Canadian Manufacturing

Boeing pays US$23M to settle false labour charging allegations

Four present and former Boeing employees alleged company submitted false labour charges to U.S. Air Force

October 14, 2014  by The Associated Press

SAN ANTONIO—The Boeing Co. has paid US$23 million to settle allegations that it submitted false labour charges to the United States Air Force for contract maintenance on C-17 Globemaster transport aircraft.

A Justice Department statement says the allegations centred on labour costs the Chicago-based company charged improperly for maintenance and repair work at Boeing’s Aerospace Support Center in San Antonio, about 300 kilometres west of Houston.

The allegations were made initially by four present and former Boeing employees acting as whistleblowers.

They will divide US$3.9 million as their share of the settlement under terms of the False Claims Act.


In a brief statement, Boeing called the discrepancies “a matter of inadequate charging discipline” not deliberate wrongdoing.

The company said it’s improved charging practices.