From Deseret News archives:

Who'll get Air Force tanker jobs?

Outsourcing's effect on Utah workers is unclear

Published: Friday, Dec. 21, 2007 12:10 a.m. MST
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Tim Paynter, a Northrop Grumman spokesman for the KC-30 tanker program, said the KC-30 would have 58 percent of its content from the United States. Boeing also would use off-shore components that would be assembled in the United States, he said.

Paynter said Northrop Grumman's Utah employee total would likely remain unchanged, regardless of which bid wins. But, he said, four supplier companies in Utah would add a total 220 jobs if the EADS/Northrop Grumman bid prevails.

He declined to name the companies but said two are in Ogden, one is in Spanish Fork and one is in West Valley City. Two of them supply components for Airbus and two supply engine parts to General Electric Aviation, which also is a part of the bid.

"This is obviously a desperate attempt to twist the facts and mislead the public about this program," Paynter said after the Utah news conference. "There are two U.S. companies vying for this contract and if either company is selected, Utah wins."

EADS North America and the Utah companies that would be part of the supply chain have a total of 1,232 Utah employees, he said.

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Northrop Grumman's name was not mentioned during the news conference. Instead, speakers stressed the potential economic impact on Utah and U.S. manufacturing jobs going off-shore should Boeing's bid lose. Boeing's tanker, called the KC-767, would be based on a 767 freighter and feature work in more than 40 states.

"It's not just about 'X' number of jobs going overseas," Kusina said. "It's high-paying, high-tech jobs and an industry critical to our long-term future."

Both Corroon and Hansen referred to EADS subsidies from the European Union. Hansen said EADS has a "shady history" and that its "illegal subsidies" totaling $100 billion already have resulted in 65,000 U.S. manufacturing jobs being moved overseas. U.S. trade representatives have filed a lawsuit over the subsidies with the World Trade Organization, he said.

"We're very concerned about losing a potential contract to an overseas company," Corroon said, "and we're also concerned that the company may be receiving special subsidies which our local U.S. company will not be receiving which would therefore tilt the playing field against our U.S. company, Boeing."


E-mail: bwallace@desnews.com

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