Blog

SPEEA Wins Boeing Case, Workers to Split $47 Million

Nearly 500 current and former Boeing Co. employees who worked at two Southern California plants will share in a $47 million award after an arbitrator agreed with the Society of Professional Engineering Employees in Aerospace (SPEEA)/International Federation of Professional and Technical Engineers (IFPTE) Local 2001 that the company wrongfully denied the workers union representation in 2001.

The engineers and technical workers were employed at Boeing’s Palmdale plant and its Edwards Air Force Base facility when the company denied their union representation even though they were in jobs covered by the contract between SPEEA and Boeing.

After Boeing denied a grievance and refused arbitration, the 14-year journey began that wove its way through U.S. District Court, the regional office of the National Labor Relations Board (NLRB) and eventually to the national NLRB, with Boeing losing, but appealing at each step.

Rich Plunkett, SPEEA director of strategic development who worked the issue since its start, said:

Boeing spent more than a decade and countless dollars trying to break its contracts with these employees. It’s disappointing it took so long, but the employees prevailed.

The arbitrator’s final ruling and award, issued in January, requires Boeing to “make whole” the employees for everything they should have received under the union contracts and then include 10% simple interest.

A total of 251 current employees will share $28 million in back pay and benefits. Another 233 Boeing retirees will share $19 million in back pay and benefits and additional pension. Any current or retired employees who worked at the facilities there after 2000 will share in the award. The amount they will receive depends on how long they worked at facilities.

SPEEA reports that during a meeting with workers now living around Puget Sound in Washington State on April 15, many were shocked by the amount of benefits and pay they nearly lost because Boeing tried to deny their union representation.

“To be honest, I was never a union supporter until I started work at Boeing,” said Jim Pachall, who attended with his wife, Debbie. “I learned unions are here to protect workers. For SPEEA to fight this so hard and for so long is amazing and appreciated.”

Boeing says it is working with SPEEA to meet the May 21 deadline.