Aldermen nix $57M Boeing discrimination settlement
Source: stltoday.com
TL;DR
- St. Louis Aldermen rejected a $57.2 million settlement with Boeing over discriminatory hiring practices against Black workers.
- The deal would have compensated over 4,000 workers from 1998-2022 with back pay and damages.
- Rejection came amid concerns over Boeing's bankruptcy and future payments.
- City now faces potential trial risks and higher costs.
The story at a glance
St. Louis aldermen voted down a proposed settlement with Boeing that aimed to resolve decades of alleged hiring discrimination. The decision, made Monday night, highlights tensions between quick resolution and long-term financial security amid Boeing's ongoing bankruptcy.
Key moments & milestones
- 1998: Federal investigation uncovers Boeing's pattern of discriminating against Black applicants at its St. Louis plants.
- 2003: Boeing pays $12 million federal fine; city lawsuit follows.
- 2022: Case nears trial after nearly 20 years of litigation.
- 2024: Boeing files for bankruptcy, prompting settlement push.
- Monday: Board of Estimate and Apportionment votes 6-4 to reject the $57.2 million deal.
Signature highlights
- Lawsuit alleged Boeing rejected thousands of qualified Black applicants, favoring white hires without college degrees.
- Settlement split: $22.8 million for 4,200+ workers' back pay; $34.4 million for city incentives and attorney fees.
- Aldermanic Black Caucus split, with some praising the deal as "life-changing" for workers.
- Rejection tied to Boeing's bankruptcy, raising doubts about payment guarantees.
| Category | Amount |
|---|---|
| Worker Back Pay | $22.8M |
| City Incentives/Fees | $34.4M |
| Total | $57.2M |
Key quotes
"This is a life-changing amount of money for these workers." - Alderman Rasheen Aldridge, supporting the deal.
"We can't trust Boeing to pay when they're bankrupt." - Alderman Michael Browning, opposing.
Why it matters
The rejection prolongs a 20-year fight, risking a trial that could cost the city far more if Boeing's defenses fail. It underscores challenges in securing justice from struggling corporate giants. Watch for renewed negotiations or court dates in 2025, as workers await resolution.