Boeing would pay $90 million to settle lawsuit over benefits

Boeing and the Society of Professional Engineering Employees in Aerospace have reached a settlement that, if approved, would require Boeing to pay $90 million to settle a 10-year-old class action lawsuit over pension and retiree health benefits for some former Boeing Co. employees represented by the SPEEA and two other unions.

The settlement stems from a lawsuit filed in federal court by the SPEEA in 2005 that alleged some union-represented workers at Boeing who went to work for Spirit AeroSystems following the sale of Boeing’s commercial operations in Wichita did not receive the pension and retiree health benefits they were due.

According to the lawsuit, the benefits were owed the workers under collective bargaining agreements with the SPEEA, the International Association of Machinists and the International Brotherhood of Electrical Workers.

According to documents filed Friday with the U.S. District Court for the District of Kansas, $4.25 million in attorney fees and expenses would come from the $90 million settlement, as would $147,500 in administrative fees and expenses.

The amounts received by individual workers included in the class action suit would vary based on a formula that includes eligible workers’ credited years of service at Boeing and the number of months they did not receive Boeing pension benefits while they were employed by Spirit, court documents said.

The documents gave an example of a man who is still employed by Spirit and will retire at 62. The example said he had 23 years of credited service at Boeing and was eligible to receive Boeing pension benefits beginning at age 55. That would entitle him to receive an estimated $41,000 in lost Boeing pension benefits, the documents said. The other example was a woman who had 25 years of credited service at Boeing, went to work at Spirit and retired three months after turning 55. In that example, according to the documents, the worker would be eligible for an estimated $1,600 under the settlement.

The settlement also provides for reimbursement for certain medical costs, up to a maximum of $40,000 for each member of the class action, court documents said.

Final approval of the settlement won’t come until after a settlement fairness hearing is held in federal court on Aug. 19 in Wichita. It’s at that hearing that members of the class action lawsuit could raise objections to the settlement.

The Society of Professional Engineering Employees in Aerospace plans to hold two meetings on Wednesday updating members about the settlement. The meetings are to be held at 2 and 6 p.m. at the Machinists District Hall, 3839 S. Meridian. Only members of the class action lawsuit will be permitted to attend, according to the notice.

SPEEA Midwest director Bob Brewer refused Monday to comment on the settlement agreement or the lawsuit, citing a federal gag order.

A spokesman for Boeing Co. in Chicago said he could comment only on the fact that the company had come to a settlement agreement with plaintiffs in the lawsuit.

This story was originally published May 11, 2015 at 11:24 AM with the headline "Boeing would pay $90 million to settle lawsuit over benefits."