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pnwmom

(109,000 posts)
Fri Mar 28, 2014, 03:56 PM Mar 2014

BOEING: Experienced, well-paid research engineers to be replaced by cheaper 20-something engineers.

What could possibly go wrong?

Boeing is dismantling the conscientious staff of experienced research engineers in Seattle that designed the 777 and all its other proven-safe planes, and shipping off the work, at a lower pay grade, to non-union states.

This is what happened when the management of the company was taken over by people from other industries, who treat the planes as just another product to produce as cheaply as possible. People who dedicated their lives to making sure that planes flew safely are being pushed out.

http://seattletimes.com/html/businesstechnology/2023244391_boeingengineersxml.html

The people left hanging work in Boeing Research & Technology (BR&T), the company’s advanced central research and development unit. Providing support to the company’s commercial, military and space units, they run labs that test loads on airplane parts or the performance of electronic systems. They also research breakthrough technologies for the creation of new products.

In an early December webcast, management told BR&T employees about 1,000 jobs in the Puget Sound region will be lost over a couple of years to new technology research centers in Huntsville, Ala., St. Louis, and North Charleston, S.C.

For local staff whose jobs are moved, most are not expected to be offered positions at the new centers, where jobs are being reposted at lower-paid grade levels.

“We have not been told we can apply for the jobs in Alabama. We haven’t been told we can’t. We have been told that there won’t be any relocation funds for us,” said one technical staffer whose work is earmarked for Huntsville.

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BOEING: Experienced, well-paid research engineers to be replaced by cheaper 20-something engineers. (Original Post) pnwmom Mar 2014 OP
I saw this happening in my old company, Worldspan LongTomH Mar 2014 #1
Now they are treating PhD's this way. It won't work. Boeing has some of the top PhD's pnwmom Mar 2014 #3
I used to work at that company too..........share the same view Swede Atlanta Mar 2014 #7
A cardinal truism of business: riqster Mar 2014 #2
it'll be interesting to hear what they say when THEY are forty something being replaced by 20 leftyohiolib Mar 2014 #4
Virginai Department of Transportation bpj62 Mar 2014 #5
And Virginia was probably paying to have some of its own former employees pnwmom Mar 2014 #6

LongTomH

(8,636 posts)
1. I saw this happening in my old company, Worldspan
Fri Mar 28, 2014, 04:02 PM
Mar 2014

The executives decided that a programmer is a programmer is a programmer and they could give any programmer an assignment with any system, whether the programmer had experience with that system or not.

pnwmom

(109,000 posts)
3. Now they are treating PhD's this way. It won't work. Boeing has some of the top PhD's
Fri Mar 28, 2014, 04:07 PM
Mar 2014

in the world on its engineering staff, and they have specific backgrounds. They can't just be swapped in like interchangeable parts, without a loss.

Fortunately for them, these PhD's have other options and will take them. But for future Boeing airplane passengers, it's not so fortunate.

 

Swede Atlanta

(3,596 posts)
7. I used to work at that company too..........share the same view
Fri Mar 28, 2014, 05:43 PM
Mar 2014

Boeing is banking they can hire younger engineers and achieve cheaper labor costs (purely salary and possibly lower benefits if they have a two-tier system), "smarter" guys/gals because they are younger and therefore more recently out of university and they expect they can work them more hours because they are younger, get more productivity out of them and they won't get sick or cost as much in health care and time off including vacation.

Study after study has shown these are false assumptions. I agree that a workforce should be diverse. You do want younger workers coming in with new ideas, workers from other industries and other companies, etc. But you also need people who know your industry, your customers, your competitors, etc.

While I worked at Worldspan as well (a software and solution provider to airlines, travel agencies, etc.), I now work at a company that serves the same industry.

The company was also assuming that moving software development to India was going to save them lots of money. My experience, and I work with them every day, is that there was likely an immediate drop in initial outlay for man days of development work but what has come back is lack of quality, re-work, etc. At the same time there is no loyalty with these offshoring companies. As soon as you get a few programmers, business analysts, quality assurance staff, etc. knowledgeable about your products, code base, processes, etc. they jump ship for more money.

As a result the man day cost for programmers in India has skyrocketed. They are still likely cheaper on a purely man day cost basis than programmers in the U.S., Canada or Western Europe but the other factors mentioned above are still at play.

When companies dive for the botom of the pool it spells disaster for the domestic economy. U.S. worker productivity has gone through the roof. But that isn't enough. The greedy shareholders want more, more, more. And so companies continue to hatchet their way to the bottom. I don't think they are going to find the pot of gold they expect.

riqster

(13,986 posts)
2. A cardinal truism of business:
Fri Mar 28, 2014, 04:03 PM
Mar 2014

"Not everything of value can be displayed on a balance sheet."

Far too many have forgotten this.

 

leftyohiolib

(5,917 posts)
4. it'll be interesting to hear what they say when THEY are forty something being replaced by 20
Fri Mar 28, 2014, 04:18 PM
Mar 2014

somethings willing to work for less

bpj62

(999 posts)
5. Virginai Department of Transportation
Fri Mar 28, 2014, 04:22 PM
Mar 2014

Back in the early 90's when George Allen became Governor of Virginia he came up with this neat little plan to gut the VDOT by offering buyouts to all of the employees with 20+ years on the job. His theory was that VDOT was bloated and that the buyouts would cut the budget in half. Well about a year goes by and suddenly VDOT realizes that they have a real brain drain problem because all of their senior engineers had taken the buyouts and were now working in the private sector. So now Virginia has to pay almost twice as much as it did for engineering work because it had to be outsourced instead of being done in house. This is what happens when politics gets in the way of practical thinking. Makes me worry about flying whatever the next generation Boeing jumbo is.

pnwmom

(109,000 posts)
6. And Virginia was probably paying to have some of its own former employees
Fri Mar 28, 2014, 04:32 PM
Mar 2014

do the work, except as much higher paid employees of those private consulting firms .

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