Early retiree benefits lawsuit

Case moving forward after judge’s ruling

A federal magistrate judge recently ruled on seven motions related to the discovery phase in a SPEEA lawsuit over early retirement medical benefits against The Boeing Company and Spirit AeroSystems.

“We appreciate the court’s attention to these disputes and are happy to have prevailed on key points,” said Arlus Stephens, the Washington, D.C., lawyer working on behalf of SPEEA since 2005, when the suit was filed. “The case is moving forward,” he added.

The court ruled on whether Boeing had to provide specific information requests (documents and witness statements) as part of the discovery phase. Both SPEEA and Boeing filed for judicial intervention regarding the requests, which triggered the several-month delay.

Of the motions requesting information that the court sided with SPEEA and the other plaintiffs, Boeing produced the first batch of new documents Dec. 7.

Both sides are still waiting for rulings on other discovery-phase motions and are negotiating remaining time periods.

After the discovery phase, both sides are scheduled to file final arguments for summary judgment. The court can enter judgment for one side or the other or call for a trial.

SPEEA and the plaintiffs seek restoration of ‘bridge benefits’ for early retirement medical and pension benefits taken away in a divestiture.

About the case

When Boeing sold its commercial airplane facility in Wichita in 2005 to Spirit AeroSystems, Boeing denied early retirement ‘bridging’ benefits owed to eligible employees who lost their jobs due to the sale. This applies to employees who were 49 to 55 with at least 10 years of service at the time.

SPEEA filed the initial suit for breach of contract, and then the International Association of Machinists (IAM) joined the suit. SPEEA also helped file a class-action with former Boeing employees as named plaintiffs.

The class-action lawsuit seeks payment of benefits guaranteed in the contract – both the pension and health care for eligible employees.

Timeline

· June 16, 2005 - Boeing layoffs due to divestiture.

· Aug. 8, 2005 - SPEEA filed lawsuit.

· Feb. 16, 2007 - Plaintiffs filed lawsuit.

· Nov. 3, 2009 - Judge ruled on discovery phase motions.