Boeing Agrees to Pay $15 Million to Settle Bias Suits

Boeing Co. said Friday it has agreed to pay $15 million to settle two class-action lawsuits by African American employees alleging discrimination in the workplace.

At a joint news conference with the Rev. Jesse Jackson, Boeing Chief Executive Phil Condit promised to “improve promotions, enhance training and ensure avenues of complaints” for African American workers.

The proposed settlement, which would go to 20,000 past and present black employees, includes workers at Boeing plants in Long Beach; Seattle; Philadelphia; Tulsa, Okla.; St. Louis; and Wichita, Kan.

Jackson, who helped mediate the settlement, called it a “significant step” toward “evening the playing field.” He called on Boeing to bring more diversity to its board of directors, procurement practices and pension fund management.

The settlement is substantially smaller than the $176 million Texaco Inc. paid in a similar racial discrimination suit in which Jackson was involved, but it compares favorably with a $6.7-million suit filed on behalf of African Americans at Pennzoil Co. and a $12.1-million racial discrimination settlement against United Parcel Service two years ago.

Boeing denied engaging in any discriminatory conduct as part of the consent decree, which will be presented to U.S. District Judge John Coughenour to settle existing claims by Boeing’s African American employees.

The 264 workers identified in the two suits would share $3.77 million. Another $3.65 million would go for diversity training at the aerospace company, while $4 million would go to the plaintiffs’ attorneys.

The remaining $3.53 million would be divided among other “class” members, including 12,900 current African American employees and 7,000 who formerly worked for the company.

Employees who worked over the last six years at Rockwell International Corp. and McDonnell Douglas Corp., two aerospace companies Boeing acquired, are included.

Employees must have worked for the companies at least a year and swear under penalty of perjury that they believe they have been a victim of racial discrimination.

Oscar Desper, attorney for the workers, said the money was not a handout.

“They earned this in their tears,” Desper said. “They earned it when psychologically it harmed their marriages. This was for self-respect and dignity that everybody should be accorded as God’s children.”

Boeing and its various subsidiary operations have faced many discrimination complaints in recent years. Between 1992 and 1997, for example, 334 discrimination complaints were filed against McDonnell Douglas, 184 were filed against Rockwell, and 88 were filed against Boeing.

Last March, 43 Boeing employees in Seattle filed an $82-million discrimination lawsuit, saying they were the targets of racial slurs and were denied equal opportunities for promotion.

A few of those employees, joined by workers at other Boeing plants, sought class-action status in June.

A separate group from Boeing’s helicopter plant in Philadelphia filed a class-action suit in July.