House Passes Legislation That Is an Offshoot of Labor Agency’s Case against Boeing

The Republican-dominated House of Representatives has passed the Protecting Jobs From Government Interference Act, H.R. 2587, a bill that is described by its sponsor Rep. Tim Scott, R-S.C.,  “as the first strike in House Republicans’ efforts to roll back burdensome government regulations.”

The legislation, which was co-sponsored by Representatives Trey Gowdy and Joe Wilson of South Carolina, passed by a bipartisan margin of 238-186 and would prevent the National Labor Relations Board (NLRB) from dictating the location of American jobs.

The filing of the bill was an offshoot of the action initiated by the NLRB against Boeing Company.  On April 20, 2011, the Acting General Counsel of the NLRB issued a complaint against Boeing alleging that it violated federal labor law by deciding to transfer a second airplane production line from a union facility in the state of Washington to a non-union facility in South Carolina for discriminatory reasons.

Earlier, or on March 26, 2010, the International Association of Machinists and Aerospace Workers, District Lodge 751, filed a charge with the NLRB alleging that Boeing had engaged in multiple unfair labor practices related to its decision to place a second production line for the 787 Dreamliner airplane in a non-union facility.

Specifically, the union charged that the decision to transfer the line was made to retaliate against union employees for participating in past strikes and to chill future strike activity, which is protected under the National Labor Relations Act.

In response to the union’s charges, the NLRB launched an investigation of the transfer of second line work in response to charges filed by the Machinists union and found reasonable cause to believe that Boeing had violated two sections of the National Labor Relations Act because its statements were coercive to employees and its actions were motivated by a desire to retaliate for past strikes and chill future strike activity.

To remedy the alleged unfair labor practices, the Acting General Counsel seeks an order that would require Boeing to maintain the second production line in Washington state. The complaint does not seek closure of the South Carolina facility, nor does it prohibit Boeing from assembling planes there.

NLRB’s action against Boeing gave rise to a flurry of adverse statements from Republican Congressional members, most of whom did not hesitate to show their strong opposition to the agency’s move.

For example, in a letter dated May 13, 2011 and addressed to Acting General Counsel Lafe E. Solomon,  Rep. Joe Wilson, Trey Gowdy, Virginia Foxx, Duncan D. Hunter, Tim Walberg, Scott Deslarias, Todd Rokin, Kristi Noem, Martha Roby, Dennis Ross, and Mike Kelly expressed their collective concern for “bureaucratic activism” by the Office of General Counsel.

They explained that the “ramifications of this case extend one specific state, and will instead have a lasting impact on job creators across the country as they weigh the advantages and disadvantages of future investment in the United States.”

In particular, H.R. 2587 will amend the National Labor Relations Act to prohibit the NLRB from ordering any employer to relocate, shut down, or transfer employment under any circumstance beginning with the date of the bill’s passage. This will include cases which have not reached final adjudication. The NLRB would still have more than a dozen remedies at their disposal should they find a violation.

Scott said, “A former Chairman of the NLRB recently testified that Canadian firms have already expressed concern about doing business in the United States because of the NLRB’s recent actions taken against Boeing, crystallizing the potential effects if the NLRB is able to proceed. I hope the President takes this legislation seriously and instead of continuing to offer favors to his union campaign supporters, puts the American people first and asks the Senate to pass the Protecting Jobs From Government Interference Act as soon as possible.”

“By removing the NLRB’s ability to dictate where private industry creates jobs, we are preventing an unelected, Presidentially-appointed government board from pitting state against state, inserting themselves into the business decisions of private companies, and scaring away investment in our nation,” Scott added.

The Library of Congress came out with its own summary of the bill as shown below:

- “Protecting Jobs From Government Interference Act - Amends the National Labor Relations Act to deny the National Labor Relations Board (NLRB) any power to: (1) order an employer (or seek an order against an employer) to restore or reinstate any work, product, production line, or equipment; (2) rescind any relocation, transfer, subcontracting, outsourcing, or other change regarding the location, entity, or employer who shall be engaged in production or other business operations; or (3) require any employer to make an initial or additional investment at a particular plant, facility, or location.”

- “Applies the amendment made by this Act to any complaint for which a final adjudication by the NLRB has not been made by the date of enactment.”

An engrossed copy of the bill was received by the Senate on September 15, 2011, and was on the same day read on the floor for the first time.  It has been placed on Senate Legislative Calendar under Read the First Time.

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