Boeing announced on Thursday that it is changing the way it awards employee bonuses to prioritize quality and safety. As a result, this year’s operational targets are solely centered around these two areas.
This disclosure comes amid a flurry of activity as the aircraft manufacturer works to clarify and reinforce safety protocols. The revelation follows the detachment of a door panel on a brand-new Alaska Airlines 737 MAX 9 during a flight on January 5.
In an email to Reuters, Boeing’s commercial unit stated that under the new yearly incentive schemes, safety and quality indicators will now make up 60% of the compensation. These schemes will encompass executives, managers, and employees.
The 737, 767, 777, and 787 are among the commercial aircraft produced by the Boeing Commercial Airplanes (BCA) division.
In a webcast, Boeing COO Stephanie Pope told staff, “It’s very, very important to drive the outcomes that we’re all committed to, and that’s to deliver a safe and quality product to our customer.”
Boeing asserts that operational safety and quality criteria, encompassing traveled work, rework, employee safety, and task completion for aircraft delivery, will be covered. Moreover, these criteria aim to ensure comprehensive oversight and adherence to standards throughout the process.
Previously at the BCA, operational goals such as quality and safety accounted for 25% of the annual award. The remaining 75% originated from financial incentives.
Boeing stated that in order to be eligible for any annual rewards, all personnel must complete training sessions on quality control and product safety. Additionally, this requirement ensures a heightened focus on maintaining high standards within the company.
Seventy-five percent of bonuses in Boeing’s other two businesses, services and defense, will still be decided by financial indicators. However, the corporation stated that the sole criteria used to calculate the operating rankings would be quality and safety.
Boeing was not allowed to increase the production of 737s by the Federal Aviation Administration (FAA) in January because of “the quality assurance issues we have seen are unacceptable.”
According to the WSJ’s initial story on the yearly incentives earlier on Thursday, the decision applies to Boeing’s nonunion workforce of over 100,000 employees. This marks a significant development in the company’s approach to annual incentives.
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