SEATTLE -- The Boeing Co.'s $15 million discrimination settlement with black workers, mediated with help from the Rev. Jesse Jackson, was put on hold so a group of the workers opposed to the deal can state their objections.
Alan Epstein of Philadelphia, an attorney for the objectors, said the settlement shortchanges the plaintiffs while richly rewarding their lawyers. He also raised questions about whether Boeing channeled money to people and projects associated with Jackson's Rainbow Coalition."Do you believe Reverend Jackson engaged in fraudulent and collusive conduct? Yes or no?" U.S. District Judge John Coughenour asked Epstein during Wednesday's hearing.
"No sir," Epstein replied. "We believe he was misled."
"That is untrue," Jackson press secretary Stephanie Gadlin said after the hearing. "There are erroneous accusations being made."
Coughenour scheduled another hearing for Sept. 23, and gave Epstein permission to take several depositions, including Boeing Chairman Phil Condit.
Condit and Jackson announced on Jan. 22 the settlement of a class-action lawsuit in which 12,900 past and present Boeing workers would receive financial compensation.
The lawsuit was filed on behalf of Boeing employees who alleged they were treated with hostility and passed over for promotions that went to less-qualified white employees.
The highest individual award is $50,000, while attorneys Oscar Desper III and Bruce Harrell of Seattle, who filed the first case in March 1998, receive $3.85 million.
In court, Desper called Epstein's objections "unsubstantiated" and "trickle-down hearsay."
Epstein said Jackson asked consultant Gary Smith to be a "watchdog" over the settlement, a role legally defined in the consent decree.
But Epstein said Smith sits on the board of directors of Jackson's Rainbow Coalition/PUSH Wall Street Project, which received a $50,000 contribution from Boeing in February.
"Why is Boeing making direct contributions to the watchdog?" Epstein said.
Boeing spokesman Peter Conte said the donation was unrelated to the settlement.