Business
El Segundo Boeing workers file whistleblower lawsuits alleging retaliation
Late last year, Boeing employee Craig Garriott says a 4-ton satellite inside an El Segundo plant fell after engineers failed to properly secure a clamp.
No one was injured by the collapse of the $1 billion-plus satellite that happened over a weekend, but it could have been fatal if workers were present, Garriott claims.
The incident highlighted a raft of safety violations that were ignored by management, according to a whistleblower lawsuit that was recently transferred to federal court in Los Angeles.
In the lawsuit, the veteran Boeing employee alleges that his employer retaliated against him for speaking out about problems he saw at Boeing and Millennium Space Systems, a Boeing defense contractor that makes small satellites.
“I will say that this case is not just a case of retaliation,” said Leonard Sansanowicz, an attorney representing Garriott.
“The larger issues that we’re talking about are public safety, workplace safety and what’s being done with taxpayer dollars.”
Boeing has denied the allegations in court papers, but declined to comment on the litigation.
The lawsuits come as the Arlington, Va.-based aerospace giant’s new chief executive, Kelly Ortberg, grapples with a strike by its machinists union and ongoing controversies over its manufacturing and safety practices — including how it treats employee whistleblowers who have alleged quality control and other problems.
In June, outgoing CEO Dave Calhoun admitted at a Senate hearing that whistleblowers have faced retaliation — saying “I know it happens” — with Boeing promising to take steps to fix the problem.
“This is another black eye,” Dan Bubb, a professor of history with a focus on aviation at the University of Nevada, Las Vegas, said of the lawsuits. “The punches just keep landing one after the other.”
Boeing acquired Millennium Space Systems in 2018 for an undisclosed amount.
Garriott, 53, a technician who has worked at Boeing since 1997, alleges his problems began in 2017, when a supervisor at other Boeing operations in El Segundo asked him and others to sign off that work on a government contract had been completed, when it had not.
When he refused to do so, he said was derided by another manager for not being a “team player,” demoted and denied other work opportunities despite prior positive performance reviews, the lawsuit states.
After taking a leave from Boeing for several years to work for the Cabinet Makers, Millmen and Industrial Carpenters union, he returned to work in 2022 at Boeing and Millennium while also serving as a union steward.
He alleges that he made a series of safety complaints that lead to threats and retaliation against him, including one over thermal testing that was being done on equipment on nights and weekends, despite the danger of fire.
After speaking out, he claims he was verbally abused, physically threatened, accused of creating a hostile work environment and barred from work areas.
Garriott’s spouse, Kathy Moonitz, 55, a Boeing quality inspector since 2021, also has sued her employer, alleging in a separate whistleblower lawsuit that she was collateral damage to her husband’s efforts to stem “pay to play” nepotism at the company.
She claims that after her husband filed a complaint in 2022 that a Boeing manager purchased a $10-million propellant system from a company owned by a family friend and then hired the owner’s child, she was falsely accused of making a bad purchase of welding materials.
Garriott and Moonitz continue to work at the company, said Sansanowicz, who represents both plaintiffs in the lawsuits. Several managers also are defendants in the litigation.
The lawsuits allege the stress of the retaliation has caused the couple to separate several times since their 2021 marriage.
This summer, Boeing successfully moved to have the lawsuits, originally filed in April in Los Angeles County Superior Court, transferred to U.S. District Court, arguing that they involved federal labor issues. Sansanowicz said the company’s procedural advantages in federal court include the requirement for a unanimous verdict in the cases. The plaintiffs are seeking to have the cases returned to state court.
In April, Millennium received a U.S. Space Force contract valued at up to $414 million to build eight satellites capable of detecting advanced threats such as hypersonic missiles. The company’s CEO, Jason Kim, recently left and a successor has yet to be named.
Millennium is part of Boeing’s Defense, Space & Security unit, which saw the departure last month of its CEO, Ted Colbert. That followed challenges that included the ill-fated mission to ferry two astronauts up to the International Space Station on its new Starliner spacecraft.
After launching in June following repeated delays, the capsule returned remotely and uncrewed due to problems with its propulsion system. The mishap was particularly embarrassing since NASA decided to have Elon Musk’s Hawthorne rival SpaceX bring the astronauts back to Earth in February.
Boeing is also continuing to suffer fallout from the crashes of two of its 737 Max 8 planes several years ago, and more recently the blowout of a door plug last January on an Alaska Airlines flight to Ontario International Airport in San Bernardino County. Investigators found the plug on the 737 Max 9 aircraft was missing four bolts.
Attorney Tim Loranger, who is representing passengers on the flight who have sued Boeing, said the allegations in the Los Angeles lawsuits are consistent with union testimony at recent National Transportation Safety Board hearings on the door-plug blowout.
“Boeing’s culture does not value employees’ involvement in safety issues, in issues related to quality assurance and they feel sort of isolated — and that really speaks very loudly to why it is that these problems are happening,” he alleged.
Nike is cutting about 1,400 jobs in its operations division, mostly from its technology department, the company said Thursday.
In a note to employees, Venkatesh Alagirisamy, the chief operating officer of Nike, said that management was nearly done reorganizing the business for its turnaround plan, and that the goal was to operate with “more speed, simplicity and precision.”
“This is not a new direction,” Mr. Alagirisamy told employees. “It is the next phase of the work already underway.”
Nike, the world’s largest sportswear company, is trying to recover after missteps led to a prolonged sales slump, in which the brand leaned into lifestyle products and away from performance shoes and apparel. Elliott Hill, the chief executive, has worked to realign the company around sports and speed up product development to create more breakthrough innovations.
In March, Nike told investors that it expected sales to fall this year, with growth in North America offset by poor performance in Asia, where the brand is struggling to rejuvenate sales in China. Executives said at the time that more volatility brought on by the war in the Middle East and rising oil prices might continue to affect its business.
The reorganization has involved cuts across many parts of the organization, including at its headquarters in Beaverton, Ore. Nike slashed some corporate staff last year and eliminated nearly 800 jobs at distribution centers in January.
“You never want to have to go through any sort of layoffs, but to re-center the company, we’re doing some of that,” Mr. Hill said in an interview earlier this year.
Mr. Alagirisamy told employees that Nike was reshaping its technology team and centering employees at its headquarters and a tech center in Bengaluru, India. The layoffs will affect workers across North America, Europe and Asia.
The cuts will also affect staffing in Nike’s factories for Air, the company’s proprietary cushioning system. Employees who work on the supply chain for raw materials will also experience changes as staff is integrated into footwear and apparel teams.
Nike’s Converse brand, which has struggled for years to revive sales, will move some of its engineering resources closer to the factories they support, the company said.
Mr. Alagirisamy said the moves were necessary to optimize Nike’s supply chain, deploy technology faster and bolster relationships with suppliers.
A bill that would have required insurers to offer coverage to homeowners who take steps to reduce wildfire risk on their property died in the Legislature.
The Senate Insurance Committee on Monday voted down the measure, SB 1076, one of the most ambitious bills spurred by the devastating January 2025 wildfires.
The vote came despite fire victims and others rallying at the state Capitol in support of the measure, authored by state Sen. Sasha Renée Pérez (D-Pasadena), whose district includes the Eaton fire zone.
The Insurance Coverage for Fire-Safe Homes Act originally would have required insurers to offer and renew coverage for any home that meets wildfire-safety standards adopted by the insurance commissioner starting Jan. 1, 2028.
It also threatened insurers with a five-year ban from the sale of home or auto insurance if they did not comply, though it allowed for exceptions.
However, faced with strong opposition from the insurance industry, Pérez had agreed to amend the bill so it would have established community-wide pilot projects across the state to better understand the most effective way to limit property and insurance losses from wildfires.
Insurers would have had to offer four years of coverage to homeowners in successful pilot projects.
Denni Ritter, a vice president of the American Property Casualty Insurance Assn., told the committee that her trade group opposed the bill.
“While we appreciate the intent behind those conversations, those concepts do not remove our opposition, because they retain the same core flaw — substituting underwriting judgment and solvency safeguards with a statutory mandate to accept risk,” she said.
In voting against the bill Sen. Laura Richardson, (D-San Pedro), said: “Last I heard, in the United States, we don’t require any company to do anything. That’s the difference between capitalism and communism, frankly.”
The remarks against the measure prompted committee Chair Sen. Steve Padilla, (D-Chula Vista), to chastise committee members in opposition.
“I’m a little perturbed, and I’m a little disappointed, because you have someone who is trying to work with industry, who is trying to get facts and data,” he said.
Monday’s vote was the fourth time a bill that would have required insurers to offer coverage to so-called “fire hardened” homes failed in the Legislature since 2020, according to an analysis by insurance committee staff.
Fire hardening includes measures such as cutting back brush, installing fire resistant roofs and closing eaves to resist fire embers.
Pérez’s legislation was thought to have a better chance of passage because it followed the most catastrophic wildfires in U.S. history, which damaged or destroyed more than 18,000 structures and killed 31 people.
The bill was co-sponsored by the Los Angeles advocacy group Consumer Watchdog and Every Fire Survivor’s Network, a community group founded in Altadena after the fires formerly called the Eaton Fire Survivors Network.
But it also had broad support from groups such as the California Apartment Association, the California Nurses Association and California Environmental Voters.
Leading up to the fires, many insurers, citing heightened fire risk, had dropped policyholders in fire-prone neighorhoods. That forced them onto the California FAIR Plan, the state’s insurer of last resort, which offers limited but costly policies.
A Times analysis found that that in the Palisades and Eaton fire zones, the FAIR Plan’s rolls from 2020 to 2024 nearly doubled from 14,272 to 28,440. Mandating coverage has been seen as a way of reducing FAIR Plan enrollment.
“I’m disappointed this bill died in committee. Fire survivors deserved better,” Pérez said in a statement .
Also failing Monday in the committee was SB 982, a bill authored by Sen. Scott Wiener, (D-San Francisco). It would have authorized California’s attorney general to sue fossil fuel companies to recover losses from climate-induced disasters. It was opposed by the oil and gas industry.
Passing the committee were two other Pérez bills. SB 877 requires insurers to provide more transparency in the claims process. SB 878 imposes a penalty on insurers who don’t make claims payments on time.
Another bill, SB 1301, authored by insurance commissioner candidate Sen. Ben Allen, (D-Pacific Palisades), also passed. It protects policyholders from unexplained and abrupt policy non-renewals.
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Politicians in Washington and the reporters who cover them have an often adversarial relationship.
But on the last Saturday in April, they gather for an irreverent celebration of press freedom and the First Amendment at the Washington Hilton Hotel: The White House Correspondents’ Association dinner.
Hosted by the association, an organization that helps ensure access for media outlets covering the presidency, the dinner attracts Hollywood stars; politicians from both parties; and representatives of more than 100 networks, newspapers, magazines and wire services.
While The Times will have two reporters in the ballroom covering the event, the company no longer buys seats at the party, said Richard W. Stevenson, the Washington bureau chief. The decision goes back almost two decades; the last dinner The Times attended as an organization was in 2007.
“We made a judgment back then that the event had become too celebrity-focused and was undercutting our need to demonstrate to readers that we always seek to maintain a proper distance from the people we cover, many of whom attend as guests,” he said.
It’s a decision, he added, that “we have stuck by through both Republican and Democratic administrations, although we support the work of the White House Correspondents’ Association.”
Susan Wessling, The Times’s Standards editor, said the policy is a product of the organization’s desire to maintain editorial independence.
“We don’t want to leave readers with any questions about our independence and credibility by seeming to be overly friendly with people whose words and actions we need to report on,” she said.
The celebrity mentalist Oz Pearlman is headlining the evening, in lieu of the usual comedy set by the likes of Stephen Colbert and Hasan Minhaj, but all eyes will be on President Trump, who will make his first appearance at the dinner as president.
Mr. Trump has boycotted the event since 2011, when he was the butt of punchlines delivered by President Barack Obama and the talk show host Seth Meyers mocking his hair, his reality TV show and his preoccupation with the “birther” movement.
Last month, though, Mr. Trump, who has a contentious relationship with the media, announced his intention to attend this year’s dinner, where he will speak to a room full of the same reporters he often derides as “enemies of the people.”
Times reporters will be there to document the highs, the lows and the reactions in the room. A reporter for the Styles desk has also been assigned to cover the robust roster of after-parties around Washington.
Some off-duty reporters from The Times will also be present at this late-night circuit, though everyone remains cognizant of their roles, said Patrick Healy, The Times’s assistant managing editor for Standards and Trust.
“If they’re reporting, there’s a notebook or recorder out as usual,” he said. “If they’re not, they’re pros who know they’re always identifiable as Times journalists.”
For most of The Times’s reporters and editors, though, the evening will be experienced from home.
“The rest of us will be able to follow the coverage,” Mr. Stevenson said, “without having to don our tuxes or gowns.”
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