Suit filed over pension plan
Boeing has said that two current and two former employees have sued over its calculation of pension benefits, AFX News reported from Washington.
The company said Wednesday in a quarterly filing to the U.S. Securities and Exchange Commission that the plaintiffs had asserted that starting Jan. 1, 1999, the benefit formula used by the Pension Value Plan at Boeing to compute accrued benefits violated the Employee Retirement Income Security Act. The plaintiffs said they were entitled to a recalculation of their benefits and other equitable relief, the filing said.
Boeing rejected the basis of the lawsuit, saying, “We believe the allegations claimed by plaintiffs lack merit and intend to contest the matter vigorously.”
The lawsuit seeks class-action status to represent the plaintiffs and similar participants in the pension plan. The claim was filed in the U.S. District Court for the Southern District of Illinois against Boeing, McDonnell Douglas and the Pension Value Plan, Boeing said in its filing. Boeing and McDonnell Douglas merged in 1997. Full Article Here:
One sort of wonders why Boeing doesn’t just cut off their employees and dump their retirement plan, like US airlines seem to be able to do at will. The whole Tribune article, excerpted above, is some pretty damn sad reading if you, like me, are a proud American and want to be proud of what we once thought were honorable, world-leader American companies.
The “rest of the story” is that Boeing is writing off big losses paid to literally “hush up” investigations as to how they won contracts by stealing information from competitors. Unlike you or me or any other legitimate corporation, Boeing can just pay money to make the charges go away. They are so generous they aren’t even going to claim these legal “bribes’ as tax deductions. Wow. Haul out the American Freedom Medal and get it sent off to Boeing post haste.
Boeing is the leader in commercial and military aircraft. AirBus, with its government support now runs a close second, but Boeing still maintains a lead. But, I wonder, at what cost.
William Edward Boeing left school at Yale in 1903, the year my daddy was born, to work in the family’s lumber business. Like many young men of that era he became fascinated by the new technology of aviation. Unlike any of those other men he built a company and when things were tough he poured virtually all of his personal fortune into the company, paying workers from his own pocket rather than letting the company fold or laying them off and telling them, “Tough luck, fellow”.
When the US government falsely reported that Boeing had committed unfair business practices (proven as false because they couldn’t find evidence to file charges), Boeing sold out all his interests in the company that was his life, to assure that the tarnish attached to him personally wouldn’t hurt the company.
How “Mr. Bill” must be turning over in his grave now. I’m still a big fan of Boeing’s technology and design folks but today’s executives? Common guys, I don’t care where you got your MBA, you don’t win contracts by stealing, by smoozing government employees (an act I have personal knowledge of) and you don’t make up for losses in paying fines by trying to disenfranchise your workers who have stayed long enough to earn a pension. I know for a fact Boeing employs an excellent corporate historical staff … I suggest current executives read the histories they have paid for.
Related posts:
- Just What Does Medicare Cost — For You?
- Types of Retirement — Our Roadmap
- FERS, the Background and Nitty Gritty
- Making Sure Benefits Are Known
- What’s Your retirement Plan — Here’s One Guy’s Solution
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