Fight between labor and Boeing puts Obama in a bind

NORTH CHARLESTON, S.C. — With the federal government’s labor board stepping into a bitter fight between aerospace giant Boeing and its main union, President Obama faces a political quandary because of his administration’s close ties to both sides.

Obama’s chief of staff, William Daley, and his nominee for Commerce secretary, John Bryson, until months ago both served on Boeing’s board. Obama also tapped Boeing’s chief executive, Jim McNerney, to head the President’s Export Council, designed to help achieve the adminstration’s goal of doubling exports by 2015.

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Meanwhile, Obama rode into office with broad support from labor. His campaign organization helped coordinate protests for public employees when their bargaining rights were at stake in Wisconsin and other states. And he has reshaped the National Labor Relations Board, which enforces labor laws and has moved to a more pro-union stance after years of siding with employers under President George W. Bush.

The dispute has escalated in recent months with a suit brought by the NLRB, an independent agency, accusing Boeing of opening its gleaming white-and-blue Dreamliner assembly plant here, rather than in Washington state, in retaliation for strikes at the company’s West Coast operations.

Trying to stay neutral

As Obama seeks support from both business and labor for his reelection campaign, the fight has put him in an awkward position. The White House on Monday deferred questions to statements made last week by press secretary Jay Carney, who said that because the NLRB is an independent agency, the administration would not get involved.

But McNerney has not held back, calling the NLRB’s action “a fundamental assault on the capitalist principles that have sustained America’s competitiveness.”

The Republican party has been just as vocal, accusing Obama of siding with labor and standing in the way of businesses that are creating jobs.

Last week Rep. Darrell Issa (R-Calif.), chairman of the House Oversight and Government Reform Committee, held a hearing here and argued that the labor board’s actions could be “disastrous.” Republican presidential candidates, including former Massachusetts governor Mitt Romney, former Minnesota governor Tim Pawlenty, and former House speaker Newt Gingrich, have also attacked the NLRB’s moves as they gear up to campaign in South Carolina, a critical state in the GOP primaries.

The International Association of Machinists and Aerospace Workers (IAMAW), which initiated the complaint, said it does not want the president to take sides.

“As far as the president becoming involved, we see him as leading by example and staying out of it. This is not a matter for politicians to be throwing their weight around on,” said Frank Larkin, a spokesman for the union. “This is an enforcement issue, and there is a process for handling enforcement issues.”

Barring a settlement, the legal process could stretch on for years, putting a damper on the excitement created here when the huge aircraft manufacturer opened its new plant earlier this month.

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