Federal Court Upholds Important Arbitration Decision Against Boeing

June 21, 2012

The United States District Court in Chicago today upheld an arbitration decision against a legal challenge filed by Boeing Co. This decision is just the latest part of a seven-year legal dispute over Boeing's failure in 2005 to treat hundreds of former employees as "laid off" and its decision to deny them appropriate pension and health insurance benefits.

In a previous lawsuit, the federal courts upheld a finding that Boeing should have treated those employees as "laid off." After Boeing lost on the merits, Boeing still refused to provide the former employees with a complete remedy for their losses. The employees' union – the UAW – argued to an appointed arbitrator that the employees should receive a complete remedy for their lost pension benefits and health insurance. Boeing argued the employees should receive reduced health insurance and very little for their lost pension payments.  In January 2012, the arbitrator ruled in favor of the UAW's position.

In April, Boeing filed a lawsuit to overturn the arbitrator’s decision. The UAW moved the Court to uphold it. In today's decision, the District Court agreed with UAW, rejected Boeing's arguments, and upheld the arbitrator's decision. Murphy Anderson lawyers Arlus J. Stephens, Michael T. Anderson and Renee Gerni assisted the UAW, along with co-counsel from Detroit and Chicago.