John McCain's top campaign advisers lobbied for European Aeronautic Defence and Space Co. (EADS), which recently won a lucrative Pentagon contract to replace Air Force tankers over fierce competitor Boeing, according to an Associated Press report yesterday, Mar. 11.
While two of those McCain campaign aides claim to have dropped lobbying activities during the campaign, a third, former Texas Rep. Tom Loeffler, lobbied for EADS while working closely with John McCain in the campaign for the Republican nomination, according to the AP story.
The contract, which went to EADS (Airbus) and its partner Northrop Grumman instead of Boeing, angered many after its announcement. Critics, such as Sens. Pat Roberts (R-KS) and Patty Murray (D-WA) described it as outsourcing national security and a dismal failure at addressing the growing unemployment problem in a time of economic recession.
Thousands of Boeing workers are members of the machinists union (International Association of Machinists – IAM) and stand to lose work due to the outcome of the contract. According to the union, if the contract had been awarded to Boeing, it would have supported 44,000 jobs for Boeing and 300 contractors in 40 states.
IAM General Vice President Rich Michalski blasted the Bush administration, saying, “President Bush and his administration have denied real economic stimulus to the American people and chosen instead to create jobs in Toulouse, France.”
Boeing workers affiliated with the engineers union (SPEEA) and the machinists union joined forces and staged protests outside Boeing's massive Everett plant Feb. 29 after the outsourcing deal was announced.
The two unions also put forward a resolution condemning the deal at the AFL-CIO executive council meeting in San Diego last week. The resolution, describing the Airbus deal as 'an insult,' in part read, 'This decision by the Defense Department will have a deep, damaging and enduring impact on the aerospace industry and supporting industries, such as aluminum, glass, rubber and advanced materials and electronics—among many others.'
The decision to outsource this project also flies in the face of President Bush's recent denial of harsh economic realities. 'I think actually spending in the war might help with jobs,' he told NBC News just days before a government report showed a net loss of 85,000 jobs from the economy in January and February.
In 2005, John McCain held Senate hearings that investigated Boeing and used his influence to block the Pentagon from considering EU subsidies EADS/Airbus receives to lower its prices during the bid review process. Both actions likely played a strong role in hindering the awarding of this contract to Boeing.
In addition to his close relationships with current and former EADS/Airbus lobbyists, John McCain took thousands in campaign contributions from EADS employees. A recent report by the Seattle PI suggests, however, that Hillary Clinton has taken the most of the three remaining presidential candidates from executives at EADS's partner Northrop Grumman.
There are troubling signs of a conflict of interest and influence peddling by John McCain deserving a serious Senate Ethics Committee investigation.
