“I am very disappointed to hear the news from Boeing that they will be laying off 1100 employees, the majority of whom work in the company’s Long Beach facility.
Just as we are starting to see a small bounce in employment, sales tax and property tax, it is discouraging to have one of the region’s premier companies lay-off more employees.
For years, I have been lobbying in Washington to protect the C-17 program, which is critical to our national security and our ability to efficiently carry out important missions around the world, and I will continue that effort as well. Built right here in Long Beach, the construction of these planes provide good jobs for local workers. In these troubled economic times, the loss of any jobs is particularly painful.”
UPDATED January 21, 8:00am |
“The Boeing statement of this week that announced a 900 worker reduction at their Long Beach facility – especially in an environment where California’s unemployment rate looms at 12.4% – is disturbing news for our community.Whether it be the local grocery store, gas station or college, we all feel the negative impact this action will have on middle income jobs.
Although Boeing recently secured an international order to deliver 10 C17s to India, scaling back production in preparation for a possible further work force reduction is going in the wrong direction.
In light of this news, I intend to reach out to President Obama to seek his support in directing Secretary Gates to objectively evaluate the longevity and usefulness of the C17 vs. C5 before any final determinations are made.
Finally, after encouraging news reports that indicated “for the first time in more than a decade, manufacturing jobs were created and not eliminated”, this 900 person job hit at the Boeing facility in Long Beach has devastating consequences to our already delicate local economy.”
UPDATED January 20, 1:00pm | The Boeing Company released a statement today regarding its planned C-17 workforce layoffs. The text of the release is printed below:
As part of a transition announced last year, Boeing [NYSE: BA] today confirmed it will deliver 13 C-17 Globemaster III airlifters in 2011 as the company moves to a new production rate of 10 C-17s per year. Boeing will reduce the production program’s work force by approximately 1,100 jobs through the end of 2012. The company delivered 14 C-17s in 2010.
The move to the new production rate, announced in February 2010, will be completed this summer and result in the elimination of the second shift at the C-17 final assembly facility in Long Beach. The lower production rate is designed to extend the line as Boeing works to capture additional international orders.
“This has been a very difficult decision, no question about it,” said Bob Ciesla, C-17 program manager. “But reducing the number of C-17s we deliver every year – and doing that with a smaller work force – will allow us to keep the production line open beyond 2012, protect jobs, and give potential customers more time to finalize their airlift requirements. Boeing will provide assistance for impacted workers seeking potential positions elsewhere within the company.”
“We’ve been communicating frequently with our employees about this process for the past year and will continue to do so,” said Ciesla.
Boeing anticipates that the work force reduction will primarily impact Long Beach, where approximately 900 of the 1,100 reductions will take place at the program’s final assembly site. The remaining 200 reductions will impact C-17 production program employees in Macon, Ga., Mesa, Ariz., and St. Louis. The company will try to redeploy many of the affected employees to other programs or other Boeing locations where the company has suitable job openings.
The program, which supports roughly 25,000 supplier jobs in 44 states, has an annual economic impact of approximately $5.8 billion. Now in its 18th year of service, the C-17 has supported numerous military transport, humanitarian and disaster-relief missions worldwide. The fleet continues to operate at an accelerated rate due to the recent troop surge in Afghanistan. It achieved 2 million total flight hours in December, less than five years after it passed the 1 million-flight-hour mark in March 2006.
Boeing has delivered 226 C-17s worldwide, including 20 to international customers. The U.S. Air Force – including active duty, National Guard, and Air Force Reserve units – has taken delivery of 206. Other customers include the United Kingdom Royal Air Force, the Canadian Forces, the Royal Australian Air Force, the United Arab Emirates Air Force, the Qatar Emiri Air Force, and the 12-member Strategic Airlift Capability initiative of NATO and Partnership for Peace nations. India and Kuwait are expected to be the next C-17 customers.
UPDATED January 19 – 9:45pm | The Los Angeles Times reports: Newly laid-off workers will also face a tough hiring environment. Unemployment in California stands at 12.4%. In Los Angeles County, it is 12.9%. Workers were told about the layoffs Wednesday, and termination notices will begin to be issued Friday, the company said.
“There are a lot of people upset about it,” said Ray Luciani, 60, a maintenance mechanic at the plant. “I’m just hoping to last three more years to get my pension.”
Click here for the Los Angeles Times coverage.
January 19 – 7:50pm | Boeing will layoff at least 900 Long Beach-based C-17 Globemaster III workers by the end of 2012, according to sources. The reduction in Boeing’s Long Beach workforce comes in the wake of a drop in C-17 orders from the Federal Government from 15 planes to 10. The layoffs will begin this week and a formal statement from Boeing is expected tomorrow.
In this Long Beach Post article from August 2010, the Indian Air Force announced that they will order six Boeing C-17 III Globemaster aircraft in addition to ten that have already been purchased. A move that seemed to keep the Boeing C-17 in production locally through at least 2013 and possibly longer. It is unclear whether any current or future international orders for C-17 planes will prevent layoffs.
Mayor Bob Foster released a statement to the Long Beach Post saying, “The C-17 program is an important economic asset for the State, the region, and the City.” He also stated that the city will “commit resources to assist affected employees during this difficult period.”
Below is the full text of the Mayor’s statement:
“The C-17 program is an important economic asset for the State, the region, and the City. While Boeing’s announcement today is difficult and disconcerting, it is not entirely unexpected, as the Federal government has decreased orders for this workhorse aircraft.
Our rich history of aerospace manufacturing makes this an emotional day for Long Beach, as the C-17 plant is the last of what was previously a robust aerospace manufacturing industry in California. The impacts from these reductions will affect the State and the region, and is not constrained only to Long Beach.
We will continue our efforts to support Boeing in generating additional orders to preserve the thousands of jobs that remain, and our Workforce Investment Board will commit resources to assist affected employees during this difficult period.”
Reactions From C-17 Workers
The Press Telegram is reporting this evening on reactions from C-17 workers in this story:
A cutback of around 1,000 workers would bring C-17 employment in Long Beach to fewer than 4,000 by 2012, less than a third of the local aerospace work force of the late 1990s. “We just got the news today, and people are obviously devastated,” said Stan Klemchuck, President of Local 148 of the United Aerospace Workers, which represents about 1,700 workers. “Between this and recent layoffs at the (Carson) warehouse facility, it’s overwhelming. The jobs are just drying up.”
More to come…
Click here to view our policy on covering the Long Beach City Council.
Disclosure: Long Beach Post publisher Shaun Lumachi is chairman of the Pacific Gateway Workforce Investment board of directors.