Labor board drops complaint over Boeing plant
The National Labor Relations Board on Friday officially dropped its high-profile case challenging Boeing’s decision to open a nonunion aircraft manufacturing plant in South Carolina.
The board acted after the Machinists union approved a 4-year contract extension with Boeing earlier this week and agreed to withdraw its charge that the company violated federal labor laws.
Lafe Solomon, the board’s acting general counsel, said he had always preferred a settlement. The agency settles about 90% of its cases.
Under the deal, Boeing (BA) promised to build the new version of its 737 airplane in Washington state. The Machinists also agreed to drop allegations that Boeing opened the South Carolina plant in retaliation for past union strikes.
Both Solomon and the agency had come under intense criticism from Republican lawmakers and South Carolina officials for bringing the case. Republicans and business groups claimed the agency was setting a dangerous precedent by interfering with a legitimate business decision about where to locate workers.