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Federal Contractor Misconduct Database (FCMD)

The federal government routinely awards contracts to companies with histories of misconduct, including contract fraud and other violations. POGO believes that providing this website will help to improve contracting decisions and increase public knowledge of how the government spends billions of taxpayer dollars each year. Read more…

International Assoc. of Machinists v. Raytheon (Breach of Collective Bargaining Agreements)

The International Association of Machinists (IAM) Local 933 in Tucson, Arizona filed a lawsuit alleging that Raytheon Missile Systems and its predecessor, Hughes Missile Systems, acted improperly by cutting off health benefits to retirees. A federal court ruled that Raytheon retirees and their spouses have a vested right to no-cost health insurance until they reach age 65, pursuant to the terms of collective bargaining agreements between 1990 and 1999. The decision affects approximately 600 retirees who were forced in 2004 to start making payments toward their health coverage. Raytheon must reimburse workers for premiums they paid between 2004 and 2008, which could cost the company as much as $12 million.

Misconduct Type
Labor
Enforcement Agency
Non-Governmental
Contracting Party
None
Court Type
Civil
Disposition
Judgment Against Defendant
Date of Second Appellate Decision
5/21/2012
Contractors Involved Penalty
Total
Raytheon Company Unknown
Further Information Released
IAM Press Releases (2008, 2010, 2012) 5/22/2012

Federal Contractor Misconduct Database