Business

October 31, 2013

Jobs top issue in Pratt & Whitney-Machinists talks

As jet engine manufacturer Pratt & Whitney and the Machinists Union begin negotiations Oct. 31 for a new contract governing pay, benefits, work rules and other conditions, the top issue will be jobs.

Neither company nor union representatives would discuss the issues expected to dominate negotiations. But union officials have said they may not recommend a contract for ratification without specific language about the number of jobs.

“If management does not come to the bargaining table with a commitment to keep our jobs in Connecticut, you will have a crucial decision to make,” the union said in a message on its website to members this summer. “If management continues to ignore covered work and past commitments, how can the committee recommend a contract?”

Pratt & Whitney employs about 32,000 workers worldwide, with about 15,000 in the United States. It has about 9,000 employees in Connecticut, with about 3,000 covered by the contract, the company said.

The battle over jobs is not new. Top-paid manufacturing jobs – at Pratt & Whitney or anywhere else – are increasingly scarce as manufacturers squeeze out productivity from fewer workers and find cost-cutting a principal source of boosting profit.

Most recently, Pratt & Whitney lost a legal battle in 2010 to shut down engine repair shops in East Hartford and Cheshire to cut labor costs and move jobs closer to customers. It eventually won at the bargaining table what it lost in federal court: closing the two plants and shifting hundreds of jobs to Columbus, Ga.; Singapore; and Japan. The union won concessions over severance pay for workers forced out.

In the first nine months of the year, Pratt & Whitney posted revenue of $10.4 billion, up 3 percent from the same period in 2012. Operating profit rose a far stronger 15 percent, to $1.4 billion in the nine-month period, as the company wrung out more productivity and reduced costs, including axing nearly 1,000 salaried and hourly jobs this year.

Pratt & Whitney President David Hess said in April that its military program likely will falter in the short term as the company transitions from military engines such as the F-22 that have ended production. However, engine orders are expected to pick up in a few years with an increase in production of joint strike fighter engines.

Teal Group aviation consultant Richard Aboulafia said United Technologies is “one of the very few” companies in the industry with a sizable manufacturing presence in the Northeast. He compared it to Boeing, which has a similarly large presence in the Northwest.

“There, too, you had the exact same confrontation with the union over moving jobs,” he said. “The best the union can do is find a compromise, to save jobs as best it can.”

Don Klepper-Smith, an economist who advised former Republican Gov. M. Jodi Rell, said Connecticut and other Northeast states are finding it harder to compete for well-paid manufacturing jobs. An “aerospace cluster” is forming in Georgia, South Carolina and Florida where unions are scarcer and taxes and energy costs are lower, he said.

“We’re facing an uphill climb with respect to job creation,” he said.

David Cadden, a business professor at Quinnipiac University, said even if the Machinists win the immediate fight to keep jobs, the battle will continue.

“I think unfortunately in Connecticut you’re going to see more and more manufacturing jobs going offshore and to right-to-work states,” he said.




All of this week's top headlines to your email every Friday.


 
 

 
DOD photograph by Air Force MSgt. Adrian Cadiz

Carter announces manufacturing initiative to aid war fighters

DOD photograph by Air Force MSgt. Adrian Cadiz Defense Secretary Ash Carter announces the creation of a National Manufacturing Innovation Institute to produce hybrid electronics during a speech at the National Full Scale Aerody...
 
 

U.S. Army awards CIRCM contract to Northrop Grumman

The U.S. Army Aug. 28 awarded Northrop Grumman a $35,372,762 cost-plus-fixed-fee, fixed-price incentive, and firm-fixed-price hybrid contract with options for engineering and manufacturing development and low-rate initial production of the Common Infrared Countermeasure program. Work will be performed at Northrop Grumman’s Land & Self Protection Systems Division facility in Rolling Me...
 
 

Northrop Grumman awarded position on Air Force training systems acquisition III contract

The U.S. Air Force has awarded Northrop Grumman a position on the Training Systems Acquisition III indefinite delivery/indefinite quantity contract to support war fighter training systems at global U.S. Air Force operating locations. Twelve companies have been awarded positions on TSA III, which has a ceiling value of approximately $20.9 billion over 10 years, if...
 

 
Navy photograph

Raytheon and U.S. Navy collaborate to optimize minehunting sonar

Navy photograph The Remote Minehunting System and AN/AQS-20A Minehunting Sonar on USS Independence. Raytheon is working closely with the Naval Undersea Warfare Center — Division Newport to enhance the features of the comp...
 
 

Boston Engineering receives Air Force contract to advance UAV motor control capabilities

Boston Engineering today announced a $150,000 contract from the U.S. Air Force to enhance its UAV capabilities and to also reduce drone noise. Specifically, Boston Engineering will demonstrate an embedded motor control platform to accelerate U.S. Air Force UAV research and development initiatives. Embedded motor controllers underpin critical UAV operations including drone propulsion and sensors...
 
 

Boeing receives $1.49 billion contract for 13 P-8A Poseidon ircraft

Boeing will provide the first P-8A Poseidon maritime surveillance aircraft for Australia and additional P-8As for the U.S. Navy following a $1.49 billion contract award from the Navy for 13 aircraft. The order includes nine aircraft for the U.S. Navy and four Poseidon aircraft for the Royal Australian Air Force, a long-time partner to the...
 




0 Comments


Be the first to comment!


Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>