals that it had notified South Carolina

that it intended to file permits for the construction of a

second 787 line but that it had not yet made a decision as to

where to locate the second line.


The following day, Boeing

and Union officials met in Portland to discuss the prospect of

a long-term agreement.
Carson informed the Union that the

only way Boeing would place the second line in Washington was

if the Union agreed to a twenty-year no-strike agreement.

Boeing suggested a series of three-year agreements with an

overarching twenty-year no-strike pledge until 2032 and

binding interest arbitration if no agreement was reached at

the end of each of the three-year contracts.


The Union said

that this was not possible, but the Union would consider a

longer agreement than the current four-year contract in return

for some sort of neutrality agreement.


At the end of the

meeting, the parties agreed to schedule negotiations for a

long-term agreement.

Meanwhile, the decertification election in South Carolina

was scheduled for September 10.


In reporting on Boeings

permit filings in South Carolina, the Puget Sound Business

Journal characterized this vote as [a] wild card in Boeings

decision about where to locate the second line.


On September

2, Kight presented an hour-long video on Boeings website

(later quoted in a September 29 article in the Seattle Times).

In regard to the second line, he stated:

What do you do with the 787 second line so that we can

build up to rate and meet our commitment to customers?

... Theres a lot of issues to look at, a lot being

studied, no decision has been made.


But truthfully, it

is very clear that this triennial disruption, our

The Union filed a Section 8(a)(5) charge alleging that

Boeing unilaterally changed its access rules but withdrew the

charge following the election.

NLRB-FOIA-00012172

Case 19-CA-32431

- 7 -

customers cant live with it anymore.


So weve become an

unreliable supplier....
So we look at how do we become a

reliable supplier.
How do we ensure production

continuity so that we can meet our commitments to our

customers in a timely way and thats what were trying to

do.

The Union lost the election in South Carolina eight days later

and was decertified on September 18.

As a follow-up to the parties August 27 meeting in

Portland, CEO McNerney wrote to IAM International President

Buffenbarger on September 21 that Boeing planned to make a

decision on the second lines location by the end of October

and wanted the Unions input within the next three to four

weeks.
He stated, I look forward to our respective teams

engaging in fruitful dialog.


Two days later, Boeing filed an

application for a storm water permit with the City of North

Charleston and an overall site plan with the State of South

Carolina.
On October 1, Boeing applied to North Charleston

for a site clearing permit.

The Parties Meet over a Long-Term Agreement

The parties opened negotiations for a long-term agreement

on October 1.
At the start of negotiations, Boeing explained

that placement of the second line in Washington depended on a

long-term agreement to insure no further disruptions in

deliveries to customers.
The Union responded that in exchange

for giving up the right to strike, the parties would need to

resolve economic issues for the long term rather than through

interest arbitration every three years.

The parties met again on October 7, 8, and 15.


The Union

maintains that Boeing never submitted a written proposal or

counter-proposal, that it was in the dark as to what Boeing

wanted, and that in effect it was negotiating against itself.

For example, with respect to the length of the agreement, at

various points Boeing requested a contract ending in 2020 or

2022 but at other times, demanded a twenty-year agreement.


In

terms of wages, Boeing wanted to reduce general wage increases

and move toward a profit-sharing incentive program.


The Union

was not adverse to this concept but requested information to

insure that Boeings measures of productivity were tied to

employee performance and not events beyond the employees

control.
At one point, Boeing stated that the general wage

increase and COLA could not exceed 3.5%.


When a Union

negotiator asked what would happen if the cost of living

increased more than 3.5%, Boeing responded that employees

would get more.


On October 15, for the first time, Boeing

said that it wanted a lower wage structure for new hires and a

NLRB-FOIA-00012173

Case 19-CA-32431

- 8 -

defined contribution plan for them rather than the defined

benefit pension plan that the existing employees enjoyed.

The Union repeatedly raised the issues of job security

and Employer opposition to the Union elsewhere.


The Union

argued that in return for giving up the right to strike during

the long-term, employees needed enhanced job security.


Also,

if the parties relationship were to improve, the Union did

not want to face the type of anti-union conduct Boeing had

engaged in during the decertification campaign in South

Carolina.

At the October 15 session, Conner informed the Union that

the Board of Directors would be meeting on October 26 and he

wanted to give the Board a progress report on the

negotiations.
The Union asserts that Boeing never described

the Board of Directors meeting as a deadline for resolving the

outstanding bargaining issues.


Moreover, Boeing never

provided a concrete proposal that could be put to the unit

employees for a vote.

The parties met again on October 20 and 21.


Conner

stated that Boeing was getting close to making its decision on

the location of the second line and it would be discussed at

the Board meeting on October 26.


By the end of the parties

October 21 session, the Union orally had proposed the

following: an extension of the existing contract to 2020, 3%

annual wage increases plus a 1% COLA, ratification bonuses for

unit employees, an incentive pay program, health cost sharing

towards the end of the contract, annual increases in pension

benefits starting in 2013, and neutrality in connection with

Union organizing campaigns.


In addition, the Union presented

Boeing with a two-page document entitled Rough Draft on

Concepts for a long-term agreement and a joint partnership

committee.
This Draft called for retention of current unit

work; location of the second line in the Puget Sound area; and

six-month advance notice and good-faith bargaining over any

decision to establish an assembly operation for any next

generation product.
Boeing asserts that this rough draft

was the Unions last and final offer, but the Union

disagrees and also maintains that its negotiators had no idea

that this would be the parties final session.


Indeed, the

Union negotiator involved in working out the details of the

incentive pay program sent an e-mail to Kight on October 27

requesting further information.


Kight responded that he would

get back to him.

Meanwhile, on October 21, Boeing posted its quarterly

earnings conference call on its intranet site for employees.

With respect to locating the second line in South Carolina,

CEO McNerney stated:

NLRB-FOIA-00012174

Case 19-CA-32431

- 9 -

[T]here would be some duplication.


We would obviously

work to minimize that.


But I think having said all of

that, diversifying our labor pool and our labor

relationship has some benefits.


...
And so some of the

modest inefficiencies, for example, associated with the

move to Charleston, are certainly more than overcome by

strikes happening every three or four years in Puget

Sound.
And the very negative financial impact of [sic]

the company, our balance sheet would be 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....

And I dont blame this totally on the union. We just

havent figured out a way - the mix doesnt - isnt

working well yet. So, weve either got to satisfy

ourselves that the mix is different or we have to

diversify our labor base.

McNerney stated that a decision would be made in the next

couple of weeks.

Two days later, IAM General Vice President Michalski

called Conner to ask about the status of the negotiations.

Conner stated that the Unions economic terms and demand for

neutrality were unacceptable to Boeing.


Michalski explained

that the Union was not asking for a traditional neutrality

agreement but rather, as explained during negotiations, a code

of conduct.
Michalski stated that the Union was willing to

meet at any time for additional negotiations, but Conner did

not respond.
On October 24, Michalski called Senior Vice

President of Operations Tim Keating to reiterate that the

Union was not seeking a true neutrality agreement.


He wanted

to clear up any misunderstanding if that issue was blocking

the parties ability to reach an agreement.


Keating did not

respond, and no further negotiations were ever scheduled.

Meanwhile, the governmental bodies in South Carolina were

moving quickly to facilitate the second lines placement in

their State.
On October 23, North Charleston approved

Boeings request for a storm water permit, and the State of

South Carolina approved Boeings overall site plan.


On

October 27, the South Carolina legislature, in a special

session, approved $170 million in taxpayer-backed bonds for

Boeings startup costs and tax breaks totaling $450 million in

exchange for Boeings agreement to create at least 3,800 jobs

and invest more than $750 million in the State within the next

seven years.
That same day, North Charleston approved

Boeings site clearing permit.

Boeing contends that it entered these negotiations with a

good-faith intention to reach a long-term agreement that would

have resulted in placing the second line in Washington, but

NLRB-FOIA-00012175

Case 19-CA-32431

- 10 -

the Unions economic demands were too costly and its

insistence upon neutrality and job security were unacceptable.

The Union asserts, however, that Boeings failure to submit

any proposals, its rejection of the Unions serious efforts to

address Boeings purported concerns, and then its precipitous

halting of negotiations as soon as the South Carolina

legislature awarded it a generous tax and subsidy package

demonstrate that the negotiations were in fact a sham.

Boeing Announces its Decisions to Locate the Second Line in

South Carolina and to Establish a Dual-Sourcing Program

On October 28, Boeing announced its decision to locate

the second 787 assembly line in South Carolina.


In a press

release and internal e-mails, Boeing stated that the Board of

Directors had just approved the selection of North Charleston.

Boeing also announced that it intended to build a surge line

in Everett - a temporary second assembly line that would be

phased out once the South Carolina line was up and running.

Boeing issued a memo to its managers on October 28 that

provided answers to anticipated questions from employees and

talking points regarding its decision.


The managers were

advised to inform employees, among other things, that the

decision to locate the second line in Charleston would

provide economic advantages by improving our competitiveness

and reducing vulnerability to delivery disruptions due to a

host of factors, from natural disasters to homeland security

issues and work stoppages.


The memo further stated, In the

final analysis, this came down to ensuring our long-term

global competitiveness and diversifying the company to protect

against the risk of production disruption ... from natural

disasters, to homeland security threats, to work stoppages.

On December 3, Boeing notified its fabrication managers

that it intended to create a dual-sourcing program and

contract separate suppliers for the South Carolina assembly

line.
As a result, employees in the Puget Sound and Portland

units who produce parts for the 787 assembly line are likely

to suffer a loss of work.


Articles that appeared in the

Seattle Times on December 7 and the Puget Sound Business

Journal on December 8 discussed this announcement.


The

Seattle Times quoted Boeing spokesman Jim Proulx as stating,

Repeated labor disruptions have affected our performance in

our customers eyes.


We have to show our customers we can be

a reliable supplier to them.


[The second production] line has

to be able to go on regardless of whats happening over here.

The Puget Sound Business Journal quoted Conner as follows:

Dual-sourcing and co-production will allow us to maintain

production stability and be a reliable supplier to our

customers.

NLRB-FOIA-00012176

Case 19-CA-32431

- 11 -

On March 2, 2010, a Seattle Times journalist conducted a

videotaped interview of Boeings new Commercial Airplanes CEO,

Jim Albaugh.
(Albaugh had moved over from his position as

Integrated Defense Systems CEO to replace Carson.)


The

interviewer asked Albaugh some hard questions on behalf of

the Washington community about Boeings decision to locate the

second 787 line in Charleston.


In explaining Boeings

decision, Albaugh repeatedly referenced the Unions strike

history.
For example, he stated:

The issue last fall was really about, you know, how

we could ensure production stability and how we

could ensure that we were competitive over the long

haul.
And we had some very productive discussions

with the union.


And unfortunately, we just didnt

come to an agreement where we felt we could ensure

production stability.
And read [sic] that is [sic]

getting away from the frequent strikes that we were

having and also could we stop the rate of escalation

of wages.
And we just could not get to a place

where we both felt it was a win for both ourselves

and the union so we made the decision to go to

Charleston.

[W]eve had strikes three out of the last four times

weve had a labor negotiation with the IAM.


... And

weve got to get to a position where we can ensure

our customers that every three years theyre not

going to have a protracted shutdown.

It was about ensuring to our customers that when we

commit to deliver airplanes on certain dates that we

actually do deliver.
And we have lost our

customers have lost confidence in our ability to do

that, because of the strikes.

When asked whether going to Charleston, in light of the

expense and risk, made business sense, he responded:

Theres no question that whenever you go to a green field

site, theres risk involved.


At the same time, with the

protracted labor stoppage that we had ... the fall of

2008, I mean that cost the company billions of dollars.

And I think if you compare, you know, what it cost

because of the stoppages versus the cost and the risk of

starting a new line in Charleston, I think the investment

certainly is the right one for us to make.4

Once again, a Boeing CEO grossly exaggerated the burden of

the Unions strike activity.


Boeing had alleged elsewhere

that the 2008 strike reduced its earnings by $1.8 million, far

NLRB-FOIA-00012177

Case 19-CA-32431

- 12 -

At one point, Albaugh summed up the basis of Boeings

decision as follows:

[t]he overriding factor was not the business climate.

And it was not the wages were paying today.


It was that

we cannot afford to have a work stoppage, you know, every

three years.
We cannot afford to continue the rate of

escalation of wages....

Albaugh also implicitly threatened the loss of additional work

because of Union strikes, stating, [w]ell do work here if we

can make sure that we have the stability of the production

lines and that we can be competitive over the long haul.

Production is now approximately three years behind

schedule.
Approximately 2,900 Puget Sound unit employees

currently work on the 787 assembly line.


Approximately 1,740

of them are working on out-of-sequence assembly work, away

from the main assembly line. Once supply issues are resolved

and assembly can be accomplished in sequence on the line, it

is anticipated that the number of employees will drop by

approximately 60%.
Boeing asserts that the South Carolina

plant will be ready to begin assembly work in mid 2011.

Approximately 1,000 mechanic and flight line jobs will be

added in South Carolina at that time.

ACTION

This case involves Boeings transfer of work from an

experienced unionized workforce to a new, nonunion facility.

Boeings decision was motivated by antiunion considerations.

From the time of the Unions strike in the fall of 2008,

Boeing made clear to its unionized workforce that it would not

countenance further strikes.


Time and again, in e-mails to

employees, on its intranet site, in the media, and in talks

with the Union, Boeing tied its ability to compete to the

avoidance of future strike activity.


Then, when Boeing

purchased the Vought facility in South Carolina, its officials

denied the Union access to employees at the facility.


It also

let the employees know that it preferred to deal with them

directly rather than through their Union and their receipt of

the second line hinged on their vote in a decertification

election.
Simultaneously, Boeing officials told the Puget

Sound unit employees that they could retain all of the 787

assembly work only by waiving their right to strike for twenty

years.
Although the Union entered negotiations with Boeing

less than the billions of dollars that Albaugh claimed in

this interview.

NLRB-FOIA-00012178

Case 19-CA-32431

- 13 -

and made major concessions in an effort to address its stated

concerns, once the Union was decertified in South Carolina,

Boeing courted the South Carolina legislature and applied for

the necessary permits from the South Carolina regulatory

bodies - even as it continued the motions of negotiating with

the Union.
As soon as South Carolina approved the financial

incentives for Boeing, Boeing called off negotiations and

announced its decision.


Boeings CEO admitted that the

overriding factor for moving work to South Carolina was the

employees strike activity.


Moreover, to reinforce the

message to unit employees, he intimated that the continuation

of any work in Washington was contingent on the stability of

the production lines, a veiled threat designed to coerce

employees to abstain from future strikes.


Nor could Boeing

credibly blame the 787 production delays on employees 2008

strike activity, which halted production for approximately two

months.
Rather, the delay resulted primarily from its own

business decision to outsource the manufacture of the aircraft

components to various suppliers and from unexpected software

problems.

Further, the fact that it made little practical sense to

locate this second line in South Carolina, despite a two-and-

a-half-year delay in the production of its new 787 aircraft,

rather than its existing facilities in Washington, supports a

finding of unlawful motivation.


While South Carolina would

not be ready for production for two years because of the need

for substantial capital improvements and the hiring and

training of a new workforce, Washington was already up and

running, with the space, the necessary equipment, and a

significant complement of trained employees.

On these facts, we conclude that the Region should issue

a complaint alleging: independent violations of Section

8(a)(1) based upon Boeings coercive and threatening

statements to employees on the intranet and through the media;

and a violation of Section 8(a)(3) based upon Boeings

decision to place the second line in South Carolina and to

establish a dual-sourcing supply program in order to retaliate

against the unit employees for engaging in protected Union

activity.
We would also argue, in the alternative, that

Boeings actions were inherently destructive of employee

rights.
But the Region should dismiss the Section 8(a)(5)

allegations because the Union waived its right to bargain

about Boeings decision to offload unit work to a facility not

covered by the parties agreement.


Finally, to remedy the

Section 8(a)(1) and (3) violations, the Region should seek: a

notice reading by a high-level Boeing official in addition to

the traditional remedies; and an order requiring Boeing to

assemble in the Puget Sound area the first ten 787 aircraft

that it produces each month and to maintain the supply lines

for those aircraft in the Puget Sound and Portland facilities.

NLRB-FOIA-00012179

Case 19-CA-32431

- 14 -

I. The Employer Violated Section 8(a)(1)

The Supreme Court long ago delineated the line between

employer speech protected under Section 8(c) of the Act and

threats of reprisals violative of Section 8(a)(1).5


The Court

ruled in Gissel that an employer may make a prediction as to

the effects of unionization but that prediction must be

carefully phrased on the basis of objective fact to convey an

employers belief as to demonstrably probable consequences

beyond his control[.]6


On the other hand, threats of

economic reprisal to be taken solely on [the employers] own

volition violate Section 8(a)(1).7

In General Electric Company, the Board applied the Gissel

test to set aside an election because the employer threatened

a long-term loss of work based on the possibility of a strike

at some future time.8


Faced with a union organizing drive,

the employer gave multiple speeches touting its two-source

supplier strategy.9
The employer stated that it had

established its nonunion plant so that customers could get the

motors they needed during the seven strikes at its union

plant.
The employer also made clear that the plants nonunion

status was the reason it had experienced a rise in

employment.10
And the employer conveyed the message that the

plant remaining nonunion was an important, if not a decisive,

factor in any company decision to choose that plant as a

second manufacturing facility for the new motor the employer

planned to introduce.11
The Board concluded that although the

employer might want to insure itself against production

interruptions caused by employee concerted activity, no such

insurance is legally possible, for the simple reason that

employees have a federally protected right to engage in such

activity.12
The Board expressly distinguished an employers

right to take defensive action when threatened with an

See NLRB v. Gissel Packing Co., 395 U.S. 575, 618 (1969).

Ibid.

Id. at 619 (citation omitted).

See 215 NLRB 520, 522-23, fn. 6 (1974).

See id. at 520.

10

See id. at 520-21.

11

See id. at 521.

12

See id. at 522.

NLRB-FOIA-00012180

Case 19-CA-32431

- 15 -

imminent strike from threats to transfer work merely because

of the possibility of a strike at some speculative future

date.13

The Board repeatedly has held that an employer violates

Section 8(a)(1) by threatening to withhold work opportunities

because of the exercise of Section 7 rights.14


Thus, telling

employees that they will lose their jobs if they join a strike

violates Section 8(a)(1).15


Similarly, in Kroger Co., the

employer unlawfully threatened to put its plan to build a new

freezer facility for its distribution center on hold because

of intraunion unrest and labor disputes.16

Further, where an employer unconditionally predicts a

loss of customers due to unionization or strike disruptions

without any factual basis, its predictions amount to

unlawful threats.17
Rather, an employers predictions of

customer disaffection must be based on objective facts.18

Thus, in Curwood, Inc., an employer lawfully related its

13

See id. at 522, fn. 6.

14

See, e.g., Kroger Co., 311 NLRB 1187, 1200 (1993), affd.

th
mem. 50 F.3d 1037 (11
Cir. 1995); General Electric Co., 321

NLRB 662, fn. 5 (1996), enf. denied 117 F.3d 627 (D.C. Cir.

1997).

15

Aelco Corp., 326 NLRB 1262, 1265 (1998).


See also Dorsey

Trailers, Inc., 327 NLRB 835, 851 (1999), enfd. in pertinent

th
part 233 F.3d 831 (4
Cir. 2000) (threat to close the plant if

the employees went out on strike).

16

311 NLRB at 1200.


See also General Electric Co., 321 NLRB

at 662, fn. 5 (employer conveyed to employees that

unionization could result in the withholding of further

investment in the plant or its closure).

17

See, e.g., Tawas Industries, 336 NLRB 318, 321 (2001) (no

objective basis for prediction that customers, fearing

strikes, would not give their business to the employer if the

employees independent union affiliated with the UAW);

Tradewaste Incineration, 336 NLRB 902, 907-08 (2001)

(prediction that 90% of the customers would not deal with a

union facility because of fear of a work stoppage was not

based on objective facts); Debbie Reynolds Hotel, 332 NLRB

466, 466 (2000) (no factual basis for statements about having

to move productions and equipment elsewhere because customers

would not be able to afford employers facilities if employees

unionized).

18

Curwood, Inc., 339 NLRB 1137, 1137-38 (2003).

NLRB-FOIA-00012181

Case 19-CA-32431

- 16 -

customers concerns about strikes, where the employer produced

written inquiries from customers seeking information about its

contingency plans in the event of a strike.19


An employer may

also reference the possibility that unionization, including

strikes, might harm relationships with consumers, as opposed

to predicting
unavoidable consequences.20

Here, the Union has alleged that several statements by

Boeing officials violated Section 8(a)(1).


Some statements

were posted by Boeing on its website or intranet.


Others were

reprinted in newspaper articles as direct quotes; although

such a quotation is hearsay, it would be admissible as an

admission (an exception to the hearsay rule), if the reporter

testifies.21
By contrast, reporter summaries cannot form the

basis for a Section 8(a)(1) violation.


And statements

recounted by political figures within newspaper articles are

in effect double hearsay and inherently unreliable.

Based on these principles, we find that the following

constitute unlawful threats under the Gissel standard:

(1)
Boeing posted its quarterly earnings conference call

on its intranet for employees on October 21.


During the call,

CEO McNerney made an extended statement about diversifying

our labor pool and moving work to South Carolina because of

strikes happening every three or four years in Puget

Sound.22
His comments were indistinguishable from the

comments regarding a two-source supplier strategy found

violative in General Electric.23

(2)
Boeings October 28 memo to managers advised them to

inform employees that it decided to locate the second line in

South Carolina in order to reduce vulnerability to delivery

disruptions caused by, among other things, strikes.


The

thrust of Boeings message to employees was that Boeing had

19

See id. 339 NLRB at 1137.

20

E.g., Miller Industries Towing Equipment, Inc., 342 NLRB

1074, 1075-76 (2004) (employer did not predict unavoidable

consequences).

21

Cf. Sheet Metal Workers Local 15 (Brandon Regional Medical

Center), 346 NLRB 199, 201-02 (2006), enf. denied on other

grounds 491 F.3d 429 (D.C. Cir. 2007) (newspaper report of

party admission is inadmissible hearsay because the reporter

was not available for cross-examination).

22

These same comments were quoted in the Seattle Times.

23

See 215 NLRB 520, 522-23 (1974).

NLRB-FOIA-00012182

Case 19-CA-32431

- 17 -

removed jobs from Puget Sound because employees had struck and

that they would lose work if they struck again.24

(3)
In articles that appeared in the Seattle Times and

the Puget Sound Business Journal on December 7 and 8

respectively, Boeing officials attributed the plan to use a

dual-sourcing system and contract separate suppliers for the

South Carolina line to past strikes and implicitly threatened

the loss of future work opportunities in the event of future

strikes.25

(4)
In a video-taped interview on March 2, Boeing

Commercial Airplanes CEO Albaugh expressly attributed the

Employers decision to locate the second line in South

Carolina to employee strikes and threatened the loss of future

work opportunities in retaliation for such protected

activity.26

The above statements, disseminated through various

channels to unionized and nonunionized employees nationwide,

drove home the message: union activity could cost them their

jobs, while a decision to reject union representation could

bring those jobs to their communities.

II.

The Employer Violated Section 8(a)(3)

The Employers decision to locate the second 787 line at

a nonunion facility and to establish a dual-sourcing program

to support that line violated Section 8(a)(3) because the

Employer acted in retaliation for the employees Union

activity and not for a legitimate business reason.

Initially, despite Boeings assertions that its decision

to locate a second 787 assembly line in South Carolina will

not adversely impact any current unit employees, there is no

question that the decision will direct work away from Puget

Sound employees with consequent adverse effects.


Instead of

24

The Region should insure that this message was communicated

to employees.

25

The authors of these articles will need to testify.


If

they resist testifying, and it becomes necessary to seek

subpoena enforcement, the Region should contact Advice.

26

Vice President Kights video-taped comments that Boeings

customers could not live with this triennial disruption and

that Boeing was looking to insure production continuity

cannot be alleged as an independent violation because they

were first posted on Boeings website on September 2, outside

the Section 10(b) period.

NLRB-FOIA-00012183

Case 19-CA-32431

- 18 -

assembling all of the 787 planes in Washington as originally

planned, once the second line opens in South Carolina, a

significant portion of the remaining 787 orders will be filled

by planes produced in North Charlestown.


Future work

opportunities will be lost for employees on the surge line,

as well as unit employees waiting to transfer into the more

desirable 787 jobs.


There are likely to be transfers to

older, less desirable aircraft assembly lines, demotions, and

layoffs.
Moreover, Boeings adoption of its new dual-

sourcing program means that the Puget Sound and Portland unit

employees will produce parts only for planes assembled in

Washington and not for those planes assembled in South

Carolina, also causing the loss of employment opportunities

for unit employees and the likelihood of demotions and

layoffs.
If no unit employees have been harmed yet, it is

merely because Boeings retaliatory decision has not yet been

implemented.

Recently, in Pittsburg & Midway Coal Mining Co., the

Board expressly reaffirmed that an actual financial loss is

not necessary to establish a Section 8(a)(3) violation.27


In

that case, the employer revised its bonus policy in

retaliation for the employees use of contractual memorial

days to engage in work stoppages.


Even though no employees

thereafter suffered a diminution of their bonuses, the Board

found a Section 8(a)(3) violation based upon the employers

retaliatory motive.28

Moreover, the Board specifically has held that an

employer may not, for unlawfully motivated reasons, divert

unit work to a nonunion plant even where there is no immediate

impact on unit employees.29


In Adair Standish Corp., the

employer refused to take delivery of a new press ordered for

its newly-organized Standish plant and installed it instead at

its nonunion plant.


The Board noted that diversion of the

press from Standish could reasonably result in diversion of

new work from Standish and therefore violated Section 8(a)(3)

even though there was no immediate impact on the unit

employees.30
Similarly, in Cold Heading Co., the employer

unlawfully relocated equipment to a newly-purchased nonunion

facility and changed its plans to install new equipment in its

27

See 355 NLRB No. 197, slip op. at 5, fn. 8 (2010).

28

Ibid.

29

See Adair Standish Corp., 290 NLRB 317, 318-19 (1988), enfd

th
in pertinent part 912 F.2d 854 (6
Cir. 1990).

30

See id. at 319.

NLRB-FOIA-00012184

Case 19-CA-32431

- 19 -

union facility after its employees independent union

representative sought to affiliate with the UAW.31

Here, as in Adair Standish and Cold Heading, there is a

diversion of unit work that the unit employees otherwise would

have performed.
And as in Pittsburg & Midway Coal Mining Co.,

the fact that unit employees may not yet have experienced the

financial impact of Boeings decision is no defense to a

Section 8(a)(3) violation.

Further, Boeing made this decision for unlawful reasons.

Boeing admits that the overriding factor in its decision to

place the second line in a nonunion facility was the

employees strike history.


An employers discouragement of

its employees participation in a legitimate strike

constitutes discouragement of union membership within the

meaning of Section 8(a)(3).32


This applies to employer

conduct designed to retaliate against employees for having

engaged in a strike in the past,33 as well as employer conduct

designed to forestall employees from exercising their right to

strike in the future.34


Indeed, the Board recently reaffirmed

that an employer violates the Act when it acts to prevent

future protected activity.35


Comparing such conduct to the

31 See 332 NLRB 956, fn. 5, 975-76 (2000).


See also

Associated Constructors, 325 NLRB 998, 998-1000 (1998), enfd.

sub nom. ODovero v. NLRB, 193 F.3d 532 (D.C. Cir. 1999)

(double-breasted employer unlawfully diverted work from its

union entity to its nonunion entity in retaliation for the

unions efforts to organize the nonunion entity and to escape

the collective-bargaining agreement).

32

Capehorn Industry, 336 NLRB 364, 365 (2001).

33

See id. at 365-67 (employer violated Section 8(a)(3) by

failing to immediately reinstate strikers upon unconditional

offer to return to work where there was no legitimate business

justification for entering into a permanent subcontract).

34

See Century Air Freight, 284 NLRB 730, 732 (1987) (employer

violated Section 8(a)(3) by permanently subcontracting unit

work and discharging unit employees in order to forestall the

exercise of their right to strike); Westpac Electric, 321 NLRB

1322, 1374 (1996) (employer violated Section 8(a)(3) by

isolating employee in retaliation for his previous striking

activities and also in anticipation that he would participate

in a strike in the future).

35

See Parexel International, LLC, 356 NLRB No. 82, slip op.

at 4 and cases cited therein (2011) (employer violated Section

NLRB-FOIA-00012185

Case 19-CA-32431

- 20 -

erection of a dam at the source of supply of potential,

protected activity, the Board reasoned that, the suppression

of future protected activity is exactly what lies at the heart

of most unlawful retaliation against past protected

activity.36

Boeing concedes that it is removing work from the unit

employees based upon their past exercise of their right to

strike.
However, Boeing relies upon the Supreme Courts

decision in NLRB v. Brown Food Store37 to argue that it is

privileged to move work outside the unit to avoid the

disruptive consequences of future strikes and that this is a

sufficient business justification to permit its actions.

In Brown Food Store, the Court held that an employer was

privileged to lock out its employees and use temporary

replacements to carry on its business in the face of a whipsaw

strike.38
Specifically, the Court found that the use of a

lockout and the hiring of temporary replacements to bring

pressure to bear in support of its bargaining position after

an impasse in negotiations was not an unfair labor practice.39

Rather than finding the use of this economic weapon

discriminatory, the Court concluded that it was a legitimate

defensive measure to preserve the multiemployer group in the

face of a whipsaw strike.40

Boeings attempt to extend the holding of Brown to

legitimatize any action that an employer takes to protect

itself against future, wholly speculative, strikes would

vitiate the Section 13 right to strike.


And the Board has

made it clear that an employer cannot rely upon Brown to

justify discriminatory conduct based upon the exercise of the

right to strike.
Thus, in National Fabricators, the Board

expressly rejected the employers attempt to use Brown and

other lockout cases to justify its decision to lay off those

employees who were likely to honor a union picket line in the

8(a)(1) by discharging an employee to prevent her from

discussing wages with other employees).

36

Ibid. (citation omitted).

37

380 U.S. 278 (1965).

38

See id. at 283-85.

39

See id. at 284.

40

See ibid.

NLRB-FOIA-00012186

Case 19-CA-32431

- 21 -

future.41 Instead, the Board found that disfavoring employees

who were likely to engage in protected union activities was

proscribed by Section 8(a)(3) and the employers business

justification - to avoid investing money in employees who

were going to cease work later -- was neither legitimate nor

substantial.42

Boeings concession that choosing South Carolina will

result in duplication and economic inefficiencies further

demonstrates that Boeings actions were retaliatory and not a

legitimate business decision.


In addition, Commercial

Airplanes CEO Albaugh conceded that going to South Carolina,

a green field site, involves significant risks.


Boeing has

the capacity, equipment, and trained workforce to handle the

second assembly line in the Puget Sound area.


The substantial

investment required to build and equip the South Carolina

facility therefore will be duplicative.


In addition, Boeing

will have to recruit and train a new workforce in South

Carolina, while ultimately laying off experienced employees in

Washington.
Exaggerating the disruptive effects of prior

strikes, Boeing maintains that the inefficiencies associated

with moving work to South Carolina will be counterbalanced by

the avoidance of strike disruptions in the future. However,

there are other nonretaliatory and less costly means of

dealing with the potential of relatively short disruptions

caused by employee strikes, such as concluding negotiations

with the Union for a long-term no-strike agreement.


In

addition, Boeings claim that it took this action to avoid

strike disruptions is belied by Boeings rejection of the

Unions efforts to negotiate a long-term no strike agreement.

Accordingly, the Region should proceed on the theory that

Boeing violated Section 8(a)(3) by retaliating against the

unit employees for engaging in the protected activity of

striking.

We also conclude that Boeings conduct was inherently

destructive of employee interests.43


Conduct is inherently

destructive when it carries with it unavoidable

consequences which the employer not only foresaw but which he

must have intended and thus bears its own indicia of

th

41

See 295 NLRB 1095, 1095 (1989), enfd. 903 F.2d 396 (5

1990), cert. denied 498 U.S. 1024 (1991).

42

Cir.

See 295 NLRB at 1095-96.

43

See NLRB v. Great Dane Trailers, Inc., 388 U.S. 26, 33

(1967) (citation omitted).

NLRB-FOIA-00012187

Case 19-CA-32431

- 22 -

intent.44
In International Paper Co., the Board set forth

four fundamental guiding principles for determining whether

employer conduct is inherently destructive of employee

rights.45
First, the Board looks to the severity of the harm

to employees Section 7 rights.


Second, the Board considers

the temporal impact of the employers conduct, i.e. whether

the conduct merely influences the outcome of a particular

dispute or whether it has far reaching effects which would

hinder future bargaining.


Third, the Board distinguishes

between conduct intended to support an employers bargaining

position as opposed to conduct demonstrating hostility to the

process of collective bargaining.


And finally, the Board

assesses whether the employees conduct discourages collective

bargaining by making it seem a futile exercise in the eyes of

the employees.46
Even if the employees conduct is

inherently destructive, the Board weighs the employers

asserted business justification against the invasion of

employee rights.47

Boeings actions were inherently destructive of employee

rights under the four principles articulated in International

Paper.
First, the harm to employees Section 7 rights was

severe; employees got the distinct message that if they engage

in another strike, unit work will be moved to a nonunion

facility and unit jobs will be lost.


Second, Boeings

decision was designed to have far-reaching effects and not

just to influence the outcome of a particular dispute, namely,

to take away employee support for the Unions most effective

economic weapon, and for the Union itself, and thereby hinder

any future collective bargaining.


Third, Boeings conduct

demonstrated hostility to the very process of collective

bargaining and not just to support a specific bargaining

position.
Finally, bargaining was made to seem a futile

44

Ibid., quoting NLRB v. Erie Resistor Corp., 373 U.S. 221,

228, 231 (1963).


See also Dorsey Trailers, Inc., 327 NLRB

835, 863-64 (1999), enf. denied in pertinent part 233 F.3d 831

th
(4
Cir. 2000).

45

See 319 LRB 1253, 1269 (1995), enf. denied 115 F.3d 1045

(D.C. Cir. 1997).

46

Id. at 1269-70 (citations omitted).

47

Id. at 1273 (finding no justification for employers

inherently destructive conduct of permanently subcontracting

bargaining unit work during a lawful lockout).


See also

Dorsey Trailers, 327 NLRB at 863-64 (employers closing of

facility during strike and relocation of unit work to newly

purchased facility outside the unions jurisdiction was

inherently destructive of employee rights).

NLRB-FOIA-00012188

Case 19-CA-32431

- 23 -

exercise without the possibility of a strike to support the

Unions position at the bargaining table.

The unavoidable consequence of Boeings decision to place

the second line in its newly-purchased, nonunion facility,

accompanied by official comments on the intranet and in the

media, was to severely chill its employees exercise of

Section 7 rights in the future - whether it be the Puget

Sound employees, the South Carolina employees, or Boeing

employees elsewhere.
Employees will correctly fear that

engaging in such protected activity could cause them to lose

their jobs to nonunionized workers.


Others may be encouraged

to file or support decertification petitions.


And the many

unrepresented Boeing employees will be discouraged from

organizing or voting in support of union representation if

they believe that exercising their right to concerted activity

justifies moving commercial production elsewhere.

Moreover, even if the effect on employee rights was only

comparatively slight, Boeing had no legitimate business

justification. Its only justification was its desire to insure

against its employees exercise of their Section 7 rights, and

that is not a legitimate justification.

The Board recently held in Arc Bridges, Inc. that an

employers conduct was inherently destructive where its stated

reason for withholding a regularly-scheduled wage increase

from represented employees was that it was in negotiations

with the union.48


The Board found that the employers stated

reason - that it wanted to enhance its bargaining position

with the union -- was an admission that it withheld the

increase because employees chose union representation.49

Likewise, Boeings stated reason for its decision - that it

wanted to avoid strike disruptions - was an admission that it

decided to locate the second line in South Carolina because

the Puget Sound employees chose union representation and the

South Carolina employees did not.


Accordingly, Boeings

decision coupled with its public pronouncements emphasizing

the motivation for its decision was inherently destructive of

its employees rights to engage in union activity and violated

Section 8(a)(3).

III. The Union Waived its Right to Bargain

The Unions allegation that Boeing failed to bargain in

good faith over its decision as to where to locate the second

787 line raises two preliminary issues: (1) whether Boeings

decision was a mandatory subject of bargaining; and (2) if so,

48

See 355 NLRB No. 199, slip op. at 3-4 (2010).

49

See id., slip op. at 3.

NLRB-FOIA-00012189

Case 19-CA-32431

- 24 -

whether the Union waived its right to bargain over that

subject.
Although we conclude that the decision was a

mandatory subject of bargaining and there is substantial

evidence that Boeing did not bargain in good faith to a valid

impasse, the Region should dismiss the Section 8(a)(5)

allegations on the ground that the Union waived it right to

bargain, applying Provena.50

A.

Mandatory Subject of Bargaining

Under Dubuque Packing Co., a decision to relocate unit

work that is not accompanied by a basic change in the

employers operation is a mandatory subject of bargaining

unless the employer can establish that: the work performed at

the new location varies significantly from the work performed

at the prior location; the work performed at the former

location is discontinued entirely and not moved to the new

location; or the employers decision involved a change in the

enterprises scope and direction.51


Alternatively, the

employer can defend by showing that: labor costs were not a

factor in the decision; or if labor costs were a factor, the

union could not have offered sufficient concessions to change

the employers decision.52


Applying the Dubuque test, the

Board repeatedly has found relocation decisions to constitute

a mandatory subject of bargaining.53

In addition, the Board has held that a decision may be a

mandatory subject even though there is no immediate loss of

unit jobs.54
For example, in Quickway Transportation, Inc.,

50

Provena St. Joseph Medical Center, 350 NLRB 808 (2007).

51

303 NLRB 386, 391 (1991), enfd. sub nom. Food & Commercial

Workers Local 150-A v. NLRB, 1 F.3d 24 (D.C. Cir. 1993).

52

Ibid.

53

See, e.g., Titan Tire Corp., 333 NLRB 1156, 1164-65 (2001)

(decision to permanently relocate equipment and jobs in

reaction to strike); Owens-Brockway Plastic Products, 311 NLRB

519, 521-23 (1993) (decision to close plant and transfer work

to other facilities).

54

See, e.g., Overnite Transportation Co., 330 NLRB 1275, 1276

(2000), revd. mem. 248 F.3d 1131 (3d Cir. 2000) (We think it

plain that the bargaining unit is adversely affected whenever

bargaining unit work is given away to nonunion employees,

regardless of whether the work would otherwise have been

performed by employees already in the unit or by new

employees).

NLRB-FOIA-00012190

Case 19-CA-32431

- 25 -

the Board found that the employers decision to contract with

independent owner-operators rather than expand the unit, as it

had originally planned, was mandatory because that decision

obviously constrained the work opportunities available to the

bargaining unit.55
Likewise, in Spurlino Materials, LLC, the

Administrative Law Judge, in a decision adopted by the Board,

found that even though no unit employees suffered a loss of

work as a result of the employers subcontracting, existing

employees might have otherwise been given overtime or the

employer might have hired additional unit employees, resulting

in benefits for the Union and current unit employees in having

an expanded unit.56
And in Dorsey Trailers, Inc., the Board

found that subcontracting work to reduce a backlog in orders

was a mandatory subject because the potential loss of

overtime or reasonably anticipated work opportunities poses a

detriment to unit employees even if no employees lost their

jobs.57

Here, the decision to locate the second 787 assembly line

in South Carolina amounted to a relocation of unit work.


Even

though no unit employees have yet to lose work, as in Dorsey

Trailers the assignment of unit work to nonunit employees in

order to reduce an order backlog presents a potential loss of

overtime or reasonably anticipated work opportunities and

therefore poses a detriment to unit employees.58


The work

that will be performed in South Carolina is identical to that

performed on the first line and the surge line in Everett by

unit employees.
The decision did not involve a basic change

in Boeings operation or any change in the enterprises scope

or direction; Boeing does not intend to change its production

methods or its products.59


Boeing did not demonstrate that

labor costs were not a factor in the decision.


In fact,

according to Boeings CEO, the decision was motivated

primarily by a desire to avoid strikes and secondarily because

the Employer cannot afford the rate at which unit wages are

escalating.
Boeing also did not demonstrate that the Union

could not have offered sufficient concessions to change its

55

See 355 NLRB No. 140 (2010), incorporating by reference the

rationale of 354 NLRB No. 80, slip op. at 2 (2009).

56

See 355 NLRB No. 77 (2010), incorporating by reference the

rational of 353 NLRB 1198, 1219 (2009).

57

See 321 NLRB 616, 617 (1996), enf. denied in relevant part

134 F.3d 125 (3d Cir. 1998).


Accord Acme Die Casting, 315

NLRB 202, fn. 1, 209 (1994).

58

See 321 NLRB at 617.

59

See Owens-Brockway Plastic Products, 311 NLRB at 522.

NLRB-FOIA-00012191

Case 19-CA-32431

- 26 -

decision; the Union


the strike and wage
2009.
Accordingly,
where to locate the
bargaining.

B.

was willing to make concessions on both

issues during negotiations in the fall of

we conclude that Boeings decision as to

second 787 line was a mandatory subject of

Waiver of the Right to Bargain

The Board applies a clear and unmistakable waiver

standard to determine whether a union has waived its right to

bargain about a mandatory subject of bargaining during the

term of a collective-bargaining agreement.60


The Board will

find a waiver if the contract either expressly or by

necessary implication confers on management a right to

unilaterally take the action in question.61


In interpreting

the parties agreement, the relevant factors include: (1) the

wording of pertinent contractual provisions; (2) the parties

bargaining history; and (3) the parties past practice.62

The Board has found a waiver based on contract language

where there is an express reference to the specific type of

decision that the employer has implemented unilaterally.63

Thus, in Ingham Regional Medical Center, the Board adopted an

Administrative Law Judges decision that the union waived its

right to bargain about a subcontracting decision where the

contractual management-rights clause expressly reserved to

management the right to use outside assistance or engage

independent contractors to perform any of the Employers

operations or phases thereof (subcontracting)[.]64


This

right was vested exclusively in the Employer and was not

60

See Provena St. Joseph Medical Center, 350 NLRB at 810-11.

61

See id. at 812, fn. 19.

62

See Johnson-Bateman Co., 295 NLRB 180, 184-89 (1989) (no

waiver of right to bargain about drug/alcohol testing

requirement where the management rights clause was generally

worded, issue was not fully discussed and consciously

explored during negotiations, and past practice of union

acquiescence to other unilateral work rule changes did not

waive the right to bargain about such changes for all time).

63 See, e.g., Ingham Regional Medical Center, 342 NLRB 1259,

1261-62 (2004) (under the management-rights clause, the

employer expressly reserved the right to subcontract); Allison

Corp., 330 NLRB 1363, 1364-65 (2000) (management-rights clause

specifically, precisely, and plainly granted the employer

the exclusive right ... to subcontract).

64

See 342 NLRB at 1260, 1261-62.

NLRB-FOIA-00012192

Case 19-CA-32431

- 27 -

subject to arbitration.65
Although another contractual

provision required the employer to provide 60 days notice and

discuss with the union any subcontracting decision that

would cause unit employees to be laid off, the words discuss

and bargain were found not synonymous in the parties

contract.66

In this case, Section 21.7 of the parties agreement

specifically, precisely, and plainly67 granted Boeing the

right to offload work to a facility not covered by the

agreement.
As in Ingham Regional Medical Center, the other

provisions of Section 21.7 that required Boeing to provide the

Union notice and an opportunity to review and recommend

alternatives did not require the Employer to bargain over an

offloading decision.

The Union does not dispute that Section 21.7 contains a

waiver but asserts instead that the Employer may not take

advantage of the waiver.


Specifically, the Union maintains

that a contractual waiver cannot be applied to a decision that

is unlawfully motivated.
But there is no authority for the

proposition that an unlawful motive negates a contractual

waiver; rather, the cases on which the Region and Union rely

hold that a contractual waiver is no defense to a Section

8(a)(3) violation.68

The Unions other arguments against application of the

waiver are also unavailing.


Thus, the Union asserts that the

contractual waiver does not apply because the parties entered

negotiations for a new contract.


However, during those mid-

term negotiations, their existing contract -- including

Section 21.7 -- continued in effect.


The Union also contends

65

Id. at 1260.

66

Id. at 1262.

67

See Allison Corp., 330 NLRB at 1365.

68

See Reno Hilton, 326 NLRB 1421, 1430 (1998), enfd. 196 F.3d

1275 (D.C. Cir. 1999) (merely because the Respondent has

negotiated the unfettered right in a collective-bargaining

agreement to contract out work at any time, such right ...

does not unfetter and insulate the Respondent from the

sanctions of the Act prohibiting it from discriminating); RGC

th
(USA) Mineral Sands, Inc. v. NLRB, 281 F.3d 442, 450 (4
Cir.

2002) (enforcing Board decision finding Section 8(a)(3)

violation on grounds that, even if contract authorized

employer to unilaterally alter shift assignments, an employer

cannot exercise contractual rights to punish employees for

protected activity).

NLRB-FOIA-00012193

Case 19-CA-32431

- 28 -

that the waiver cannot extend to work transferred after the

contracts expiration in September 2012, but Boeing made its

final decision in 2009 and expects to open the second line in

South Carolina in mid 2011.69


The Unions estoppel argument

also lacks merit.


While Boeing took the position that the

notice and review provisions in Article 21.7 did not apply

because no employees will be laid off, Boeing is not thereby

estopped from asserting the waiver provision.

Moreover, Boeings request to negotiate mid-term changes

to the parties agreement did not subject it to the

traditional Section 8(a)(5) bargaining obligations.70


Absent

a contractual reopener provision, parties are under no

obligation to bargain over proposals for mid-term

modifications.71
For this reason, we do not reach the

question of whether Boeing engaged in surface bargaining in

the fall of 2009, bargained to a valid impasse, or unlawfully

failed to provide information relevant to those negotiations.

IV. The Appropriate Remedy

We conclude that special remedies must be fashioned in

the unusual circumstances of this case.

First, with respect to the Section 8(a)(1) violations,

which had a particularly chilling impact upon employees, the

Region should seek a notice reading by a high-level Boeing

official, to insure that employees learn about their statutory

69

Thus, if there is a duty to bargain over a relocation

decision, it arises when the decision is announced and not

when it is ultimately implemented.


See, e.g., Bell Atlantic

Corp., 336 NLRB 1076, 1086-89 (2001) (union waived right to

bargain over employers decision to close facility and

transfer work to nonunion facility where it received notice of

decision in August and did not request bargaining until

December, even though no unit work would be relocated before

the following April).

70

See St. Barnabas Medical Center, 341 NLRB 1325, 1325 (2004)

(union did not incur traditional bargaining obligations by

requesting that employer meet to discuss feasibility of wage

reopener, and employer violated Section 8(a)(5) by

unilaterally implementing wage increases after an impasse in

those negotiations).

71

See Boeing Co., 337 NLRB 758, 763 (2002) (employer did not

incur bargaining obligation by agreeing to unions request to

consider midterm modification); Connecticut Power Co., 271

NLRB 766, 766-67 (Section 8(d) does not require an employer

who suggests a midterm contract change to negotiate about it).

NLRB-FOIA-00012194

Case 19-CA-32431

- 29 -

rights and gain assurance that Boeing will respect those

rights.72
The notice reading is particularly effective if

read by an official who personally committed some of the

violations, or read by a Board agent in his presence, in order

to dispel the atmosphere of intimidation he created.73

Finally, to remedy the Section 8(a)(3) violation, the

Region should seek an order requiring Boeing to maintain the

second line in Washington.


At the time of the discriminatory

conduct, Boeing intended to use the second line to assemble

three 787 aircraft each month, while assembling seven 787

aircraft each month on the first line in Everett.


At present,

even the first line is not producing up to capacity because of

problems with suppliers and FAA certification.


Thus, the

Region should seek an order requiring that, as Boeing

production increases, the first ten aircraft assembled each

72

See, e.g., Homer D. Bronson Co., 349 NLRB 512, 515 (2007),

enfd. 273 F. Appx 32 (2d Cir. 2008) (notice reading is an

effective but moderate way to let in a warming wind of

information, and more important, reassurance); Federated

Logistics & Operations, 340 NLRB 255, 258 (2003), affd. 400

F.3d 920 (D.C. Cir. 2005) (employees will perceive that the

Respondent and its managers are bound by the requirements of

the Act).

73

Three Sisters Sportswear Co., 312 NLRB 853, 853 (1993),

enfd. mem. 55 F3d 684 (D.C. Cir. 1995), cert. denied 516 U.S.

1093 (1996).
See also, e.g., Homer D. Bronson Co., 349 NLRB

at 515 (reading by president of manufacturing, who personally

delivered speeches threatening plant closure or relocation);

Texas Super Foods, 303 NLRB 209, 209 (1991) notice reading by

owner and president who signed unlawful letters to unit

employees, drafted unlawful speech threatening job losses, and

personally gave the speech to at least two groups of

employees).

NLRB-FOIA-00012195

Case 19-CA-32431

- 30 -

month be assembled by the Puget Sound unit employees and that

the supply lines for these aircraft be maintained in the Puget

Sound and Portland facilities.74

B.J.K.

ROFs - 9

H:ADV.19-CA-32431.Response2.Boeing.dlw

74

At this time, we do not reach a decision on the Unions

request for preliminary injunctive relief.


The Region should

reassess whether Section 10(j) relief is warranted after the

case is tried before the Administrative Law Judge.


In the

meantime, the Region should put evidence in the record

regarding the chilling impact of Boeings violative statements

and conduct to support the notice-reading remedy.


This will

facilitate use of the administrative record to demonstrate in

a subsequent Section 10(j) proceeding that preliminary

injunctive relief is just and proper.

NLRB-FOIA-00012196

Microsoft Outlook

From:

Szapiro, Miriam

Sent:

Monday, April 11, 2011 10:36 PM

To:

Willen, Debra L

Subject:

RE: Advice Memorandum - Case 19-CA-32431

I'm so glad you saw this - I almost texted you but then realized I didn't have your number. Hahaha oh well. So Barry

brought me and Jayme in this afternoon at almost 4:00, and told us that Boeing refused to negotiate, Patty Murray

didn't want to get involved, and that Graham spoke again w/ Lafe, making additional threats. Lafe authorized the

complaint and Barry told me he wanted to get this out today (he's out tomorrow and I think he wanted to move before

anyone got cold feet, again). I was skimming through the draft at 4:30 or so to make sure I had the right version, and

just to give it a final check, when Barry came in looking for it. I raced through the rest of it, brought it to Barry, who

signed off, and voila! We may be in for a rocky ride, but at least we're on the road. Ellen came in about 5:30 and was

like, what? (she'd been in mtgs, then came back and saw it was out). She was very glad we finally got it together. So, we

shall see...

non-responsive

________________________________________

From: Willen, Debra L

Sent: Monday, April 11, 2011 6:36 PM

To: Szapiro, Miriam

Subject: FW: Advice Memorandum - Case 19-CA-32431

OMG! Do tell -- what's the latest?

____________________________________

From: Bush, Lynn

Sent: Monday, April 11, 2011 4:46 PM

To: Region 19, Seattle; Ahearn, Richard L.

Subject: Advice Memorandum - Case 19-CA-32431

[cid:image002.gif@01CBF867.F563A7E0]

Please see the attached closed Advice memorandum.

Lynn

NLRB-FOIA-00012197

Microsoft Outlook

From:
Sent:
To:
Subject:
Attachments:

Szapiro, Miriam

Tuesday, April 12, 2011 3:23 PM

Farrell, Ellen

FW : Boeing Co.

ADV.19-CA-32431.factsheet.Boeing.dlw.doc; ADV.19-CA-32431.Response2.Boeing.dlw.doc

Miriam Szapiro

Supervisory attorney

NLRB Division of Advice

202-273-0998

Miriam.Szapiro@nlrb.gov

From: Willen, Debra L

Sent: Monday, March 14, 2011 2:59 PM

To: Solomon, Lafe E.

Cc: Mattina, Celeste J.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Katz, Judy; Szapiro, Miriam; Omberg, Bob;

Baniszewski, Joseph

Subject: Boeing Co.

I am attaching our Fact Sheet and the latest version of our Advice Memorandum

Exemption 5

Please let me know if there is anything else you need.

Thanks,

Deb Willen

Tracking:

NLRB-FOIA-00012198

Recipient

Read

Farrell, Ellen

Read: 4/12/2011 3:27 PM

NLRB-FOIA-00012199

Ex. 5 Deliberative and still a draft

NLRB-FOIA-00012200

Ex. 5 Deliberative and still a draft

NLRB-FOIA-00012201

Ex. 5 Deliberative and still a draft

NLRB-FOIA-00012202

Ex. 5 Deliberative and still a draft

NLRB-FOIA-00012203

Ex. 5 Deliberative and still a draft

NLRB-FOIA-00012204

Ex. 5 Deliberative and still a draft

NLRB-FOIA-00012205

Ex. 5 Deliberative and still a draft

NLRB-FOIA-00012206

Ex. 5 Deliberative and still a draft

NLRB-FOIA-00012207

Ex. 5 Deliberative and still a draft

NLRB-FOIA-00012208

Ex. 5 Deliberative and still a draft

NLRB-FOIA-00012209

Ex. 5 Deliberative and still a draft

NLRB-FOIA-00012210

Ex. 5 Deliberative and still a draft

NLRB-FOIA-00012211

Ex. 5 Deliberative and still a draft

NLRB-FOIA-00012212

Ex. 5 Deliberative and still a draft

NLRB-FOIA-00012213

Ex. 5 Deliberative and still a draft

NLRB-FOIA-00012214

Ex. 5 Deliberative and still a draft

NLRB-FOIA-00012215

Ex. 5 Deliberative and still a draft

NLRB-FOIA-00012216

Ex. 5 Deliberative and still a draft

NLRB-FOIA-00012217

Ex. 5 Deliberative and still a draft

NLRB-FOIA-00012218

Ex. 5 Deliberative and still a draft

NLRB-FOIA-00012219

Ex. 5 Deliberative and still a draft

NLRB-FOIA-00012220

Ex. 5 Deliberative and still a draft

NLRB-FOIA-00012221

Ex. 5 Deliberative and still a draft

NLRB-FOIA-00012222

Ex. 5 Deliberative and still a draft

NLRB-FOIA-00012223

Ex. 5 Deliberative and still a draft

NLRB-FOIA-00012224

Ex. 5 Deliberative and still a draft

NLRB-FOIA-00012225

Ex. 5 Deliberative and still a draft

NLRB-FOIA-00012226

Ex. 5 Deliberative and still a draft

NLRB-FOIA-00012227

Ex. 5 Deliberative and still a draft

NLRB-FOIA-00012228

Ex. 5 Deliberative and still a draft

NLRB-FOIA-00012229

Ex. 5 Deliberative and still a draft

NLRB-FOIA-00012230

Ex. 5 Deliberative and still a draft

NLRB-FOIA-00012231

Ex. 5 Deliberative and still a draft

NLRB-FOIA-00012232

Ex. 5 Deliberative and still a draft

NLRB-FOIA-00012233

Exemption 5

NLRB-FOIA-00012234

Exemption 5

NLRB-FOIA-00012235

Exemption 5

NLRB-FOIA-00012236

Microsoft Outlook

Szapiro, Miriam

Tuesday, April 12, 2011 10:29 PM

W illen, Debra L

RE: Advice Memorandum - Case 19-CA-32431

From:
Sent:
To:
Subject:

Non-Responsive

________________________________________

From: Willen, Debra L

Sent: Tuesday, April 12, 2011 7:25 PM

To: Szapiro, Miriam

Subject: RE: Advice Memorandum - Case 19-CA-32431

Thanks for the report Miriam.

Non-Responsive

See you on Thursday--

Deb

cell:

Exemption 6

________________________________________

From: Szapiro, Miriam

Sent: Monday, April 11, 2011 10:36 PM

To: Willen, Debra L

Subject: RE: Advice Memorandum - Case 19-CA-32431

I'm so glad you saw this - I almost texted you but then realized I didn't have your number.

Hahaha oh well. So Barry brought me and Jayme in this afternoon at almost 4:00, and told us

that Boeing refused to negotiate, Patty Murray didn't want to get involved, and that Graham

spoke again w/ Lafe, making additional threats. Lafe authorized the complaint and Barry told

me he wanted to get this out today (he's out tomorrow and I think he wanted to move before

anyone got cold feet, again).

I was skimming through the draft at 4:30 or so to make sure I

had the right version, and just to give it a final check, when Barry came in looking for it.

I raced through the rest of it, brought it to Barry, who signed off, and voila! We may be in

for a rocky ride, but at least we're on the road. Ellen came in about 5:30 and was like,

what? (she'd been in mtgs, then came back and saw it was out). She was very glad we finally

got it together. So, we shall see...

Non-Responsive

See you soon, Miriam ________________________________________

From: Willen, Debra L

Sent: Monday, April 11, 2011 6:36 PM

To: Szapiro, Miriam

Subject: FW: Advice Memorandum - Case 19-CA-32431

OMG!

Do tell -- what's the latest?

____________________________________

From: Bush, Lynn

Sent: Monday, April 11, 2011 4:46 PM

To: Region 19, Seattle; Ahearn, Richard L.

Subject: Advice Memorandum - Case 19-CA-32431

[cid:image002.gif@01CBF867.F563A7E0]

Please see the attached closed Advice memorandum.

NLRB-FOIA-00012237

Lynn

NLRB-FOIA-00012238

Microsoft Outlook

From:

Willen, Debra L

Sent:

Monday, April 18, 2011 2:34 PM

To:

Ahearn, Richard L.

Cc:

Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam

Subject:

Boeing Co.

Attachments:

ADV.19-CA-32431.Complaint.Boeing.4-18-11.doc

Rich

Attached is a marked-up version of the Regions draft complaint with our changes. I fear that Ive messed up the

formatting, so someone will need to fix that.

Please let us know if you have any questions.

Thanks,

Deb Willen

NLRB-FOIA-00012239

Exemption 5

NLRB-FOIA-00012240

Exemption 5

NLRB-FOIA-00012241

Exemption 5

NLRB-FOIA-00012242

Exemption 5

NLRB-FOIA-00012243

Exemption 5

NLRB-FOIA-00012244

Exemption 5

NLRB-FOIA-00012245

Exemption 5

NLRB-FOIA-00012246

Exemption 5

NLRB-FOIA-00012247

Exemption 5

NLRB-FOIA-00012248

Exemption 5

NLRB-FOIA-00012249

Exemption 5

NLRB-FOIA-00012250

Exemption 5

NLRB-FOIA-00012251

Exemption 5

NLRB-FOIA-00012252

Exemption 5

NLRB-FOIA-00012253

NLRB-FOIA-00012254

Microsoft Outlook

From:
Sent:
To:
Subject:
Attachments:

Ahearn, Richard L.

Tuesday, April 19, 2011 2:14 PM

Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; W illen, Debra L; Szapiro, Miriam

The Boeing Company, 19-CA-32811

CHG.19-CA-032811.Boeing.pdf

This is the charge I discussed with Ellen. A few relevant documents will be sent shortly. Also look at

page 11, fn 9 of the Employers Dec. 8, 2010 submission to Advice.

Rich

NLRB-FOIA-00012255

206 + 378 + 413 2

2/2

11-01-2010

03:14:03 p.m .

SCBI

FO R M E X E M PT U N D E R 44 U S C 3512

UNITED STA TES O F A M ERICA

NATIO NAL LA BO R RELATIO NS B O A RD

C H A R G E A G A IN ST E M PL O Y E R

IN T E R N E -r

FO R M N L R B -501
(2-08)

D O N O T W R IT E IN T H IS SP A C E

D ate Filed

C ase

1 1 /1 /1 0

19-CA-32811
IN STR U C TIO N S:
File an original w ith NLRB R egional D irector forthe region in w hich the alleged unfair laborpractice o ccurred oris occurring.

1.E M PL O Y E R A G A IN ST W H O M C H A R G E IS B R O U G H T

a N am e of Em ployer

I Tel No' 206-662-9091

c. C ell No.

T he B oeing C o m p an y

d A ddress (Street, city. state,and ZIP code)


P O B ox 3707
S eattle, W A 9 8 1 2 4

f. Fax No - 206-662-9001

a Em ployer R epresentative

g. e-M ail

D oug K ight

h. N um t;er of w orkers em ployed

25,000

i. Type of E stablishm ent (factory,m ine,w holesaler,etc)

p ro d u ctio n facility

j Identify principal product orservtce

com m ercial airp lan es

k.The above-nam ed em ployer has engaged in and is engaging in unfair labor practices w ithin the m eaning of section 8(a), subsections (1) and (list

subsections) 8(a)(1) an d 8 (a)(3 )

ofthe N ational Labor R elations A ct. and these unfair labor

practices are practices affecting com m erce w ithin the m eaning of the A ct,or these unfair labor practices are unfair practices affecting com m erce

w ithin the m eaning of the A ct and the Postal R eorganization A ct

2. B asis of the C harge (setforth a clear and concise staternentofthe facts constituting the a/legred unfairlaborpractices)

W ithin th e last six m o n th s, th e B oeing C o m p an y h as violated S ectio n 8(a)(1) an d 8(a)(3) of th e A ct by beginning to tran sfer

fabrication an d a ssem b ly of airp lan e interior p arts for th e 787 D ream lin er to a new facility em ploying non-union w o rk ers in

retaliation for b arg ain in g unit w o rk ers' p ro tected co n certed activity.

3. Full nam e of party filing charD (iflabororganization,give fullnam e,includin8 localnam e and num ber)

istrict L odge, 751

ach in ists an d A ero sp ace W orkers,


In tern atio n al A sso ciatio n
4a A ddress (Streetand num ber,city, state,and ZIP code)

4b. Tel N o.

c/o S ch w erin C am p b ell B arn ard Iglitzin an d L avitt, L L P

18 W . M ercer ST .

4c. Cell N o.

S u ite 4 0 0

S eattle, W A 98119

4d. lax No 206-378-4132

206-285-2828

4e e-M ail

cam p b ell@ w o rk erlaw .co m

5. Full nam e of national or international labor organization ofw hich itis an affiliate or constituent unit (to be M ad in w hen charge is filed by a labor

organization) In tern atio n al A sso ciatio n of M achinists an d A ero sp ace


W o rk ers

6. DECLARATION
Ideclare that Ihave read the above charge and at the statem ents are true to the best ofm y know ledge and belief,
13

g a tu reof

A ddress

18 W

- _ye
00..

( am p7 0b&el
vid

P nCt4y

n pe n f" A toIlernorey
office.ifany)

M ercer S t., S te. 4 0 0 , S eattle, W A 98119

a;e

andtft

Tel. N o.

206-285-2828

C ell N o.

O ffice ifany,

0' 206-.378-4132

e-M ail

11/11/10
(date)

cam p b ell@ w o rk ed aw corn

O L L FU L FA LSE STA TEM EN TS O N TH IS C H A R G E CAN BE PU N ISH ED BY FINE AND IM PRISO N M EN T (U.S. C O D E, TITLE 18. SEC TIO N 1001)

P R I"C Y A C T STATEM ENT

Solicitation of the inform ation on this form isauthorized by the N ational Labor R elations A ct (NLRA), 29 U.S C 151 etseq.The principal use ofthe inform ation isto assist

the N ational Labor R elations Board (NLRB) in processing unfair labor practice and related proceedings or litigation The routine uses forthe inform ation are fully set forth in

the Federal R egister, 71 Fed. R eg. 74942-43 (D ec. 13, 2006). The NLRB will further explain these uses upon request. D isclosure of this inform ation to the NLRB is

lax

voluntary; how ever, failure to supply the inform ation willcause the NLRB to decline lo invoke its processes.

NOV-01-2010

13:52

206+378+4132

94%

P.02

NLRB-FOIA-00012256

CE IV E0

It-R B

1 112-5 6

L L -VVA

SEK f'If

NLRB-FOIA-00012257

Microsoft Outlook

From:
Sent:
To:
Subject:

W illen, Debra L

Tuesday, April 19, 2011 2:42 PM

Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam

RE: The Boeing Company, 19-CA-32811

FYI The Employer asserted in the cited footnote that this charge was barred by Section 10(b).

I remember this charge

Ex. 5 - Deliberative

From: Ahearn, Richard L.

Sent: Tuesday, April 19, 2011 2:14 PM

To: Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Willen, Debra L; Szapiro, Miriam

Subject: The Boeing Company, 19-CA-32811

This is the charge I discussed with Ellen. A few relevant documents will be sent shortly. Also look at

page 11, fn 9 of the Employers Dec. 8, 2010 submission to Advice.

Rich

NLRB-FOIA-00012258

Microsoft Outlook

From:
Sent:
To:
Subject:
Attachments:

W illen, Debra L

Tuesday, May 03, 2011 12:24 PM

Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam

draft response to state AGs

AG response.doc

Draft attached comments/edits welcome.

NLRB-FOIA-00012259

Exemption 5

NLRB-FOIA-00012260

Exemption 5

NLRB-FOIA-00012261

Exemption 5

NLRB-FOIA-00012262

Exemption 5

NLRB-FOIA-00012263

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:
Attachments:

W illen, Debra L

W ednesday, May 04, 2011 10:58 AM

Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam

Dodds, Amy L.

Boeing -- revised draft response to state AGs

GC Response to State AGs.doc; AGs letter.pdf

As Barry requested, I've incorporated his changes and am attaching the new version along with the AG's letter.

Jayme -- I have not addressed your concern -- please discuss it with Barry and let me know if what you all want me to

do.

Thanks, Deb

NLRB-FOIA-00012264

ALANWILSON

ATTORNEY GENERAL

April 28, 2011

Lafe E. Solomon, Esquire

Acting General Counsel

National Labor Relations Board

1099 14 th Street, NW, Suite 8600

Washington, DC 20570

Dear Mr. Solomon:

As Attorneys General of our respective states, we call upon you, as Acting General

Counsel of the National Labor Relations Board (NLRB), to withdraw immediately the

complaint numbered 19-CA-32431 against Boeing. This complaint represents an assault upon the

constitutional right of free speech, and the ability of our states to create jobs and recruit industry.

Your ill-conceived retaliatory action seeks to destroy our citizens right to work. It is South

Carolina and Boeing today, but will be any of our states, with our right to work guarantees,

tomorrow.

The right to work, uninhibited by compulsory unionism, is a precious right and is

constitutionally enforceable through our states right to work laws. See Retail Clerks Intl v.

Schermerhorn, 375 U.S. 96 (1963). Such laws are designed to eliminate union affiliation as a

criterion for employment. However, the NLRB, through this single proceeding, attempts to

sound the death knell of the right to work. Additionally, this tenuous complaint will reverberate

throughout union and non-union states alike, as international companies will question the

wisdom of locating in a country where the federal government interferes in industry without

cause or justification.

Furthermore, this complaint disrupts, and may well eliminate, the production of Boeing

787 Dreamliners in South Carolina. In fact, Boeing has expanded its operations to meet product

demand in South Carolina, while adding new jobs in Washington State. The complaint charges

Boeing with the commission of an unfair labor practice, but appears to do so without legal and

factual foundation. This unparalleled and overreaching action seeks to drive a stake through the

heart of the free enterprise system. The statements of Boeing officials cited in your complaint are

the innocent exercise of the companys right of free speech. The Supreme Court long ago made

it clear that the NLRA does not limit, and the First Amendment protects, the employer's right to

express views on labor policies or problems. N.L.R.B. v. Va. Electric and Power, 314 US 469,

NLRB-FOIA-00012265

Hon. Lafe E. Solomon

April 27, 2011

Page 2

477 (1941). As the Court recently reiterated in Citizens United v. FEC, 130 S. Ct. 876, 899-90

(2010), a corporation is not a second class citizen in terms of First Amendment protection.

Our states are struggling to emerge from one of the worst economic collapses since the

Depression. Your complaint further impairs an economic recovery. Intrusion by the federal

bureaucracy on behalf of unions will not create a single new job or put one unemployed person

back to work.

The only justification for the NLRBs unprecedented retaliatory action is to aid union

survival. Your action seriously undermines our citizens right to work as well as their ability to

compete globally. Therefore, as Attorneys General, we will protect our citizens from union

bullying and federal coercion. We thus call upon you to cease this attack on our right to work,

our states economies, and our jobs.

We look forward to your immediate response.

Sincerely,

Alan Wilson

Attorney General

[Signatures continue next page]

Cc: Respective Congressional Delegations

NLRB-FOIA-00012266

Hon. Lafe E. Solomon

April 27, 2011

Page 3

Ken Cuccinelli

Attorney General
Commonwealth of Virginia

Jon C. Bruning

Attorney General
State of Nebraska

Greg Abbott

Attorney General

State of Texas

Samuel S. Olens
Attorney General
State of Georgia

E. Scott Pruitt
Attorney General
State of Oklahoma

Pam Bondi
Attorney General
State of Florida

Tom Horne

Attorney General

State of Arizona

Luther Strange

Attorney General

State of Alabama

NLRB-FOIA-00012267

Exemption 5

NLRB-FOIA-00012268

Exemption 5

NLRB-FOIA-00012269

Exemption 5

NLRB-FOIA-00012270

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:
Attachments:

Sophir, Jayme

W ednesday, May 04, 2011 11:33 AM

Kearney, Barry J.; Farrell, Ellen; Szapiro, Miriam; W illen, Debra L

Dodds, Amy L.

FW : Boeing -- revised draft response to state AGs

GC Response to State AGs.doc; AGs letter.pdf

Exemption 5

From: Willen, Debra L

Sent: Wednesday, May 04, 2011 10:58 AM

To: Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: Boeing -- revised draft response to state AGs

As Barry requested, I've incorporated his changes and am attaching the new version along with the AG's letter.

Jayme -- I have not addressed your concern -- please discuss it with Barry and let me know if what you all want me to

do.

Thanks, Deb

NLRB-FOIA-00012271

ALANWILSON

ATTORNEY GENERAL

April 28, 2011

Lafe E. Solomon, Esquire

Acting General Counsel

National Labor Relations Board

1099 14 th Street, NW, Suite 8600

Washington, DC 20570

Dear Mr. Solomon:

As Attorneys General of our respective states, we call upon you, as Acting General

Counsel of the National Labor Relations Board (NLRB), to withdraw immediately the

complaint numbered 19-CA-32431 against Boeing. This complaint represents an assault upon the

constitutional right of free speech, and the ability of our states to create jobs and recruit industry.

Your ill-conceived retaliatory action seeks to destroy our citizens right to work. It is South

Carolina and Boeing today, but will be any of our states, with our right to work guarantees,

tomorrow.

The right to work, uninhibited by compulsory unionism, is a precious right and is

constitutionally enforceable through our states right to work laws. See Retail Clerks Intl v.

Schermerhorn, 375 U.S. 96 (1963). Such laws are designed to eliminate union affiliation as a

criterion for employment. However, the NLRB, through this single proceeding, attempts to

sound the death knell of the right to work. Additionally, this tenuous complaint will reverberate

throughout union and non-union states alike, as international companies will question the

wisdom of locating in a country where the federal government interferes in industry without

cause or justification.

Furthermore, this complaint disrupts, and may well eliminate, the production of Boeing

787 Dreamliners in South Carolina. In fact, Boeing has expanded its operations to meet product

demand in South Carolina, while adding new jobs in Washington State. The complaint charges

Boeing with the commission of an unfair labor practice, but appears to do so without legal and

factual foundation. This unparalleled and overreaching action seeks to drive a stake through the

heart of the free enterprise system. The statements of Boeing officials cited in your complaint are

the innocent exercise of the companys right of free speech. The Supreme Court long ago made

it clear that the NLRA does not limit, and the First Amendment protects, the employer's right to

express views on labor policies or problems. N.L.R.B. v. Va. Electric and Power, 314 US 469,

NLRB-FOIA-00012272

Hon. Lafe E. Solomon

April 27, 2011

Page 2

477 (1941). As the Court recently reiterated in Citizens United v. FEC, 130 S. Ct. 876, 899-90

(2010), a corporation is not a second class citizen in terms of First Amendment protection.

Our states are struggling to emerge from one of the worst economic collapses since the

Depression. Your complaint further impairs an economic recovery. Intrusion by the federal

bureaucracy on behalf of unions will not create a single new job or put one unemployed person

back to work.

The only justification for the NLRBs unprecedented retaliatory action is to aid union

survival. Your action seriously undermines our citizens right to work as well as their ability to

compete globally. Therefore, as Attorneys General, we will protect our citizens from union

bullying and federal coercion. We thus call upon you to cease this attack on our right to work,

our states economies, and our jobs.

We look forward to your immediate response.

Sincerely,

Alan Wilson

Attorney General

[Signatures continue next page]

Cc: Respective Congressional Delegations

NLRB-FOIA-00012273

Hon. Lafe E. Solomon

April 27, 2011

Page 3

Ken Cuccinelli

Attorney General
Commonwealth of Virginia

Jon C. Bruning

Attorney General
State of Nebraska

Greg Abbott

Attorney General

State of Texas

Samuel S. Olens
Attorney General
State of Georgia

E. Scott Pruitt
Attorney General
State of Oklahoma

Pam Bondi
Attorney General
State of Florida

Tom Horne

Attorney General

State of Arizona

Luther Strange

Attorney General

State of Alabama

NLRB-FOIA-00012274

Exemption 5

NLRB-FOIA-00012275

Exemption 5

NLRB-FOIA-00012276

Exemption 5

NLRB-FOIA-00012277

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:
Attachments:

Farrell, Ellen

W ednesday, May 04, 2011 12:07 PM

Kearney, Barry J.; W illen, Debra L; Sophir, Jayme; Szapiro, Miriam

Dodds, Amy L.

FW : Boeing -- revised draft response to state AGs

GC Response to State AGs.doc; AGs letter.pdf

See my modification

Exemption 5

Ellen

Ellen Farrell

Deputy Associate General Counsel

Division of Advice, NLRB

202-273-3810

Ellen.Farrell@nlrb.gov

From: Sophir, Jayme

Sent: Wednesday, May 04, 2011 11:33 AM

To: Kearney, Barry J.; Farrell, Ellen; Szapiro, Miriam; Willen, Debra L

Cc: Dodds, Amy L.

Subject: FW: Boeing -- revised draft response to state AGs

Exemption 5

From: Willen, Debra L

Sent: Wednesday, May 04, 2011 10:58 AM

To: Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: Boeing -- revised draft response to state AGs

As Barry requested, I've incorporated his changes and am attaching the new version along with the AG's letter.

Jayme -- I have not addressed your concern -- please discuss it with Barry and let me know if what you all want me to

do.

Thanks, Deb

NLRB-FOIA-00012278

ALANWILSON

ATTORNEY GENERAL

April 28, 2011

Lafe E. Solomon, Esquire

Acting General Counsel

National Labor Relations Board

1099 14 th Street, NW, Suite 8600

Washington, DC 20570

Dear Mr. Solomon:

As Attorneys General of our respective states, we call upon you, as Acting General

Counsel of the National Labor Relations Board (NLRB), to withdraw immediately the

complaint numbered 19-CA-32431 against Boeing. This complaint represents an assault upon the

constitutional right of free speech, and the ability of our states to create jobs and recruit industry.

Your ill-conceived retaliatory action seeks to destroy our citizens right to work. It is South

Carolina and Boeing today, but will be any of our states, with our right to work guarantees,

tomorrow.

The right to work, uninhibited by compulsory unionism, is a precious right and is

constitutionally enforceable through our states right to work laws. See Retail Clerks Intl v.

Schermerhorn, 375 U.S. 96 (1963). Such laws are designed to eliminate union affiliation as a

criterion for employment. However, the NLRB, through this single proceeding, attempts to

sound the death knell of the right to work. Additionally, this tenuous complaint will reverberate

throughout union and non-union states alike, as international companies will question the

wisdom of locating in a country where the federal government interferes in industry without

cause or justification.

Furthermore, this complaint disrupts, and may well eliminate, the production of Boeing

787 Dreamliners in South Carolina. In fact, Boeing has expanded its operations to meet product

demand in South Carolina, while adding new jobs in Washington State. The complaint charges

Boeing with the commission of an unfair labor practice, but appears to do so without legal and

factual foundation. This unparalleled and overreaching action seeks to drive a stake through the

heart of the free enterprise system. The statements of Boeing officials cited in your complaint are

the innocent exercise of the companys right of free speech. The Supreme Court long ago made

it clear that the NLRA does not limit, and the First Amendment protects, the employer's right to

express views on labor policies or problems. N.L.R.B. v. Va. Electric and Power, 314 US 469,

NLRB-FOIA-00012279

Hon. Lafe E. Solomon

April 27, 2011

Page 2

477 (1941). As the Court recently reiterated in Citizens United v. FEC, 130 S. Ct. 876, 899-90

(2010), a corporation is not a second class citizen in terms of First Amendment protection.

Our states are struggling to emerge from one of the worst economic collapses since the

Depression. Your complaint further impairs an economic recovery. Intrusion by the federal

bureaucracy on behalf of unions will not create a single new job or put one unemployed person

back to work.

The only justification for the NLRBs unprecedented retaliatory action is to aid union

survival. Your action seriously undermines our citizens right to work as well as their ability to

compete globally. Therefore, as Attorneys General, we will protect our citizens from union

bullying and federal coercion. We thus call upon you to cease this attack on our right to work,

our states economies, and our jobs.

We look forward to your immediate response.

Sincerely,

Alan Wilson

Attorney General

[Signatures continue next page]

Cc: Respective Congressional Delegations

NLRB-FOIA-00012280

Hon. Lafe E. Solomon

April 27, 2011

Page 3

Ken Cuccinelli

Attorney General
Commonwealth of Virginia

Jon C. Bruning

Attorney General
State of Nebraska

Greg Abbott

Attorney General

State of Texas

Samuel S. Olens
Attorney General
State of Georgia

E. Scott Pruitt
Attorney General
State of Oklahoma

Pam Bondi
Attorney General
State of Florida

Tom Horne

Attorney General

State of Arizona

Luther Strange

Attorney General

State of Alabama

NLRB-FOIA-00012281

Exemption 5

NLRB-FOIA-00012282

Exemption 5

NLRB-FOIA-00012283

Exemption 5

NLRB-FOIA-00012284

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:

W illen, Debra L

W ednesday, May 04, 2011 12:14 PM

Szapiro, Miriam; Farrell, Ellen; Kearney, Barry J.; Sophir, Jayme

Dodds, Amy L.

RE: Boeing -- revised draft response to state AGs

Fine by me too.

From: Szapiro, Miriam

Sent: Wednesday, May 04, 2011 12:10 PM

To: Farrell, Ellen; Kearney, Barry J.; Willen, Debra L; Sophir, Jayme

Cc: Dodds, Amy L.

Subject: RE: Boeing -- revised draft response to state AGs

I like Jaymes point and Ellens modification; its a good addition.

From: Farrell, Ellen

Sent: Wednesday, May 04, 2011 12:07 PM

To: Kearney, Barry J.; Willen, Debra L; Sophir, Jayme; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: FW: Boeing -- revised draft response to state AGs

See my modification

Exemption 5

Ellen

Ellen Farrell

Deputy Associate General Counsel

Division of Advice, NLRB

202-273-3810

Ellen.Farrell@nlrb.gov

From: Sophir, Jayme

Sent: Wednesday, May 04, 2011 11:33 AM

To: Kearney, Barry J.; Farrell, Ellen; Szapiro, Miriam; Willen, Debra L

Cc: Dodds, Amy L.

Subject: FW: Boeing -- revised draft response to state AGs

Exemption 5

From: Willen, Debra L

Sent: Wednesday, May 04, 2011 10:58 AM

To: Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: Boeing -- revised draft response to state AGs

As Barry requested, I've incorporated his changes and am attaching the new version along with the AG's letter.

NLRB-FOIA-00012285

Jayme -- I have not addressed your concern -- please discuss it with Barry and let me know if what you all want me to

do.

Thanks, Deb

NLRB-FOIA-00012286

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:

Sophir, Jayme

W ednesday, May 04, 2011 12:18 PM

Farrell, Ellen; Kearney, Barry J.; W illen, Debra L; Szapiro, Miriam

Dodds, Amy L.

RE: Boeing -- revised draft response to state AGs

Notwithstanding that this case is about retaliation for striking in other states, they seem

Exemption 5

But, regardless of what theyre saying, Ellens

modification is definitely better.

From: Farrell, Ellen

Sent: Wednesday, May 04, 2011 12:07 PM

To: Kearney, Barry J.; Willen, Debra L; Sophir, Jayme; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: FW: Boeing -- revised draft response to state AGs

See my modification

Exemption 5

Ellen

Ellen Farrell

Deputy Associate General Counsel

Division of Advice, NLRB

202-273-3810

Ellen.Farrell@nlrb.gov

From: Sophir, Jayme

Sent: Wednesday, May 04, 2011 11:33 AM

To: Kearney, Barry J.; Farrell, Ellen; Szapiro, Miriam; Willen, Debra L

Cc: Dodds, Amy L.

Subject: FW: Boeing -- revised draft response to state AGs

Exemption 5

From: Willen, Debra L

Sent: Wednesday, May 04, 2011 10:58 AM

To: Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: Boeing -- revised draft response to state AGs

As Barry requested, I've incorporated his changes and am attaching the new version along with the AG's letter.

Jayme -- I have not addressed your concern -- please discuss it with Barry and let me know if what you all want me to

do.

Thanks, Deb

NLRB-FOIA-00012287

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:

Kearney, Barry J.

W ednesday, May 04, 2011 2:10 PM

Sophir, Jayme; Farrell, Ellen; W illen, Debra L; Szapiro, Miriam

Dodds, Amy L.

RE: Boeing -- revised draft response to state AGs

I agree with all the revisions. Please send me a clean draft along with the AG letter to send on to Lafe

From: Sophir, Jayme

Sent: Wednesday, May 04, 2011 12:18 PM

To: Farrell, Ellen; Kearney, Barry J.; Willen, Debra L; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: RE: Boeing -- revised draft response to state AGs

Notwithstanding that this case is about retaliation for striking in other states, they seem

Exemption 5

But, regardless of what theyre saying, Ellens

modification is definitely better.

From: Farrell, Ellen

Sent: Wednesday, May 04, 2011 12:07 PM

To: Kearney, Barry J.; Willen, Debra L; Sophir, Jayme; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: FW: Boeing -- revised draft response to state AGs

See my modification

Exemption 5

Ellen

Ellen Farrell

Deputy Associate General Counsel

Division of Advice, NLRB

202-273-3810

Ellen.Farrell@nlrb.gov

From: Sophir, Jayme

Sent: Wednesday, May 04, 2011 11:33 AM

To: Kearney, Barry J.; Farrell, Ellen; Szapiro, Miriam; Willen, Debra L

Cc: Dodds, Amy L.

Subject: FW: Boeing -- revised draft response to state AGs

Exemption 5

From: Willen, Debra L

Sent: Wednesday, May 04, 2011 10:58 AM

To: Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: Boeing -- revised draft response to state AGs

NLRB-FOIA-00012288

As Barry requested, I've incorporated his changes and am attaching the new version along with the AG's letter.

Jayme -- I have not addressed your concern -- please discuss it with Barry and let me know if what you all want me to

do.

Thanks, Deb

NLRB-FOIA-00012289

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:
Attachments:

W illen, Debra L

W ednesday, May 04, 2011 2:24 PM

Kearney, Barry J.; Sophir, Jayme; Farrell, Ellen; Szapiro, Miriam

Dodds, Amy L.

RE: Boeing -- revised draft response to state AGs

AGs letter.pdf; GC Response to State AG's.doc

clean draft and AGs' letter attached

From: Kearney, Barry J.

Sent: Wednesday, May 04, 2011 2:10 PM

To: Sophir, Jayme; Farrell, Ellen; Willen, Debra L; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: RE: Boeing -- revised draft response to state AGs

I agree with all the revisions. Please send me a clean draft along with the AG letter to send on to Lafe

From: Sophir, Jayme

Sent: Wednesday, May 04, 2011 12:18 PM

To: Farrell, Ellen; Kearney, Barry J.; Willen, Debra L; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: RE: Boeing -- revised draft response to state AGs

Notwithstanding that this case is about retaliation for striking in other states, they seem

Exemption 5

But, regardless of what theyre saying, Ellens

modification is definitely better.

From: Farrell, Ellen

Sent: Wednesday, May 04, 2011 12:07 PM

To: Kearney, Barry J.; Willen, Debra L; Sophir, Jayme; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: FW: Boeing -- revised draft response to state AGs

See my modification

Exemption 5

Ellen

Ellen Farrell

Deputy Associate General Counsel

Division of Advice, NLRB

202-273-3810

Ellen.Farrell@nlrb.gov

From: Sophir, Jayme

Sent: Wednesday, May 04, 2011 11:33 AM

To: Kearney, Barry J.; Farrell, Ellen; Szapiro, Miriam; Willen, Debra L

Cc: Dodds, Amy L.

Subject: FW: Boeing -- revised draft response to state AGs

NLRB-FOIA-00012290

Exemption 5

From: Willen, Debra L

Sent: Wednesday, May 04, 2011 10:58 AM

To: Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: Boeing -- revised draft response to state AGs

As Barry requested, I've incorporated his changes and am attaching the new version along with the AG's letter.

Jayme -- I have not addressed your concern -- please discuss it with Barry and let me know if what you all want me to

do.

Thanks, Deb

NLRB-FOIA-00012291

Exemption 5

NLRB-FOIA-00012292

Exemption 5

NLRB-FOIA-00012293

Exemption 5

NLRB-FOIA-00012294

ALANWILSON

ATTORNEY GENERAL

April 28, 2011

Lafe E. Solomon, Esquire

Acting General Counsel

National Labor Relations Board

1099 14 th Street, NW, Suite 8600

Washington, DC 20570

Dear Mr. Solomon:

As Attorneys General of our respective states, we call upon you, as Acting General

Counsel of the National Labor Relations Board (NLRB), to withdraw immediately the

complaint numbered 19-CA-32431 against Boeing. This complaint represents an assault upon the

constitutional right of free speech, and the ability of our states to create jobs and recruit industry.

Your ill-conceived retaliatory action seeks to destroy our citizens right to work. It is South

Carolina and Boeing today, but will be any of our states, with our right to work guarantees,

tomorrow.

The right to work, uninhibited by compulsory unionism, is a precious right and is

constitutionally enforceable through our states right to work laws. See Retail Clerks Intl v.

Schermerhorn, 375 U.S. 96 (1963). Such laws are designed to eliminate union affiliation as a

criterion for employment. However, the NLRB, through this single proceeding, attempts to

sound the death knell of the right to work. Additionally, this tenuous complaint will reverberate

throughout union and non-union states alike, as international companies will question the

wisdom of locating in a country where the federal government interferes in industry without

cause or justification.

Furthermore, this complaint disrupts, and may well eliminate, the production of Boeing

787 Dreamliners in South Carolina. In fact, Boeing has expanded its operations to meet product

demand in South Carolina, while adding new jobs in Washington State. The complaint charges

Boeing with the commission of an unfair labor practice, but appears to do so without legal and

factual foundation. This unparalleled and overreaching action seeks to drive a stake through the

heart of the free enterprise system. The statements of Boeing officials cited in your complaint are

the innocent exercise of the companys right of free speech. The Supreme Court long ago made

it clear that the NLRA does not limit, and the First Amendment protects, the employer's right to

express views on labor policies or problems. N.L.R.B. v. Va. Electric and Power, 314 US 469,

NLRB-FOIA-00012295

Hon. Lafe E. Solomon

April 27, 2011

Page 2

477 (1941). As the Court recently reiterated in Citizens United v. FEC, 130 S. Ct. 876, 899-90

(2010), a corporation is not a second class citizen in terms of First Amendment protection.

Our states are struggling to emerge from one of the worst economic collapses since the

Depression. Your complaint further impairs an economic recovery. Intrusion by the federal

bureaucracy on behalf of unions will not create a single new job or put one unemployed person

back to work.

The only justification for the NLRBs unprecedented retaliatory action is to aid union

survival. Your action seriously undermines our citizens right to work as well as their ability to

compete globally. Therefore, as Attorneys General, we will protect our citizens from union

bullying and federal coercion. We thus call upon you to cease this attack on our right to work,

our states economies, and our jobs.

We look forward to your immediate response.

Sincerely,

Alan Wilson

Attorney General

[Signatures continue next page]

Cc: Respective Congressional Delegations

NLRB-FOIA-00012296

Hon. Lafe E. Solomon

April 27, 2011

Page 3

Ken Cuccinelli

Attorney General
Commonwealth of Virginia

Jon C. Bruning

Attorney General
State of Nebraska

Greg Abbott

Attorney General

State of Texas

Samuel S. Olens
Attorney General
State of Georgia

E. Scott Pruitt
Attorney General
State of Oklahoma

Pam Bondi
Attorney General
State of Florida

Tom Horne

Attorney General

State of Arizona

Luther Strange

Attorney General

State of Alabama

NLRB-FOIA-00012297

Microsoft Outlook

From:
Sent:
To:
Subject:

Farrell, Ellen

W ednesday, May 04, 2011 2:24 PM

W illen, Debra L; Sophir, Jayme; Szapiro, Miriam

RE: Boeing -- revised draft response to state AGs

That was my take on it.

Ellen

Ellen Farrell

Deputy Associate General Counsel

Division of Advice, NLRB

202-273-3810

Ellen.Farrell@nlrb.gov

From: Willen, Debra L

Sent: Wednesday, May 04, 2011 2:18 PM

To: Sophir, Jayme; Farrell, Ellen; Szapiro, Miriam

Subject: RE: Boeing -- revised draft response to state AGs

I'm having difficulty here--

By clean draft , I take it that he means a draft that incorporates Ellen's revision of Jayme's change?

From: Kearney, Barry J.

Sent: Wednesday, May 04, 2011 2:10 PM

To: Sophir, Jayme; Farrell, Ellen; Willen, Debra L; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: RE: Boeing -- revised draft response to state AGs

I agree with all the revisions. Please send me a clean draft along with the AG letter to send on to Lafe

From: Sophir, Jayme

Sent: Wednesday, May 04, 2011 12:18 PM

To: Farrell, Ellen; Kearney, Barry J.; Willen, Debra L; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: RE: Boeing -- revised draft response to state AGs

Notwithstanding that this case is about retaliation for striking in other states, they seem

Exemption 5

But, regardless of what theyre saying, Ellens

modification is definitely better.

From: Farrell, Ellen

Sent: Wednesday, May 04, 2011 12:07 PM

To: Kearney, Barry J.; Willen, Debra L; Sophir, Jayme; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: FW: Boeing -- revised draft response to state AGs

NLRB-FOIA-00012298

See my modification

Exemption 5

Ellen

Ellen Farrell

Deputy Associate General Counsel

Division of Advice, NLRB

202-273-3810

Ellen.Farrell@nlrb.gov

From: Sophir, Jayme

Sent: Wednesday, May 04, 2011 11:33 AM

To: Kearney, Barry J.; Farrell, Ellen; Szapiro, Miriam; Willen, Debra L

Cc: Dodds, Amy L.

Subject: FW: Boeing -- revised draft response to state AGs

Exemption 5

From: Willen, Debra L

Sent: Wednesday, May 04, 2011 10:58 AM

To: Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: Boeing -- revised draft response to state AGs

As Barry requested, I've incorporated his changes and am attaching the new version along with the AG's letter.

Jayme -- I have not addressed your concern -- please discuss it with Barry and let me know if what you all want me to

do.

Thanks, Deb

NLRB-FOIA-00012299

Microsoft Outlook

From:
Sent:
To:
Subject:
Attachments:

Kearney, Barry J.

Thursday, May 05, 2011 1:25 PM

Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam; W illen, Debra L

FW : Boeing -- revised draft response to state AGs

AGs letter.pdf; GC Response to State AG's.doc

From: Mattina, Celeste J.

Sent: Thursday, May 05, 2011 12:07 PM

To: Schiff, Robert; Garza, Jose; Cleeland, Nancy; Abruzzo, Jennifer; Solomon, Lafe E.

Cc: Kearney, Barry J.

Subject: FW: Boeing -- revised draft response to state AGs

Barry and his people drafted a very good response. I made some minor edits; I

Exemption 5

From: Kearney, Barry J.

Sent: Wednesday, May 04, 2011 2:28 PM

To: Solomon, Lafe E.; Mattina, Celeste J.

Subject: FW: Boeing -- revised draft response to state AGs

Draft response from you to State AGs

From: Willen, Debra L

Sent: Wednesday, May 04, 2011 2:24 PM

To: Kearney, Barry J.; Sophir, Jayme; Farrell, Ellen; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: RE: Boeing -- revised draft response to state AGs

clean draft and AGs' letter attached

From: Kearney, Barry J.

Sent: Wednesday, May 04, 2011 2:10 PM

To: Sophir, Jayme; Farrell, Ellen; Willen, Debra L; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: RE: Boeing -- revised draft response to state AGs

I agree with all the revisions. Please send me a clean draft along with the AG letter to send on to Lafe

From: Sophir, Jayme

Sent: Wednesday, May 04, 2011 12:18 PM

To: Farrell, Ellen; Kearney, Barry J.; Willen, Debra L; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: RE: Boeing -- revised draft response to state AGs

NLRB-FOIA-00012300

Notwithstanding that this case is about retaliation for striking in other states, they seem

Exemption 5

But, regardless of what theyre saying, Ellens

modification is definitely better.

From: Farrell, Ellen

Sent: Wednesday, May 04, 2011 12:07 PM

To: Kearney, Barry J.; Willen, Debra L; Sophir, Jayme; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: FW: Boeing -- revised draft response to state AGs

See my modification

Exemption 5

Ellen

Ellen Farrell

Deputy Associate General Counsel

Division of Advice, NLRB

202-273-3810

Ellen.Farrell@nlrb.gov

From: Sophir, Jayme

Sent: Wednesday, May 04, 2011 11:33 AM

To: Kearney, Barry J.; Farrell, Ellen; Szapiro, Miriam; Willen, Debra L

Cc: Dodds, Amy L.

Subject: FW: Boeing -- revised draft response to state AGs

Exemption 5

From: Willen, Debra L

Sent: Wednesday, May 04, 2011 10:58 AM

To: Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: Boeing -- revised draft response to state AGs

As Barry requested, I've incorporated his changes and am attaching the new version along with the AG's letter.

Jayme -- I have not addressed your concern -- please discuss it with Barry and let me know if what you all want me to

do.

Thanks, Deb

NLRB-FOIA-00012301

Exemption 5

NLRB-FOIA-00012302

Exemption 5

NLRB-FOIA-00012303

Exemption 5

NLRB-FOIA-00012304

ALANWILSON

ATTORNEY GENERAL

April 28, 2011

Lafe E. Solomon, Esquire

Acting General Counsel

National Labor Relations Board

1099 14 th Street, NW, Suite 8600

Washington, DC 20570

Dear Mr. Solomon:

As Attorneys General of our respective states, we call upon you, as Acting General

Counsel of the National Labor Relations Board (NLRB), to withdraw immediately the

complaint numbered 19-CA-32431 against Boeing. This complaint represents an assault upon the

constitutional right of free speech, and the ability of our states to create jobs and recruit industry.

Your ill-conceived retaliatory action seeks to destroy our citizens right to work. It is South

Carolina and Boeing today, but will be any of our states, with our right to work guarantees,

tomorrow.

The right to work, uninhibited by compulsory unionism, is a precious right and is

constitutionally enforceable through our states right to work laws. See Retail Clerks Intl v.

Schermerhorn, 375 U.S. 96 (1963). Such laws are designed to eliminate union affiliation as a

criterion for employment. However, the NLRB, through this single proceeding, attempts to

sound the death knell of the right to work. Additionally, this tenuous complaint will reverberate

throughout union and non-union states alike, as international companies will question the

wisdom of locating in a country where the federal government interferes in industry without

cause or justification.

Furthermore, this complaint disrupts, and may well eliminate, the production of Boeing

787 Dreamliners in South Carolina. In fact, Boeing has expanded its operations to meet product

demand in South Carolina, while adding new jobs in Washington State. The complaint charges

Boeing with the commission of an unfair labor practice, but appears to do so without legal and

factual foundation. This unparalleled and overreaching action seeks to drive a stake through the

heart of the free enterprise system. The statements of Boeing officials cited in your complaint are

the innocent exercise of the companys right of free speech. The Supreme Court long ago made

it clear that the NLRA does not limit, and the First Amendment protects, the employer's right to

express views on labor policies or problems. N.L.R.B. v. Va. Electric and Power, 314 US 469,

NLRB-FOIA-00012305

Hon. Lafe E. Solomon

April 27, 2011

Page 2

477 (1941). As the Court recently reiterated in Citizens United v. FEC, 130 S. Ct. 876, 899-90

(2010), a corporation is not a second class citizen in terms of First Amendment protection.

Our states are struggling to emerge from one of the worst economic collapses since the

Depression. Your complaint further impairs an economic recovery. Intrusion by the federal

bureaucracy on behalf of unions will not create a single new job or put one unemployed person

back to work.

The only justification for the NLRBs unprecedented retaliatory action is to aid union

survival. Your action seriously undermines our citizens right to work as well as their ability to

compete globally. Therefore, as Attorneys General, we will protect our citizens from union

bullying and federal coercion. We thus call upon you to cease this attack on our right to work,

our states economies, and our jobs.

We look forward to your immediate response.

Sincerely,

Alan Wilson

Attorney General

[Signatures continue next page]

Cc: Respective Congressional Delegations

NLRB-FOIA-00012306

Hon. Lafe E. Solomon

April 27, 2011

Page 3

Ken Cuccinelli

Attorney General
Commonwealth of Virginia

Jon C. Bruning

Attorney General
State of Nebraska

Greg Abbott

Attorney General

State of Texas

Samuel S. Olens
Attorney General
State of Georgia

E. Scott Pruitt
Attorney General
State of Oklahoma

Pam Bondi
Attorney General
State of Florida

Tom Horne

Attorney General

State of Arizona

Luther Strange

Attorney General

State of Alabama

NLRB-FOIA-00012307

Microsoft Outlook

From:
Sent:
To:
Subject:
Attachments:

Szapiro, Miriam

Thursday, May 05, 2011 3:50 PM

Miriam - Szapiro

FW : Boeing -- revised draft response to state AGs

AGs letter.pdf; GC Response to State AG's.doc

Miriam Szapiro

Supervisory attorney

NLRB Division of Advice

202-273-0998

Miriam.Szapiro@nlrb.gov

From: Kearney, Barry J.

Sent: Thursday, May 05, 2011 1:25 PM

To: Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam; Willen, Debra L

Subject: FW: Boeing -- revised draft response to state AGs

From: Mattina, Celeste J.

Sent: Thursday, May 05, 2011 12:07 PM

To: Schiff, Robert; Garza, Jose; Cleeland, Nancy; Abruzzo, Jennifer; Solomon, Lafe E.

Cc: Kearney, Barry J.

Subject: FW: Boeing -- revised draft response to state AGs

Barry and his people drafted a very good response. I made some minor edits; I

Exemption 5

From: Kearney, Barry J.

Sent: Wednesday, May 04, 2011 2:28 PM

To: Solomon, Lafe E.; Mattina, Celeste J.

Subject: FW: Boeing -- revised draft response to state AGs

Draft response from you to State AGs

From: Willen, Debra L

Sent: Wednesday, May 04, 2011 2:24 PM

To: Kearney, Barry J.; Sophir, Jayme; Farrell, Ellen; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: RE: Boeing -- revised draft response to state AGs

clean draft and AGs' letter attached

From: Kearney, Barry J.

Sent: Wednesday, May 04, 2011 2:10 PM

To: Sophir, Jayme; Farrell, Ellen; Willen, Debra L; Szapiro, Miriam

NLRB-FOIA-00012308

Cc: Dodds, Amy L.

Subject: RE: Boeing -- revised draft response to state AGs

I agree with all the revisions. Please send me a clean draft along with the AG letter to send on to Lafe

From: Sophir, Jayme

Sent: Wednesday, May 04, 2011 12:18 PM

To: Farrell, Ellen; Kearney, Barry J.; Willen, Debra L; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: RE: Boeing -- revised draft response to state AGs

Notwithstanding that this case is about retaliation for striking in other states,

Exemption 5

But, regardless of what theyre saying, Ellens

modification is definitely better.

From: Farrell, Ellen

Sent: Wednesday, May 04, 2011 12:07 PM

To: Kearney, Barry J.; Willen, Debra L; Sophir, Jayme; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: FW: Boeing -- revised draft response to state AGs

See my modification

Exemption 5

Ellen

Ellen Farrell

Deputy Associate General Counsel

Division of Advice, NLRB

202-273-3810

Ellen.Farrell@nlrb.gov

From: Sophir, Jayme

Sent: Wednesday, May 04, 2011 11:33 AM

To: Kearney, Barry J.; Farrell, Ellen; Szapiro, Miriam; Willen, Debra L

Cc: Dodds, Amy L.

Subject: FW: Boeing -- revised draft response to state AGs

Exemption 5

From: Willen, Debra L

Sent: Wednesday, May 04, 2011 10:58 AM

To: Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: Boeing -- revised draft response to state AGs

As Barry requested, I've incorporated his changes and am attaching the new version along with the AG's letter.

Jayme -- I have not addressed your concern -- please discuss it with Barry and let me know if what you all want me to

do.

Thanks, Deb

NLRB-FOIA-00012309

Exemption 5

NLRB-FOIA-00012310

Exemption 5

NLRB-FOIA-00012311

Exemption 5

NLRB-FOIA-00012312

ALANWILSON

ATTORNEY GENERAL

April 28, 2011

Lafe E. Solomon, Esquire

Acting General Counsel

National Labor Relations Board

1099 14 th Street, NW, Suite 8600

Washington, DC 20570

Dear Mr. Solomon:

As Attorneys General of our respective states, we call upon you, as Acting General

Counsel of the National Labor Relations Board (NLRB), to withdraw immediately the

complaint numbered 19-CA-32431 against Boeing. This complaint represents an assault upon the

constitutional right of free speech, and the ability of our states to create jobs and recruit industry.

Your ill-conceived retaliatory action seeks to destroy our citizens right to work. It is South

Carolina and Boeing today, but will be any of our states, with our right to work guarantees,

tomorrow.

The right to work, uninhibited by compulsory unionism, is a precious right and is

constitutionally enforceable through our states right to work laws. See Retail Clerks Intl v.

Schermerhorn, 375 U.S. 96 (1963). Such laws are designed to eliminate union affiliation as a

criterion for employment. However, the NLRB, through this single proceeding, attempts to

sound the death knell of the right to work. Additionally, this tenuous complaint will reverberate

throughout union and non-union states alike, as international companies will question the

wisdom of locating in a country where the federal government interferes in industry without

cause or justification.

Furthermore, this complaint disrupts, and may well eliminate, the production of Boeing

787 Dreamliners in South Carolina. In fact, Boeing has expanded its operations to meet product

demand in South Carolina, while adding new jobs in Washington State. The complaint charges

Boeing with the commission of an unfair labor practice, but appears to do so without legal and

factual foundation. This unparalleled and overreaching action seeks to drive a stake through the

heart of the free enterprise system. The statements of Boeing officials cited in your complaint are

the innocent exercise of the companys right of free speech. The Supreme Court long ago made

it clear that the NLRA does not limit, and the First Amendment protects, the employer's right to

express views on labor policies or problems. N.L.R.B. v. Va. Electric and Power, 314 US 469,

NLRB-FOIA-00012313

Hon. Lafe E. Solomon

April 27, 2011

Page 2

477 (1941). As the Court recently reiterated in Citizens United v. FEC, 130 S. Ct. 876, 899-90

(2010), a corporation is not a second class citizen in terms of First Amendment protection.

Our states are struggling to emerge from one of the worst economic collapses since the

Depression. Your complaint further impairs an economic recovery. Intrusion by the federal

bureaucracy on behalf of unions will not create a single new job or put one unemployed person

back to work.

The only justification for the NLRBs unprecedented retaliatory action is to aid union

survival. Your action seriously undermines our citizens right to work as well as their ability to

compete globally. Therefore, as Attorneys General, we will protect our citizens from union

bullying and federal coercion. We thus call upon you to cease this attack on our right to work,

our states economies, and our jobs.

We look forward to your immediate response.

Sincerely,

Alan Wilson

Attorney General

[Signatures continue next page]

Cc: Respective Congressional Delegations

NLRB-FOIA-00012314

Hon. Lafe E. Solomon

April 27, 2011

Page 3

Ken Cuccinelli

Attorney General
Commonwealth of Virginia

Jon C. Bruning

Attorney General
State of Nebraska

Greg Abbott

Attorney General

State of Texas

Samuel S. Olens
Attorney General
State of Georgia

E. Scott Pruitt
Attorney General
State of Oklahoma

Pam Bondi
Attorney General
State of Florida

Tom Horne

Attorney General

State of Arizona

Luther Strange

Attorney General

State of Alabama

NLRB-FOIA-00012315

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:

Szapiro, Miriam

W ednesday, June 08, 2011 9:56 AM

W illen, Debra L

Kearney, Barry J.; Sophir, Jayme; Farrell, Ellen

RE: CBS evening news

This whole thing needs to be re-couched as W ashington state employees being screwed by Boeing because they chose

to strike; not the SC employees being screwed by the NLRB because Boeing was retaliating against the Union (thats

true; but it doesnt explain the underlying story). This story appeared balanced but its thrust was to pit the needs of

employees (SC) vs the rights of the (W ashington).

Tracking:

NLRB-FOIA-00012316

Recipient

Read

Willen, Debra L

Read: 6/8/2011 10:30 AM

Kearney, Barry J.

Read: 6/8/2011 10:07 AM

Sophir, Jayme

Read: 6/8/2011 11:48 AM

Farrell, Ellen

Read: 6/8/2011 10:03 AM

NLRB-FOIA-00012317

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:

Szapiro, Miriam

W ednesday, June 08, 2011 9:56 AM

W illen, Debra L

Kearney, Barry J.; Sophir, Jayme; Farrell, Ellen

RE: CBS evening news

Sorry left out a word

From: Szapiro, Miriam

Sent: Wednesday, June 08, 2011 9:56 AM

To: Willen, Debra L

Cc: Kearney, Barry J.; Sophir, Jayme; Farrell, Ellen

Subject: RE: CBS evening news

This whole thing needs to be re-couched as W ashington state employees being screwed by Boeing because they chose

to strike; not the SC employees being screwed by the NLRB because Boeing was retaliating against the Union (thats

true; but it doesnt explain the underlying story). This story appeared balanced but its thrust was to pit the needs of

employees (SC) vs the rights of the union

(W ashington).

Tracking:

NLRB-FOIA-00012318

Recipient

Read

Kearney, Barry J.

Read: 6/8/2011 10:07 AM

Sophir, Jayme

Farrell, Ellen

Read: 6/8/2011 10:03 AM

Willen, Debra L

Read: 6/8/2011 10:29 AM

NLRB-FOIA-00012319

Microsoft Outlook

From:

Todd, Dianne

Sent:

Thursday, April 22, 2010 6:56 PM

To:

Ahearn, Richard L.; Jablonski, Colleen G.

Subject:

Video - Boeing

Attachments:

2011237525_albaughvideo.html

From: Jude Bryan [mailto:bryan@workerlaw.com]

Sent: Tuesday, April 20, 2010 4:25 PM

To: Todd, Dianne

Cc: Carson Glickman-Flora

Subject: Case No. 19-CA-32431

Ms. Todd:

Attached is Seattle Times reporter Dominic Gates' video of his interview with Jim Albaugh. You'll need to scroll down to

get to the video.

Jude Bryan | Schwerin Campbell Barnard Iglitzin & Lavitt LLP | 206.285.2828 | www.workerlaw.com

This communication is intended for a specific recipient and may be protected by the attorney client and work-product privilege.

If you receive this message in error, please permanently delete it and notify the sender.

NLRB-FOIA-00012320

%XVLQHVV 7 HFKQRORJ \ _9 LGHR_$ QLQWHUYLHZ Z LWK%RHLQJ & ( 2 - LP $ OEDXJ KH[ WHQGHG 3 DJ HR I  

z
z

/ RZ 
J UDS K LF R UWH[ W
7 RGD\
VQHZ VLQGH[

7 KH6 HDWWOH7 LP HV& RP SDQ\


1: M
REV_1 : DXW
RV_1 : KRP HV_1 : VRXUFH_) UHH& ODVVLI LHGV_VHDWWOHWLP HVF R P

% XVLQHVV7 HFKQRORJ \

2 X UQHWZ R UN VLWHV
VHDWWOHWLP HVF R P _ $ GYDQFHG

z
z

+ RP H
/ RFDO
{ + RP H
{
{
{
{
{
{
{
{

( GX FDWLRQ
3 R OLWLF V
2 E LWX DULHV
6 S HF LDOUHS R UWV
& RUUHF WLRQV
7 UDI I LF
: HDWKHU

1 LFROH% URGHXU
- HUU\ / DUJ H
{ ' DQQ\ 
: HVW
QHDW
{ % HOOHY X H
{ , VVDT XDK
{ . LUNODQG
1 DWLRQ: RUOG
{ + RP H
{ 3 R OLWLF V
% XVLQHVV7 HFK
{ + RP H
{ %RHLQJ $ HURVSDFH
{ 0 LFURVRI W
{ 1 :
FRP SDQLHV
{ 3 HUVRQDOW
HFK QRORJ \
{ 5 H DOHVWDWH
{ 6 W
RFNP DUNHW
{

I LOH' & : 9 VFUDWFKWHP SHVDGEDWW& DFKH' LUGDWD6 WRUHBFDVHBB

       
NLRB-FOIA-00012321

%XVLQHVV 7 HFKQRORJ \ _9 LGHR_$ QLQWHUYLHZ Z LWK%RHLQJ & ( 2 - LP $ OEDXJ KH[ WHQGHG 3 DJ HR I  

% ULHU' XGOH\
5 HWDLO5 HS RUW
{ 6 RXQG
( FRQRP \
{ 6 XQGD\ 
%X] ]
6 S R UWV
{ + RP H
{ + LJ K
6 FKRRO
{ 0 DULQHUV
{ 6 HDKDZ NV
{ 6 RXQGHUV
) &
{ 6 WR UP
{ + XVNLHV
{ & RXJ DUV
{ 6 HDW
WOH8 QLY HUVLW\
{ & ROOHJ H
{ * RO
I
{ 2 O
\ P SLFV
{ 6 QRZ VS RUW
V
{ 2 W
K HUVS R UWV
{

{
{

) DQVKRS

6 WHY H. HOOH\


- HUU\ % UHZ HU
{ 6 LGHOLQH& K DW
WHU
( QWHUWDLQP HQW
{ + RP H
{ 5 HVW
DX UDQWV
{ 0 RYLHV
{ 0 XVLF
1 LJ KWOLI H
{ 7 K H$ UW
V
{ % RRNV
{ 7 9 OLVW
LQJ V
{ & DOOE R DUG
{

{
{
{
{

) LQGHY HQWV Y HQX HV


7 RGD\
VHY HQWV
6 X E P LWOLVWLQJ V

& RP LFV* DP HV
{ + RURVFRSHV
{ / RW
WHU\
/ LYLQJ
{ + RP H
{ ) RRG
: LQH
{ + RP H
* DUGHQ
{ 3 DFLI LF
1 : 0 DJ D] LQH
{ + HDOWK
{ :
LQH$ GYLVHU3 DXO* UHJ XWW
7 UDY HO
{

I LOH' & : 9 VFUDWFKWHP SHVDGEDWW& DFKH' LUGDWD6 WRUHBFDVHBB

       
NLRB-FOIA-00012322

%XVLQHVV 7 HFKQRORJ \ _9 LGHR_$ QLQWHUYLHZ Z LWK%RHLQJ & ( 2 - LP $ OEDXJ KH[ WHQGHG 3 DJ HR I  

{
{
{
{
{
{

+ RP H
6 HDWWOHJ X LGH
: DVKLQJ WRQJ XLGH
2 UHJ RQJ XLGH
% ULWLVK& ROXP ELDJ XLGH
7 UDY HOWR R OV

{
{

9 DF DWLR QUHQWDOV

7 UDYHO: LVH& DURO3 XFFL


5 LFN6 WHYHV
( XURSH
{ 7 UDLO
0 L[ 5 RQ- XGG
2 SLQLRQ
{ + RP H
{ / HW
WHUVWR WK H( G LWR U
{ 7 KH
' HP RFUDF\ 3 DSHUV
{

{
{

( G& HWHUD% ORJ

z
z
z

6 KRSSLQJ
- RE V
{ 6 HDUF K MR E OLVW
LQJ V
{ 3 RVW
DUHVX P H
{ & DUHHU& HQW
HU
{ 3 R VWDMR E
$ X WRV
{ 6 HDUF K DX W
R OLVWLQJ V
{ 5 HVHDUFK & HQW
HU
{ 6 HOODY HK LF OH
+ RP HV
{ 6 HDUFK
I RUQHZ KRP HV
{ 6 HDUF K DOOS UR S HUW
LHV
{ 2 SHQ
KRXVHV
{ 6 HOODS UR S HUW
\
5 HQ WDOV
{ 6 HDUF K DOOUHQ WDOV
{ 3 R VWDUH Q WDOOLVWLQ J
& ODVVLI LHGV
{ 3 R VWDOLVWLQ J

z
z

% X\ DGV
{ 2 QOLQHDGV
{ 1 HZ VSDSHU
DGV
{ & ODVVLI LHGDGV

4 X LF NOLQNV7 UDI I LF _0 RYLHV _5 HVWDX UDQWV _7 RGD\


VHY HQWV _9 LGHR _3 K RWRV _% ORJ V _) RUXP V _
1 HZ VSDSHUGHOLYHU\
& R QWDF WX V
2 ULJ LQDOO\ SXEOLVKHG0 DUFK     DW3 0 _3 DJ HP RGLI LHG0 DUFK     DW   3 0

I LOH' & : 9 VFUDWFKWHP SHVDGEDWW& DFKH' LUGDWD6 WRUHBFDVHBB

       
NLRB-FOIA-00012323

%XVLQHVV 7 HFKQRORJ \ _9 LGHR_$ QLQWHUYLHZ Z LWK%RHLQJ & ( 2 - LP $ OEDXJ KH[ WHQGHG 3 DJ HR I  

& RP P HQWV 

( 
P DLODUWLF OH

3 ULQ WY LHZ

6 K DUH

9 LGHR_$ QLQW
HUYLHZ Z LW
K%RHLQJ& ( 2 - LP 
$ OE DX J KH[ WHQGHGYHUVLRQ
- LP $ OEDXJ KWKH& KLHI ( [ HFXWLYH2 I I LFHURI % RHLQJ & RP P HUFLDO$ LUSODQHVWDONVZ LWK6 HDWWOH7 LP HV
DHURVS DFHUHS RUWHU' RP LQLF* DWHVDE RX WWK H' UHDP OLQHU& K DUOHVWRQDQGFRP S DQ\
VI X WX UHLQWK H3 X J HW
6 RX QGDUHD
- LP $ OEDXJ KWKH& KLHI ( [ HFXWLYH2 I I LFHURI % RHLQJ & RP P HUFLDO$ LUSODQHVWDONVZ LWK6 HDWWOH7 LP HV
DHURVS DFHUHS RUWHU' RP LQLF* DWHVDE RX WWK H' UHDP OLQHU& K DUOHVWRQDQGWK HFRP S DQ\
VI X WX UHLQWK H
3 X J HW6 RX QGDUHD: DWFK WK HLQWHUY LHZ E HORZ RUF OLF N K HUH WR VHHH[ F HUS WV

I LOH' & : 9 VFUDWFKWHP SHVDGEDWW& DFKH' LUGDWD6 WRUHBFDVHBB

       
NLRB-FOIA-00012324

%XVLQHVV 7 HFKQRORJ \ _9 LGHR_$ QLQWHUYLHZ Z LWK%RHLQJ & ( 2 - LP $ OEDXJ KH[ WHQGHG 3 DJ HR I  

I LOH' & : 9 VFUDWFKWHP SHVDGEDWW& DFKH' LUGDWD6 WRUHBFDVHBB

       
NLRB-FOIA-00012325

%XVLQHVV 7 HFKQRORJ \ _9 LGHR_$ QLQWHUYLHZ Z LWK%RHLQJ & ( 2 - LP $ OEDXJ KH[ WHQGHG 3 DJ HR I  

I LOH' & : 9 VFUDWFKWHP SHVDGEDWW& DFKH' LUGDWD6 WRUHBFDVHBB

       
NLRB-FOIA-00012326

%XVLQHVV 7 HFKQRORJ \ _9 LGHR_$ QLQWHUYLHZ Z LWK%RHLQJ & ( 2 - LP $ OEDXJ KH[ WHQGHG 3 DJ HR I  

( 
P DLODUWLF OH

3 ULQ WY LHZ

6 K DUH

0 RUH%XVLQHVV 7 HFKQRORJ \
( $ ' 6 VD\ VLWVWDQNHUE LGZ LOOE HDW% RHLQJ RQS ULFH
$ P D] RQ1 & E LGWRWUDFNWD[ HVY LRODWHVI UHHVS HHFK
3 DFFDUDQQRXQFHVLP SURYHG4 HDUQLQJ V
8 3' $ 7( 

3 0
$ SSOH4 LQFRP HXSSFWVKDUHVMXP SWRQHZ KLJ K
8 3' $ 7( 

3 0
* ROGP DQUHS RUWVK X J HS URI LWVE X WWURX E OHVP RX QW
0 RUH% XVLQHVV 7 HFKQRORJ \ KHDGOLQHV
& RP P HQW
V
1 RFRP P HQWVK DY HE HHQS RVWHGWRWK LVDUWLF OH
5 HDGDOOFRP P HQWV6 K DUH\ RX UWK RX J K WV

I LOH' & : 9 VFUDWFKWHP SHVDGEDWW& DFKH' LUGDWD6 WRUHBFDVHBB

       
NLRB-FOIA-00012327

%XVLQHVV 7 HFKQRORJ \ _9 LGHR_$ QLQWHUYLHZ Z LWK%RHLQJ & ( 2 - LP $ OEDXJ KH[ WHQGHG 3 DJ HR I  

* HWKRP HGHOLYHU\ WRGD\ 


9 LGHR

* OHH
I ODVKP RESHUI RUP DQFHV

% HOO\ GDQFLQJ I RUDFDX VH

/ LE HUW\ ) RX QGDWLRQ
V% 

7 KH/ LEHUW\ ) RXQGDWLRQ
WR X UVWK HF R X QWU\ Z LWK D
UHVWR UHG% R HLQJ % 

: : , , ERP EHU) OLJ KW
VDUH
DY DLODE OHWR WK HS X E OLF 

+ HDU$ OH[ / XSOD\ SLDQR

2 SHQLQJ GD\ DW


( P HUDOG' RZ QV

3 OD\ VWDWLRQ0 RYHGHP R

% DUHI RRW7 HG

$ QLP HI DQVDWWHQG6 DNX UD


& RQ

% HDFRQ+ LOO, QWHUQDWLRQDO6 FK RROODQJ X DJ HLP P HUVLRQ

0 DUFK) RXUWKSHUI RUP VDW+ RQN) HVW: HVW


0 RUHYLGHRV
$ GYH UWLVLQJ

$ 3 9 LGHR
( QWHUWDLQP HQW_7 RS9 LGHR_: RUOG_2 I I EHDW9 LGHR_6 FL
7 HFK
0 DUNHWS ODF H

0 R VWUHDG

I LOH' & : 9 VFUDWFKWHP SHVDGEDWW& DFKH' LUGDWD6 WRUHBFDVHBB

       
NLRB-FOIA-00012328

%XVLQHVV 7 HFKQRORJ \ _9 LGHR_$ QLQWHUYLHZ Z LWK%RHLQJ & ( 2 - LP $ OEDXJ KH[ WHQGHG 3 DJ HR I  

0 RVWFRP P HQWHG
0 R VWH
P DLOHG









) HORQDFFXVHGRI UXQQLQJ DQLP DO


VH[ I DUP LQ: KDW
FRP & RXQW
\
6 2 / ' WLQ\ WRZ QWR% RWK HOOFRX S OHI RU
+ LJ K F RX UWWRORRNDW& RVWFRVDOHRI 6 Z LVVZ DWFK HV
% HOOWRZ QK LJ K 
ULVHZ R Q
WE HLP S ORGHG
: LOO5 RVVLUXQDJ DLQVW0 XUUD\ " 2 WKHU6 HQDWHKRSHI XOVZ DQWWRNQRZ
* DUEDJ HI RXQGLQVWRP DFKRI GHDGZ KDOHRQ: HVW6 HDWWOHEHDFK
: KDW
VP RUHDP D] LQJ W
KHQHZ L3 KRQHRU$ SSOHORVLQJ RQH"  8 3 ' $ 7 ( ' Z LWKEDFNVWRU\ _% ULH U
' XGOH\
V%ORJ
  3 DQK DQGOLQJ E LOOS DVVHV
0 F* LQQY HWROLNHO\ WRK ROG_ 3 ROLWLF V1 RUWK Z HVW
  6 HDK DZ NV
OHI W
WDF NOHT X HVWLRQVX UI DF HVI RUGUDI W
   6 HDI DLUK \ GURS ODQHUDFHLQMHRS DUG\











* DP HWK UHDG0 DULQHUVY V2 ULROHV$ S ULO



& RX QFLOS RLVHGWRS DVVS DQK DQGOLQJ E LOO0 F* LQQVD\ VK H
OOY HWRQRP DWWHUZ K DW
0 RWK HUGHS RUWHGWR0 H[ LFR\ HDUVDJ RZ LQVFK DQFHWRUHWX UQ

7 K HWHD
SDUW\ P RYHP HQWP XFKDGRDERXWQRWYHU\ P XFK

5 HQWRQZ RP DQGLHVDI WHUE HLQJ VWUX FNE \ E LF\ FOLVW   
6 HDWWOHS DQK DQGOLQJ E LOOS DVVHVODF N VY R WHVWR R Y HUULGHP D\ R UDOY HWR

) RJ HUVRQVD\ VKH
VKDSS\ Z KHUHKHLV

& OLI I / HHVXVSHQVLRQDQGI LQHDUHGURSSHGFRP SOHWHO\

6 HDI DLUK \ GURS ODQHUDFHLQMHRS DUG\

* DUEDJ HLQVWRP DFKRI GHDGZ KDOH













) HORQDFFXVHGRI UXQQLQJ DQLP DO


VH[ I DUP LQ: KDW
FRP & RXQW
\
6 2 / ' WLQ\ WRZ QWR% RWK HOOFRX S OHI RU
& KDWHDX6 WH0 LFKHOOHDQQRXQFHVVXP P HUFRQFHUWVFKHGXOH
, UDQLDQFOHULF3 URP LVFXRXVZ RP HQFDXVHT XDNHV
* DUEDJ HI RXQGLQVWRP DFKRI GHDGZ KDOHRQ: HVW6 HDWWOHEHDFK
( GX FDWLQJ FUHDWLY HWK LQNHUVLVJ RRGI RUWK HHFRQRP \ _* XHVWFROXP QLVW
% HOOWRZ QK LJ K 
ULVHZ R Q
WE HLP S ORGHG
5 HGP RQG+ LJ KHQYLURQP HQWDO
VFLHQFHWHDFKHUZ LQV* UHHQ3 UL] H
0 DX L
VK LJ K OLI H
( [ S HQVLY HWLF NHWNHHS VUHVWRUHG) O\ LQJ ) RUWUHVVLQWK HDLU



0 RVWYLHZ HGLP DJ HV
$

6 LWHP DS








2 X UQHWZ R UN VLWHV

I LOH' & : 9 VFUDWFKWHP SHVDGEDWW& DFKH' LUGDWD6 WRUHBFDVHBB

       
NLRB-FOIA-00012329

%XVLQHVV 7 HFKQRORJ \ _9 LGHR_$ QLQWHUYLHZ Z LWK%RHLQJ & ( 2 - LP $ OEDXJ KH[ WHQGH 3 DJ H  R I  








VHDWWOHWLP HVF R P _$ GYDQFHG

7 KH6 HDWWOH7 LP HV& RP SDQ\

z
z
z
z
z

$ ERXWWKHFRP SDQ\
( P SOR\ P HQWRSSRUWXQLWLHV
6 HDWWOH7 LP HVVWR UH
$ GY HUWLVHZ LWK X V
1 HZ VSDSHUVLQ( GXFDWLRQ

6 HUYLFHV

z
z
z
z
z
z

< RX UDFFRX QW/ RJ LQ


(
P DLOQHZ VOHWWHUV
& R QWDF WX V
) HHGEDFNDQGT XHVWLRQV
6 X E P LWOLVWLQJ V
6 HQGX VQHZ VWLS V

1 HZ V

z
z
z
z
z
z
z
z
z
z
z

+ RP H
/ RFDO
1 DWLRQ: RUOG
% XVLQHVV7 HFK
( QWHUWDLQP HQW
/ LYLQJ
7 UDY HO
6 S R UWV
2 SLQLRQ
( [ WUDV
7 RGD\
VQHZ VLQGH[

0 DUNHWS ODFH

z
z
z
z
z
z
z
z
z

- RE V
$ X WRV
+ RP HV
5 HQ WDOV
& ODVVLI LHGV
6 KRSSLQJ
1 : VRXUFH
3 HUVRQDOV
3 R VWDQ DG

* HWWLQJ < RXU1 HZ VSDSHU

z
z
z

+ RP HGHOLYHU\
7 HP SRUDU\ VWRSV
6 X E VFULE HUVHUY LFHV

I LOH' & : 9 VFUDWFKWHP SHVDGEDWW& DFKH' LUGDWD6 WRUHBFDVHBB

       
NLRB-FOIA-00012330

%XVLQHVV 7 HFKQRORJ \ _9 LGHR_$ QLQWHUYLHZ Z LWK%RHLQJ & ( 2 - LP $ OEDXJ KH[ WHQGH 3 DJ H  R I  

2 WK HUHG LWLRQ V

z
z
z
z
z
z

1 HZ VE\ H
P DLO
0 RELOH
5 6 6 I HHGV
H
( GLWLR Q
/ RZ 
J UDS K LF
7 Z LWWHU

0 DOZ DUHDWWDFNVDUHDJ URZ LQJ S URE OHP RQDOO: HE VLWHV5 HDGP RUHDE R X WZ K DWWR GR LI \ R X VHH
VRP HWKLQJ VXVSLFLRXV

3 ULY DF\ VWDWHP HQW_7 HUP VRI VHUYLFH


& RS\ ULJ KW     7 KH6 HDWWOH7 LP HV& RP SDQ\

I LOH' & : 9 VFUDWFKWHP SHVDGEDWW& DFKH' LUGDWD6 WRUHBFDVHBB

       
NLRB-FOIA-00012331

Microsoft Outlook

From:
Sent:
To:
Subject:

Todd, Dianne

Monday, May 24, 2010 3:21 PM

Ahearn, Richard L.; Jablonski, Colleen G.

Subpoena request for Boeing video

Rich, the manual states that the request should go to the Division of Advice and the Special Litigation

Branch. Thanks, Dianne

This Region is currently investigating charge 19-CA-32431 filed by the IAM&AW against The Boeing

Company. As part of the investigation, the assigned Board Agent is seeking a video tape from the

Seattle Times newspaper. As CHM 11770.4 requires clearance from Headquarters prior to the

issuance of an investigative subpoena where the subpoena seeks evidence from a member of the

press to elicit testimony relating to information gained in his or her professional capacity or requiring

the production of materials secured as a result of news gathering activities, I am submitting this

request.

The Employer, a manufacturer of airplanes, announced in October 2009 that it would be placing a

second assembly line for the 787 Dreamliner in South Carolina at its non-union facility instead of at its

union-represented facility in Everett, Washington where the first assembly line is located. The charge

alleges, among other items, that the Employer placed the second line in South Carolina in retaliation

for the unit employees engaging in strikes in 2008 and prior years.

In March 2010, a local reporter for the Seattle Times newspaper video-taped his interview with Jim

Albaugh, CEO of Boeing Commercial Airplanes. In that three-part interview, Mr. Albaugh states

Boeings reasons for placing the second line in South Carolina labor strife and increased wages.

Thus, the Region seeks possession of the video as it contains direct statements from a Boeing

official regarding Boeings reasons for placing the second line in S. Carolina.

We requested the video from the Seattle Times, but the following restrictions were placed on the use

of the video.

Purchase of video does not transfer copyright and is for personal use only.

No model or property release exists.

Only Seattle Times staff produced video is for purchase.

Videos are digital format, burned on a DVD at least 640 resolution or more.

No posting online, website or use in blogs.

Video is intended for editorial use and not to be used for promotion or advertisement.

Video is provided to you as is for your personal use only and may not be copied, reproduced, distributed. broadcast, displayed, sold, licensed or otherwise

exploited for any other purpose whatsoever.

If you are interested in licensing video content for commercial use, please contact us at eedens@seattletimes.com.

As such, we wish to subpoena the video tape in order to not be limited by the newspapers use

restrictions.

NLRB-FOIA-00012332

Microsoft Outlook

From:
Sent:
To:
Subject:

Todd, Dianne

Thursday, August 05, 2010 2:10 PM

David Campbell

Boeing position statements

Dave,

Just for clarification, are you submitting a position statement on an inherently destructive theory? I

think you said that one is coming, I just wanted to check when you were sending it.

Thanks,

Dianne Todd

Board Agent

NLRB, Region 19

Ph:

206-220-6319

Fax: 206-220-6305

NLRB-FOIA-00012333

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:

Todd, Dianne

Monday, August 23, 2010 1:33 PM

'David Campbell'

Carson Glickman-Flora; Jude Bryan

RE: Position Statements

The Director wished for me to inform you that any information submitted no later than Wednesday will

be considered prior to sending this case to the Division of Advice.

Thank you,

Dianne

From: David Campbell [mailto:campbell@workerlaw.com]

Sent: Monday, August 23, 2010 10:07 AM

To: Todd, Dianne; Ahearn, Richard L.

Cc: Carson Glickman-Flora; Jude Bryan

Subject: Position Statements

Director Ahearn and Ms. Todd, Thank you again for the opportunity to discuss this case last Wednesday. Since then I

have been working on position statements regarding 8(C) issues, and a statement regarding other defenses Boeing is

apparently raising. I am hoping that these can be considered before this case goes to Advice. I can definitely provide

them by Wednesday, but will provide them sooner if needed. Thank you for your consideration of this request.

Thanks, Dave

Sincerely, David Campbell

campbell@workerlaw.com

Schwerin Campbell Barnard Iglitzin & Lavitt

18 W Mercer Suite 400

Seattle, W ashington 98119-3971

Phone (206)285-2828: FAX (206)378-4132

This communication is protected by the attorney client and attorney work-product privileges. Please do not copy, forward

or append.

NLRB-FOIA-00012334

Microsoft Outlook

From:

Todd, Dianne

Sent:

Monday, August 30, 2010 1:13 PM

To:

Pomerantz, Anne

Subject:

Revised Proposed Orders - Boeing

Attachments:

ADV.19-CA-32431.Boeing Proposed Order .doc

Anne,

Here are the revisions to the proposed orders.

Thanks

Dianne

NLRB-FOIA-00012335

Exemption 5

NLRB-FOIA-00012336

Exemption 5

NLRB-FOIA-00012337

Exemption 5

NLRB-FOIA-00012338

Microsoft Outlook

From:
Sent:
To:
Subject:

Pomerantz, Anne

Tuesday, August 31, 2010 5:48 PM

Todd, Dianne

intro

Exemption 5

Anne P. Pomerantz

Regional Attorney | National Labor Relations Board | Region 19

2948 Jackson Federal Building, 915 Second Ave., Seattle, WA 98174

anne.pomerantz@nlrb.gov | (206) 220-6311 | (206) 220-6305

Please consider the environment before printing this email

NLRB-FOIA-00012339

Microsoft Outlook

From:
Sent:
To:
Subject:

Todd, Dianne

Tuesday, August 31, 2010 5:50 PM

Pomerantz, Anne

RE: intro

Thanks Anne Ill have it done in a second.

From: Pomerantz, Anne

Sent: Tuesday, August 31, 2010 2:48 PM

To: Todd, Dianne

Subject: intro

Exemption 5

Anne P. Pomerantz

Regional Attorney | National Labor Relations Board | Region 19

2948 Jackson Federal Building, 915 Second Ave., Seattle, WA 98174

anne.pomerantz@nlrb.gov | (206) 220-6311 | (206) 220-6305

Please consider the environment before printing this email

NLRB-FOIA-00012340

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:

Todd, Dianne

Thursday, November 18, 2010 1:04 PM

Ahearn, Richard L.

Jablonski, Colleen G.

RE: Boeing, 19-CA-32431 - follow-up request

Rich,

Just an FYI - Dave Campbell informed me that they are gathering new information that the facility in

S. Carolina will not be up and running for several years contrary to what has been indicated in the

papers. Although he hoped to get this information to us by Friday, it is taking longer than expected.

Thus, he will be providing this information as well as responses to the questions below early next

week.

Dianne

From: David Campbell [mailto:campbell@workerlaw.com]

Sent: Thursday, November 18, 2010 9:26 AM

To: Todd, Dianne

Cc: Carson Glickman-Flora

Subject: RE: Boeing, 19-CA-32431 - follow-up request

Diane, Per the phone message I left you we are assembling this information, as well as more information regarding South

Carolina, but need more time. Please call me on my cell if this is a problem. Thanks, Dave C

E.6 Privacy

Thanks, Dave

Sincerely,E...
David Campbell

campbell@workerlaw.com

Schwerin Campbell Barnard Iglitzin & Lavitt

18 W Mercer Suite 400

Seattle, W ashington 98119-3971

Phone (206)285-2828: FAX (206)378-4132

This communication is protected by the attorney client and attorney work-product privileges. Please do not copy, forward

or append.

From: Todd, Dianne [mailto:Dianne.Todd@nlrb.gov]

Sent: Tue 11/16/2010 10:21 AM

To: David Campbell

Subject: Boeing, 19-CA-32431 - follow-up request

Dave,

Here is the list of information that we are requesting. Please let me know if you will not be able to

provide the information by Friday.

1. Historically, how many employees have there been in the unit at issue for the past 20-30

years?

2. How many employees total are there currently in the unit?

NLRB-FOIA-00012341

3. I understand from prior information submitted by the Union that there are currently 2610 unit

employees on the 787 assembly line in Everett. Does the Union have any further information

on how many employees would need to work on the current assembly line and on the surge

line once the lines are fully running?

4. How many of the current unit employees are in layoff status? How many of those would be

qualified to work on the assembly lines?

5. What is currently being done on the 787 assembly line?

6. Once the 787 assembly line and the surge lines are fully producing planes, what is the Unions

understanding as to how the lines would be staffed? Would employees be recalled from lay off

status? Would working unit employees be pulled from other areas? If so, what happens to the

area from which the employees were pulled? In essence, we are trying to understand how

employees can be moved around from one area to another if employees are already working

full-time. Is it possible or would Boeing have to hire new employees into the unit?

7. Has it occurred in the past where unit employees are pulled from one line to work on another?

How has this been done?

Thanks,

Dianne Todd

Board Agent

NLRB, Region 19

Ph:

206-220-6319

Fax: 206-220-6305

NLRB-FOIA-00012342

Microsoft Outlook

From:

Ahearn, Richard L.

Sent:

Thursday, January 20, 2011 3:31 PM

To:

Todd, Dianne

Subject:

Re: Boeing Document

Thx. If we decide to issue, let's see if U can get the actual e mails.

-------------------------Sent from my BlackBerry Wireless Handheld

From: Todd, Dianne

To: Ahearn, Richard L.

Sent: Thu Jan 20 15:22:06 2011

Subject: Boeing Document

Rich,

I have looked through the file and do not believe that we have emails from 2008. As far as I can see,

we only have the emails and memos issued after the placement decision was made in October 2009.

Sorry.

Dianne

NLRB-FOIA-00012343

Microsoft Outlook

Non-Responsive

From: Estep, Susan C.

Sent: Thursday, April 14, 2011 11:09 AM

To: Ahearn, Richard L.; Pomerantz, Anne; Kobe, James; Jablonski, Colleen G.; Todd, Dianne; Perkins, Victoria

Subject: The Boeing Company, 19-CA-32431

See attached Advice decision.

Susan C. Estep, Secretary to the Regional Director

NLRB, Region 19, Seattle

206.220.6333; FAX 206. 220.6305

NLRB-FOIA-00012344

United States Government

National Labor Relations Board

OFFICE OF THE GENERAL COUNSEL

Advice Memorandum

DATE:

April 11, 2011

S.A.M.

TO:

Richard L. Ahearn, Regional Director

Region 19

FROM:

Barry J. Kearney, Associate General Counsel

Division of Advice

SUBJECT:

The Boeing Company


Case 19-CA-32431

512-5006-5062
512-5006-5067
512-5036-8387
512-5036-8389
524-0167-1033
524-5029-5037
524-0167-1033
524-506

524-8307-1600

524-8307-5300

530-6050-0825-3300

530-6067-4011-4200

530-6067-4011-4600

530-6067-4011-7700

530-8054-7000

775-8731

The Region submitted this case for advice on several

issues relating to the Employers decision to place a second

assembly line at a nonunion facility rather than at the

facility where unit employees work on the original assembly

line.
Specifically the Region requested advice as to whether:

(1) the Employer violated Section 8(a)(1) by threatening to

place the second assembly line at a nonunion facility unless

the Union agreed to a long-term no-strike clause and by

repeatedly stating that its decision to place the second line

elsewhere was based on the units strike history; (2) the

Employer violated Section 8(a)(3) by deciding to place the

second assembly line at a nonunion facility because of the

units strike history, even though no unit employees have yet

to lose their jobs; and (3) the Employer violated Section

8(a)(5) by failing to bargain in good faith over its decision

about where to locate the second assembly line or whether the

Union waived its right to bargain under the parties

collective-bargaining agreement.

We conclude that the Region should issue a complaint

alleging: independent Section 8(a)(1) violations based on the

Employers coercive and threatening statements; and a Section

8(a)(3) violation based on the Employers decision to locate

the second line at a nonunion facility and to establish a

dual-sourcing supply program in retaliation for protected

activity.
However, the Region should dismiss the Section

8(a)(5) allegations because under the contract, the Union

expressly waived its right to bargain about the Employers

decision to offload unit work to a facility not covered by

the agreement.
To remedy the chilling effect of Boeings

Section 8(a)(1) statements, the Region should request, in

addition to the traditional remedies,


a notice reading by a

NLRB-FOIA-00012345

Case 19-CA-32431

- 2 -

high-level Boeing official.


To remedy the Section 8(a)(3)

violation, the Region should seek an order that would require

Boeing to maintain the surge line in the Puget Sound area.

Specifically, Boeing intended for the second line to assemble

three aircraft each month in South Carolina, while assembling

seven planes on the first line.


Thus, the Region should seek

an order requiring Boeing to assemble in the Puget Sound area

the first ten 787 aircraft that it produces each month and to

maintain the supply lines for those aircraft where they

currently exist, in the Puget Sound and Portland facilities.

FACTS

The Boeing Company is an international corporation

engaged primarily in developing and producing military and

commercial aircraft. Boeing has a long-established collective-

bargaining relationship with the International Association of

Machinists and Aerospace Workers (IAM) and certain IAM

District and Local Lodges.


The parties current collective-

bargaining agreement is effective November 2, 2008 through

September 8, 2012 and covers three separate bargaining units

of production and maintenance employees in three geographical

areas, the Puget Sound area in Washington; Portland, Oregon;

and Wichita, Kansas.

Section 21.7 of that agreement, entitled

Subcontracting, sets forth various notice periods and an

opportunity for the Union to review and recommend alternatives

to Boeing proposals to subcontract or offload unit work.

[O]ffloading work is defined as moving work from one

Company facility to another Company facility not covered by

this Agreement[.]
Less stringent notice requirements apply

to subcontracting and offloading decisions affecting less than

ten employees.
In addition, the notice and review process

does not cover certain work transfers listed in subsections

(a) through (d), including [d]ecisions to subcontract or

offload work due to lack of capability or capacity, or to

prevent production schedule slippage[.]


Section 21.7

concludes with the following language:

Anything in this Section 21.7 to the contrary

notwithstanding, it is agreed that ... the Company has

the right to subcontract and offload work, to make and

carry out decisions in (a) through (d) above, to enter

offsets and offset arrangements, and to designate the

work to be performed by the Company and the places where

it is to be performed, which rights shall not be subject

to arbitration. ...

NLRB-FOIA-00012346

Case 19-CA-32431

- 3 -

Boeing Introduces the 787 Dreamliner

The Puget Sound unit is comprised of approximately 18,000

employees working in Washington.


Historically these employees

have performed the final assembly of all Boeing planes.


In

late 2003, Boeing announced that it would place the assembly

line for its new 787 Dreamliner airplane in Everett,

Washington after the Washington State Legislature passed a tax

and subsidy incentive package totaling more than $3.2 billion.

That line opened in May 2007, with the capacity for producing

seven planes each month.

With the 787, Boeing departed from its previous practice

of manufacturing most of the aircraft parts with its own

employees and instead outsourced parts production to other

suppliers in the southeast U.S. and abroad.


For example,

Boeing contracted with Vought Aircraft Industries in North

Charleston, South Carolina for the manufacture of the aft

fuselage and with Mitsubishi Heavy Industries in Japan for the

manufacture of the wings.


Boeing repeatedly has had to

postpone the delivery dates for the aircraft, due primarily to

problems with suppliers and software issues.

Starting in mid 2008, the media began reporting that

Boeing would need to add a second 787 assembly line because of

its growing order backlog.


At about the same time, Boeing

entered negotiations with the Union for a successor

collective-bargaining agreement.
During those negotiations,

Company officials noted the need for a second assembly line

but did not discuss the matter further.

The 2008 Strike and Its Aftermath

On September 6, 2008, the employees struck in support of

the Unions bargaining position.


On October 6, 2008, Boeings

stock dropped to a four-year low.


That same day, CEO Jim

McNerney sent a long e-mail to Boeing employees about the

strike.
McNerney stated that he understood and shared the

frustration so many of you feel when we dont have the whole

team together working to meet the commitments weve made to

our customers and competing to win the new business that will

sustain and grow Boeing jobs[.]


McNerney went on to state,

[t]he issue of competitiveness as it relates to this strike

is a big deal[.]
He also tied labor disputes to problems

with Boeings customer relationships.


After asserting that

the Union had recommended that its members reject contract

offers and go on strike four of the last five negotiations

going back to 1995, he wrote, we believe this track record of

repeated union work stoppages is earning us a reputation as an

NLRB-FOIA-00012347

Case 19-CA-32431

- 4 -

unreliable supplier to our customers who ultimately provide

job security by buying our airplanes.1

The following day, Boeings Vice President for Government

and Community Relations Fred Kiga spoke at an aerospace

conference in Everett.
In a Seattle Times article, he was

quoted as stating, We cant afford to become known as the

strike zone[.]
He reportedly also told the conference that

labor unrest could drive Boeings decision on where to build

planes in the future.


In an interview after his speech, Kiga

reportedly stated that his strike zone comments had been

cleared by Boeing Commercial Airplanes CEO Scott Carson.


Kiga

noted that he and Carson grew up in and shared a love for the

Northwest; Kiga then said that they would hate to lose a

treasure like Boeing.

The strike lasted 57 days and ended on November 1, 2008,

when the parties signed the current contract. During the

negotiations, the Union had proposed to amend Section 21.7 to,

among other things, eliminate the waiver language quoted

above.
Boeing refused to agree to such an amendment, and the

language remained in the contract.

In early 2009,2 the media again began publishing reports

that Boeing needed to establish a second 787 assembly line.

On February 9, the Seattle Times reported that Washington

Senator Patty Murray had met with Boeings Senior Vice

President of Government Operations; he had informed her that

the CEO was sick and tired of the unions strikes and was

looking to put the second 787 line elsewhere.

On April 16, Boeing and IAM officials held their annual

summit in Chicago.
Management officials attending included

CEO McNerney, Boeing Commercial Airplanes CEO Carson,

Integrated Defense Systems CEO Jim Albaugh, and for the first

time, Vice President and General Manager of Supply Chain

Management & Operations Ray Conner.


IAM representatives

included International President Tom Buffenbarger, General

Vice President Rich Michalski, and the Directing Business

Representatives who represented Boeing employees, including

District 751 DBR Tom Wroblewski.


This was the first

opportunity for the parties to meet since the strike had

ended.
McNerney and Buffenbarger were the lead speakers.

McNerney stated that Boeings customers were losing confidence

1 In his
that the
occurred
1989 (48
2

e-mail, CEO McNerney exaggerated the number of times

Union had struck.


In actuality, prior strikes

in 1948 (140 days), 1965 (19 days), 1977 (45 days),

days), 1995 (69 days), and 2005 (28 days).

Dates are in 2009 unless otherwise noted.

NLRB-FOIA-00012348

Case 19-CA-32431

- 5 -

in the Company because of past strikes and the possibility of

future strikes.
He said that the parties had to come up with

a way to stop having labor disputes.


The general theme was

that management and labor should continue to meet to find ways

to avoid the problems of the past.

As a follow-up to this summit, Wroblewski and IAM

Aerospace Coordinator Mark Blondin met on June 23 in Seattle

with Conner and Boeings Vice President of Human Resources

Doug Kight.
The parties focused on how to build a better

relationship and improve communication. While Wroblewski had

an established relationship with Kight, Conner was new to

labor relations.
Wroblewski thought that one of the purposes

of the meeting was to get to know Conner.


At a subsequent

meeting on June 30 between Wroblewski and Conner, Conner

expressed Boeings concern that its customers did not have

confidence it could make timely deliveries because it had

experienced two strikes in the last five years and had

supplier issues.
For the first time, Conner raised the

prospect of a long-term collective-bargaining agreement as a

way to gain the customers confidence that they would get

their aircraft on time.

In early July, Boeing announced its intent to purchase

the Vought plant in North Charleston, South Carolina.


IAM

Local Lodge 183 represented the Vought production,

maintenance, and quality employees.


Boeing agreed to

recognize the Union but wanted to negotiate a new collective-

bargaining agreement.

On July 8, the Seattle Times reported that Boeings CEO

had informed Washington Congressmen Norm Dicks and Jay Inslee

that as a result of past strikes, the Company would place the

second line outside the Puget Sound area unless it could reach

a long-term contract with the Union. Boeing told the

Congressmen that South Carolina was the main competitor.

Wroblewski, Blondin, Kight, and Conner met again twice in

July, on July 7 and July 23.


At each of these meetings,

Conner and Kight emphasized that strikes had to stop for

Boeing to be viable.
They stated that Boeing needed a long-

term agreement with no-strike language to satisfy their

customers.
At this point, Boeing was two years behind

schedule and had approximately 850 787 planes on back order as

a result of supplier and software problems.

Then, on July 30, the same date that Boeing announced

that it had purchased Voughts plant, a South Carolina

employee filed a decertification petition.


During August,

Boeing denied the Union access to the employees in the North

Charleston plant and wrote a memorandum to the employees

stating that it preferred to deal with employees directly

NLRB-FOIA-00012349

Case 19-CA-32431

- 6 -

without intermediaries.3
Boeing also issued a FAQ document

to the employees stating that the mass layoffs that took place

at the Vought plant in late 2008 were due to the unique

situation created by the Everett strike.


Meanwhile, the

South Carolina press was reporting that a decertification

decision could influence where Boeing located the second 787

assembly line.
For example, The Post and the Courier reported

that South Carolinas low unionization rate is viewed as an

advantage in the 787 chase[.]


An article in the Charleston

Business Journal asserted that Charleston might be a better

choice in the event of decertification because of its

potentially tamer work force instead of the Washington

workers with a history of walk[ing] off the job.

On August 26, Boeing e-mailed its managers and human

resource professionals that it had notified South Carolina

that it intended to file permits for the construction of a

second 787 line but that it had not yet made a decision as to

where to locate the second line.


The following day, Boeing

and Union officials met in Portland to discuss the prospect of

a long-term agreement.
Carson informed the Union that the

only way Boeing would place the second line in Washington was

if the Union agreed to a twenty-year no-strike agreement.

Boeing suggested a series of three-year agreements with an

overarching twenty-year no-strike pledge until 2032 and

binding interest arbitration if no agreement was reached at

the end of each of the three-year contracts.


The Union said

that this was not possible, but the Union would consider a

longer agreement than the current four-year contract in return

for some sort of neutrality agreement.


At the end of the

meeting, the parties agreed to schedule negotiations for a

long-term agreement.

Meanwhile, the decertification election in South Carolina

was scheduled for September 10.


In reporting on Boeings

permit filings in South Carolina, the Puget Sound Business

Journal characterized this vote as [a] wild card in Boeings

decision about where to locate the second line.


On September

2, Kight presented an hour-long video on Boeings website

(later quoted in a September 29 article in the Seattle Times).

In regard to the second line, he stated:

What do you do with the 787 second line so that we can

build up to rate and meet our commitment to customers?

... Theres a lot of issues to look at, a lot being

studied, no decision has been made.


But truthfully, it

is very clear that this triennial disruption, our

The Union filed a Section 8(a)(5) charge alleging that

Boeing unilaterally changed its access rules but withdrew the

charge following the election.

NLRB-FOIA-00012350

Case 19-CA-32431

- 7 -

customers cant live with it anymore.


So weve become an

unreliable supplier....
So we look at how do we become a

reliable supplier.
How do we ensure production

continuity so that we can meet our commitments to our

customers in a timely way and thats what were trying to

do.

The Union lost the election in South Carolina eight days later

and was decertified on September 18.

As a follow-up to the parties August 27 meeting in

Portland, CEO McNerney wrote to IAM International President

Buffenbarger on September 21 that Boeing planned to make a

decision on the second lines location by the end of October

and wanted the Unions input within the next three to four

weeks.
He stated, I look forward to our respective teams

engaging in fruitful dialog.


Two days later, Boeing filed an

application for a storm water permit with the City of North

Charleston and an overall site plan with the State of South

Carolina.
On October 1, Boeing applied to North Charleston

for a site clearing permit.

The Parties Meet over a Long-Term Agreement

The parties opened negotiations for a long-term agreement

on October 1.
At the start of negotiations, Boeing explained

that placement of the second line in Washington depended on a

long-term agreement to insure no further disruptions in

deliveries to customers.
The Union responded that in exchange

for giving up the right to strike, the parties would need to

resolve economic issues for the long term rather than through

interest arbitration every three years.

The parties met again on October 7, 8, and 15.


The Union

maintains that Boeing never submitted a written proposal or

counter-proposal, that it was in the dark as to what Boeing

wanted, and that in effect it was negotiating against itself.

For example, with respect to the length of the agreement, at

various points Boeing requested a contract ending in 2020 or

2022 but at other times, demanded a twenty-year agreement.


In

terms of wages, Boeing wanted to reduce general wage increases

and move toward a profit-sharing incentive program.


The Union

was not adverse to this concept but requested information to

insure that Boeings measures of productivity were tied to

employee performance and not events beyond the employees

control.
At one point, Boeing stated that the general wage

increase and COLA could not exceed 3.5%.


When a Union

negotiator asked what would happen if the cost of living

increased more than 3.5%, Boeing responded that employees

would get more.


On October 15, for the first time, Boeing

said that it wanted a lower wage structure for new hires and a

NLRB-FOIA-00012351

Case 19-CA-32431

- 8 -

defined contribution plan for them rather than the defined

benefit pension plan that the existing employees enjoyed.

The Union repeatedly raised the issues of job security

and Employer opposition to the Union elsewhere.


The Union

argued that in return for giving up the right to strike during

the long-term, employees needed enhanced job security.


Also,

if the parties relationship were to improve, the Union did

not want to face the type of anti-union conduct Boeing had

engaged in during the decertification campaign in South

Carolina.

At the October 15 session, Conner informed the Union that

the Board of Directors would be meeting on October 26 and he

wanted to give the Board a progress report on the

negotiations.
The Union asserts that Boeing never described

the Board of Directors meeting as a deadline for resolving the

outstanding bargaining issues.


Moreover, Boeing never

provided a concrete proposal that could be put to the unit

employees for a vote.

The parties met again on October 20 and 21.


Conner

stated that Boeing was getting close to making its decision on

the location of the second line and it would be discussed at

the Board meeting on October 26.


By the end of the parties

October 21 session, the Union orally had proposed the

following: an extension of the existing contract to 2020, 3%

annual wage increases plus a 1% COLA, ratification bonuses for

unit employees, an incentive pay program, health cost sharing

towards the end of the contract, annual increases in pension

benefits starting in 2013, and neutrality in connection with

Union organizing campaigns.


In addition, the Union presented

Boeing with a two-page document entitled Rough Draft on

Concepts for a long-term agreement and a joint partnership

committee.
This Draft called for retention of current unit

work; location of the second line in the Puget Sound area; and

six-month advance notice and good-faith bargaining over any

decision to establish an assembly operation for any next

generation product.
Boeing asserts that this rough draft

was the Unions last and final offer, but the Union

disagrees and also maintains that its negotiators had no idea

that this would be the parties final session.


Indeed, the

Union negotiator involved in working out the details of the

incentive pay program sent an e-mail to Kight on October 27

requesting further information.


Kight responded that he would

get back to him.

Meanwhile, on October 21, Boeing posted its quarterly

earnings conference call on its intranet site for employees.

With respect to locating the second line in South Carolina,

CEO McNerney stated:

NLRB-FOIA-00012352

Case 19-CA-32431

- 9 -

[T]here would be some duplication.


We would obviously

work to minimize that.


But I think having said all of

that, diversifying our labor pool and our labor

relationship has some benefits.


...
And so some of the

modest inefficiencies, for example, associated with the

move to Charleston, are certainly more than overcome by

strikes happening every three or four years in Puget

Sound.
And the very negative financial impact of [sic]

the company, our balance sheet would be 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....

And I dont blame this totally on the union. We just

havent figured out a way - the mix doesnt - isnt

working well yet. So, weve either got to satisfy

ourselves that the mix is different or we have to

diversify our labor base.

McNerney stated that a decision would be made in the next

couple of weeks.

Two days later, IAM General Vice President Michalski

called Conner to ask about the status of the negotiations.

Conner stated that the Unions economic terms and demand for

neutrality were unacceptable to Boeing.


Michalski explained

that the Union was not asking for a traditional neutrality

agreement but rather, as explained during negotiations, a code

of conduct.
Michalski stated that the Union was willing to

meet at any time for additional negotiations, but Conner did

not respond.
On October 24, Michalski called Senior Vice

President of Operations Tim Keating to reiterate that the

Union was not seeking a true neutrality agreement.


He wanted

to clear up any misunderstanding if that issue was blocking

the parties ability to reach an agreement.


Keating did not

respond, and no further negotiations were ever scheduled.

Meanwhile, the governmental bodies in South Carolina were

moving quickly to facilitate the second lines placement in

their State.
On October 23, North Charleston approved

Boeings request for a storm water permit, and the State of

South Carolina approved Boeings overall site plan.


On

October 27, the South Carolina legislature, in a special

session, approved $170 million in taxpayer-backed bonds for

Boeings startup costs and tax breaks totaling $450 million in

exchange for Boeings agreement to create at least 3,800 jobs

and invest more than $750 million in the State within the next

seven years.
That same day, North Charleston approved

Boeings site clearing permit.

Boeing contends that it entered these negotiations with a

good-faith intention to reach a long-term agreement that would

have resulted in placing the second line in Washington, but

NLRB-FOIA-00012353

Case 19-CA-32431

- 10 -

the Unions economic demands were too costly and its

insistence upon neutrality and job security were unacceptable.

The Union asserts, however, that Boeings failure to submit

any proposals, its rejection of the Unions serious efforts to

address Boeings purported concerns, and then its precipitous

halting of negotiations as soon as the South Carolina

legislature awarded it a generous tax and subsidy package

demonstrate that the negotiations were in fact a sham.

Boeing Announces its Decisions to Locate the Second Line in

South Carolina and to Establish a Dual-Sourcing Program

On October 28, Boeing announced its decision to locate

the second 787 assembly line in South Carolina.


In a press

release and internal e-mails, Boeing stated that the Board of

Directors had just approved the selection of North Charleston.

Boeing also announced that it intended to build a surge line

in Everett - a temporary second assembly line that would be

phased out once the South Carolina line was up and running.

Boeing issued a memo to its managers on October 28 that

provided answers to anticipated questions from employees and

talking points regarding its decision.


The managers were

advised to inform employees, among other things, that the

decision to locate the second line in Charleston would

provide economic advantages by improving our competitiveness

and reducing vulnerability to delivery disruptions due to a

host of factors, from natural disasters to homeland security

issues and work stoppages.


The memo further stated, In the

final analysis, this came down to ensuring our long-term

global competitiveness and diversifying the company to protect

against the risk of production disruption ... from natural

disasters, to homeland security threats, to work stoppages.

On December 3, Boeing notified its fabrication managers

that it intended to create a dual-sourcing program and

contract separate suppliers for the South Carolina assembly

line.
As a result, employees in the Puget Sound and Portland

units who produce parts for the 787 assembly line are likely

to suffer a loss of work.


Articles that appeared in the

Seattle Times on December 7 and the Puget Sound Business

Journal on December 8 discussed this announcement.


The

Seattle Times quoted Boeing spokesman Jim Proulx as stating,

Repeated labor disruptions have affected our performance in

our customers eyes.


We have to show our customers we can be

a reliable supplier to them.


[The second production] line has

to be able to go on regardless of whats happening over here.

The Puget Sound Business Journal quoted Conner as follows:

Dual-sourcing and co-production will allow us to maintain

production stability and be a reliable supplier to our

customers.

NLRB-FOIA-00012354

Case 19-CA-32431

- 11 -

On March 2, 2010, a Seattle Times journalist conducted a

videotaped interview of Boeings new Commercial Airplanes CEO,

Jim Albaugh.
(Albaugh had moved over from his position as

Integrated Defense Systems CEO to replace Carson.)


The

interviewer asked Albaugh some hard questions on behalf of

the Washington community about Boeings decision to locate the

second 787 line in Charleston.


In explaining Boeings

decision, Albaugh repeatedly referenced the Unions strike

history.
For example, he stated:

The issue last fall was really about, you know, how

we could ensure production stability and how we

could ensure that we were competitive over the long

haul.
And we had some very productive discussions

with the union.


And unfortunately, we just didnt

come to an agreement where we felt we could ensure

production stability.
And read [sic] that is [sic]

getting away from the frequent strikes that we were

having and also could we stop the rate of escalation

of wages.
And we just could not get to a place

where we both felt it was a win for both ourselves

and the union so we made the decision to go to

Charleston.

[W]eve had strikes three out of the last four times

weve had a labor negotiation with the IAM.


... And

weve got to get to a position where we can ensure

our customers that every three years theyre not

going to have a protracted shutdown.

It was about ensuring to our customers that when we

commit to deliver airplanes on certain dates that we

actually do deliver.
And we have lost our

customers have lost confidence in our ability to do

that, because of the strikes.

When asked whether going to Charleston, in light of the

expense and risk, made business sense, he responded:

Theres no question that whenever you go to a green field

site, theres risk involved.


At the same time, with the

protracted labor stoppage that we had ... the fall of

2008, I mean that cost the company billions of dollars.

And I think if you compare, you know, what it cost

because of the stoppages versus the cost and the risk of

starting a new line in Charleston, I think the investment

certainly is the right one for us to make.4

Once again, a Boeing CEO grossly exaggerated the burden of

the Unions strike activity.


Boeing had alleged elsewhere

that the 2008 strike reduced its earnings by $1.8 million, far

NLRB-FOIA-00012355

Case 19-CA-32431

- 12 -

At one point, Albaugh summed up the basis of Boeings

decision as follows:

[t]he overriding factor was not the business climate.

And it was not the wages were paying today.


It was that

we cannot afford to have a work stoppage, you know, every

three years.
We cannot afford to continue the rate of

escalation of wages....

Albaugh also implicitly threatened the loss of additional work

because of Union strikes, stating, [w]ell do work here if we

can make sure that we have the stability of the production

lines and that we can be competitive over the long haul.

Production is now approximately three years behind

schedule.
Approximately 2,900 Puget Sound unit employees

currently work on the 787 assembly line.


Approximately 1,740

of them are working on out-of-sequence assembly work, away

from the main assembly line. Once supply issues are resolved

and assembly can be accomplished in sequence on the line, it

is anticipated that the number of employees will drop by

approximately 60%.
Boeing asserts that the South Carolina

plant will be ready to begin assembly work in mid 2011.

Approximately 1,000 mechanic and flight line jobs will be

added in South Carolina at that time.

ACTION

This case involves Boeings transfer of work from an

experienced unionized workforce to a new, nonunion facility.

Boeings decision was motivated by antiunion considerations.

From the time of the Unions strike in the fall of 2008,

Boeing made clear to its unionized workforce that it would not

countenance further strikes.


Time and again, in e-mails to

employees, on its intranet site, in the media, and in talks

with the Union, Boeing tied its ability to compete to the

avoidance of future strike activity.


Then, when Boeing

purchased the Vought facility in South Carolina, its officials

denied the Union access to employees at the facility.


It also

let the employees know that it preferred to deal with them

directly rather than through their Union and their receipt of

the second line hinged on their vote in a decertification

election.
Simultaneously, Boeing officials told the Puget

Sound unit employees that they could retain all of the 787

assembly work only by waiving their right to strike for twenty

years.
Although the Union entered negotiations with Boeing

less than the billions of dollars that Albaugh claimed in

this interview.

NLRB-FOIA-00012356

Case 19-CA-32431

- 13 -

and made major concessions in an effort to address its stated

concerns, once the Union was decertified in South Carolina,

Boeing courted the South Carolina legislature and applied for

the necessary permits from the South Carolina regulatory

bodies - even as it continued the motions of negotiating with

the Union.
As soon as South Carolina approved the financial

incentives for Boeing, Boeing called off negotiations and

announced its decision.


Boeings CEO admitted that the

overriding factor for moving work to South Carolina was the

employees strike activity.


Moreover, to reinforce the

message to unit employees, he intimated that the continuation

of any work in Washington was contingent on the stability of

the production lines, a veiled threat designed to coerce

employees to abstain from future strikes.


Nor could Boeing

credibly blame the 787 production delays on employees 2008

strike activity, which halted production for approximately two

months.
Rather, the delay resulted primarily from its own

business decision to outsource the manufacture of the aircraft

components to various suppliers and from unexpected software

problems.

Further, the fact that it made little practical sense to

locate this second line in South Carolina, despite a two-and-

a-half-year delay in the production of its new 787 aircraft,

rather than its existing facilities in Washington, supports a

finding of unlawful motivation.


While South Carolina would

not be ready for production for two years because of the need

for substantial capital improvements and the hiring and

training of a new workforce, Washington was already up and

running, with the space, the necessary equipment, and a

significant complement of trained employees.

On these facts, we conclude that the Region should issue

a complaint alleging: independent violations of Section

8(a)(1) based upon Boeings coercive and threatening

statements to employees on the intranet and through the media;

and a violation of Section 8(a)(3) based upon Boeings

decision to place the second line in South Carolina and to

establish a dual-sourcing supply program in order to retaliate

against the unit employees for engaging in protected Union

activity.
We would also argue, in the alternative, that

Boeings actions were inherently destructive of employee

rights.
But the Region should dismiss the Section 8(a)(5)

allegations because the Union waived its right to bargain

about Boeings decision to offload unit work to a facility not

covered by the parties agreement.


Finally, to remedy the

Section 8(a)(1) and (3) violations, the Region should seek: a

notice reading by a high-level Boeing official in addition to

the traditional remedies; and an order requiring Boeing to

assemble in the Puget Sound area the first ten 787 aircraft

that it produces each month and to maintain the supply lines

for those aircraft in the Puget Sound and Portland facilities.

NLRB-FOIA-00012357

Case 19-CA-32431

- 14 -

I. The Employer Violated Section 8(a)(1)

The Supreme Court long ago delineated the line between

employer speech protected under Section 8(c) of the Act and

threats of reprisals violative of Section 8(a)(1).5


The Court

ruled in Gissel that an employer may make a prediction as to

the effects of unionization but that prediction must be

carefully phrased on the basis of objective fact to convey an

employers belief as to demonstrably probable consequences

beyond his control[.]6


On the other hand, threats of

economic reprisal to be taken solely on [the employers] own

volition violate Section 8(a)(1).7

In General Electric Company, the Board applied the Gissel

test to set aside an election because the employer threatened

a long-term loss of work based on the possibility of a strike

at some future time.8


Faced with a union organizing drive,

the employer gave multiple speeches touting its two-source

supplier strategy.9
The employer stated that it had

established its nonunion plant so that customers could get the

motors they needed during the seven strikes at its union

plant.
The employer also made clear that the plants nonunion

status was the reason it had experienced a rise in

employment.10
And the employer conveyed the message that the

plant remaining nonunion was an important, if not a decisive,

factor in any company decision to choose that plant as a

second manufacturing facility for the new motor the employer

planned to introduce.11
The Board concluded that although the

employer might want to insure itself against production

interruptions caused by employee concerted activity, no such

insurance is legally possible, for the simple reason that

employees have a federally protected right to engage in such

activity.12
The Board expressly distinguished an employers

right to take defensive action when threatened with an

See NLRB v. Gissel Packing Co., 395 U.S. 575, 618 (1969).

Ibid.

Id. at 619 (citation omitted).

See 215 NLRB 520, 522-23, fn. 6 (1974).

See id. at 520.

10

See id. at 520-21.

11

See id. at 521.

12

See id. at 522.

NLRB-FOIA-00012358

Case 19-CA-32431

- 15 -

imminent strike from threats to transfer work merely because

of the possibility of a strike at some speculative future

date.13

The Board repeatedly has held that an employer violates

Section 8(a)(1) by threatening to withhold work opportunities

because of the exercise of Section 7 rights.14


Thus, telling

employees that they will lose their jobs if they join a strike

violates Section 8(a)(1).15


Similarly, in Kroger Co., the

employer unlawfully threatened to put its plan to build a new

freezer facility for its distribution center on hold because

of intraunion unrest and labor disputes.16

Further, where an employer unconditionally predicts a

loss of customers due to unionization or strike disruptions

without any factual basis, its predictions amount to

unlawful threats.17
Rather, an employers predictions of

customer disaffection must be based on objective facts.18

Thus, in Curwood, Inc., an employer lawfully related its

13

See id. at 522, fn. 6.

14

See, e.g., Kroger Co., 311 NLRB 1187, 1200 (1993), affd.

th
mem. 50 F.3d 1037 (11
Cir. 1995); General Electric Co., 321

NLRB 662, fn. 5 (1996), enf. denied 117 F.3d 627 (D.C. Cir.

1997).

15

Aelco Corp., 326 NLRB 1262, 1265 (1998).


See also Dorsey

Trailers, Inc., 327 NLRB 835, 851 (1999), enfd. in pertinent

th
part 233 F.3d 831 (4
Cir. 2000) (threat to close the plant if

the employees went out on strike).

16

311 NLRB at 1200.


See also General Electric Co., 321 NLRB

at 662, fn. 5 (employer conveyed to employees that

unionization could result in the withholding of further

investment in the plant or its closure).

17

See, e.g., Tawas Industries, 336 NLRB 318, 321 (2001) (no

objective basis for prediction that customers, fearing

strikes, would not give their business to the employer if the

employees independent union affiliated with the UAW);

Tradewaste Incineration, 336 NLRB 902, 907-08 (2001)

(prediction that 90% of the customers would not deal with a

union facility because of fear of a work stoppage was not

based on objective facts); Debbie Reynolds Hotel, 332 NLRB

466, 466 (2000) (no factual basis for statements about having

to move productions and equipment elsewhere because customers

would not be able to afford employers facilities if employees

unionized).

18

Curwood, Inc., 339 NLRB 1137, 1137-38 (2003).

NLRB-FOIA-00012359

Case 19-CA-32431

- 16 -

customers concerns about strikes, where the employer produced

written inquiries from customers seeking information about its

contingency plans in the event of a strike.19


An employer may

also reference the possibility that unionization, including

strikes, might harm relationships with consumers, as opposed

to predicting
unavoidable consequences.20

Here, the Union has alleged that several statements by

Boeing officials violated Section 8(a)(1).


Some statements

were posted by Boeing on its website or intranet.


Others were

reprinted in newspaper articles as direct quotes; although

such a quotation is hearsay, it would be admissible as an

admission (an exception to the hearsay rule), if the reporter

testifies.21
By contrast, reporter summaries cannot form the

basis for a Section 8(a)(1) violation.


And statements

recounted by political figures within newspaper articles are

in effect double hearsay and inherently unreliable.

Based on these principles, we find that the following

constitute unlawful threats under the Gissel standard:

(1)
Boeing posted its quarterly earnings conference call

on its intranet for employees on October 21.


During the call,

CEO McNerney made an extended statement about diversifying

our labor pool and moving work to South Carolina because of

strikes happening every three or four years in Puget

Sound.22
His comments were indistinguishable from the

comments regarding a two-source supplier strategy found

violative in General Electric.23

(2)
Boeings October 28 memo to managers advised them to

inform employees that it decided to locate the second line in

South Carolina in order to reduce vulnerability to delivery

disruptions caused by, among other things, strikes.


The

thrust of Boeings message to employees was that Boeing had

19

See id. 339 NLRB at 1137.

20

E.g., Miller Industries Towing Equipment, Inc., 342 NLRB

1074, 1075-76 (2004) (employer did not predict unavoidable

consequences).

21

Cf. Sheet Metal Workers Local 15 (Brandon Regional Medical

Center), 346 NLRB 199, 201-02 (2006), enf. denied on other

grounds 491 F.3d 429 (D.C. Cir. 2007) (newspaper report of

party admission is inadmissible hearsay because the reporter

was not available for cross-examination).

22

These same comments were quoted in the Seattle Times.

23

See 215 NLRB 520, 522-23 (1974).

NLRB-FOIA-00012360

Case 19-CA-32431

- 17 -

removed jobs from Puget Sound because employees had struck and

that they would lose work if they struck again.24

(3)
In articles that appeared in the Seattle Times and

the Puget Sound Business Journal on December 7 and 8

respectively, Boeing officials attributed the plan to use a

dual-sourcing system and contract separate suppliers for the

South Carolina line to past strikes and implicitly threatened

the loss of future work opportunities in the event of future

strikes.25

(4)
In a video-taped interview on March 2, Boeing

Commercial Airplanes CEO Albaugh expressly attributed the

Employers decision to locate the second line in South

Carolina to employee strikes and threatened the loss of future

work opportunities in retaliation for such protected

activity.26

The above statements, disseminated through various

channels to unionized and nonunionized employees nationwide,

drove home the message: union activity could cost them their

jobs, while a decision to reject union representation could

bring those jobs to their communities.

II.

The Employer Violated Section 8(a)(3)

The Employers decision to locate the second 787 line at

a nonunion facility and to establish a dual-sourcing program

to support that line violated Section 8(a)(3) because the

Employer acted in retaliation for the employees Union

activity and not for a legitimate business reason.

Initially, despite Boeings assertions that its decision

to locate a second 787 assembly line in South Carolina will

not adversely impact any current unit employees, there is no

question that the decision will direct work away from Puget

Sound employees with consequent adverse effects.


Instead of

24

The Region should insure that this message was communicated

to employees.

25

The authors of these articles will need to testify.


If

they resist testifying, and it becomes necessary to seek

subpoena enforcement, the Region should contact Advice.

26

Vice President Kights video-taped comments that Boeings

customers could not live with this triennial disruption and

that Boeing was looking to insure production continuity

cannot be alleged as an independent violation because they

were first posted on Boeings website on September 2, outside

the Section 10(b) period.

NLRB-FOIA-00012361

Case 19-CA-32431

- 18 -

assembling all of the 787 planes in Washington as originally

planned, once the second line opens in South Carolina, a

significant portion of the remaining 787 orders will be filled

by planes produced in North Charlestown.


Future work

opportunities will be lost for employees on the surge line,

as well as unit employees waiting to transfer into the more

desirable 787 jobs.


There are likely to be transfers to

older, less desirable aircraft assembly lines, demotions, and

layoffs.
Moreover, Boeings adoption of its new dual-

sourcing program means that the Puget Sound and Portland unit

employees will produce parts only for planes assembled in

Washington and not for those planes assembled in South

Carolina, also causing the loss of employment opportunities

for unit employees and the likelihood of demotions and

layoffs.
If no unit employees have been harmed yet, it is

merely because Boeings retaliatory decision has not yet been

implemented.

Recently, in Pittsburg & Midway Coal Mining Co., the

Board expressly reaffirmed that an actual financial loss is

not necessary to establish a Section 8(a)(3) violation.27


In

that case, the employer revised its bonus policy in

retaliation for the employees use of contractual memorial

days to engage in work stoppages.


Even though no employees

thereafter suffered a diminution of their bonuses, the Board

found a Section 8(a)(3) violation based upon the employers

retaliatory motive.28

Moreover, the Board specifically has held that an

employer may not, for unlawfully motivated reasons, divert

unit work to a nonunion plant even where there is no immediate

impact on unit employees.29


In Adair Standish Corp., the

employer refused to take delivery of a new press ordered for

its newly-organized Standish plant and installed it instead at

its nonunion plant.


The Board noted that diversion of the

press from Standish could reasonably result in diversion of

new work from Standish and therefore violated Section 8(a)(3)

even though there was no immediate impact on the unit

employees.30
Similarly, in Cold Heading Co., the employer

unlawfully relocated equipment to a newly-purchased nonunion

facility and changed its plans to install new equipment in its

27

See 355 NLRB No. 197, slip op. at 5, fn. 8 (2010).

28

Ibid.

29

See Adair Standish Corp., 290 NLRB 317, 318-19 (1988), enfd

th
in pertinent part 912 F.2d 854 (6
Cir. 1990).

30

See id. at 319.

NLRB-FOIA-00012362

Case 19-CA-32431

- 19 -

union facility after its employees independent union

representative sought to affiliate with the UAW.31

Here, as in Adair Standish and Cold Heading, there is a

diversion of unit work that the unit employees otherwise would

have performed.
And as in Pittsburg & Midway Coal Mining Co.,

the fact that unit employees may not yet have experienced the

financial impact of Boeings decision is no defense to a

Section 8(a)(3) violation.

Further, Boeing made this decision for unlawful reasons.

Boeing admits that the overriding factor in its decision to

place the second line in a nonunion facility was the

employees strike history.


An employers discouragement of

its employees participation in a legitimate strike

constitutes discouragement of union membership within the

meaning of Section 8(a)(3).32


This applies to employer

conduct designed to retaliate against employees for having

engaged in a strike in the past,33 as well as employer conduct

designed to forestall employees from exercising their right to

strike in the future.34


Indeed, the Board recently reaffirmed

that an employer violates the Act when it acts to prevent

future protected activity.35


Comparing such conduct to the

31 See 332 NLRB 956, fn. 5, 975-76 (2000).


See also

Associated Constructors, 325 NLRB 998, 998-1000 (1998), enfd.

sub nom. ODovero v. NLRB, 193 F.3d 532 (D.C. Cir. 1999)

(double-breasted employer unlawfully diverted work from its

union entity to its nonunion entity in retaliation for the

unions efforts to organize the nonunion entity and to escape

the collective-bargaining agreement).

32

Capehorn Industry, 336 NLRB 364, 365 (2001).

33

See id. at 365-67 (employer violated Section 8(a)(3) by

failing to immediately reinstate strikers upon unconditional

offer to return to work where there was no legitimate business

justification for entering into a permanent subcontract).

34

See Century Air Freight, 284 NLRB 730, 732 (1987) (employer

violated Section 8(a)(3) by permanently subcontracting unit

work and discharging unit employees in order to forestall the

exercise of their right to strike); Westpac Electric, 321 NLRB

1322, 1374 (1996) (employer violated Section 8(a)(3) by

isolating employee in retaliation for his previous striking

activities and also in anticipation that he would participate

in a strike in the future).

35

See Parexel International, LLC, 356 NLRB No. 82, slip op.

at 4 and cases cited therein (2011) (employer violated Section

NLRB-FOIA-00012363

Case 19-CA-32431

- 20 -

erection of a dam at the source of supply of potential,

protected activity, the Board reasoned that, the suppression

of future protected activity is exactly what lies at the heart

of most unlawful retaliation against past protected

activity.36

Boeing concedes that it is removing work from the unit

employees based upon their past exercise of their right to

strike.
However, Boeing relies upon the Supreme Courts

decision in NLRB v. Brown Food Store37 to argue that it is

privileged to move work outside the unit to avoid the

disruptive consequences of future strikes and that this is a

sufficient business justification to permit its actions.

In Brown Food Store, the Court held that an employer was

privileged to lock out its employees and use temporary

replacements to carry on its business in the face of a whipsaw

strike.38
Specifically, the Court found that the use of a

lockout and the hiring of temporary replacements to bring

pressure to bear in support of its bargaining position after

an impasse in negotiations was not an unfair labor practice.39

Rather than finding the use of this economic weapon

discriminatory, the Court concluded that it was a legitimate

defensive measure to preserve the multiemployer group in the

face of a whipsaw strike.40

Boeings attempt to extend the holding of Brown to

legitimatize any action that an employer takes to protect

itself against future, wholly speculative, strikes would

vitiate the Section 13 right to strike.


And the Board has

made it clear that an employer cannot rely upon Brown to

justify discriminatory conduct based upon the exercise of the

right to strike.
Thus, in National Fabricators, the Board

expressly rejected the employers attempt to use Brown and

other lockout cases to justify its decision to lay off those

employees who were likely to honor a union picket line in the

8(a)(1) by discharging an employee to prevent her from

discussing wages with other employees).

36

Ibid. (citation omitted).

37

380 U.S. 278 (1965).

38

See id. at 283-85.

39

See id. at 284.

40

See ibid.

NLRB-FOIA-00012364

Case 19-CA-32431

- 21 -

future.41 Instead, the Board found that disfavoring employees

who were likely to engage in protected union activities was

proscribed by Section 8(a)(3) and the employers business

justification - to avoid investing money in employees who

were going to cease work later -- was neither legitimate nor

substantial.42

Boeings concession that choosing South Carolina will

result in duplication and economic inefficiencies further

demonstrates that Boeings actions were retaliatory and not a

legitimate business decision.


In addition, Commercial

Airplanes CEO Albaugh conceded that going to South Carolina,

a green field site, involves significant risks.


Boeing has

the capacity, equipment, and trained workforce to handle the

second assembly line in the Puget Sound area.


The substantial

investment required to build and equip the South Carolina

facility therefore will be duplicative.


In addition, Boeing

will have to recruit and train a new workforce in South

Carolina, while ultimately laying off experienced employees in

Washington.
Exaggerating the disruptive effects of prior

strikes, Boeing maintains that the inefficiencies associated

with moving work to South Carolina will be counterbalanced by

the avoidance of strike disruptions in the future. However,

there are other nonretaliatory and less costly means of

dealing with the potential of relatively short disruptions

caused by employee strikes, such as concluding negotiations

with the Union for a long-term no-strike agreement.


In

addition, Boeings claim that it took this action to avoid

strike disruptions is belied by Boeings rejection of the

Unions efforts to negotiate a long-term no strike agreement.

Accordingly, the Region should proceed on the theory that

Boeing violated Section 8(a)(3) by retaliating against the

unit employees for engaging in the protected activity of

striking.

We also conclude that Boeings conduct was inherently

destructive of employee interests.43


Conduct is inherently

destructive when it carries with it unavoidable

consequences which the employer not only foresaw but which he

must have intended and thus bears its own indicia of

th

41

See 295 NLRB 1095, 1095 (1989), enfd. 903 F.2d 396 (5

1990), cert. denied 498 U.S. 1024 (1991).

42

Cir.

See 295 NLRB at 1095-96.

43

See NLRB v. Great Dane Trailers, Inc., 388 U.S. 26, 33

(1967) (citation omitted).

NLRB-FOIA-00012365

Case 19-CA-32431

- 22 -

intent.44
In International Paper Co., the Board set forth

four fundamental guiding principles for determining whether

employer conduct is inherently destructive of employee

rights.45
First, the Board looks to the severity of the harm

to employees Section 7 rights.


Second, the Board considers

the temporal impact of the employers conduct, i.e. whether

the conduct merely influences the outcome of a particular

dispute or whether it has far reaching effects which would

hinder future bargaining.


Third, the Board distinguishes

between conduct intended to support an employers bargaining

position as opposed to conduct demonstrating hostility to the

process of collective bargaining.


And finally, the Board

assesses whether the employees conduct discourages collective

bargaining by making it seem a futile exercise in the eyes of

the employees.46
Even if the employees conduct is

inherently destructive, the Board weighs the employers

asserted business justification against the invasion of

employee rights.47

Boeings actions were inherently destructive of employee

rights under the four principles articulated in International

Paper.
First, the harm to employees Section 7 rights was

severe; employees got the distinct message that if they engage

in another strike, unit work will be moved to a nonunion

facility and unit jobs will be lost.


Second, Boeings

decision was designed to have far-reaching effects and not

just to influence the outcome of a particular dispute, namely,

to take away employee support for the Unions most effective

economic weapon, and for the Union itself, and thereby hinder

any future collective bargaining.


Third, Boeings conduct

demonstrated hostility to the very process of collective

bargaining and not just to support a specific bargaining

position.
Finally, bargaining was made to seem a futile

44

Ibid., quoting NLRB v. Erie Resistor Corp., 373 U.S. 221,

228, 231 (1963).


See also Dorsey Trailers, Inc., 327 NLRB

835, 863-64 (1999), enf. denied in pertinent part 233 F.3d 831

th
(4
Cir. 2000).

45

See 319 LRB 1253, 1269 (1995), enf. denied 115 F.3d 1045

(D.C. Cir. 1997).

46

Id. at 1269-70 (citations omitted).

47

Id. at 1273 (finding no justification for employers

inherently destructive conduct of permanently subcontracting

bargaining unit work during a lawful lockout).


See also

Dorsey Trailers, 327 NLRB at 863-64 (employers closing of

facility during strike and relocation of unit work to newly

purchased facility outside the unions jurisdiction was

inherently destructive of employee rights).

NLRB-FOIA-00012366

Case 19-CA-32431

- 23 -

exercise without the possibility of a strike to support the

Unions position at the bargaining table.

The unavoidable consequence of Boeings decision to place

the second line in its newly-purchased, nonunion facility,

accompanied by official comments on the intranet and in the

media, was to severely chill its employees exercise of

Section 7 rights in the future - whether it be the Puget

Sound employees, the South Carolina employees, or Boeing

employees elsewhere.
Employees will correctly fear that

engaging in such protected activity could cause them to lose

their jobs to nonunionized workers.


Others may be encouraged

to file or support decertification petitions.


And the many

unrepresented Boeing employees will be discouraged from

organizing or voting in support of union representation if

they believe that exercising their right to concerted activity

justifies moving commercial production elsewhere.

Moreover, even if the effect on employee rights was only

comparatively slight, Boeing had no legitimate business

justification. Its only justification was its desire to insure

against its employees exercise of their Section 7 rights, and

that is not a legitimate justification.

The Board recently held in Arc Bridges, Inc. that an

employers conduct was inherently destructive where its stated

reason for withholding a regularly-scheduled wage increase

from represented employees was that it was in negotiations

with the union.48


The Board found that the employers stated

reason - that it wanted to enhance its bargaining position

with the union -- was an admission that it withheld the

increase because employees chose union representation.49

Likewise, Boeings stated reason for its decision - that it

wanted to avoid strike disruptions - was an admission that it

decided to locate the second line in South Carolina because

the Puget Sound employees chose union representation and the

South Carolina employees did not.


Accordingly, Boeings

decision coupled with its public pronouncements emphasizing

the motivation for its decision was inherently destructive of

its employees rights to engage in union activity and violated

Section 8(a)(3).

III. The Union Waived its Right to Bargain

The Unions allegation that Boeing failed to bargain in

good faith over its decision as to where to locate the second

787 line raises two preliminary issues: (1) whether Boeings

decision was a mandatory subject of bargaining; and (2) if so,

48

See 355 NLRB No. 199, slip op. at 3-4 (2010).

49

See id., slip op. at 3.

NLRB-FOIA-00012367

Case 19-CA-32431

- 24 -

whether the Union waived its right to bargain over that

subject.
Although we conclude that the decision was a

mandatory subject of bargaining and there is substantial

evidence that Boeing did not bargain in good faith to a valid

impasse, the Region should dismiss the Section 8(a)(5)

allegations on the ground that the Union waived it right to

bargain, applying Provena.50

A.

Mandatory Subject of Bargaining

Under Dubuque Packing Co., a decision to relocate unit

work that is not accompanied by a basic change in the

employers operation is a mandatory subject of bargaining

unless the employer can establish that: the work performed at

the new location varies significantly from the work performed

at the prior location; the work performed at the former

location is discontinued entirely and not moved to the new

location; or the employers decision involved a change in the

enterprises scope and direction.51


Alternatively, the

employer can defend by showing that: labor costs were not a

factor in the decision; or if labor costs were a factor, the

union could not have offered sufficient concessions to change

the employers decision.52


Applying the Dubuque test, the

Board repeatedly has found relocation decisions to constitute

a mandatory subject of bargaining.53

In addition, the Board has held that a decision may be a

mandatory subject even though there is no immediate loss of

unit jobs.54
For example, in Quickway Transportation, Inc.,

50

Provena St. Joseph Medical Center, 350 NLRB 808 (2007).

51

303 NLRB 386, 391 (1991), enfd. sub nom. Food & Commercial

Workers Local 150-A v. NLRB, 1 F.3d 24 (D.C. Cir. 1993).

52

Ibid.

53

See, e.g., Titan Tire Corp., 333 NLRB 1156, 1164-65 (2001)

(decision to permanently relocate equipment and jobs in

reaction to strike); Owens-Brockway Plastic Products, 311 NLRB

519, 521-23 (1993) (decision to close plant and transfer work

to other facilities).

54

See, e.g., Overnite Transportation Co., 330 NLRB 1275, 1276

(2000), revd. mem. 248 F.3d 1131 (3d Cir. 2000) (We think it

plain that the bargaining unit is adversely affected whenever

bargaining unit work is given away to nonunion employees,

regardless of whether the work would otherwise have been

performed by employees already in the unit or by new

employees).

NLRB-FOIA-00012368

Case 19-CA-32431

- 25 -

the Board found that the employers decision to contract with

independent owner-operators rather than expand the unit, as it

had originally planned, was mandatory because that decision

obviously constrained the work opportunities available to the

bargaining unit.55
Likewise, in Spurlino Materials, LLC, the

Administrative Law Judge, in a decision adopted by the Board,

found that even though no unit employees suffered a loss of

work as a result of the employers subcontracting, existing

employees might have otherwise been given overtime or the

employer might have hired additional unit employees, resulting

in benefits for the Union and current unit employees in having

an expanded unit.56
And in Dorsey Trailers, Inc., the Board

found that subcontracting work to reduce a backlog in orders

was a mandatory subject because the potential loss of

overtime or reasonably anticipated work opportunities poses a

detriment to unit employees even if no employees lost their

jobs.57

Here, the decision to locate the second 787 assembly line

in South Carolina amounted to a relocation of unit work.


Even

though no unit employees have yet to lose work, as in Dorsey

Trailers the assignment of unit work to nonunit employees in

order to reduce an order backlog presents a potential loss of

overtime or reasonably anticipated work opportunities and

therefore poses a detriment to unit employees.58


The work

that will be performed in South Carolina is identical to that

performed on the first line and the surge line in Everett by

unit employees.
The decision did not involve a basic change

in Boeings operation or any change in the enterprises scope

or direction; Boeing does not intend to change its production

methods or its products.59


Boeing did not demonstrate that

labor costs were not a factor in the decision.


In fact,

according to Boeings CEO, the decision was motivated

primarily by a desire to avoid strikes and secondarily because

the Employer cannot afford the rate at which unit wages are

escalating.
Boeing also did not demonstrate that the Union

could not have offered sufficient concessions to change its

55

See 355 NLRB No. 140 (2010), incorporating by reference the

rationale of 354 NLRB No. 80, slip op. at 2 (2009).

56

See 355 NLRB No. 77 (2010), incorporating by reference the

rational of 353 NLRB 1198, 1219 (2009).

57

See 321 NLRB 616, 617 (1996), enf. denied in relevant part

134 F.3d 125 (3d Cir. 1998).


Accord Acme Die Casting, 315

NLRB 202, fn. 1, 209 (1994).

58

See 321 NLRB at 617.

59

See Owens-Brockway Plastic Products, 311 NLRB at 522.

NLRB-FOIA-00012369

Case 19-CA-32431

- 26 -

decision; the Union


the strike and wage
2009.
Accordingly,
where to locate the
bargaining.

B.

was willing to make concessions on both

issues during negotiations in the fall of

we conclude that Boeings decision as to

second 787 line was a mandatory subject of

Waiver of the Right to Bargain

The Board applies a clear and unmistakable waiver

standard to determine whether a union has waived its right to

bargain about a mandatory subject of bargaining during the

term of a collective-bargaining agreement.60


The Board will

find a waiver if the contract either expressly or by

necessary implication confers on management a right to

unilaterally take the action in question.61


In interpreting

the parties agreement, the relevant factors include: (1) the

wording of pertinent contractual provisions; (2) the parties

bargaining history; and (3) the parties past practice.62

The Board has found a waiver based on contract language

where there is an express reference to the specific type of

decision that the employer has implemented unilaterally.63

Thus, in Ingham Regional Medical Center, the Board adopted an

Administrative Law Judges decision that the union waived its

right to bargain about a subcontracting decision where the

contractual management-rights clause expressly reserved to

management the right to use outside assistance or engage

independent contractors to perform any of the Employers

operations or phases thereof (subcontracting)[.]64


This

right was vested exclusively in the Employer and was not

60

See Provena St. Joseph Medical Center, 350 NLRB at 810-11.

61

See id. at 812, fn. 19.

62

See Johnson-Bateman Co., 295 NLRB 180, 184-89 (1989) (no

waiver of right to bargain about drug/alcohol testing

requirement where the management rights clause was generally

worded, issue was not fully discussed and consciously

explored during negotiations, and past practice of union

acquiescence to other unilateral work rule changes did not

waive the right to bargain about such changes for all time).

63 See, e.g., Ingham Regional Medical Center, 342 NLRB 1259,

1261-62 (2004) (under the management-rights clause, the

employer expressly reserved the right to subcontract); Allison

Corp., 330 NLRB 1363, 1364-65 (2000) (management-rights clause

specifically, precisely, and plainly granted the employer

the exclusive right ... to subcontract).

64

See 342 NLRB at 1260, 1261-62.

NLRB-FOIA-00012370

Case 19-CA-32431

- 27 -

subject to arbitration.65
Although another contractual

provision required the employer to provide 60 days notice and

discuss with the union any subcontracting decision that

would cause unit employees to be laid off, the words discuss

and bargain were found not synonymous in the parties

contract.66

In this case, Section 21.7 of the parties agreement

specifically, precisely, and plainly67 granted Boeing the

right to offload work to a facility not covered by the

agreement.
As in Ingham Regional Medical Center, the other

provisions of Section 21.7 that required Boeing to provide the

Union notice and an opportunity to review and recommend

alternatives did not require the Employer to bargain over an

offloading decision.

The Union does not dispute that Section 21.7 contains a

waiver but asserts instead that the Employer may not take

advantage of the waiver.


Specifically, the Union maintains

that a contractual waiver cannot be applied to a decision that

is unlawfully motivated.
But there is no authority for the

proposition that an unlawful motive negates a contractual

waiver; rather, the cases on which the Region and Union rely

hold that a contractual waiver is no defense to a Section

8(a)(3) violation.68

The Unions other arguments against application of the

waiver are also unavailing.


Thus, the Union asserts that the

contractual waiver does not apply because the parties entered

negotiations for a new contract.


However, during those mid-

term negotiations, their existing contract -- including

Section 21.7 -- continued in effect.


The Union also contends

65

Id. at 1260.

66

Id. at 1262.

67

See Allison Corp., 330 NLRB at 1365.

68

See Reno Hilton, 326 NLRB 1421, 1430 (1998), enfd. 196 F.3d

1275 (D.C. Cir. 1999) (merely because the Respondent has

negotiated the unfettered right in a collective-bargaining

agreement to contract out work at any time, such right ...

does not unfetter and insulate the Respondent from the

sanctions of the Act prohibiting it from discriminating); RGC

th
(USA) Mineral Sands, Inc. v. NLRB, 281 F.3d 442, 450 (4
Cir.

2002) (enforcing Board decision finding Section 8(a)(3)

violation on grounds that, even if contract authorized

employer to unilaterally alter shift assignments, an employer

cannot exercise contractual rights to punish employees for

protected activity).

NLRB-FOIA-00012371

Case 19-CA-32431

- 28 -

that the waiver cannot extend to work transferred after the

contracts expiration in September 2012, but Boeing made its

final decision in 2009 and expects to open the second line in

South Carolina in mid 2011.69


The Unions estoppel argument

also lacks merit.


While Boeing took the position that the

notice and review provisions in Article 21.7 did not apply

because no employees will be laid off, Boeing is not thereby

estopped from asserting the waiver provision.

Moreover, Boeings request to negotiate mid-term changes

to the parties agreement did not subject it to the

traditional Section 8(a)(5) bargaining obligations.70


Absent

a contractual reopener provision, parties are under no

obligation to bargain over proposals for mid-term

modifications.71
For this reason, we do not reach the

question of whether Boeing engaged in surface bargaining in

the fall of 2009, bargained to a valid impasse, or unlawfully

failed to provide information relevant to those negotiations.

IV. The Appropriate Remedy

We conclude that special remedies must be fashioned in

the unusual circumstances of this case.

First, with respect to the Section 8(a)(1) violations,

which had a particularly chilling impact upon employees, the

Region should seek a notice reading by a high-level Boeing

official, to insure that employees learn about their statutory

69

Thus, if there is a duty to bargain over a relocation

decision, it arises when the decision is announced and not

when it is ultimately implemented.


See, e.g., Bell Atlantic

Corp., 336 NLRB 1076, 1086-89 (2001) (union waived right to

bargain over employers decision to close facility and

transfer work to nonunion facility where it received notice of

decision in August and did not request bargaining until

December, even though no unit work would be relocated before

the following April).

70

See St. Barnabas Medical Center, 341 NLRB 1325, 1325 (2004)

(union did not incur traditional bargaining obligations by

requesting that employer meet to discuss feasibility of wage

reopener, and employer violated Section 8(a)(5) by

unilaterally implementing wage increases after an impasse in

those negotiations).

71

See Boeing Co., 337 NLRB 758, 763 (2002) (employer did not

incur bargaining obligation by agreeing to unions request to

consider midterm modification); Connecticut Power Co., 271

NLRB 766, 766-67 (Section 8(d) does not require an employer

who suggests a midterm contract change to negotiate about it).

NLRB-FOIA-00012372

Case 19-CA-32431

- 29 -

rights and gain assurance that Boeing will respect those

rights.72
The notice reading is particularly effective if

read by an official who personally committed some of the

violations, or read by a Board agent in his presence, in order

to dispel the atmosphere of intimidation he created.73

Finally, to remedy the Section 8(a)(3) violation, the

Region should seek an order requiring Boeing to maintain the

second line in Washington.


At the time of the discriminatory

conduct, Boeing intended to use the second line to assemble

three 787 aircraft each month, while assembling seven 787

aircraft each month on the first line in Everett.


At present,

even the first line is not producing up to capacity because of

problems with suppliers and FAA certification.


Thus, the

Region should seek an order requiring that, as Boeing

production increases, the first ten aircraft assembled each

72

See, e.g., Homer D. Bronson Co., 349 NLRB 512, 515 (2007),

enfd. 273 F. Appx 32 (2d Cir. 2008) (notice reading is an

effective but moderate way to let in a warming wind of

information, and more important, reassurance); Federated

Logistics & Operations, 340 NLRB 255, 258 (2003), affd. 400

F.3d 920 (D.C. Cir. 2005) (employees will perceive that the

Respondent and its managers are bound by the requirements of

the Act).

73

Three Sisters Sportswear Co., 312 NLRB 853, 853 (1993),

enfd. mem. 55 F3d 684 (D.C. Cir. 1995), cert. denied 516 U.S.

1093 (1996).
See also, e.g., Homer D. Bronson Co., 349 NLRB

at 515 (reading by president of manufacturing, who personally

delivered speeches threatening plant closure or relocation);

Texas Super Foods, 303 NLRB 209, 209 (1991) notice reading by

owner and president who signed unlawful letters to unit

employees, drafted unlawful speech threatening job losses, and

personally gave the speech to at least two groups of

employees).

NLRB-FOIA-00012373

Case 19-CA-32431

- 30 -

month be assembled by the Puget Sound unit employees and that

the supply lines for these aircraft be maintained in the Puget

Sound and Portland facilities.74

B.J.K.

ROFs - 9

H:ADV.19-CA-32431.Response2.Boeing.dlw

74

At this time, we do not reach a decision on the Unions

request for preliminary injunctive relief.


The Region should

reassess whether Section 10(j) relief is warranted after the

case is tried before the Administrative Law Judge.


In the

meantime, the Region should put evidence in the record

regarding the chilling impact of Boeings violative statements

and conduct to support the notice-reading remedy.


This will

facilitate use of the administrative record to demonstrate in

a subsequent Section 10(j) proceeding that preliminary

injunctive relief is just and proper.

NLRB-FOIA-00012374

Microsoft Outlook

From:

Todd, Dianne

Sent:

Monday, May 09, 2011 2:37 PM

To:

Todd, Dianne

Subject:

RE: Boeing timeline

Rich,

Just to be clear, one of the two submissions by Boeing on Aug. 13 was a response to our subpoena,

the other was a short position statement on a discrete issue.

Thanks

From: Todd, Dianne

Sent: Monday, May 09, 2011 10:47 AM

To: Ahearn, Richard L.

Subject: Boeing timeline

Rich,

Here are the dates we talked about regarding the Boeing investigation. Let me know if you need

more.

Boeing was given a deadline of June 25, 2010, to provide documents I believe the documents were

submitted by the end of June.

Boeing filed its initial brief position statement on April 23, 2010, its substantive position statement on

July 9, and its 10(j) position statement on August 25.

The case was submitted to Advice on August 31.

Thanks,

Dianne

NLRB-FOIA-00012375

Microsoft Outlook

From:

Todd, Dianne

Sent:

Monday, May 09, 2011 2:37 PM

To:

Ahearn, Richard L.

Subject:

FW: Boeing timeline

Rich,

Just to be clear, one of the two submissions by Boeing on Aug. 13 was a response to our subpoena,

the other was a short position statement on a discrete issue.

Thanks

From: Todd, Dianne

Sent: Monday, May 09, 2011 10:47 AM

To: Ahearn, Richard L.

Subject: Boeing timeline

Rich,

Here are the dates we talked about regarding the Boeing investigation. Let me know if you need

more.

Boeing was given a deadline of June 25, 2010, to provide documents I believe the documents were

submitted by the end of June.

Boeing filed its initial brief position statement on April 23, 2010, its substantive position statement on

July 9, and its 10(j) position statement on August 25.

The case was submitted to Advice on August 31.

Thanks,

Dianne

NLRB-FOIA-00012376

Microsoft Outlook

From:

Willen, Debra L

Sent:

Monday, October 18, 2010 1:29 PM

To:

Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam; Katz, Judy; Omberg, Bob

Subject:

As work begins on 1,000th 767, what is the airplane's future? | KING5.com | Seattle

Business and Technology News

This article indicates that the surge line was not yet up and running as of Sept. 7, 2010.

http://www.king5.com/news/business/Boeing-starts-work-on-1000-767-102358284.html

NLRB-FOIA-00012377

Microsoft Outlook

From:
Sent:
To:
Subject:
Attachments:

W illen, Debra L

W ednesday, November 10, 2010 11:59 AM

Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam

Boeing Co.

DOC001.PDF

I've been reviewing the Employer's position statements and exhibits.

Thought you would be interested in the attached e-mail -Exemption 5

NLRB-FOIA-00012378

NLRB-FOIA-00012379

Arguably Ex. 4
Arguably Ex. 4
Arguably Ex. 4
Arguably Ex. 4

Arguably Ex. 4

Arguably Ex. 4
Arguably Ex. 4

Arguably Ex. 4

NLRB-FOIA-00012380

Microsoft Outlook

From:
Sent:
To:
Subject:

W illen, Debra L

Tuesday, November 16, 2010 12:09 PM

Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam; Omberg, Bob

Boeing Co.

In case youre interested --

http://www.charlestonbusiness.com/home/search?q=Boeing&url=

Boeing Executive says S.C. is cornerstone of Companys future

http://www.nytimes.com/2010/11/11/business/11boeing.html?src=busln

excellent summary of problems Dreamliner has faced in the last year, including recent fire, Rolls Royce engine problem,

and problems with Italian company producing the tails

NLRB-FOIA-00012381

Microsoft Outlook

From:
Sent:
To:
Subject:
Attachments:

W illen, Debra L

Tuesday, December 07, 2010 3:20 PM

Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam; Katz, Judy; Omberg, Bob

Boeing

DOC001.PDF

I've just finished reviewing the new book Miriam found entitled "Turbulence: Boeing and the

State of American Workers and Managers."

Exemption 5

NLRB-FOIA-00012382

Exemption 5

NLRB-FOIA-00012383

Exemption 5

NLRB-FOIA-00012384

Exemption 5

NLRB-FOIA-00012385

Exemption 5

NLRB-FOIA-00012386

Exemption 5

NLRB-FOIA-00012387

Exemption 5

NLRB-FOIA-00012388

Exemption 5

NLRB-FOIA-00012389

Exemption 5

NLRB-FOIA-00012390

Microsoft Outlook

From:
Sent:
To:
Subject:

Ahearn, Richard L.

Tuesday, January 11, 2011 1:32 PM

W illen, Debra L

RE: IAM meeting with AGC, Jan. 19

Debra, Thx.

BTW, as you undoubtedly know,


Rich

6, 7(C), &7(D)

From: Willen, Debra L

Sent: Tuesday, January 11, 2011 10:23 AM

To: Contee, Ernestine R.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam; Katz, Judy; Omberg, Bob;

Ahearn, Richard L.

Subject: FW: IAM meeting with AGC, Jan. 19

From: Jude Bryan [mailto:bryan@workerlaw.com]

Sent: Tuesday, January 11, 2011 11:54 AM

To: Willen, Debra L

Cc: David Campbell

Subject: IAM meeting with AGC

Ms. W illen,

In response to your email to Dave Campbell, the following people will be attending the meeting with AGC Lafe Solomon

next week.

Richard P. Michalski, General Vice President, IAMAW

Christopher Corson, General Counsel, IAMAW

Neil Gladstein, Director Strategic Resources, IAMAW

Mark Blondin, IAM Aerospace Coordinator

Tom Wroblewski, President, IAM District Lodge 751

David Campbell, Attorney

Carson Glickman-Flora, Attorney

Jude Bryan, Paralegal

Please let us know if there is any more information you need.

Sincerely,

Jude Bryan, Paralegal

Schwerin Campbell Barnard Iglitzin & Lavitt LLP

18 West Mercer Street, Ste. 400

Seattle, W A 98119

206-285-2828

NLRB-FOIA-00012391

Microsoft Outlook

From:
Sent:
To:
Subject:
Attachments:

W illen, Debra L

Thursday, January 27, 2011 1:14 PM

Szapiro, Miriam

RE:

ADV.19-CA-32431.Response2.Boeing.dlw.doc

Okay heres the new version.

I accepted 97% of your changes

Exemption 5

Ive responded to the comments where you were posing questions.

Exemption 5
Thanks.

From: Szapiro, Miriam

Sent: Thursday, January 27, 2011 12:15 PM

To: Willen, Debra L

Subject:

I just skimmed through it again and realized

Exemption 5
If you think its worth it, add

something. If not, just get rid of the highlight.

NLRB-FOIA-00012392

Exemption 5

NLRB-FOIA-00012393

Exemption 5

NLRB-FOIA-00012394

Exemption 5

NLRB-FOIA-00012395

Exemption 5

NLRB-FOIA-00012396

Exemption 5

NLRB-FOIA-00012397

Exemption 5

NLRB-FOIA-00012398

Exemption 5

NLRB-FOIA-00012399

Exemption 5

NLRB-FOIA-00012400

Exemption 5

NLRB-FOIA-00012401

Exemption 5

NLRB-FOIA-00012402

Exemption 5

NLRB-FOIA-00012403

Exemption 5

NLRB-FOIA-00012404

Exemption 5

NLRB-FOIA-00012405

Exemption 5

NLRB-FOIA-00012406

Exemption 5

NLRB-FOIA-00012407

Exemption 5

NLRB-FOIA-00012408

Exemption 5

NLRB-FOIA-00012409

Exemption 5

NLRB-FOIA-00012410

Exemption 5

NLRB-FOIA-00012411

Exemption 5

NLRB-FOIA-00012412

Exemption 5

NLRB-FOIA-00012413

Exemption 5

NLRB-FOIA-00012414

Exemption 5

NLRB-FOIA-00012415

Exemption 5

NLRB-FOIA-00012416

Exemption 5

NLRB-FOIA-00012417

Exemption 5

NLRB-FOIA-00012418

Exemption 5

NLRB-FOIA-00012419

Exemption 5

NLRB-FOIA-00012420

Exemption 5

NLRB-FOIA-00012421

Exemption 5

NLRB-FOIA-00012422

Exemption 5

NLRB-FOIA-00012423

Exemption 5

NLRB-FOIA-00012424

Exemption 5

NLRB-FOIA-00012425

Exemption 5

NLRB-FOIA-00012426

Exemption 5

NLRB-FOIA-00012427

Exemption 5

NLRB-FOIA-00012428

Exemption 5

NLRB-FOIA-00012429

Exemption 5

NLRB-FOIA-00012430

Exemption 5

NLRB-FOIA-00012431

Exemption 5

NLRB-FOIA-00012432

Exemption 5

NLRB-FOIA-00012433

Exemption 5

NLRB-FOIA-00012434

Exemption 5

NLRB-FOIA-00012435

Exemption 5

NLRB-FOIA-00012436

Exemption 5

NLRB-FOIA-00012437

Exemption 5

NLRB-FOIA-00012438

Exemption 5

NLRB-FOIA-00012439

Exemption 5

NLRB-FOIA-00012440

Exemption 5

NLRB-FOIA-00012441

Exemption 5

NLRB-FOIA-00012442

Exemption 5

NLRB-FOIA-00012443

Exemption 5

NLRB-FOIA-00012444

Exemption 5

NLRB-FOIA-00012445

Exemption 5

NLRB-FOIA-00012446

Exemption 5

NLRB-FOIA-00012447

Exemption 5

NLRB-FOIA-00012448

Exemption 5

NLRB-FOIA-00012449

Microsoft Outlook

From:

Szapiro, Miriam

Sent:

Thursday, January 27, 2011 2:12 PM

To:

Willen, Debra L

Subject:

draft

Attachments:

ADV 19-CA-32431 Response2 Boeing dlw2.doc

Hi, I accepted almost everything there was to accept, mad a couple more possible changes, so check and make sure they

work. (2 were at comment areas).

NLRB-FOIA-00012450

Exemption 5

NLRB-FOIA-00012451

Exemption 5

NLRB-FOIA-00012452

Exemption 5

NLRB-FOIA-00012453

Exemption 5

NLRB-FOIA-00012454

Exemption 5

NLRB-FOIA-00012455

Exemption 5

NLRB-FOIA-00012456

Exemption 5

NLRB-FOIA-00012457

Exemption 5

NLRB-FOIA-00012458

Exemption 5

NLRB-FOIA-00012459

Exemption 5

NLRB-FOIA-00012460

Exemption 5

NLRB-FOIA-00012461

Exemption 5

NLRB-FOIA-00012462

Exemption 5

NLRB-FOIA-00012463

Exemption 5

NLRB-FOIA-00012464

Exemption 5

NLRB-FOIA-00012465

Exemption 5

NLRB-FOIA-00012466

Exemption 5

NLRB-FOIA-00012467

Exemption 5

NLRB-FOIA-00012468

Exemption 5

NLRB-FOIA-00012469

Exemption 5

NLRB-FOIA-00012470

Exemption 5

NLRB-FOIA-00012471

Exemption 5

NLRB-FOIA-00012472

Exemption 5

NLRB-FOIA-00012473

Exemption 5

NLRB-FOIA-00012474

Exemption 5

NLRB-FOIA-00012475

Exemption 5

NLRB-FOIA-00012476

Exemption 5

NLRB-FOIA-00012477

Exemption 5

NLRB-FOIA-00012478

Exemption 5

NLRB-FOIA-00012479

Exemption 5

NLRB-FOIA-00012480

Exemption 5

NLRB-FOIA-00012481

Exemption 5

NLRB-FOIA-00012482

Exemption 5

NLRB-FOIA-00012483

Exemption 5

NLRB-FOIA-00012484

Exemption 5

NLRB-FOIA-00012485

Exemption 5

NLRB-FOIA-00012486

Exemption 5

NLRB-FOIA-00012487

Exemption 5

NLRB-FOIA-00012488

Exemption 5

NLRB-FOIA-00012489

Exemption 5

NLRB-FOIA-00012490

Exemption 5

NLRB-FOIA-00012491

Exemption 5

NLRB-FOIA-00012492

Exemption 5

NLRB-FOIA-00012493

Exemption 5

NLRB-FOIA-00012494

Exemption 5

NLRB-FOIA-00012495

Exemption 5

NLRB-FOIA-00012496

Exemption 5

NLRB-FOIA-00012497

Exemption 5

NLRB-FOIA-00012498

Exemption 5

NLRB-FOIA-00012499

Exemption 5

NLRB-FOIA-00012500

Exemption 5

NLRB-FOIA-00012501

Exemption 5

NLRB-FOIA-00012502

Exemption 5

NLRB-FOIA-00012503

Exemption 5

NLRB-FOIA-00012504

Exemption 5

NLRB-FOIA-00012505

Exemption 5

NLRB-FOIA-00012506

Exemption 5

NLRB-FOIA-00012507

Exemption 5

NLRB-FOIA-00012508

Microsoft Outlook

From:
Sent:
To:
Subject:
Attachments:

W illen, Debra L

Thursday, January 27, 2011 2:35 PM

Szapiro, Miriam

RE: draft

ADV.19-CA-32431.Response2.Boeing.dlw.doc

Okay Ive accepted everything, deleted comments, and


Exemption 5

Shall I print out for Barry and/or e-mail it to him since he is telecommuting today?

From: Szapiro, Miriam

Sent: Thursday, January 27, 2011 2:12 PM

To: Willen, Debra L

Subject: draft

Hi, I accepted almost everything there was to accept, mad a couple more possible changes, so check and make sure they

work. (2 were at comment areas).

NLRB-FOIA-00012509

Exemption 5

NLRB-FOIA-00012510

Exemption 5

NLRB-FOIA-00012511

Exemption 5

NLRB-FOIA-00012512

Exemption 5

NLRB-FOIA-00012513

Exemption 5

NLRB-FOIA-00012514

Exemption 5

NLRB-FOIA-00012515

Exemption 5

NLRB-FOIA-00012516

Exemption 5

NLRB-FOIA-00012517

Exemption 5

NLRB-FOIA-00012518

Exemption 5

NLRB-FOIA-00012519

Exemption 5

NLRB-FOIA-00012520

Exemption 5

NLRB-FOIA-00012521

Exemption 5

NLRB-FOIA-00012522

Exemption 5

NLRB-FOIA-00012523

Exemption 5

NLRB-FOIA-00012524

Exemption 5

NLRB-FOIA-00012525

Exemption 5

NLRB-FOIA-00012526

Exemption 5

NLRB-FOIA-00012527

Exemption 5

NLRB-FOIA-00012528

Exemption 5

NLRB-FOIA-00012529

Exemption 5

NLRB-FOIA-00012530

Exemption 5

NLRB-FOIA-00012531

Exemption 5

NLRB-FOIA-00012532

Exemption 5

NLRB-FOIA-00012533

Exemption 5

NLRB-FOIA-00012534

Exemption 5

NLRB-FOIA-00012535

Exemption 5

NLRB-FOIA-00012536

Exemption 5

NLRB-FOIA-00012537

Exemption 5

NLRB-FOIA-00012538

Exemption 5

NLRB-FOIA-00012539

Exemption 5

NLRB-FOIA-00012540

Exemption 5

NLRB-FOIA-00012541

Exemption 5

NLRB-FOIA-00012542

Exemption 5

NLRB-FOIA-00012543

Exemption 5

NLRB-FOIA-00012544

Exemption 5

NLRB-FOIA-00012545

Exemption 5

NLRB-FOIA-00012546

Exemption 5

NLRB-FOIA-00012547

Exemption 5

NLRB-FOIA-00012548

Exemption 5

NLRB-FOIA-00012549

Exemption 5

NLRB-FOIA-00012550

Exemption 5

NLRB-FOIA-00012551

Exemption 5

NLRB-FOIA-00012552

Exemption 5

NLRB-FOIA-00012553

Exemption 5

NLRB-FOIA-00012554

Exemption 5

NLRB-FOIA-00012555

Exemption 5

NLRB-FOIA-00012556

Exemption 5

NLRB-FOIA-00012557

Exemption 5

NLRB-FOIA-00012558

Exemption 5

NLRB-FOIA-00012559

Exemption 5

NLRB-FOIA-00012560

Exemption 5

NLRB-FOIA-00012561

Exemption 5

NLRB-FOIA-00012562

Exemption 5

NLRB-FOIA-00012563

Exemption 5

NLRB-FOIA-00012564

Exemption 5

NLRB-FOIA-00012565

Exemption 5

NLRB-FOIA-00012566

Exemption 5

NLRB-FOIA-00012567

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:

W illen, Debra L

Thursday, January 27, 2011 2:58 PM

Kearney, Barry J.

Szapiro, Miriam

Boeing Co.

Barry Im attaching the revised Boeing draft and also leaving a hard copy in your in-box.

Incidentally, I just talked to David Campbell and apparently Boeing is reporting in the media again that the surge line is

temporary and will come down when South Carolina is up and running. He will send us the transcript of conference calls

and/or media articles. Isnt this inconsistent with what Conner said?

NLRB-FOIA-00012568

Microsoft Outlook

From:

Jude Bryan <bryan@workerlaw.com>

Sent:

Thursday, January 27, 2011 3:13 PM

To:

Willen, Debra L; Ahearn, Richard L.

Cc:

ccorson@iamaw.org; rmichalski@iamaw.org; Blondin Mark; tomw@iam751.org; David

Subject:

IAM 751 v. Boeing, Case No. 19-CA-32431

Campbell; Kathy Barnard; Carson Glickman-Flora

Dear General Counsel Solomon and Regional Director Ahearn:

The following exchange occurred during Boeings Fourth Quarter Conference Call with Boeing CEO

McNerney yesterday. As you can see, he affirms that the Surge Line is still called the Surge line and is

temporary. He confirms that the 787 assembly work is being moved to South Carolina. He confirms they are

still in the hiring/training phase in South Carolina.

The conference call is available in full at

http://seekingalpha.com/article/248873-boein-ceo-discusses-q4-2010-earnings-call-transcript.

Operator

(Next question is) from the line of Mike Mecham with Aviation Week.

Michael Mecham

One thing you haven't talked about in quite some detail is just how productivity is there, how your development

for your production lines is going. You're working on Charleston, you're a slowly developing a backup line for

787 there in Everett, and of course, 767 lines coming on. Can you just go through how Charleston's coming

along and your whole outlook on your production lines?

W. McNerney

Well, Charleston is going along well. The final assembly capability we're building there for the 787 is actually

ahead of schedule. We're feeling good about its construction and the hiring of the people that we are currently

training to work in that facility. You're right, we have a surge line in Everett, which is a temporary line to give

us the flexibility to make sure we move the work properly to Charleston that we're going to move. So that's all

working well. The 767 line is, I guess, that really depends on tanker, yes or no. I think in either case, we have a

plan for that line to either morphed into a tanker line, and as you can imagine, spent a fair amount of time

planning on how we would do that and feel very confident of that move. And if we do not end up winning the

tanker competition, we think there's commercial demand that can keep that line open for a somewhat longer.

But I think everything's sort of in front of us. I think the bigger question is implementing all these rate increases

that really are a tremendous economic opportunity for the Boeing Co. over the next two or three years. And we

feel equally confident there. So production plan, you're on an important issue, production planning and

execution. We're spending a lot of time on it and we feel great about the opportunity in front of us.

Sincerely, David Campbell

campbell@workerlaw.com

Schwerin Campbell Barnard Iglitzin & Lavitt

18 W Mercer Suite 400

NLRB-FOIA-00012569

Seattle, W ashington 98119-3971

Phone (206)285-2828: FAX (206)378-4132

This communication is protected by the attorney client and attorney work-product privileges. Please do not copy, forward

or append.

cc:

Barry Kearney, Associate General Counsel

Ellen Farrell, Deputy Associate General Counsel

Jayme Sophir, Assistant General Counsel, Advice Branch

Miriam Szapiro, Supervisory Attorney, Advice Branch

Debra Willen, Senior Attorney, Advice Branch

Judy Katz, Assistant General Counsel, Injunction Litigation Branch

Robert Omberg, Deputy Assistant General Counsel, Injunction Litigation Branch

Joseph Baniszewski, Deputy Assistant General Counsel, Division of Operations-Management

Christopher Corson, General Counsel, IAMAW

Richard P. Michalski, General Vice President, IAMAW

Tom Wroblewski, President, IAMAW District 751

Mark Blondin, Aerospace Coordinator, IAMAW

Jude Bryan, Paralegal | Schwerin Campbell Barnard Iglitzin & Lavitt LLP | 18 West Mercer Street, Ste. 400, Seattle, WA 98119-3971; Phone:

206.285.2828 Ext. 21; Fax: 206-378-4132 | www.workerlaw.com

This communication is intended for a specific recipient and may be protected by the attorney client and work-product privilege.

If you receive this message in error, please permanently delete it and notify the sender.

NLRB-FOIA-00012570

Microsoft Outlook

From:

Willen, Debra L

Sent:

Thursday, January 27, 2011 3:16 PM

To:

Kearney, Barry J.

Cc:

'Miriam - Szapiro'

Subject:

Boeing

Attachments:

ADV.19-CA-32431.Response2.Boeing.dlw.doc

Sorry about the last e-mail. This e-mail actually has the draft attached.

NLRB-FOIA-00012571

Exemption 5

NLRB-FOIA-00012572

Exemption 5

NLRB-FOIA-00012573

Exemption 5

NLRB-FOIA-00012574

Exemption 5

NLRB-FOIA-00012575

Exemption 5

NLRB-FOIA-00012576

Exemption 5

NLRB-FOIA-00012577

Exemption 5

NLRB-FOIA-00012578

Exemption 5

NLRB-FOIA-00012579

Exemption 5

NLRB-FOIA-00012580

Exemption 5

NLRB-FOIA-00012581

Exemption 5

NLRB-FOIA-00012582

Exemption 5

NLRB-FOIA-00012583

Exemption 5

NLRB-FOIA-00012584

Exemption 5

NLRB-FOIA-00012585

Exemption 5

NLRB-FOIA-00012586

Exemption 5

NLRB-FOIA-00012587

Exemption 5

NLRB-FOIA-00012588

Exemption 5

NLRB-FOIA-00012589

Exemption 5

NLRB-FOIA-00012590

Exemption 5

NLRB-FOIA-00012591

Exemption 5

NLRB-FOIA-00012592

Exemption 5

NLRB-FOIA-00012593

Exemption 5

NLRB-FOIA-00012594

Exemption 5

NLRB-FOIA-00012595

Exemption 5

NLRB-FOIA-00012596

Exemption 5

NLRB-FOIA-00012597

Exemption 5

NLRB-FOIA-00012598

Exemption 5

NLRB-FOIA-00012599

Exemption 5

NLRB-FOIA-00012600

Exemption 5

NLRB-FOIA-00012601

Exemption 5

NLRB-FOIA-00012602

Exemption 5

NLRB-FOIA-00012603

Exemption 5

NLRB-FOIA-00012604

Exemption 5

NLRB-FOIA-00012605

Exemption 5

NLRB-FOIA-00012606

Exemption 5

NLRB-FOIA-00012607

Exemption 5

NLRB-FOIA-00012608

Exemption 5

NLRB-FOIA-00012609

Exemption 5

NLRB-FOIA-00012610

Exemption 5

NLRB-FOIA-00012611

Exemption 5

NLRB-FOIA-00012612

Exemption 5

NLRB-FOIA-00012613

Exemption 5

NLRB-FOIA-00012614

Exemption 5

NLRB-FOIA-00012615

Exemption 5

NLRB-FOIA-00012616

Exemption 5

NLRB-FOIA-00012617

Exemption 5

NLRB-FOIA-00012618

Exemption 5

NLRB-FOIA-00012619

Exemption 5

NLRB-FOIA-00012620

Exemption 5

NLRB-FOIA-00012621

Exemption 5

NLRB-FOIA-00012622

Exemption 5

NLRB-FOIA-00012623

Exemption 5

NLRB-FOIA-00012624

Exemption 5

NLRB-FOIA-00012625

Exemption 5

NLRB-FOIA-00012626

Exemption 5

NLRB-FOIA-00012627

Exemption 5

NLRB-FOIA-00012628

Exemption 5

NLRB-FOIA-00012629

Microsoft Outlook

From:

Willen, Debra L

Sent:

Thursday, January 27, 2011 3:22 PM

To:

Solomon, Lafe E.; Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam; Katz,

Cc:

Ahearn, Richard L.; Willen, Debra L; 'Jude Bryan'

Subject:

FW: IAM 751 v. Boeing, Case No. 19-CA-32431

Judy; Omberg, Bob; Baniszewski, Joseph

From: Jude Bryan [mailto:bryan@workerlaw.com]

Sent: Thursday, January 27, 2011 3:13 PM

To: Willen, Debra L; Ahearn, Richard L.

Cc: ccorson@iamaw.org; rmichalski@iamaw.org; Blondin Mark; tomw@iam751.org; David Campbell; Kathy Barnard;

Carson Glickman-Flora

Subject: IAM 751 v. Boeing, Case No. 19-CA-32431

Dear General Counsel Solomon and Regional Director Ahearn:

The following exchange occurred during Boeings Fourth Quarter Conference Call with Boeing CEO

McNerney yesterday. As you can see, he affirms that the Surge Line is still called the Surge line and is

temporary. He confirms that the 787 assembly work is being moved to South Carolina. He confirms they are

still in the hiring/training phase in South Carolina.

The conference call is available in full at

http://seekingalpha.com/article/248873-boein-ceo-discusses-q4-2010-earnings-call-transcript.

Operator

(Next question is) from the line of Mike Mecham with Aviation Week.

Michael Mecham

One thing you haven't talked about in quite some detail is just how productivity is there, how your development

for your production lines is going. You're working on Charleston, you're a slowly developing a backup line for

787 there in Everett, and of course, 767 lines coming on. Can you just go through how Charleston's coming

along and your whole outlook on your production lines?

W. McNerney

Well, Charleston is going along well. The final assembly capability we're building there for the 787 is actually

ahead of schedule. We're feeling good about its construction and the hiring of the people that we are currently

training to work in that facility. You're right, we have a surge line in Everett, which is a temporary line to give

us the flexibility to make sure we move the work properly to Charleston that we're going to move. So that's all

working well. The 767 line is, I guess, that really depends on tanker, yes or no. I think in either case, we have a

plan for that line to either morphed into a tanker line, and as you can imagine, spent a fair amount of time

planning on how we would do that and feel very confident of that move. And if we do not end up winning the

tanker competition, we think there's commercial demand that can keep that line open for a somewhat longer.

NLRB-FOIA-00012630

But I think everything's sort of in front of us. I think the bigger question is implementing all these rate increases

that really are a tremendous economic opportunity for the Boeing Co. over the next two or three years. And we

feel equally confident there. So production plan, you're on an important issue, production planning and

execution. We're spending a lot of time on it and we feel great about the opportunity in front of us.

Sincerely, David Campbell

campbell@workerlaw.com

Schwerin Campbell Barnard Iglitzin & Lavitt

18 W Mercer Suite 400

Seattle, W ashington 98119-3971

Phone (206)285-2828: FAX (206)378-4132

This communication is protected by the attorney client and attorney work-product privileges. Please do not copy, forward

or append.

cc:

Barry Kearney, Associate General Counsel

Ellen Farrell, Deputy Associate General Counsel

Jayme Sophir, Assistant General Counsel, Advice Branch

Miriam Szapiro, Supervisory Attorney, Advice Branch

Debra Willen, Senior Attorney, Advice Branch

Judy Katz, Assistant General Counsel, Injunction Litigation Branch

Robert Omberg, Deputy Assistant General Counsel, Injunction Litigation Branch

Joseph Baniszewski, Deputy Assistant General Counsel, Division of Operations-Management

Christopher Corson, General Counsel, IAMAW

Richard P. Michalski, General Vice President, IAMAW

Tom Wroblewski, President, IAMAW District 751

Mark Blondin, Aerospace Coordinator, IAMAW

Jude Bryan, Paralegal | Schwerin Campbell Barnard Iglitzin & Lavitt LLP | 18 West Mercer Street, Ste. 400, Seattle, WA 98119-3971; Phone:

206.285.2828 Ext. 21; Fax: 206-378-4132 | www.workerlaw.com

This communication is intended for a specific recipient and may be protected by the attorney client and work-product privilege.

If you receive this message in error, please permanently delete it and notify the sender.

NLRB-FOIA-00012631

Microsoft Outlook

From:
Sent:
To:
Subject:
Attachments:

W illen, Debra L

Friday, January 28, 2011 2:30 PM

Kearney, Barry J.

Boeing draft

ADV.19-CA-32431.Response2.Boeing.dlw.doc

attached

NLRB-FOIA-00012632

Exemption 5

NLRB-FOIA-00012633

Exemption 5

NLRB-FOIA-00012634

Exemption 5

NLRB-FOIA-00012635

Exemption 5

NLRB-FOIA-00012636

Exemption 5

NLRB-FOIA-00012637

Exemption 5

NLRB-FOIA-00012638

Exemption 5

NLRB-FOIA-00012639

Exemption 5

NLRB-FOIA-00012640

Exemption 5

NLRB-FOIA-00012641

Exemption 5

NLRB-FOIA-00012642

Exemption 5

NLRB-FOIA-00012643

Exemption 5

NLRB-FOIA-00012644

Exemption 5

NLRB-FOIA-00012645

Exemption 5

NLRB-FOIA-00012646

Exemption 5

NLRB-FOIA-00012647

Exemption 5

NLRB-FOIA-00012648

Exemption 5

NLRB-FOIA-00012649

Exemption 5

NLRB-FOIA-00012650

Exemption 5

NLRB-FOIA-00012651

Exemption 5

NLRB-FOIA-00012652

Exemption 5

NLRB-FOIA-00012653

Exemption 5

NLRB-FOIA-00012654

Exemption 5

NLRB-FOIA-00012655

Exemption 5

NLRB-FOIA-00012656

Exemption 5

NLRB-FOIA-00012657

Exemption 5

NLRB-FOIA-00012658

Exemption 5

NLRB-FOIA-00012659

Exemption 5

NLRB-FOIA-00012660

Exemption 5

NLRB-FOIA-00012661

Exemption 5

NLRB-FOIA-00012662

Exemption 5

NLRB-FOIA-00012663

Exemption 5

NLRB-FOIA-00012664

Exemption 5

NLRB-FOIA-00012665

Exemption 5

NLRB-FOIA-00012666

Exemption 5

NLRB-FOIA-00012667

Exemption 5

NLRB-FOIA-00012668

Exemption 5

NLRB-FOIA-00012669

Exemption 5

NLRB-FOIA-00012670

Exemption 5

NLRB-FOIA-00012671

Exemption 5

NLRB-FOIA-00012672

Exemption 5

NLRB-FOIA-00012673

Exemption 5

NLRB-FOIA-00012674

Exemption 5

NLRB-FOIA-00012675

Exemption 5

NLRB-FOIA-00012676

Exemption 5

NLRB-FOIA-00012677

Exemption 5

NLRB-FOIA-00012678

Exemption 5

NLRB-FOIA-00012679

Exemption 5

NLRB-FOIA-00012680

Exemption 5

NLRB-FOIA-00012681

Exemption 5

NLRB-FOIA-00012682

Exemption 5

NLRB-FOIA-00012683

Exemption 5

NLRB-FOIA-00012684

Exemption 5

NLRB-FOIA-00012685

Exemption 5

NLRB-FOIA-00012686

Exemption 5

NLRB-FOIA-00012687

Exemption 5

NLRB-FOIA-00012688

Exemption 5

NLRB-FOIA-00012689

Exemption 5

NLRB-FOIA-00012690

Exemption 5

NLRB-FOIA-00012691

Microsoft Outlook

W illen, Debra L

Friday, January 28, 2011 2:51 PM

Szapiro, Miriam

Boeing

ADV.19-CA-32431.Response2.Boeing.dlw.doc

From:
Sent:
To:
Subject:
Attachments:

Hi Miriam

Just to get you up to speed on the Boeing draft. Barry requested minor changes in our draft

Exemption 5

He wanted me to clear up McNerneys and Albaughs titles. It seems McNearney is and remains CEO. Albaugh used to

be CEO of the military division and became CEO of the commercial planes division.

I made the changes and gave it back to him, and he then okayed it. New version of draft is attached.

Hope you are having a good weekend and not checking your e-mail.

--Deb

NLRB-FOIA-00012692

Exemption 5

NLRB-FOIA-00012693

Exemption 5

NLRB-FOIA-00012694

Exemption 5

NLRB-FOIA-00012695

Exemption 5

NLRB-FOIA-00012696

Exemption 5

NLRB-FOIA-00012697

Exemption 5

NLRB-FOIA-00012698

Exemption 5

NLRB-FOIA-00012699

Exemption 5

NLRB-FOIA-00012700

Exemption 5

NLRB-FOIA-00012701

Exemption 5

NLRB-FOIA-00012702

Exemption 5

NLRB-FOIA-00012703

Exemption 5

NLRB-FOIA-00012704

Exemption 5

NLRB-FOIA-00012705

Exemption 5

NLRB-FOIA-00012706

Exemption 5

NLRB-FOIA-00012707

Exemption 5

NLRB-FOIA-00012708

Exemption 5

NLRB-FOIA-00012709

Exemption 5

NLRB-FOIA-00012710

Exemption 5

NLRB-FOIA-00012711

Exemption 5

NLRB-FOIA-00012712

Exemption 5

NLRB-FOIA-00012713

Exemption 5

NLRB-FOIA-00012714

Exemption 5

NLRB-FOIA-00012715

Exemption 5

NLRB-FOIA-00012716

Exemption 5

NLRB-FOIA-00012717

Exemption 5

NLRB-FOIA-00012718

Exemption 5

NLRB-FOIA-00012719

Exemption 5

NLRB-FOIA-00012720

Exemption 5

NLRB-FOIA-00012721

Exemption 5

NLRB-FOIA-00012722

Exemption 5

NLRB-FOIA-00012723

Exemption 5

NLRB-FOIA-00012724

Exemption 5

NLRB-FOIA-00012725

Exemption 5

NLRB-FOIA-00012726

Exemption 5

NLRB-FOIA-00012727

Exemption 5

NLRB-FOIA-00012728

Exemption 5

NLRB-FOIA-00012729

Exemption 5

NLRB-FOIA-00012730

Exemption 5

NLRB-FOIA-00012731

Exemption 5

NLRB-FOIA-00012732

Exemption 5

NLRB-FOIA-00012733

Exemption 5

NLRB-FOIA-00012734

Exemption 5

NLRB-FOIA-00012735

Exemption 5

NLRB-FOIA-00012736

Exemption 5

NLRB-FOIA-00012737

Exemption 5

NLRB-FOIA-00012738

Exemption 5

NLRB-FOIA-00012739

Exemption 5

NLRB-FOIA-00012740

Exemption 5

NLRB-FOIA-00012741

Exemption 5

NLRB-FOIA-00012742

Exemption 5

NLRB-FOIA-00012743

Exemption 5

NLRB-FOIA-00012744

Exemption 5

NLRB-FOIA-00012745

Exemption 5

NLRB-FOIA-00012746

Exemption 5

NLRB-FOIA-00012747

Exemption 5

NLRB-FOIA-00012748

Exemption 5

NLRB-FOIA-00012749

Exemption 5

NLRB-FOIA-00012750

Exemption 5

NLRB-FOIA-00012751

Microsoft Outlook

From:
Sent:
To:
Subject:

W illen, Debra L

Friday, February 04, 2011 9:53 AM

Szapiro, Miriam; Kearney, Barry J.

Boeing

Exemption 5

NLRB-FOIA-00012752

Microsoft Outlook

From:
Sent:
To:
Subject:
Attachments:

W illen, Debra L

Friday, February 04, 2011 11:21 AM

Kearney, Barry J.

RE: Boeing

ADV.19-CA-32431.Response2.Boeing.dlw.doc

New version attached. See p. 22 for the change.

From: Kearney, Barry J.

Sent: Friday, February 04, 2011 9:54 AM

To: Willen, Debra L; Szapiro, Miriam

Subject: RE: Boeing

By all means

From: Willen, Debra L

Sent: Friday, February 04, 2011 9:53 AM

To: Szapiro, Miriam; Kearney, Barry J.

Subject: Boeing

Exemption 5

NLRB-FOIA-00012753

Exemption 5

NLRB-FOIA-00012754

Exemption 5

NLRB-FOIA-00012755

Exemption 5

NLRB-FOIA-00012756

Exemption 5

NLRB-FOIA-00012757

Exemption 5

NLRB-FOIA-00012758

Exemption 5

NLRB-FOIA-00012759

Exemption 5

NLRB-FOIA-00012760

Exemption 5

NLRB-FOIA-00012761

Exemption 5

NLRB-FOIA-00012762

Exemption 5

NLRB-FOIA-00012763

Exemption 5

NLRB-FOIA-00012764

Exemption 5

NLRB-FOIA-00012765

Exemption 5

NLRB-FOIA-00012766

Exemption 5

NLRB-FOIA-00012767

Exemption 5

NLRB-FOIA-00012768

Exemption 5

NLRB-FOIA-00012769

Exemption 5

NLRB-FOIA-00012770

Exemption 5

NLRB-FOIA-00012771

Exemption 5

NLRB-FOIA-00012772

Exemption 5

NLRB-FOIA-00012773

Exemption 5

NLRB-FOIA-00012774

Exemption 5

NLRB-FOIA-00012775

Exemption 5

NLRB-FOIA-00012776

Exemption 5

NLRB-FOIA-00012777

Exemption 5

NLRB-FOIA-00012778

Exemption 5

NLRB-FOIA-00012779

Exemption 5

NLRB-FOIA-00012780

Exemption 5

NLRB-FOIA-00012781

Exemption 5

NLRB-FOIA-00012782

Exemption 5

NLRB-FOIA-00012783

Exemption 5

NLRB-FOIA-00012784

Exemption 5

NLRB-FOIA-00012785

Exemption 5

NLRB-FOIA-00012786

Exemption 5

NLRB-FOIA-00012787

Microsoft Outlook

From:

Sophir, Jayme

Sent:

Thursday, March 31, 2011 11:29 AM

To:

Willen, Debra L; Szapiro, Miriam

Subject:

FW:

From: Kearney, Barry J.

Sent: Thursday, March 31, 2011 11:06 AM

To: Solomon, Lafe E.

Cc: Farrell, Ellen; Sophir, Jayme; Ahearn, Richard L.

Subject: FW:

From: David Campbell [mailto:campbell@workerlaw.com]

Sent: Thursday, March 31, 2011 9:23 AM

To: Kearney, Barry J.

Cc: Corson Christopher; Jude Bryan; Carson Glickman-Flora; Solomon, Lafe E.

Subject:

Barry, Thanks for calling me back yesterday. We are waiting for Boeings call. As I mentioned in our call,

while Boeing is talking good faith they are capitalizing on chilling union activity by expanding their

operations to create duplicate parts manufacturing in South Carolina (even though there is unused capacity in

the bargaining unit). Just last week Ray Connor was quoted in the following

Article: http://www.postandcourier.com/news/2011/mar/26/parts-plant-marks-boeings-ascent/

Boeing already employs more than 1,300 workers at a similar plant at its Everett, Wash., aircraft assembly

headquarters, but company executives said early last year that they wanted to duplicate their critical jet

manufacturing operations in Charleston in case of W est Coast labor strikes or other work stoppages. A walkout by

the International Association of Machinists and Aerospace W orkers in 2008 cost the company an estimated $1.8

billion.

A similar local union at the North Charleston site voted to disband in September 2009, setting the stage for

Boeing to announce six weeks later it would build its new aircraft assembly plant in the Lowcountry.

"All roads to the 787 lead through South Carolina," Ray Conner, vice president and general manager of supply

chain management and operations for Boeing Commercial Airplanes, said. "We expect to do big things here in

South Carolina."

We believe that Boeing continues to merely play for time, while it capitalizes on its unlawful conduct. We are

willing to meet if Boeing genuinely wants to resolve this matter. But we believe instead Boeing will wait to call

us late in the week, and then find some reason for further delay. Boeing has been less than honest in its claims

in this case, including three claimed facts (that we know about) which were plainly not the case. For at least

five months they have led your office to believe they have some interest in resolving this matter while

continuously reinforcing their undisputed and unambiguous chilling message to their workers and the

nation. Boeing is forcing the issue which we ask be resolved without delay: Can Boeing relocate jobs to a

newly decertified site because its union employees strike? If so, why cant any employer discriminate in favor

NLRB-FOIA-00012788

of non-union employees? Such a result would leave 8(a)(3) a dead letter, and effectively overrule by inaction

the Boards runaway shop cases as well as its recent decision in

Paraxel, 356 NLRB No. 82 (2011).

Boeing is winning this

point of law by delay and default. We hope to hear from Boeing and if possible promptly reach a settlement.

Absent this, we respectfully request that the General Counsel issue a complaint. Failure to do so will harm tens

of thousands of Boeings employees and create a union-busting roadmap that will be emulated across the

US. Surely, that is not to be the legacy of this General Counsel and Board.

Thanks, Dave

Sincerely, David Campbell

campbell@workerlaw.com

Schwerin Campbell Barnard Iglitzin & Lavitt

18 W Mercer Suite 400

Seattle, W ashington 98119-3971

Phone (206)285-2828: FAX (206)378-4132

This communication is protected by the attorney client and attorney work-product privileges. Please do not copy, forward

or append.

NLRB-FOIA-00012789

Microsoft Outlook

Kearney, Barry J.

Monday, April 18, 2011 9:14 AM

W illen, Debra L

FW : Complaint

Boeing complaint post RA revised draft 4-16-11.doc; ATT00001..htm

From:
Sent:
To:
Subject:
Attachments:

I am going to try to meet this am depending on avaliability

From: Ahearn, Richard L.

Sent: Sunday, April 17, 2011 2:19 PM

To: Kearney, Barry J.

Cc: Farrell, Ellen; Sophir, Jayme

Subject: Complaint

Barry, I have attached a ROUGH draft for the Boeing complaint. Id greatly appreciate any suggestions,

corrections, improvements, etc.

A few observations, questions:

Ex. 5 Deliberative

Many thanks; look forward to your insights.

Rich

NLRB-FOIA-00012790

NLRB-FOIA-00012791

Ex. 5 Deliberative

NLRB-FOIA-00012792

Ex. 5 Deliberative

NLRB-FOIA-00012793

Ex. 5 Deliberative

NLRB-FOIA-00012794

Ex. 5 Deliberative

NLRB-FOIA-00012795

Ex. 5 Deliberative

NLRB-FOIA-00012796

Ex. 5 Deliberative

NLRB-FOIA-00012797

Ex. 5 Deliberative

NLRB-FOIA-00012798

Ex. 5 Deliberative

NLRB-FOIA-00012799

Ex. 5 Deliberative

NLRB-FOIA-00012800

Ex. 5 Deliberative

NLRB-FOIA-00012801

Ex. 5 Deliberative

NLRB-FOIA-00012802

Ex. 5 Deliberative

NLRB-FOIA-00012803

Ex. 5 Deliberative

NLRB-FOIA-00012804

Ex. 5 Deliberative

NLRB-FOIA-00012805

Ex. 5 Deliberative

NLRB-FOIA-00012806

Ex. 5 Deliberative

NLRB-FOIA-00012807

Ex. 5 Deliberative

NLRB-FOIA-00012808

Ex. 5 Deliberative

NLRB-FOIA-00012809

Microsoft Outlook

From:

Willen, Debra L

Sent:

Monday, April 18, 2011 12:07 PM

To:

Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme

Subject:

latest version of Boeing Complaint

Attachments:

ADV.19-CA-32431.Complaint.Boeing.4-18-11.doc

Heres a new, marked-up version. Let me know if Ive got everything.

The Region will have to clean up the formatting I had problems with that.

NLRB-FOIA-00012810

Ex. 5 Deliberative

NLRB-FOIA-00012811

Ex. 5 Deliberative

NLRB-FOIA-00012812

Ex. 5 Deliberative

NLRB-FOIA-00012813

Ex. 5 Deliberative

NLRB-FOIA-00012814

Ex. 5 Deliberative

NLRB-FOIA-00012815

Ex. 5 Deliberative

NLRB-FOIA-00012816

Ex. 5 Deliberative

NLRB-FOIA-00012817

Ex. 5 Deliberative

NLRB-FOIA-00012818

Ex. 5 Deliberative

NLRB-FOIA-00012819

Ex. 5 Deliberative

NLRB-FOIA-00012820

Ex. 5 Deliberative

NLRB-FOIA-00012821

Ex. 5 Deliberative

NLRB-FOIA-00012822

Ex. 5 Deliberative

NLRB-FOIA-00012823

Ex. 5 Deliberative

NLRB-FOIA-00012824

Ex. 5 Deliberative

NLRB-FOIA-00012825

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:
Attachments:

Farrell, Ellen

Monday, April 18, 2011 12:51 PM

W illen, Debra L

Kearney, Barry J.; Sophir, Jayme

FW : latest version of Boeing Complaint

ADV.19-CA-32431.Complaint.Boeing.4-18-11.doc

Deb

Exemption 5

. But if Im wrong just reject my changes and youll be

back to your version.

Ellen

Ellen Farrell

Deputy Associate General Counsel

Division of Advice, NLRB

202-273-3810

Ellen.Farrell@nlrb.gov

From: Willen, Debra L

Sent: Monday, April 18, 2011 12:07 PM

To: Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme

Subject: latest version of Boeing Complaint

Heres a new, marked-up version. Let me know if Ive got everything.

The Region will have to clean up the formatting I had problems with that.

NLRB-FOIA-00012826

Ex. 5 Deliberative

NLRB-FOIA-00012827

Ex. 5 Deliberative

NLRB-FOIA-00012828

Ex. 5 Deliberative

NLRB-FOIA-00012829

Ex. 5 Deliberative

NLRB-FOIA-00012830

Ex. 5 Deliberative

NLRB-FOIA-00012831

Ex. 5 Deliberative

NLRB-FOIA-00012832

Ex. 5 Deliberative

NLRB-FOIA-00012833

Ex. 5 Deliberative

NLRB-FOIA-00012834

Ex. 5 Deliberative

NLRB-FOIA-00012835

Ex. 5 Deliberative

NLRB-FOIA-00012836

Ex. 5 Deliberative

NLRB-FOIA-00012837

Ex. 5 Deliberative

NLRB-FOIA-00012838

Ex. 5 Deliberative

NLRB-FOIA-00012839

Ex. 5 Deliberative

NLRB-FOIA-00012840

Ex. 5 Deliberative

NLRB-FOIA-00012841

Ex. 5 Deliberative

NLRB-FOIA-00012842

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:

Sophir, Jayme

Monday, April 18, 2011 12:56 PM

Farrell, Ellen; W illen, Debra L

Kearney, Barry J.

RE: latest version of Boeing Complaint

Ex. 5 Deliberative

From: Farrell, Ellen

Sent: Monday, April 18, 2011 12:51 PM

To: Willen, Debra L

Cc: Kearney, Barry J.; Sophir, Jayme

Subject: FW: latest version of Boeing Complaint

Deb

Exemption 5

. But if Im wrong just reject my changes and youll be

back to your version.

Ellen

Ellen Farrell

Deputy Associate General Counsel

Division of Advice, NLRB

202-273-3810

Ellen.Farrell@nlrb.gov

From: Willen, Debra L

Sent: Monday, April 18, 2011 12:07 PM

To: Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme

Subject: latest version of Boeing Complaint

Heres a new, marked-up version. Let me know if Ive got everything.

The Region will have to clean up the formatting I had problems with that.

NLRB-FOIA-00012843

Microsoft Outlook

From:
Sent:
To:
Subject:
Attachments:

W illen, Debra L

Monday, April 18, 2011 1:07 PM

Kearney, Barry J.

Boeing complaint

ADV.19-CA-32431.Complaint.Boeing.4-18-11.doc

Okay I made Jaymes change but not Ellens, as instructed by Barry.

Ex. 5 Deliberative

NLRB-FOIA-00012844

Ex. 5 Deliberative

NLRB-FOIA-00012845

Ex. 5 Deliberative

NLRB-FOIA-00012846

Ex. 5 Deliberative

NLRB-FOIA-00012847

Ex. 5 Deliberative

NLRB-FOIA-00012848

Ex. 5 Deliberative

NLRB-FOIA-00012849

Ex. 5 Deliberative

NLRB-FOIA-00012850

Ex. 5 Deliberative

NLRB-FOIA-00012851

Ex. 5 Deliberative

NLRB-FOIA-00012852

Ex. 5 Deliberative

NLRB-FOIA-00012853

Ex. 5 Deliberative

NLRB-FOIA-00012854

Ex. 5 Deliberative

NLRB-FOIA-00012855

Ex. 5 Deliberative

NLRB-FOIA-00012856

Ex. 5 Deliberative

NLRB-FOIA-00012857

Ex. 5 Deliberative

NLRB-FOIA-00012858

Ex. 5 Deliberative

NLRB-FOIA-00012859

Microsoft Outlook

From:
Sent:
To:
Subject:

Kearney, Barry J.

Thursday, April 28, 2011 3:53 PM

Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam; W illen, Debra L; Ahearn, Richard L.

FW : any thoughts on a response?

Follow Up Flag:
Flag Status:

Follow up

Flagged

fyi

From: Cleeland, Nancy

Sent: Thursday, April 28, 2011 3:49 PM

To: Solomon, Lafe E.; Kearney, Barry J.; Garza, Jose; Wagner, Anthony R.

Subject: any thoughts on a response?

Hi Lafe, I fear you are in the air again. If not, please let me know if you have 5 minutes to talk. Weve been asked for

comment on this letter from 9 states asking us to withdraw the complaint.

Exemption 5

Any thoughts?

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

NLRB-FOIA-00012860

Microsoft Outlook

From:
Sent:
To:
Subject:

Ahearn, Richard L.

Thursday, April 28, 2011 3:58 PM

Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam; W illen, Debra L

RE: any thoughts on a response?

Nancys approach sounds reasonable to me.

Rich

From: Kearney, Barry J.

Sent: Thursday, April 28, 2011 12:53 PM

To: Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam; Willen, Debra L; Ahearn, Richard L.

Subject: FW: any thoughts on a response?

fyi

From: Cleeland, Nancy

Sent: Thursday, April 28, 2011 3:49 PM

To: Solomon, Lafe E.; Kearney, Barry J.; Garza, Jose; Wagner, Anthony R.

Subject: any thoughts on a response?

Hi Lafe, I fear you are in the air again. If not, please let me know if you have 5 minutes to talk. Weve been asked for

comment on this letter from 9 states asking us to withdraw the complaint.

Exemption 5

Any thoughts?

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

NLRB-FOIA-00012861

Microsoft Outlook

From:
Sent:
To:
Subject:

Kearney, Barry J.

Thursday, April 28, 2011 4:32 PM

Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam; W illen, Debra L

FW : any thoughts on a response?

fyi

From: Kearney, Barry J.

Sent: Thursday, April 28, 2011 4:30 PM

To: Garza, Jose; Cleeland, Nancy; Solomon, Lafe E.; Wagner, Anthony R.; Ahearn, Richard L.

Subject: RE: any thoughts on a response?

Exemption 5

From: Garza, Jose

Sent: Thursday, April 28, 2011 3:59 PM

To: Cleeland, Nancy; Solomon, Lafe E.; Kearney, Barry J.; Wagner, Anthony R.

Subject: RE: any thoughts on a response?

Exemption 5

From: Cleeland, Nancy

Sent: Thursday, April 28, 2011 3:49 PM

To: Solomon, Lafe E.; Kearney, Barry J.; Garza, Jose; Wagner, Anthony R.

Subject: any thoughts on a response?

Hi Lafe, I fear you are in the air again. If not, please let me know if you have 5 minutes to talk. Weve been asked for

comment on this letter from 9 states asking us to withdraw the complaint.

Exemption 5

Any thoughts?

Nancy Cleeland

NLRB Director of Public Affairs

(202) 273-0222

nancy.cleeland@nlrb.gov

NLRB-FOIA-00012862

Microsoft Outlook

From:
Sent:
To:
Subject:
Attachments:

W illen, Debra L

Tuesday, May 03, 2011 12:24 PM

Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam

draft response to state AGs

AG response.doc

Draft attached comments/edits welcome.

NLRB-FOIA-00012863

Exemption 5

NLRB-FOIA-00012864

Exemption 5

NLRB-FOIA-00012865

Exemption 5

NLRB-FOIA-00012866

Exemption 5

NLRB-FOIA-00012867

Microsoft Outlook

From:
Sent:
To:
Subject:

Farrell, Ellen

W ednesday, May 04, 2011 8:54 AM

W illen, Debra L; Kearney, Barry J.; Sophir, Jayme; Szapiro, Miriam

RE: draft response to state AGs

What a welcome voice of sanity in this cacophony!

I have questions on two points. First,

Exemption 5

Second,

Exemption 5

Ellen

Ellen Farrell

Deputy Associate General Counsel

Division of Advice, NLRB

202-273-3810

Ellen.Farrell@nlrb.gov

From: Willen, Debra L

Sent: Tuesday, May 03, 2011 12:24 PM

To: Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam

Subject: draft response to state AGs

Draft attached comments/edits welcome.

NLRB-FOIA-00012868

Microsoft Outlook

From:
Sent:
To:
Subject:

Kearney, Barry J.

W ednesday, May 04, 2011 9:12 AM

Farrell, Ellen; W illen, Debra L; Sophir, Jayme; Szapiro, Miriam

RE: draft response to state AGs

Deb

I agree with Ellens first and second points and deleted them from the response.( my edits are on your desk in hard copy)

From: Farrell, Ellen

Sent: Wednesday, May 04, 2011 8:54 AM

To: Willen, Debra L; Kearney, Barry J.; Sophir, Jayme; Szapiro, Miriam

Subject: RE: draft response to state AGs

What a welcome voice of sanity in this cacophony!

I have questions on two points. First,

Exemption 5

Second,

Exemption 5

Ellen

Ellen Farrell

Deputy Associate General Counsel

Division of Advice, NLRB

202-273-3810

Ellen.Farrell@nlrb.gov

From: Willen, Debra L

Sent: Tuesday, May 03, 2011 12:24 PM

To: Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam

Subject: draft response to state AGs

Draft attached comments/edits welcome.

NLRB-FOIA-00012869

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:

Szapiro, Miriam

W ednesday, May 04, 2011 12:10 PM

Farrell, Ellen; Kearney, Barry J.; W illen, Debra L; Sophir, Jayme

Dodds, Amy L.

RE: Boeing -- revised draft response to state AGs

I like Jaymes point and Ellens modification; its a good addition.

From: Farrell, Ellen

Sent: Wednesday, May 04, 2011 12:07 PM

To: Kearney, Barry J.; Willen, Debra L; Sophir, Jayme; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: FW: Boeing -- revised draft response to state AGs

See my modification

Exemption 5

Ellen

Ellen Farrell

Deputy Associate General Counsel

Division of Advice, NLRB

202-273-3810

Ellen.Farrell@nlrb.gov

From: Sophir, Jayme

Sent: Wednesday, May 04, 2011 11:33 AM

To: Kearney, Barry J.; Farrell, Ellen; Szapiro, Miriam; Willen, Debra L

Cc: Dodds, Amy L.

Subject: FW: Boeing -- revised draft response to state AGs

Internal deliberations

From: Willen, Debra L

Sent: Wednesday, May 04, 2011 10:58 AM

To: Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: Boeing -- revised draft response to state AGs

As Barry requested, I've incorporated his changes and am attaching the new version along with the AG's letter.

Jayme -- I have not addressed your concern -- please discuss it with Barry and let me know if what you all want me to

do.

Thanks, Deb

NLRB-FOIA-00012870

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:

W illen, Debra L

W ednesday, May 04, 2011 12:14 PM

Szapiro, Miriam; Farrell, Ellen; Kearney, Barry J.; Sophir, Jayme

Dodds, Amy L.

RE: Boeing -- revised draft response to state AGs

Fine by me too.

From: Szapiro, Miriam

Sent: Wednesday, May 04, 2011 12:10 PM

To: Farrell, Ellen; Kearney, Barry J.; Willen, Debra L; Sophir, Jayme

Cc: Dodds, Amy L.

Subject: RE: Boeing -- revised draft response to state AGs

I like Jaymes point and Ellens modification; its a good addition.

From: Farrell, Ellen

Sent: Wednesday, May 04, 2011 12:07 PM

To: Kearney, Barry J.; Willen, Debra L; Sophir, Jayme; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: FW: Boeing -- revised draft response to state AGs

See my modification

Exemption 5

Ellen

Ellen Farrell

Deputy Associate General Counsel

Division of Advice, NLRB

202-273-3810

Ellen.Farrell@nlrb.gov

From: Sophir, Jayme

Sent: Wednesday, May 04, 2011 11:33 AM

To: Kearney, Barry J.; Farrell, Ellen; Szapiro, Miriam; Willen, Debra L

Cc: Dodds, Amy L.

Subject: FW: Boeing -- revised draft response to state AGs

Exemption 5

From: Willen, Debra L

Sent: Wednesday, May 04, 2011 10:58 AM

To: Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: Boeing -- revised draft response to state AGs

As Barry requested, I've incorporated his changes and am attaching the new version along with the AG's letter.

NLRB-FOIA-00012871

Jayme -- I have not addressed your concern -- please discuss it with Barry and let me know if what you all want me to

do.

Thanks, Deb

NLRB-FOIA-00012872

Microsoft Outlook

From:
Sent:
To:
Subject:

W illen, Debra L

W ednesday, May 04, 2011 2:18 PM

Sophir, Jayme; Farrell, Ellen; Szapiro, Miriam

RE: Boeing -- revised draft response to state AGs

I'm having difficulty here--

By clean draft , I take it that he means a draft that incorporates Ellen's revision of Jayme's change?

From: Kearney, Barry J.

Sent: Wednesday, May 04, 2011 2:10 PM

To: Sophir, Jayme; Farrell, Ellen; Willen, Debra L; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: RE: Boeing -- revised draft response to state AGs

I agree with all the revisions. Please send me a clean draft along with the AG letter to send on to Lafe

From: Sophir, Jayme

Sent: Wednesday, May 04, 2011 12:18 PM

To: Farrell, Ellen; Kearney, Barry J.; Willen, Debra L; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: RE: Boeing -- revised draft response to state AGs

Notwithstanding that this case is about retaliation for striking in other states, they seem

Exemption 5

But, regardless of what theyre saying, Ellens

modification is definitely better.

From: Farrell, Ellen

Sent: Wednesday, May 04, 2011 12:07 PM

To: Kearney, Barry J.; Willen, Debra L; Sophir, Jayme; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: FW: Boeing -- revised draft response to state AGs

See my modification

Exemption 5

Ellen

Ellen Farrell

Deputy Associate General Counsel

Division of Advice, NLRB

202-273-3810

Ellen.Farrell@nlrb.gov

From: Sophir, Jayme

Sent: Wednesday, May 04, 2011 11:33 AM

To: Kearney, Barry J.; Farrell, Ellen; Szapiro, Miriam; Willen, Debra L

NLRB-FOIA-00012873

Cc: Dodds, Amy L.

Subject: FW: Boeing -- revised draft response to state AGs

Exemption 5

From: Willen, Debra L

Sent: Wednesday, May 04, 2011 10:58 AM

To: Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: Boeing -- revised draft response to state AGs

As Barry requested, I've incorporated his changes and am attaching the new version along with the AG's letter.

Jayme -- I have not addressed your concern -- please discuss it with Barry and let me know if what you all want me to

do.

Thanks, Deb

NLRB-FOIA-00012874

Employer Violated Section 8(a)(3) by Retaliating Against Unit Employees for Past Strikes and

Seeking to Chill Future Strike Activity

In Boeing Co., Case 19-CA-32431, Advice authorized a Section 8(a)(1) and (3) complaint against

the Employer based upon its decision to place a second assembly line for its 787 aircraft at a

nonunion facility in South Carolina rather than its existing facility in Everett, Washington.

Advice concluded that Boeing committed independent Section 8(a)(1) violations by repeatedly

stating, through high-level officials, that that its decision to place the second line elsewhere was

based on the units strike history.

As a remedy for these violations, Advice directed the Region

to seek, in addition to standard remedies, a notice reading by a high-level Boeing official,

preferably one of the officials who personally committed some of the violations, or a reading by a

Board agent in his presence.

Advice also concluded that Boeing violated Section 8(a)(3) by

deciding to locate the second line at a nonunion facility in retaliation for prior strikes and in order

to chill future strikes and by deciding to contract with independent suppliers rather than use unit

facilities to supply parts for the second line. Boeing asserted that it was not transferring unit

work, it was merely determining where to locate new work, and its decision to locate that

work in South Carolina would not adversely impact any current unit employees. However,

Advice found that although unit employees have not yet suffered any impact, Boeings decision

will direct work away from the unit employees with consequent adverse effects.

The Region will

also argue, in the alternative, that Boeings conduct -- its decision coupled with its officials

coercive statements -- was inherently destructive of employee rights. To remedy the Section

8(a)(3) violations, the Region will seek an order requiring Boeing to maintain the second line in

Washington. Finally, Advice dismissed Section 8(a)(5) allegations because the Union had

waived, through express contract language, it right to bargain about decisions to offload unit

work to a facility not covered by the agreement.

Senior Attorney Debra Willen and Supervisor Miriam Szapiro handled this case. You can find

this Advice memorandum in Archivalware and attached to an April 25 entry in the SAMs

Bulletin Board entitled ADV 11-14 Retaliatory Transfer of Work (Boeing).

NLRB-FOIA-00012875

Microsoft Outlook

From:
Sent:
To:
Subject:
Attachments:

W illen, Debra L

Monday, May 16, 2011 9:43 AM

Dodds, Amy L.

Boeing Hot Topics

Hot Topics Boeing.doc

Hi Amy

Exemption 5
Anyway, feel free to edit ..

-- Deb

NLRB-FOIA-00012876

Employer Violated Section 8(a)(3) by Retaliating Against Unit Employees for Past Strikes and

Seeking to Chill Future Strike Activity

In Boeing Co., Case 19-CA-32431, Advice authorized a Section 8(a)(1) and (3) complaint against

the Employer based upon its decision to place a second assembly line for its 787 aircraft at a

nonunion facility in South Carolina rather than its existing facility in Everett, Washington.

Advice concluded that Boeing committed independent Section 8(a)(1) violations by repeatedly

stating, through high-level officials, that that its decision to place the second line elsewhere was

based on the units strike history.

As a remedy for these violations, Advice directed the Region

to seek, in addition to standard remedies, a notice reading by a high-level Boeing official,

preferably one of the officials who personally committed some of the violations, or a reading by a

Board agent in his presence.

Advice also concluded that Boeing violated Section 8(a)(3) by

deciding to locate the second line at a nonunion facility in retaliation for prior strikes and in order

to chill future strikes and by deciding to contract with independent suppliers rather than use unit

facilities to supply parts for the second line. Boeing asserted that it was not transferring unit

work, it was merely determining where to locate new work, and its decision to locate that

work in South Carolina would not adversely impact any current unit employees. However,

Advice found that although unit employees have not yet suffered any impact, Boeings decision

will direct work away from the unit employees with consequent adverse effects.

The Region will

also argue, in the alternative, that Boeings conduct -- its decision coupled with its officials

coercive statements -- was inherently destructive of employee rights. To remedy the Section

8(a)(3) violations, the Region will seek an order requiring Boeing to maintain the second line in

Washington. Finally, Advice dismissed Section 8(a)(5) allegations because the Union had

waived, through express contract language, it right to bargain about decisions to offload unit

work to a facility not covered by the agreement.

Senior Attorney Debra Willen and Supervisor Miriam Szapiro handled this case. You can find

this Advice memorandum in Archivalware and attached to an April 25 entry in the SAMs

Bulletin Board entitled ADV 11-14 Retaliatory Transfer of Work (Boeing).

NLRB-FOIA-00012877

Microsoft Outlook

From:
Sent:
To:
Subject:

W illen, Debra L

Friday, June 03, 2011 2:48 PM

W olin, Michele

Boeing

Michelle Do you have Lafes response to the state attorney generals letter re Boeing?

From: Farrell, Ellen

Sent: Friday, June 03, 2011 2:43 PM

To: Willen, Debra L

Cc: Psotka, Jonathan

Subject: RE: Deco-Akal - Boeing press release

Deb

I think it is in

But I also dont have the final. Michele W olin was

Exemption 5

collecting documents for a FOIA request so she may have it. If not, I would think the GCs office or Nancy Cleelands

office should have it.

Ellen

Ellen Farrell

Deputy Associate General Counsel

Division of Advice, NLRB

202-273-3810

Ellen.Farrell@nlrb.gov

From: Willen, Debra L

Sent: Friday, June 03, 2011 1:33 PM

To: Farrell, Ellen

Cc: Psotka, Jonathan

Subject: Deco-Akal - Boeing press release

Ellen

I havent been able to find the press release where

Exemption 5

I was thinking that it might be in his answer to the letter from the right-to-work state attorney generals, but I dont have that

-- did he ever answer that letter?

Any ideas?

Thanks, Deb

NLRB-FOIA-00012878

Microsoft Outlook

From:
Sent:
To:
Subject:

W olin, Michele

Friday, June 03, 2011 3:11 PM

W illen, Debra L

RE: Boeing

No, I dont. If you get a copy, please let me know. FYI, Ill be leaving at 4:00 today.

Thanks,

Michele

From: Willen, Debra L

Sent: Friday, June 03, 2011 2:48 PM

To: Wolin, Michele

Subject: Boeing

Michelle Do you have Lafes response to the state attorney generals letter re Boeing?

From: Farrell, Ellen

Sent: Friday, June 03, 2011 2:43 PM

To: Willen, Debra L

Cc: Psotka, Jonathan

Subject: RE: Deco-Akal - Boeing press release

Deb

I think it is in

But I also dont have the final. Michele W olin was

Exemption 5
collecting documents for a FOIA request so she may have it. If not, I would think the GCs office or Nancy Cleelands

office should have it.

Ellen

Ellen Farrell

Deputy Associate General Counsel

Division of Advice, NLRB

202-273-3810

Ellen.Farrell@nlrb.gov

From: Willen, Debra L

Sent: Friday, June 03, 2011 1:33 PM

To: Farrell, Ellen

Cc: Psotka, Jonathan

Subject: Deco-Akal - Boeing press release

Ellen

I havent been able to find the press release where

Exemption 5

I was thinking that it might be in his answer to the letter from the right-to-work state attorney generals, but I dont have that

-- did he ever answer that letter?

Any ideas?

Thanks, Deb

NLRB-FOIA-00012879

Microsoft Outlook

From:
Sent:
To:
Subject:
Attachments:

Sophir, Jayme

Tuesday, June 07, 2011 4:33 PM

W illen, Debra L

FW : Boeing -- revised draft response to state AGs

AGs letter.pdf; GC Response to State AG's.doc

I think youre right. This is the last thing I have in my efiles. Lafe must have decided not to respond after all.

From: Kearney, Barry J.

Sent: Thursday, May 05, 2011 1:25 PM

To: Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam; Willen, Debra L

Subject: FW: Boeing -- revised draft response to state AGs

From: Mattina, Celeste J.

Sent: Thursday, May 05, 2011 12:07 PM

To: Schiff, Robert; Garza, Jose; Cleeland, Nancy; Abruzzo, Jennifer; Solomon, Lafe E.

Cc: Kearney, Barry J.

Subject: FW: Boeing -- revised draft response to state AGs

Barry and his people drafted a very good response. I made some minor edits; I

Exemption 5

From: Kearney, Barry J.

Sent: Wednesday, May 04, 2011 2:28 PM

To: Solomon, Lafe E.; Mattina, Celeste J.

Subject: FW: Boeing -- revised draft response to state AGs

Draft response from you to State AGs

From: Willen, Debra L

Sent: Wednesday, May 04, 2011 2:24 PM

To: Kearney, Barry J.; Sophir, Jayme; Farrell, Ellen; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: RE: Boeing -- revised draft response to state AGs

clean draft and AGs' letter attached

From: Kearney, Barry J.

Sent: Wednesday, May 04, 2011 2:10 PM

To: Sophir, Jayme; Farrell, Ellen; Willen, Debra L; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: RE: Boeing -- revised draft response to state AGs

I agree with all the revisions. Please send me a clean draft along with the AG letter to send on to Lafe

NLRB-FOIA-00012880

From: Sophir, Jayme

Sent: Wednesday, May 04, 2011 12:18 PM

To: Farrell, Ellen; Kearney, Barry J.; Willen, Debra L; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: RE: Boeing -- revised draft response to state AGs

Notwithstanding that this case is about retaliation for striking in other states, they seem

Exemption 5

. But, regardless of what theyre saying, Ellens

modification is definitely better.

From: Farrell, Ellen

Sent: Wednesday, May 04, 2011 12:07 PM

To: Kearney, Barry J.; Willen, Debra L; Sophir, Jayme; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: FW: Boeing -- revised draft response to state AGs

See my modification

Exemption 5

Ellen

Ellen Farrell

Deputy Associate General Counsel

Division of Advice, NLRB

202-273-3810

Ellen.Farrell@nlrb.gov

From: Sophir, Jayme

Sent: Wednesday, May 04, 2011 11:33 AM

To: Kearney, Barry J.; Farrell, Ellen; Szapiro, Miriam; Willen, Debra L

Cc: Dodds, Amy L.

Subject: FW: Boeing -- revised draft response to state AGs

Exemption 5

From: Willen, Debra L

Sent: Wednesday, May 04, 2011 10:58 AM

To: Kearney, Barry J.; Farrell, Ellen; Sophir, Jayme; Szapiro, Miriam

Cc: Dodds, Amy L.

Subject: Boeing -- revised draft response to state AGs

As Barry requested, I've incorporated his changes and am attaching the new version along with the AG's letter.

Jayme -- I have not addressed your concern -- please discuss it with Barry and let me know if what you all want me to

do.

Thanks, Deb

NLRB-FOIA-00012881

Exemption 5

NLRB-FOIA-00012882

Exemption 5

NLRB-FOIA-00012883

Exemption 5

NLRB-FOIA-00012884

ALANWILSON

ATTORNEY GENERAL

April 28, 2011

Lafe E. Solomon, Esquire

Acting General Counsel

National Labor Relations Board

1099 14 th Street, NW, Suite 8600

Washington, DC 20570

Dear Mr. Solomon:

As Attorneys General of our respective states, we call upon you, as Acting General

Counsel of the National Labor Relations Board (NLRB), to withdraw immediately the

complaint numbered 19-CA-32431 against Boeing. This complaint represents an assault upon the

constitutional right of free speech, and the ability of our states to create jobs and recruit industry.

Your ill-conceived retaliatory action seeks to destroy our citizens right to work. It is South

Carolina and Boeing today, but will be any of our states, with our right to work guarantees,

tomorrow.

The right to work, uninhibited by compulsory unionism, is a precious right and is

constitutionally enforceable through our states right to work laws. See Retail Clerks Intl v.

Schermerhorn, 375 U.S. 96 (1963). Such laws are designed to eliminate union affiliation as a

criterion for employment. However, the NLRB, through this single proceeding, attempts to

sound the death knell of the right to work. Additionally, this tenuous complaint will reverberate

throughout union and non-union states alike, as international companies will question the

wisdom of locating in a country where the federal government interferes in industry without

cause or justification.

Furthermore, this complaint disrupts, and may well eliminate, the production of Boeing

787 Dreamliners in South Carolina. In fact, Boeing has expanded its operations to meet product

demand in South Carolina, while adding new jobs in Washington State. The complaint charges

Boeing with the commission of an unfair labor practice, but appears to do so without legal and

factual foundation. This unparalleled and overreaching action seeks to drive a stake through the

heart of the free enterprise system. The statements of Boeing officials cited in your complaint are

the innocent exercise of the companys right of free speech. The Supreme Court long ago made

it clear that the NLRA does not limit, and the First Amendment protects, the employer's right to

express views on labor policies or problems. N.L.R.B. v. Va. Electric and Power, 314 US 469,

NLRB-FOIA-00012885

Hon. Lafe E. Solomon

April 27, 2011

Page 2

477 (1941). As the Court recently reiterated in Citizens United v. FEC, 130 S. Ct. 876, 899-90

(2010), a corporation is not a second class citizen in terms of First Amendment protection.

Our states are struggling to emerge from one of the worst economic collapses since the

Depression. Your complaint further impairs an economic recovery. Intrusion by the federal

bureaucracy on behalf of unions will not create a single new job or put one unemployed person

back to work.

The only justification for the NLRBs unprecedented retaliatory action is to aid union

survival. Your action seriously undermines our citizens right to work as well as their ability to

compete globally. Therefore, as Attorneys General, we will protect our citizens from union

bullying and federal coercion. We thus call upon you to cease this attack on our right to work,

our states economies, and our jobs.

We look forward to your immediate response.

Sincerely,

Alan Wilson

Attorney General

[Signatures continue next page]

Cc: Respective Congressional Delegations

NLRB-FOIA-00012886

Hon. Lafe E. Solomon

April 27, 2011

Page 3

Ken Cuccinelli

Attorney General
Commonwealth of Virginia

Jon C. Bruning

Attorney General
State of Nebraska

Greg Abbott

Attorney General

State of Texas

Samuel S. Olens
Attorney General
State of Georgia

E. Scott Pruitt
Attorney General
State of Oklahoma

Pam Bondi
Attorney General
State of Florida

Tom Horne

Attorney General

State of Arizona

Luther Strange

Attorney General

State of Alabama

NLRB-FOIA-00012887

Microsoft Outlook

From:
Sent:
To:
Cc:
Subject:

Farrell, Ellen

Tuesday, June 07, 2011 6:25 PM

W illen, Debra L; Psotka, Jonathan

Kearney, Barry J.; Sophir, Jayme

Deco-Akal

Celeste tells me that the draft we prepared in response to the state AGs letter in Boeing

Exemption 5

was never sent.

Ellen

Ellen Farrell

Deputy Associate General Counsel

NLRB Division of Advice

202-273-3810

Ellen.Farrell@nlrb.gov

NLRB-FOIA-00012888

Microsoft Outlook

W illen, Debra L

W ednesday, June 08, 2011 8:52 AM

W olin, Michele

From:
Sent:
To:

FYI

From: Farrell, Ellen

Sent: Tuesday, June 07, 2011 6:25 PM

To: Willen, Debra L; Psotka, Jonathan

Cc: Kearney, Barry J.; Sophir, Jayme

Subject: Deco-Akal

Celeste tells me that the draft we prepared in response to the state AGs letter in Boeing in which we said
Exemption 5

was never sent.

Ellen

Ellen Farrell

Deputy Associate General Counsel

NLRB Division of Advice

202-273-3810

Ellen.Farrell@nlrb.gov

NLRB-FOIA-00012889

P age 1 of2

W illen,D ebra L

Exemption 6

F rom

S en t: Thursday, M ay 05, 2011 8:55 A M

T o:

V V illen,D ebra L

W allS treet JournalM A Y 4, 2011

C ongress vs. the N LR B

T he labor board's B oeing ruling prom pts C ongress to protect right-to-w ork.

P resident O bam a's N ationalLabor R elations B oard has spent the year thum bing its nose at C ongress by

reinterpreting longstanding labor law on behalf of union friends. C ongress is finally fighting back.

T ennessee G O P S enator Lam ar A lexander along w ith S outh C arolina S enators Lindsey G raham and Jim D eM int

are this w eek introducing legislation to rein in the labor board's latest assault on business. T he beard's com plaint

against B oeing, filed last m onth, is the first shot in a new union w ar on federalright-to-w ork law , a policy shift that

is every bit as threatening as the drive to get rid of secret ballots in union elections.

B oeing decided 17 m onths ago to invest $2 billion building a new production plant for its 787 D ream liner in S outh

C arolina. It m ade the decision only after talks broke dow n w ith the InternationalA ssociation of M achinists and

A erospace W orkers, w hose m em bers w anted the w ork at a unionized plant in W ashington state. T he union's

m any strikes over the years have cost B oeing a bundle. S outh C arolina, like 21 other states, has a right-to-w ork

law , w hich forbids com pulsory unionism .

T he O bam a N LR B nonetheless chose to m ake B oeing a w hipping boy in a new offensive against right-to-w ork

states. It filed a com plaint dem anding that an adm inistrative law judge halt the S outh C arolina plant (set to open

in July), and force B oeing to m ove production to W ashington.

T his despite the fact that B oeing m ade clear this is a new production facility or that it has added 12,000 jobs in

W ashington since announcing the S outh C arolina m ove.

N o m atter. T he com plaint's realtarget is the federalright-to-w ork guarantee. A m ong the m ost celebrated

provisions of the 1947 T aft-H artley A ct is w hat's know n as 14(b) the section that allow s states to pass right-to-

w ork law s. T he B oeing com plaint guts that guarantee by effectively requiring com panies to continue

m anufacturing in union states or be found guilty of a rights violation. T his is a union dream com e true, on par

w ith "card check."

A s S enator A lexander tells us, this is a direct attack on a right-to-w ork law that w as "thoroughly debated" by

C ongress in 1947 and "rem ains clear today." T he A lexander-G raham -D eM int legislation w ould clarify the existing

provision, ensuring that state right-to-w ork law s cannot be pre-em pted by the N LR B or union contracts. W e're

assum ing the 11 D em ocratic S enators from right-to-w ork states w illstand up for their non-unionized w orkers if

S enator M ajority H arry R eid (from right-to-w ork N evada) allow s a vote.

B oeing w illfight the N LR B com plaint, though that m ight m ean a protracted court fight. It also m eans m ore

uncertainty for every business considering a m ove of future production facilities to a right-to-w ork state. M any of

them m ay S im ply relocate m anufacturing overseas.

T his is the latest gam bit from an A dm inistration that has been ram ping up its regulatory and enforcem ent pow ers

on behalf of special-interest allies such as unions. T he only check against this is C ongress, so w e're glad to see

M em bers speaking up.

5/9/2011

NLRB-FOIA-00012890

Microsoft Outlook

W illen, Debra L

W ednesday, June 08, 2011 8:52 AM

W olin, Michele

From:
Sent:
To:

FYI

From: Farrell, Ellen

Sent: Tuesday, June 07, 2011 6:25 PM

To: Willen, Debra L; Psotka, Jonathan

Cc: Kearney, Barry J.; Sophir, Jayme

Subject: Deco-Akal

Celeste tells me that the draft we prepared in response to the state AGs letter in Boeing

Exemption 5

was never sent.

Ellen

Ellen Farrell

Deputy Associate General Counsel

NLRB Division of Advice

202-273-3810

Ellen.Farrell@nlrb.gov

NLRB-FOIA-00012891

Вам также может понравиться