Boeing to stop paying for some employees' education

Some Boeing employees are about to lose a fabulous perk, and the cost-cutting move could mean a significant financial hit for some local colleges and universities as well.

Until now, when a Boeing employee enrolled for any class at any accredited college, the company picked up the tuition — with no restrictions. Boeing currently pays for the classes of about 6,000 employees in the Puget Sound region and 21,000 companywide.

But many of those enjoying free classes will lose that benefit at year-end, when Boeing starts limiting its subsidy to cover only courses that further an employee's career at the company.

For now, the new policy applies only to non-union employees, and the unions are ready to resist Boeing plans to have the changes apply to their members.

One local employee, who is entering the second year of Seattle University's four-year evening law-degree program, just learned that beginning in January the company will not pay the $30,000-plus annual tuition.

"It's a huge blow," said the employee, who asked not to be identified when talking about company policies. "One reason I stayed at Boeing was because of the tuition."

Of the 201 law students in Seattle University's part-time evening program, 43 are Boeing employees.

Boeing spokeswoman Karen Forte said the company's support for employees' continuing education previously was almost unlimited.

"It was pretty much an open-checkbook program," she said.

There was no requirement to stay with the company after finishing the coursework, no limit on what kind of classes were covered, she said.

"We've had everything from mortuary science to sports and hobby programs," Forte said.

From October, Boeing will pay for new enrollments only in courses deemed "strategic" to its business. So no more free wine-appreciation classes, culinary-arts degrees or soccer workshops.

"We want to make sure it's feeding into our strategic focus and maximizing the value, if we're paying for it," Forte said. "We're not allowing new employees to enroll in nonstrategic courses. All sports, games, hobbies and fine-arts-type programs are no longer going to be supported."

As for those, like the Seattle U. law student, who are enrolled in expensive career courses — that support stops at year-end unless it's essential for Boeing.

A degree in aerospace engineering? Sure.

A Spanish course? If you're in the airplane-sales business, you could make a case. If you are an engineer in Everett, forget it.

A Boeing-paid law degree? Not without a direct benefit to the company's legal department.

Also, Boeing's contribution will be capped at $15,000 a year, even for a graduate program that's deemed strategic.

Seattle University associate provost Jim White said the likely effect is that Boeing employees taking courses that qualify for support will have to take fewer classes per quarter, stretching their degrees out over more years.

Boeing also will require employees to stay at the company for at least two years after finishing a course — otherwise, an employee must reimburse the company.

Right now, the changes to the program affect only salaried, non-union employees.

However, Forte said Boeing is currently talking to its unions about having similar changes apply to their members. She said that such changes would not necessarily have to wait until a new contract is negotiated, but that Boeing cannot impose changes "without at least sitting down with the union."

"That's what we plan to do," Forte said. "We will definitely attempt to influence a change so there is parity" between union and non-union workers.

Boeing's white-collar union, the Society of Professional Engineering Employees in Aerospace (SPEEA), told its members in a note Friday morning that "under federal labor law, the company cannot make unilateral changes in wages, benefits or working conditions for SPEEA-represented employees during a contract term without notifying and engaging SPEEA.

"SPEEA-represented employees presently interested in the Learning Together Program should continue with their plans," the note advised.

Last year, Seattle University had 358 Boeing employees enrolled in graduate courses and 32 more in undergraduate programs.

White said Boeing had not given the university advance notice about the details of the policy shift.

"I'm surprised at the sudden change," White said. "I'd hoped they'd grandfather currently enrolled students through whatever program they are in. But the company's apparently not going to do that."

White said Seattle University hasn't yet worked out the financial impact, and is exploring how to help the students who will lose funding.

"We're trying to get our arms around it," White said.

It was a great perk while it lasted.

"We absolutely know that," said the Boeing law student at Seattle U.

Dominic Gates: 206-464-2963 or dgates@seattletimes.com

This story was originally published Sept. 25, 2009, and corrected the same day. The story originally failed to note that the change in policy, for now, affects only non-union employees.